Crowdfunding: A Rewarding Way To Grow Your Business

Crowdfunding has grown significantly in the past few years but there are still many businesses who feel that the process is not for them, or struggle to understand how they can get a project off the ground.

If crowdfunding is a step that your business is looking to explore, consider the following 5 points:

5 things to think about when crowdfunding:

1. A strong pitch must connect with people on an emotional level - it's really worth pushing a good level of budget into this, and work with professionals who can help tell your story effectively
2. Pick a funding target that you're comfortable you can achieve – wins are much better to shout about, and if you don't reach your target, your campaign will fail
3. Think creatively about what rewards your business can offer funders - you need to capture their imagination and engage them with your business to become loyal supporters
4. Run your campaign like a military operation – planning and detail are vital, as the window you have to raise funds is relatively short
5. Build the buzz and use your businesses advocates - your chances of success are significantly increased if you have pre-committed backers, and those who know you well are likely to commit more funding than others

Why rewards matter

Offering rewards for crowdfunding is an excellent option. By giving your backers some form of ownership in the form of rewards, you can build loyal advocates and boost brand ambassadors. After all, the more of these you have, the more people you have spreading the word about your business.

But remember, offering rewards does have a cost, so set a budget and be realistic about what your business could afford to give away. There's no point offering a reward that is going to cost you a huge amount of money. You're much better off thinking about what will be of little effort and cost but mean a huge amount to somebody else.

What kind of rewards could you offer?

1. A fan wall of your advocates
2. A special ‘money can’t buy’ experience connected to your business
3. A chance to be the first to try a new product

Every business is different, but crowdfunding can be a great way of spreading the word and building buzz. The personal touches really matter and can add to the excitement. Never forget that people love success stories, so if you are successful, shout about it!

If you're thinking about crowdfunding and would like advice and support in running your campaign, then do get in touch with us at Enter The Arena