7 reasons why you should crowdfund for your business

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 some 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.

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!

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.

4. You can test your idea & 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.

• Ready to start a Crowdfunder project for your business? Start crowdfunding here.