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Crowdfunding isn't all about the money - part III
Equity crowdfunding is a valuable tool for start-ups in today’s economic climate...
For savvy business owners, crowdfunding is the wise choice because of all that it provides above and beyond cold hard cash.
The power of the crowd can also facilitate validity and demand. By looking en masse at your proposition, you can observe and critique it through the eyes of the crowd, many of whom will be your target audience and many of which will be tried and tested entrepreneurs and investors with a huge wealth of experience and knowledge.
Business functionality advantages are numerous due to the way in which crowdfunding works:
Be focussed and organised
In order to even get your concept in front of the crowd you will need to have ‘done your homework’ and have provided a sufficiently robust pitch (including financials etc.) as to warrant inclusion on the funding portal.
In addition, once you have successfully secured your required investment, you will have a new audience of businesses partners that you will need to report back to.
These are disciplines that often fall by the wayside in a business, owners instead relying on day to day experience and knowledge of what is going on within their company and how it is performing. Ultimately, it’s an advantage to have a structured and planned strategic and reporting process in place.
Concept testing, definition and validation
Ultimately, the crowd votes with its money. If your proposed project reaches its target investment level, it is a strong indication that the market is accepting of your proposition.
If they don’t it’s a strong message to go back to the drawing board. Acceptance is a huge motivator, confidence creator and could encourage further entrepreneurial activity in the future.
Sales and marketing
You will accelerate up the learning curve in this area – not only will you have to employ sales and marketing skills to assist in your initial pitch activities and allure, but the crowd itself will provide you with valuable insights as to the potential, development and viability of the offer.
In addition, once successfully accepted, you essentially have a wealth of sales and marketing resource working on your behalf.
Investors want to see you succeed, have invested because they believe your concept is deliverable and attractive and will support you in your endeavours. Which leads on to another potential benefit...
Mentoring and experience access
Many investors are themselves tried and tested entrepreneurs and respected business figures and often choose to engage with projects in which they have an interest.
There is no obligation to offer or take mentoring, but if it is offered, why would you not chose to take advantage of additional, experiential support?
Are you ready to start your pitch? Sign up for free today and start your exciting funding journey with GrowthFunders.