Most entrepreneurs struggle with finances while operating a business. After all, the initial capital investment is not enough to keep the business running. This is the reason why entrepreneurs look for financing options for either asset financing or expanding the business. However, due to the overwhelming interest payments, owners refrain from getting their hands dirty on loan.
Therefore, crowdfunding has become very popular. Most businesses are looking forward to it as an ideal financing option for their businesses. Unlike going to banks for funds, you ask the public for funds. Are you wondering how it can help your business? Here are some tips to boost your business through crowdfunding.
1. DESIGNING A VIDEO
Firstly, you have to explore the crowdfunding websites and start building up your profile. Remember, your goal is to boost the business, which includes creating brand awareness and growth opportunities. You have to attract the audience by building a creative and appealing profile on the website. The websites would give an option to design a video. Thus, it is time to light up your creative soul.
Many businesses skip this step without realizing how beneficial it is. It allows you to give a virtual tour of your office to the audience, building a stronger relationship. Similarly, if you are launching a new product, you can display a virtual image in the video with its features. These exclusive insights for the crowd encourage them to dish out funds, helping your business grow.
Remember, alongside being promotional; the video should be entertaining enough to keep them hooked to it.
2. ASSESS THE COSTS
Even though crowdfunding is an amazing option, you have to carry out some research to know how it works. It doesn’t have any interest payments, but every website charges a fee for running a crowdfunding campaign. Unlike, merchant cash advance application and charges, crowdfunding applications are simpler with reasonable charges and effective results.
Besides, you have to make repayments only if you opt for lending-based funding because here, investors lend you money. Once you know how much the entire campaign would cost you and how much money you can raise, it would give a clear insight into whether it would help in boosting your business or not. Usually, the reward and donation-based funding always work in favor of the businesses.
3. LOOK FOR CROWD-LENDING
Well, crowdfunding and crowdlending are two different things. You would come across many investors on crowdfunding websites. These people are not giving but lending you funds. Generally, all those businesses that are in a hurry to get funds, opt for it. These investors either ask for repayments with flexible interest rates, or they demand a share of ownership in your business. Unsurprisingly, their share depends on the level of funds they give.
Thus, it could be a great option if you are willing to share the ownership of your business or want to escape from the high-interest rates offered by banks. Besides, these investors also bring expertise and skills to your business, helping you grow while boosting your business. However, learn about an investor before accepting funds or signing a deal with them.
4. OFFERING STRATEGIES
‘Patience is a virtue’; you need to understand this while running your campaign on crowdfunding. People take time to develop trust and give funding. Therefore, you need to convince and persuade people by offering them rewards. If you are coming up with a new product, offer them free trials, or if edible products, invite them for food tasting. It won’t only throw in funds, but also valuable feedback to boost your business.
On the same hand, if you need funds for expansion, then offer them people discounts and freebies. The level of discounts depends on how much they are willing to fund. For something unique, send the surprise gifts with loyalty cards to develop a strong relationship with them. Hence, the higher the funds, the higher the rewards. This is one of the most famous strategies of businesses to bag funds by offering something valuable in return.
5. LOOK FOR A PROFESSIONAL WRITER
You might be a genius with the brains of an Einstein, but running a business requires teamwork. Similarly, developing your profile on crowdfunding also requires teamwork. You need to hire a professional writer, that creates impeccable content for your profile. It won’t just attract the audience but would also deliver your brand message at the same time.
Alongside this, the writer has to produce SEO friendly content because most crowdfunding websites ask for it. It is essential for becoming easily visible on the search engine results page (SERP), so more and more people can reach out. Thus, hunt for someone who is well equipped with inserting keywords naturally, helping you acquire funds easily while boosting the business.
6. WAIT FOR THE RIGHT TIME
Crowdfunding platforms expose you to global audiences. Anyone can lend you funds white sitting anywhere in the world. All thanks to technology! Hence, alongside raising funds, it is boosting your business by creating its image globally. People around the world get to know about your business, but only when you kick off your campaign at the right time. Remember, don’t rush over anything, give time to everything, and begin when you are ready.
Some businesses start looking for funds right after coming up with the idea of a new product. People are hesitant to give money for something that hasn’t come into existence. Put your product into the development stage to have a rough image, create a sample, and then promote. It would help people understand that you are clear about your goals. Hence, the right time is when you are prepared, opting for crowdfunding in the later stages surely helps in boosting a business.
CONCLUSION
Everyone wants to grow their business, but it not as easy as it may sound. Even though crowdfunding is making things easier, people are still unable to figure out how it works. Some don’t have the expertise, while others don’t have patience. Thus, you need to understand that it takes time for people to develop trust, after which they start pouring in funds. Stay calm and let these tips play their role!
