Are you currently in the process of starting a new venture in your community or looking to grow an area of your business? Crowdfunding is an excellent way of raising the finance that you need to get going, but it also comes with a whole range of other benefits that should put it at the top of your to-do list this year.
But don’t just take it from us. Take a look at the successes seen by the great businesses that have already used crowdfunding for their own ventures, such as What A Melon, Efoldi and Bio-bean, who have collectively raised over £275k on Crowdfunder.co.uk.
But why is crowdfunding so great for businesses?
1. It’s a low cost and quick way of raising finance
In comparison to more traditional ways of raising finance, such as applying for a small business loan or finding investors, rewards-based crowdfunding is a creative, affordable and quick method for raising the money that you need to grow your business or to get it off the ground. Find out about our fees here.
2. You don’t have to give away any equity
When it comes to rewards-based crowdfunding, you don’t give away any shares in your business. As the name suggests, rewards-based crowdfunding involves the exchange of a pledge from a supporter for some kind of reward from the project owner. The more tempting your reward, the more likely a supporter is to pledge – simple! Find out about rewards here.
3. You can tap into new customers
You can entice people to support your project by offering your product or service as a reward. This enables you to not only tap into potential new customers and grow your network, but simultaneously develop a database for your business at the same time. Find out more here.
4. You can test your idea and validate new product lines with minimal risk
Rewards-based crowdfunding is a really effective way of minimising risk for businesses, as it’s the perfect platform to test out an idea or new product line. When there is clear support from the crowd, it provides clear validation for an idea or product before you throw too much of your valuable time and resource into it.
5. It builds stronger connections with your customers
When an individual pledges on a Crowdfunder project, they become part of a really unique story. This builds stronger connections with your customers who become advocates for what you do! It’s this sense of ownership that comes with the exchange made during rewards-based crowdfunding that really is priceless.
6. It gets more people talking about your brand
When crowdfunding is thoroughly planned out, it can be used as a real driving force for brand awareness. It’s the perfect excuse to get even more people talking about your great idea! Word spreads via word of mouth as friends tell friends who tell friends, allowing your business to ride a wave of awareness during the campaigns live period.
7. You’ve probably already got the essentials to start crowdfunding
The great thing when it comes to crowdfunding for business is that, more than likely, you already have everything you need to get started. If you have some video content, copy about your brand, a bit of a following and some great imagery, then you are already 50% there.
If you’ve got a great business or bright idea, then why not enter Voom? With a cut of £1m in prizes on offer and the opportunity to pitch to Richard Branson for more exposure than you can shake a stick at, there’s no doubt that it’s the most exciting pitching competition in the UK and Ireland. Find out more about Voom here.
Beginning in 2016, the option for entrants to crowdfund alongside their Voom Pitch entry has already seen an extra £750,000 raised alongside the main competition. And the best thing? As a Voom entrant, if you choose to raise cash using Crowdfunder, you’re automatically entered into the Crowdfunder Award, which goes to the person who raises the most money, builds the biggest crowd, creates the most effective campaign, and gives the best answers to our questions. The prize is £60,000 in extra funding and services from Crowdfunder, Crowdcube, and JCDecaux. Find out more about the Crowdfunder Award here.
So what are you waiting for? Take your uniquely brilliant business or bright idea to the next level and get ready to #VOOM! Enter VOOM here.