SA Crowdfunding Blog

Tuesday, 23 October 2012 13:55

10 Great Things About Crowdfunding

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With all the talk of crowdfunding as a source of small business funding, art funding and music funding in South Africa, we look at some of the great benefits of getting involved.

1) It provides access to capital.
As an entrepreneur, artist or musician, finding the finance you need to get your project of the ground will be one of the most business challenges that you will face. Provided that you have a great concept and is able to convince others of that, with hard work and allot of networking you will quickly see that you can turn buzz about your business into capital with which you can get started.

2) It reduces risk.
The basic nature of crowdfunding is that small portions of the money needed to start with the received from a many others. The Crowd. So comparing this to the traditional business model where risk is normally taken on by the entrepreneur and either the bank or the one or two investors, clearly in the case there is far less risk for all involved. – A real bonus for entrepreneurship and creativity in general don’t you agree?

3) It’s a great marketing tool
This benefit comes in two parts:
• You all of a suddenly have the greatest excise ever to shamelessly promote your idea to every one everywhere. Your personnel and social network all get to hear about your creativity and you have a real reason to shout your message from the roof tops.

• The crowdfunding platform itself attract allot of interest. Crowdfunding is very newsworthy right now and the media loves it. Radio, press, everyone wants to get involved. Not only will a platform like StartMe promote your projects to everyone who asks but will actively be sharing your opportunity with their networks, in their newsletters and you even get the benefit of their aggressive Search engine marketing campaigns.

4) It helps you prove and improve your idea

Because of the nature of crowfudning people will get involved with your project, comment on it, ask questions about it and contribute to it if they are convinced. This is one of the best ways to validate your idea as its going far beyond just you and your idea now. The better you are prepared at this stage and the further you are advanced with your project the more you will benefit.

5) Brainstorming with the crowd
One of the biggest challenges for small businesses and entrepreneurs is to be able to cover all the holes that a venture might have at an early stage. By having a crowdfunding campaign, the entrepreneur has the ability to engage the crowd and receive comments, feedback, and ideas. This process can help you to further enhance and improve what you are doing and how you are doing it.

6) It introduces potential loyal customers.

Add your project or idea to a crowdfunding platform such as StartMe does not only help to get you funding for your project. It certainly will start t attract interest from potential customers and clients. Making sure you showcase your idea in an attractive fashion here and showing how others are getting involved is great opportunity to showcase what you and your project is about.

7) It’s easier than applying for a loan, angel investment and venture capital. Think about the long process of applying for a business loan. Think about the even longer process of pitching your idea to a venture capital firm or Angel investor. Now think of all the fun you can have with creating an attractive page and video for your project on a crowdfunding site and the great chance this presents you to start interacting with others. Comparing the 3 options above will quickly tell you that crowdfunding is a no brainer.

8) Your project gets free PR.
The momentum created by successful crowdfunding campaigns attracts potential investment from traditional channels and attention from media outlets.

Success stories make for interesting reading, and reporters are always hungry for them. Crowdfunding is a unique and hot industry these days, and countless entrepreneurs who have been successful with it have seen larger success and exposure as a result.

9) The opportunity to pre-sell your concept or product.
Launching a crowdfunding campaign gives you as the entrepreneur the ability to presell your product or concept, this is great way to measure interest and get a feel for the type of demand you can expect later on once your business has started.

10) It is free!
And we have saved the best till last. On a platform such as StartMe posting your crowdfunding campaign is absolutely free. The website is able to do this as they make their money based on a success fee. So only if your project is funded successfully do you share that success with the platform. Only fair as they world have done allot of the hard work with you.

Looking at these points its comes as no surprise that so many entrepreneurs, artists, musicians and others are increasing seeing crowdfunding as a real opportunity to support them in getting started.
Read 2983 times Last modified on Tuesday, 23 October 2012 14:05
Ben

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