More than 65 percent of small business owners are preparing to seek financing within the next year, and for good reason: growing costs and pent-up desire for growth. But with options in lending tightening, more and more entrepreneurs are turning to crowdfunding-and for good reason. Crowdfunding is a whole lot more than a fundraiser. It's about community building as well as proving your concept and even generating demand before your product or service ever goes live.
Crowdfunding connects you directly to people who actually believe in your vision. On platforms such as Kickstarter and Indiegogo, people actually give because they like what you're building. That can be so strong: people are not just putting money into something, they invest in a story, solution, or dream that resonates with them. Unlike traditional financing, this method does not require you to give up ownership or incur high-interest debt.
Besides funding, crowdfunding can be another form of live testing demand and give a boost to marketing. A successful campaign demotes to the world-your idea has traction and that people are interested in your product-to say nothing to future investors. This isn't just some form of theory: companies like Peloton and Oculus Rift launched crowdfunding and turned backers into early brand advocates, which created valuable momentum before they hit the mass market.
It's crowdfunding that might get you the capital you need, among other things, in a borrowing climate where traditional funding can be hard to come by. What's more, it's about raising funds and finding one's tribe of brand champions across their journey. Thus, crowdfunding could be the perfect launchpad for your business idea, should you have one and an engaged mindset to go with it.
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I help businesses secure funding. Over 300 clients and $20 million raised.
