Are you looking for funding to bloom your business? Get to know the 5 main reasons why you should consider crowdfunding in addition to other financing options.
Starting a business can be very exciting and thrilling, but it also requires a lot of time, hard work and taking financial risks. For early stage businesses, reward based crowdfunding is an excellent and low risk way to get funds. Crowdfunding also enables you to acquire more customers and gain important insights of your product or business idea.
Here’s a few ways how crowdfunding can help you with your business.
Use crowdfunding to prove product demand for potential stakeholders
If you are planning to do equity crowdfunding, consider having a reward based crowdfunding campaign first. The process can help you develop your idea further or you can use the campaign as proof of concept!
Gain insights of optimal product pricing
Use the collected data to optimise the market price of your product. If your product doesn’t get much contributions in the process or items run out quickly, it might be a signal of pricing gone either too high or too low. Getting feedback from funders may also help you with pricing.
Test your product demand and usability
Use the collected data and feedback to develop your product towards perfection. People participating in crowdfunding campaigns are more likely to give feedback as they are usually more emotionally invested in crowdfunding campaigns than in other formats of consumption.
Use crowdfunding as a marketing campaign to launch a new product
As you launch a new product, why not finance the marketing costs with crowdfunding! Marketing can be a significant cost when launching a new product, but using crowdfunding for product launch can finance some or even all of the marketing costs of your project. When conducted well, crowdfunding also brings attention and more engaged users to your endeavour, who in the long run are vital for your business.
Crowdfund individual actions like hiring a new staff member
You don’t have to collect huge amounts of funds with crowdfunding. Instead, you can split your total target sum into smaller goals and crowdfund only individual steps, such as marketing or part of the production costs for a project, 3 first months of office space rent, the costs of mixing an album, hiring an additional staff member or whatever it is that you may find as the vital next step for your business or project.
If you think crowdfunding is something your project could benefit from, apply now and fill our free evaluation form.
Which one of the following reasons inspire you to crowdfund your business? Comment below and share this article!