Did you know that there’s actually more to crowdfunding than just raising funds? In reality, crowdfunding comes with a whole host of benefits which will have you putting it at the top of your yearly to-do list.
If you don’t believe us then take a look at some of the great crowdfunding success stories, such as What A Melon, Efoldi and Bio-bean. Collectively, these three businesses raised over £275k through crowdfunding!
Now, you might be asking, “But what are the other benefits of crowdfunding and why is it so good for businesses?” Well, take a look at our list below and find out.
1. It’s a quick & low cost way of raising funds
Applying for loans or finding investors can be a slow and time consuming process, but crowdfunding is a quick, affordable, and, not to mention, creative way of raising the money you need to grow your business or get it started!
2. You don’t have to give away any equity
If you choose to start rewards-based crowdfunding, it means that you don’t have to give away shares in your business. To put it simply, rewards-based crowdfunding just involves a supporter giving your project a pledge in exchange for a reward. Remember, if your rewards are tempting then it’s more likely that someone will pledge.
3. Finding new customers.
By enticing people to support your project, you’re growing your network and tapping into new customers while simultaneously developing a database for your business. Simple, easy, and effective!
4. Minimal risk when testing/validating your idea & new product lines
Rewards-based crowdfunding is the perfect place to test out your idea because of the minimal business risk associated with it. If you see lots of support and validation from the crowd, you’ll know that you’re onto something. This saves you from putting lots of valuable time, money and resources into something before you know that it has the potential to work.
5. It builds stronger connections with customers
The wonderful thing about crowdfunding is that everyone who pledges on your project becomes part of a unique story. A connection like this is truly priceless because your customers then become advocates for what you do!
6. It gets people talking
When done effectively, a well thought out crowdfunding campaign can become a driving force for brand awareness. Word can spread via word of mouth, and the internet, making your brand a real talking point for your community, or the world.
7. You’ve probably already got the essentials
When it comes down to it, you’ve probably already got everything you need to start crowdfunding. Along with your great business, all you need is some copy, a bit of a following, some video content and some great images. If you have all that, well, then you’re already 50% there.