Crowdfunding is definitely here to stay. The industry is expected to reach $100 billion worldwide by the end of 2025, mainly pushed by equity crowdfunding in the United States and China, in an impressive 3-digit annual growth.
Looking back, the reasons are quite evident. Crowdfunding tackles several difficulties that small businesses had in order to properly reach an audience for their products and services while keeping the public well served.
A way to raise money
Raising money is the first and most obvious way crowdfunding can help your company. If you think you have a great idea and a great project, you can make your life much easier if you crowdfund it.
Crowdfunding beats traditional banking and Venture Capital by allowing entrepreneurs to raise money without the need of an elaborate business plan, a detailed project or even the bureaucracy and risk associated with a bank loan. That’s why raising money is faster via crowdfunding.
Introducing a new product to market? Want to test its concept? Crowdfunding is great to test its acceptability. You don’t have to go a lengthy distance elaborating expensive market surveys, designing expensive prototypes, paying to appear in fairs and shows and so on, all with the risk of a competitor copying your idea or part of it.
As such, you can avoid quite a few hurdles by crowdfunding your project. If you succeed, you just go about completing the project and making the product or service available to the public. The market is already tested.
When you crowdfund your project you put it in front of thousands or even millions of people just by posting to the portal page, creating a video and doing a little bit of promotion on social networks. All advertising in this case is done in a much simplified manner and portals can already give you insights on how to properly promote it.
But while those actions can help your project to be successful, you can gain a lot by hiring a professional promotion tool, like yours truly, iCrowdNewsWire.
If you think you have a sound project, but that will likely take months to be completed, you don’t need to wait to sell your product or service. You can actually use crowdfunding as a way to pre sell it.
Just choose the platform that appeals the most to your target audience and do a proper job promoting it in social media and you can take advantage of a relatively cheap way of selling your not-ready-for-market product or service.
It may look strange that we cite charity in a list of features aimed for business, but you must remember that among many people who regularly visit crowdfunding platforms, and share content related to them, are lots of folks who want to make the world a better place and are willing to pay for it.
Hence, if your project has some nice eco-friendly feature or somehow can help people or animals that are currently living in less than ideal or even dangerous situations, you should definitely emphasize that to attract attention from those audiences.
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