5 Reasons To Consider Crowdfunding In Your Planning For 2015
December 7, 2014
By James Fierce
The genesis of crowdfunding has brought billions of dollars into the worlds economy and leveled the playing field for business owners to fund their dreams. Running a successful campaign is a lot of work and there are some risks, however, the benefits are immense. There are new tools and new platforms popping up almost daily improving the likelihood that your campaign will be successful.
Why not take the plunge in 2015 and see what crowdfunding can do to help you grow your business?
Infuse cash into your business
The number one reason entrepreneurs decide to crowdfund is the ability to raise funds needed to invest back into their business. When you are determining your funding goals be sure to account for all of the fees involved, including taxes as well as the costs associated with the rewards you are offering.
Proof of concept
If you have a new product line or want to expand your business in a new direction, crowdfunding is a great way to verify your product or service. Friends and family may not tell you the truth about your concept, however, when you launch a campaign the feedback that you receive will be the real deal. You will come away with valid data and constructive comments that will either affirm your original idea or help you tweak or kill it, saving you a huge financial investment.
Market Your business to a new audience
One of the most important things you can do during your crowdfunding campaign is to get support from your inner circle. If you've done an effective job rallying the troops and getting the right PR, you will get an initial surge of activity that will bring the attention you need from the general public in your niche. Everything that is done to prepare for a successful campaign are exactly the things that must be done anyway to market your business.
The ultimate networking opportunity
When you embark on a crowdfunding campaign you are going to find that you have become a networking machine. To be successful you have no choice but to put you and your business out there in a huge way resulting in great connections with amazing people that would not have occurred otherwise. People love rubbing elbows with others who are successful and if your campaign has great buzz, people of influence are going to want to be a part of it.
Findiing additional investors
If you are looking for investors in your business, one great way to attract them is through a successful campaign. You will have the social proof, proof of concept, and supporters that shows them that they will get a return on their investment.
Crowdfunding your product or service has many benefits beyond just the raising of cash. The lessons learned, even if the campaign does not reach the funding goals, are invaluable and definitely worth considering as you make your plans for a successful 2015.
About the author: James Fierce is the founder of Fierce Consulting and helps entrepreneurs and start-ups grow their businesses. He is an innovation coach and mentor. You can conttact james If you have questions about how crowdfunding can help grow your business @ Fiercej@gmail.com. You can also follow him on LinkedIn.
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