Multiple Ways Crowd Source Funding Can KickStart Your Business

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Need money to get your business going? Then fund-raise the roof with crowdfunding. 

We live in a world where many people have really good ideas, well-executed presentations, passion, drive, customers, community—and no funding. Fortunately, in this age of internet, there exists many opportunities for the business-minded. Crowd source funding is a great option for those with big ideas and small bank accounts. 

Crowdsource Funding Benefits

By asking dedicated individuals to donate to a cause or project in exchange for a variety of rewards such as t-shirts or a downloadable ebook, small businesses are able make incredible things happen. Take, for example, the board game Cards Against Humanity. It began with a group of friends and an idea, and is now being not only talked about but played by people everywhere and resulted in a $70,000 donation to Wikipedia. Today, the game is available on Amazon. Thanks to a well-managed Kickstarter campaign, the game’s founders were able to create and sell their product, as well as give to a cause dear to their hearts.

A Crowdfunding Campaign Streamlines Your Mission

Crowd source funding is worth more than the money it generates for small business owners. In order to establish a crowdfunding campaign, one must put together a virtual presentation that is both professional and convincing. In doing so, many businesses find that they are able to clarify their overall mission, their Kickstarter mission, and short and long term goals. The experience of thinking so intently about a business is often neglected in favor of other tasks—and here’s a chance to get back in focus while making money!

Great Way To Test Your Business Idea

Developing a great crowd source funding campaign allows a business to prove to customers that they are serious enough about an idea to invest a lot of time. It also allows a consumer base to tell a business if an idea is worth it—that is, the crowd will weed out the bad ideas and support the good ones, while minimizing risk to the individual business owner. If a campaign is not funded, no harm, no foul. 

Potential Customer List Building Tool

Next, crowd funding allows a company to build a potential customer and fan base before they’ve even got a project or product on the market. Investors donate because they care about and believe in what it is you’re doing. They’ll eventually turn into customers who have been with your product from the ground up—and are therefore more likely to speak positively and at length about the great qualities of the product being offered. In this case, money now also means money later. 

Get More Personal With Your Market

Businesses also have a great opportunity to both connect with consumers and gain additional information about their consumer base. For example, by offering customized reward packages in exchange for a donation of x amount, a business can reach customers on a more personable, manageable level. Also, while a business may have identified their target audience as x, they may find that y are the group visiting and donating to their campaign—valuable information! 

Free Publicity Potential!

Finally, a crowdfunded campaign can generate a lot of publicity for a business and the product or service they offer. Successful or especially innovative campaigns get written up by a variety of media outlets and promoted on the websites of crowdfunding sites. They’re also more likely to be picked up and shared on social media. Remember those glowing plants? Facebook and Twitter certainly do!

 

How about you? What are your thoughts on crowd funding? Do you know of additional ways crowdfunding can help boost a business?

 

Guest author Janelle Pierce enjoys writing about various business questions like, what is point of sale software?

 

More on crowd source funding (crowdfunding)…

How Laura Skelton used crowdfunding to jumpstart her online micro-enterprise right into 100 stores across seven countries.

Crowd photo by BemDevassa on Flickr

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