The Basics of Crowd-Funding – Does it Help Grow Your Business the Way you Would Like it to?
For all the budding entrepreneurs and bootstrappers around the world, crowdfunding is the way forward. Starting your business is one of the hardest things you can do. And sourcing funding is the toughest of them all! If you have tried options like loans or giving up equity, we understand you might be frustrated.
But did you know that there is another way to raise funds for your business? You can raise capital for your brand new venture by introducing your product to the market or scaling your business. Well, this is how you can bring crowdfunding to the fore. These people or funders will back your project as they follow a common passion and can bail you out of financial woes.
Crowdfunding is especially beneficial for small businesses. There is a huge leap in crowdfunding from the last year, as much as 146%. North America saw over $9.5 billion raised from crowdfunding. According to World Bank Crowdfunding, by 2025, it can hit the $93 billion mark by 2025. So, is it good for everyone? Not if you are in a hurry. Remember, it requires a lot of time and effort to get crowdfunding for your project. If you are wondering how to get your crowdfunding campaign, right? Here are a few ways to help you with the same.
Successful campaigns that got it right
You may not be an expert in this field. However, you can learn from the experience of those who have already done it and found success. So, explore the successful crowdfunding campaigns of other organizations and follow their footsteps. For instance, GoFundMe, Kickstarter, and Indiegogo are some companies that were greatly successful in getting crowdfunding.
They did this not just for the successful launch of their business but also for platforms that enable crowd fundraising. Going through their brand stories, understanding the challenges they faced, and the way they overcame the hurdles will help you find success with ease!
Crowdfunding can help test the waters. Before you launch your product or service in the market, getting market validation will ensure your venture’s success. That’s because it will help you understand what people think of your product, service, or brand and allow you to work upon it. If it is easy for you to find investors for your project, it is obvious that your business idea is a success, and you will find more customers in the future.
However, if the funding process seems like a tough nut to crack, you might have to reevaluate your business plan or idea. To attract the right backers for your project, you should understand if people will buy your product. So, make sure your campaign not just focuses on raising funds for your business but also gives you the right market picture. If the business idea gets market validation, there’s nothing that can stop you from being successful!
Build anticipation for the product
The big crowdfunding websites have a loyal clientele who are willing to invest in new products and business ideas. They are constantly in touch with the crowdfunding community and constantly evaluating ideas.
While this has, it’s advantages. It has a few disadvantages too. For instance, with numerous business ideas coming their way, they might not pay much attention to the product or service you have to offer.
And that might result in you not getting the attention you deserve. However, you could beat this by setting your business idea apart from the rest and focusing on your USP. Building a sense of anticipation around the product even before the launch will get the investors’ interest.
Tell a good story
Everyone loves a good brand story. With the crowd, funders are looking for a solid reason to finance your product, building a story around your business will capture their interest and help them pick you over the rest.
As the backers are interested in your product and you as an entrepreneur, it is important to have a brand story that captures your passion as a business owner. That’s why you need to focus on a two-way approach to see the story for your specific campaign.
Choose the right platform
Now that you know what needs to go into your campaign, you need to decide where it would go. Yes, from one of the many platforms we just spoke about, or the numerous others out there, you need to pick a crowdfunding platform.
As there are no one-size-fits-all in these websites, you need to filter through them and choose the one that best suits your business needs.
Look for campaign structure, product type, rewards, fees, etc. while picking a platform. So, what’s stopping you now? Go ahead, try this novel way of financing your business interests. It may just about prove to be your best bet yet!
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