How crowdfunding can help your business grow
March 04, 2015

Crowdfunding is a method used to raise money for specific event or other cause. It asks the public to donate money toward you endeavor. There are a variety of different types of crowdfunding websites that can help you grow your business, according to Forbes. Some of these include:

  • Kickstarter
  • Indiegogo
  • Crowdrise
  • Quirky

Know how crowdfunding can benefit your business and how it works.

Benefits of Crowdfunding
Harnessing the power of this technique can help boost your business and raise awareness about new and exciting services or products you are interested in offering your customers. Entrepreneur noted that adopting this new method of raising money can help you decide what ideas your patrons and other consumers would be interested in purchasing. For example, if you own a barbecue restaurant you may initiate a campaign to help fund a project to write and publish a recipe book. By asking consumers for assistance in paying for the costs associated with embarking on this task, you can determine interest in purchasing the finished project. If you quickly reach your goal, you can anticipate a great deal of interest in the product and you can focus energy on marketing the item and even anticipate a higher volume of in-store or mobile credit card payments. Conversely, if you find that you are unable to raise money, you can save time and other resources that you would have otherwise poured into the completion of the project.

In addition, a crowdfunding campaign can serve as a marketing technique for your business. You will be providing information about your operation to a wider audience made up of individuals who regularly monitor the website for new ideas they might be interested in.

Tips for success
Business Insurance Quotes suggested first setting a goal for the amount of money you would like to raise for an endeavor. Keep in mind that if you do not reach your goal, you will not receive the money that you have successfully raised. For this reason, be sure that your goal is the minimum amount necessary to start your project. You may consider breaking up goals into smarter components. For a cookbook of restaurant favorites, you may initially ask for a specific amount of money to finance photography and provide payment for a writer and come back later for your publication expenses.

Your business should also offer donors rewards for their contributions. Consider giving a copy of your finished cookbook to benefactors or incorporate them into your project in some way. You want to reward the investments that these consumers have made to help you fund a project that will continue to help your business grow.

Nexus: G-WEBCD1