A business beginner’s guide to crowdfunding
This article breaks down the basics of crowdfunding and how to get started.
If you're a business owner who is new to the world of crowdfunding, you may be feeling overwhelmed by all of the different platforms and options available to you. Don't worry, we're here to help! In this article, we'll break down the basics of crowdfunding and show you how to get started. So read on for everything you need to know about this popular funding option.
What's all the fuss about?
Crowdfunding can be a great way to get your business off the ground. It allows you to raise funds from a large number of people, usually through an online platform.
In 2020, crowdfunding platforms raised US$84 billion globally and this figure is expected to continue to rise, with the average successful crowdfunding campaign raising more than US$28,500.
Crowdfunding in the UK has grown too, with equity based crowdfunding raising nearly £550 million in 2020 – more than double the amount raised in 2015.
There are a few different types of crowdfunding, but the most popular is rewards-based crowdfunding. With this type of crowdfunding, people who pledge money to your campaign receive a reward, such as a product or service, in return.
There are a few things you should keep in mind if you're thinking of crowdfunding your business.
6 key crowdfunding tips for new and growing businesses
- Make sure you have a clear and achievable goal. Crowdfunding is all about people investing in your idea, so make sure it's something that will resonate with them.
- Choose the right crowdfunding platform. Don't worry if you feel overwhelmed by the choice - there are over 1,000 crowdfunding platforms worldwide! Do your research to find one that's right for you and your project.
- Create a great video. Crowdfunding is all about telling your story and engaging potential investors. A well-made video is a great way to do this.
- Build up a social media following. Platforms like Kickstarter give preference to projects that have a strong social media presence, so start building up your followers before you launch your crowdfunding campaign.
- Get the word out there. Crowdfunding is all about getting people to invest in your idea, helping to create a community around your business and build buzz. Make sure you let as many people as possible know about your project, through social media, email marketing, and good old-fashioned word of mouth.
- Create a great pitch. Your crowdfunding campaign will only be successful if you can convince people to invest in your idea. This means having a great pitch, which you can deliver through video, social media, or even in person.
“Crowdfunding is all about people investing in your idea, so make sure it's something that will resonate with them.”
What can you do next?
Crowdfunding can be a great way to get your business off the ground, but it can also be tricky to navigate. If you need help getting started, our team of experts is here to help. We'll walk you through the process and answer all of your questions so that you can raise the money you need to take your business to the next level.