The age of the Internet has changed the way that business is done in more ways than anyone might have ever imagined. Thanks to the connectivity that has come with our modern technological developments, we’re more connected and are able to communicate and share in ways that were never thought possible. If you’ve got an idea, the possibility that you can make it happen is greater than it’s ever been before. These days, anyone can be a publisher, and if you’ve got something important to say, all you really need to do is find a good way to say it. As more and more of us are able to create and spread our interesting ideas, there have been a lot of people interested in finding new ways to get these ideas funded. Obtaining capital is never the easiest thing to do, and a lot of individuals wanted to see if they could circumvent the process of impressing an investment firm or individual investors. As a result, the concept of “crowdfunding” was born. If you’re thinking about crowdfunding for your new business, here are five of the reasons why it might be a great idea.
1. It’s Way Easier to Find Capital. Actually finding someone who’s willing to invest in your product or company is pretty tough when you’re just getting started. If you can convince enough of the public that would actually solicit your business when it’s up and running, however, that your idea is a good one, they might be willing to invest in it.
2. Built-In Marketing Tools. When you crowdfund your new business or product idea, you usually wind up using a service like IndieGoGo or KickStarter. These services will take a percentage of the money that you wind up taking in, and as such they do better when you do better. This means that they’ll likely give you marketing tools which you can leverage to your advantage as you spread the word about your new company or product.
3. Free Public Relations. When your consumers are investing in your business as a start-up, you have a direct line to them and get to hear their feedback on a regular basis. This is pretty valuable to a lot of business owners, and can help to shape the relationship your business has with its clientele in a very important way.
4. Collaboration. You don’t need to be constantly reading tips from Barefoot Investor to know that a lot of input is best. When you crowdfund your project, you get to let the people that invest in it see your progress as you develop your idea, and this means you get the benefit of potentially fielding valuable and helpful suggestions.
5. An Automatic Audience. When you crowdfund your business, it’s got a client base the moment it opens its doors in the people that actually helped to get it off the ground. This also makes it a lot easier for your company to spread the word, as all your investors will want to make sure they see their investment succeed.