A quick guide to business crowdfunding
Here at Nationwide Super, we understand some of the biggest challenges that lie ahead when you are starting your own business.
You need to stay true to your original business ideas, goals and integrity. But you also want to tackle the competition, focus on marketing and your customers. However, you may find you have to deal with uncertainty, regulation and risk before you can find the right people to help your business grow.
One of the biggest hurdles you will ever face as you seek those small business opportunities is funding. Cash is king, and without it you’re going to struggle to start up a small business venture.
What is Crowdfunding?
Without funding, you can’t buy supplies, pay employees, expand your business or successfully react to problems. So where do you get that funding from? Loans and credit are increasingly difficult to secure for small businesses, so many entrepreneurs are having to look elsewhere for crucial investment. Which is when crowdfunding comes to the forefront.
Crowdfunding is where, instead of securing one or two big investors, you attempt to target a larger number of smaller investors to chip in to raise your capital. As the internet and social media have grown, so too has the success of crowdfunding.
You have probably all heard of Kickstarter, where thousands of projects have secured hundreds of millions in funding. But there are other crowdfunding platforms too, including Indiegogo, RocketHub, GoFundMe and Razoo that offer the same possibilities.
4 tips on how you can identify crowdfunding opportunities.
1. Build a network
If you’re going to successfully crowdfund you need build up a network of people who could potentially contribute to your crowdfunding strategy. However, remember those who may be willing to chip in are your family and friends, so to kick off your campaign, get started from the ground up.
There are lots of platforms out there, so carefully research the one that is going to be right for you. They all have different rules and processes, meaning it’s not just the most popular one that might be the best choice.
3. Rewards matter
Crowdfunding works by exchanging small investments for small rewards. If you look into the campaigns that really went viral and exceeded their targets, the rewards were not tiny pats on the back but things like freebies and offers that get a buzz going and are meaningfully related to your business core.
4. Your pitch
A crowdfunding campaign needs a pitch – because your investors are not going to throw money at you for nothing. So use videos, social media and other channels to ensure your story is compelling and truly inspires people to want to help out and contribute and make possible something great, your business project.
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