How To Use Crowdfunding To Launch Your New Business or Side Hustle
Do you have an idea that you think could be the next big thing? Whether you want to launch an app, open a bakery, or fund a creative project, crowdfunding can help you get the ball rolling. Thanks to platforms like Kickstarter, GoFundMe, Patreon, and more, the world of startups and small business is no longer reserved solely for the independently wealthy. These platforms allow great ideas to find funds and flourish — and the next one could be yours.
What is Crowdfunding?
Crowdfunding works by allowing a large number of people to give small amounts of money towards projects they believe in. In return, once the venture or campaign has reached its goal, the donors get rewards like exclusive content or first dibs on products. In addition, as the crowdfunding industry has grown, so has the number of platforms for it. So when starting out with crowdfunding, it’s important to do your research into which platform will best help your project. There are platforms designed for businesses, for creative subscriptions, specific industries, or even for charity efforts.
After you come up with your winning idea, the next step is to thoughtfully craft your campaign. Your idea should be conveyed in an interesting and easily-understood way, so your audience can get behind it. A well communicated campaign also indicates a level of professionalism that helps people trust their money will be well-spent. In addition, your campaign should have rewards and several levels of investment, so it is accessible and enticing to all budgets. People are more likely to invest if they get a limited edition version of your product or service. Finally, one of the most important parts of crowdfunding is getting your campaign out there. Share it on social media and tell your friends and family about it. Make it easy for friends, bloggers, and press to share, too. The best way to raise a large sum is to get a number of people interested and investing.
Benefits of Crowdfunding
Once your campaign is off the ground, you can expect more benefits aside from just raising capital. Crowdfunding has the added perk of validating your concept early on. If you get a lot of good feedback during the funding process, you know your idea appeals to people. In addition, you’ll get to see first hand who engages most with your idea, and gain a valuable understanding of your core audience.
Keeping in mind what makes a successful crowdfunding campaign will help ensure you reap the full benefits of this funding technique. To help with funding your business and getting started on your campaign, Fundera created this helpful guide on how to get started crowdfunding. Check it out below to learn more about the benefits and the types of crowdfunding available.