Let Crowdfunding Help Your Small Business Grow!
By: Hitesh, Chiara
Published On: November 16, 2020
Finding funds for a small business is tough, which is why crowdfunding can be nothing less than a boon for such small businesses. In fact, crowdfunding is about more than just making funds available. In fact, if you create the right campaign, you can not just find funds for your business, you can also find something even more important:a successful business venture.
Why & how, can fundraising help small businesses and their owners? Here are 5 reasons:
Loans are not always ideal for a business at the initial stage:
A small business owner worried about how to repay a loan
(Image credits: Money vector created by pch.vector, from freepik.com)
Having a small business means every client is too valuable to lose. But in the unforeseen circumstance of your business losing a client, even repaying a loan may seem like a business-threatening complication. This is a stage where you should be focusing on your product offerings and on acquiring new clients. Why spend this time worrying about how to repay your business loan?
With crowdfunding, there is no payback liability
The people who donate to your campaign are either interested in your idea or want to use your product or simply want to support you in taking it to the next level. That’s it. With a crowdfunding campaign, you are not creating lenders to your small business. You are creating a group of people who believe in you & your business idea.
They could be your customers, your patrons - and as we will see below - they could be your business partners too!
Maximum outreach for your business and your products
Online crowdfunding platform helps two businessmen make a deal
(Image credits: People vector created by pch.vector, from freepik.com)
A crowdfunding platform is accessed on a daily basis by thousands of people, from across the globe. These people are looking for small business ideas similar to yours, and are more likely to be interested in your pitch and your products. They may want to support you by buying your product; they could also be confident about the future prospects of your business, enough to want to reach out to you about any potential partnership or distribution deals.
Find a platform to get genuine customer feedback & integrate it
You may be able to make an amazing product, but even 1 minor defect could affect its selling potential. Or maybe your product is good, but customers are looking for certain value additions to it. There’s no better place to integrate all this feedback, than on a crowdfunding platform. People who are actually buying and using your product can give you detailed and helpful feedback.
Different customers giving different types of feedback, on crowdfunding platform
(Image credits: Heart vector created by pch.vector, from freepik.com)
Find one place to get the support of all your well-wishers
Before anyone else, your family and your friends are your biggest supporters. They would love to know the specifics of your business idea, and about how they can support you in it. What better place to do that, than on a crowdfunding page for your business? This way they can understand your idea while at the same time being comfortable enough to support you as per their convenience. Also, they can share your crowdfunding page among their social circles, thus giving your business even more visibility. Finding people who can invest in your business is always a tough task. Why not solve this problem with people you know?
Crowdfunding has been able to help students, entrepreneurs, patients and NGOs raise funds, no matter what their cause. When it comes to making your business idea a reality, all you need to do is create a campaign, and start.
Banner image credits: People vector created by pch.vector (freepik.com)