Why fund my business from a crowd?Jul 01, 2021
Think of the exposure and marketing benefits
Free PR! The momentum from a successful crowdfunding raise can attract future funding and business growth. Plus, success stories make for interesting reading - take a look at our testimonials page! Crowdfunding is a very unique way of raising money, and entrepreneurs that are successful with it often see more exposure as a result. A couple of months into our programme when you are ready to launch, you will need to prepare a bank of updates about the campaign’s progress, which you can intersperse with general business updates - about your team, events, new products, business growth etc. Once launched, you can post about it to the world and his wife which can act as a great opportunity for media attention. Find influencers who will share posts on your behalf - you may find new investors, but either way you’ll likely find new customers to support your business going forward. The more successful your campaign is, the better your chances of getting featured in local and national publications. This can serve as a good push for you to keep up momentum to reach your overfunding target too.
Crowdfunding is a very unique way of raising money, and entrepreneurs that are successful with it often see more exposure as a result.
Feedback is invaluable
In the early stages of your crowdfunding campaign, you’ll be using your investor deck as a tool to collate feedback from potential backers - both now, and in the future. It can often help you look at your business from a different perspective. Take your valuation for example, perhaps you’ve been unrealistic? It can take 1 or 2 experienced investors to question it, for you to look at the figures and reevaluate. You could also benefit from expert AND non-expert guidance on your product or service in general - it could range from someone suggesting a new flavour of CBD oil, to a completely new direction of your app. Getting any feedback from fresh eyes is invaluable for a business to improve itself. It can also be a good way for you to test the public’s reaction to your product or service. What can/should you change about your business post your successful raise? What’s perhaps not working? When investors back your business, they’ll hopefully be promoting your brand through their networks too. They believe in what you do - so why shouldn’t others?
Getting any feedback from fresh eyes is invaluable for a business to improve itself.
Grow your business’s community and Brand Ambassadors
CROWDfunding - it’s as it says on the tin, all about the crowd you attract. This includes the network you bring to the raise, but also the crowd of supporters you gain; the, ‘friends you haven’t met yet’. When you’ve got a big group of people who are invested in you and your business, you’re opening yourself up for a whole future of new ideas and support. You’re effectively getting a group of strangers to help build your brand and presence. Your investors also can often become your most loyal customers. When someone chooses to invest in your business, they’re ultimately going to be thinking about how they can make the best return on their investment. So hear them out, open yourself up to this new community - take on their feedback and think about their suggestions. The investors who choose to contribute are the ones who believe in the success of your company in the long run.
When you’ve got a big group of people who are invested in you and your business, you’re opening yourself up for a whole future of new ideas and support.
It’s all about the money, money, money...
It’s all in the name, right? Funding is really your ultimate goal. You’re asking investors to believe in the growth of your company, but they’re showing their trust in the form of finance. Financing a company is never easy, but crowdfunding allows you the opportunity to appeal to a wide range of people with different levels of financial awareness. During our programme, we teach you about the 3 different stages of your raise target. Your minimum target - the absolute minimum you need to do what you’ve set out to achieve, your desired target - the amount that would really help you get to the second stage of your plans, and your overfunding target. This is the pinnacle - the amount that you would love to get to, and would really take your business to the next level, but that you cannot go any further from without giving away too much equity. Your overfunding target should allow you to go above and beyond, and it’s not too hard to achieve it!
Financing a company is never easy, but crowdfunding allows you the opportunity to appeal to a wide range of people with different levels of financial awareness.
Written by India Gilling, Senior Account Manager at ISQ Crowdfunding