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How can you use crowdfunding to build a supplier network?

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Crowdfunding is not only a way to raise money for your small business, but also a way to build a network of loyal customers, supporters, and suppliers. In this article, you will learn how to use crowdfunding to find and connect with potential suppliers who can help you deliver your products or services to your backers and beyond.

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Harry Chalakyan

CEO at Novagel 1 Ltd
Tafara Tsoka

Chief Executive Officer: Zion Venture Partners

1 Choose the right platform

There are many crowdfunding platforms available, but not all of them are suitable for your small business goals. Some platforms are more focused on creative projects, social causes, or equity funding, while others are more flexible and allow you to offer rewards, pre-orders, or subscriptions. You should research the different platforms and compare their fees, features, and audience before launching your campaign. Ideally, you want to choose a platform that matches your niche, your target market, and your supply chain needs.

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Tafara Tsoka

Chief Executive Officer: Zion Venture Partners
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In today's dynamic business landscape, crowdfunding isn't just about raising capital; it's a powerful tool for building resilient supplier networks. By leveraging the crowd, businesses can foster collaboration, source innovative solutions, and create a network that goes beyond transactions. From pre-order campaigns to community-backed manufacturing projects, crowdfunding is rewriting the rules of supply chain dynamics. Embrace the shift — it's not just funding; it's forging strategic partnerships.

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Mike Vannelli

Creative Director @ thinkenvy.com
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Crowdfunding backers can provide strategic connections for sourcing and production like talent scouts discovering new prospects. Identify relevant expertise among contributors. Engage consistently post-campaign with updates and access. Involve passionate supporters asbeta providers. With insight and introductions from your crowd, the supply chain scales. Now rally up that crowd - our network awaits! ??

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Harry Chalakyan

CEO at Novagel 1 Ltd
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Starting with crowdfunding in my point of view means you have an innovative idea. In this way you can find the right platform and to show your innovation and then you can implement crowdfunding in your business.

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2 Plan your rewards and costs

One of the most important aspects of crowdfunding is offering attractive and feasible rewards to your backers. You should think carefully about what kind of rewards you can offer, how much they will cost you, and how you will fulfill them. You should also consider the shipping and handling costs, taxes, and fees involved in delivering your rewards. You should also factor in the possibility of delays, refunds, or cancellations. You should set realistic and transparent goals and budgets for your campaign and communicate them clearly to your backers.

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Harry Chalakyan

CEO at Novagel 1 Ltd
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I don't think you should start immediately with some rewards. Rewards always mean you already made a good business. Starting immediately with rewards could show to your backers not so good sign. In general you must have a strategy making all the calculations and costs carefully.

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3 Find and contact potential suppliers

Once you have a clear idea of what you want to offer and how much it will cost you, you can start looking for potential suppliers who can help you produce and deliver your rewards. You can use online platforms, directories, or marketplaces to find suppliers who match your criteria, such as quality, price, location, and availability. You can also ask for referrals from other entrepreneurs, backers, or experts in your field. You should contact several suppliers and request quotes, samples, and testimonials before making a decision. You should also negotiate the terms and conditions of your agreement and establish a clear timeline and communication channel.

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Tafara Tsoka

Chief Executive Officer: Zion Venture Partners
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Once you've crystallized your product vision and budget, the journey to build a supplier network begins. Online platforms and directories are invaluable tools for identifying potential partners. Beyond that, tapping into your network for referrals can yield hidden gems. When reaching out to suppliers, it's not just about cost; evaluate quality, location, and reliability. Cast a wide net, request quotes and samples, and seek testimonials. In negotiations, transparency is key — be clear on terms, timelines, and communication channels. Building a robust supplier network is not just transactional; it's about forging lasting partnerships that align with your brand values and business goals.

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4 Update your backers and suppliers

One of the key benefits of crowdfunding is that it allows you to build a relationship with your backers and suppliers. You should keep them updated on your progress, challenges, and achievements throughout your campaign and beyond. You should also ask for feedback, suggestions, and testimonials from both parties and use them to improve your product or service. You should also show your appreciation and recognition to your backers and suppliers by thanking them, mentioning them, or featuring them in your updates, social media, or website.

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Harry Chalakyan

CEO at Novagel 1 Ltd
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In a more than transparent way you should find the way to show your backers your results. At that stage you can start with rewards or discounts and in this way you can involve them to your social media or market places

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5 Leverage your network for growth

Crowdfunding can help you create a strong network of supporters and suppliers who can help you grow your small business. You should maintain and nurture your network by staying in touch, offering discounts, referrals, or loyalty programs, and inviting them to join your mailing list, social media, or community. You should also use your network to generate word-of-mouth, reviews, or testimonials that can attract more customers and suppliers. You should also look for opportunities to collaborate, partner, or co-create with your network members and expand your reach and impact.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use crowdfunding to build a supplier network?

1

2

3

4

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1 Choose the right platform

2 Plan your rewards and costs

3 Find and contact potential suppliers

4 Update your backers and suppliers

5 Leverage your network for growth

6 Here’s what else to consider

Small Business

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How can you use crowdfunding to build a supplier network?

1

2

3

4

5

6

1 Choose the right platform

2 Plan your rewards and costs

3 Find and contact potential suppliers

4 Update your backers and suppliers

5 Leverage your network for growth

6 Here’s what else to consider

Small Business

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