Crowdfunding is often regarded as a solution to a problem, and that problem is usually attributed to lack of funds. It is often regarded as the end outcome. A lot of us forget that crowdfunding can be more than simply the end. It can be a process in itself, that produces value and goodwill for your company before your idea even takes off.
Crowdfunding is a journey which barely gets the limelight, often the end outcome in dollars outshines the whole process. This is a pity because the whole journey of crowdfunding is filled with a scope and lots of potentials. There are steps throughout the journey that helps one with launching their business and it is not just limited to financial means. Let’s look at three ways in which crowdfunding helps your business even before the end outcome materializes.
1- Create a brand for your idea
It is important to have a unique identity and a strong brand, even before your idea ventures into the business environment. While you may wonder about how can brand building happen before your dream comes to life, it is often forgotten that the appeal to crowdfund is in itself a pitch. Pitch is commonly used in a marketing context wherein an idea is conveyed to the target audience factoring in the maximum level of appeal and reliability.
When a campaigner puts up a fundraiser, he’s essentially marketing his idea to his prospective investors. This helps in building and fostering a strong connection with your target audience irrespective of whether your idea is termed as a success or not. The tone of your message, your engagement, your interactions, your online presence and your pitching skills are all essential components of your yet- to- be brand. While engaging in this process, one unconsciously builds a brand before anything else even takes off.
2- Elevate your online visibility
Crowdfunding happens online, needless to say. It is common knowledge that business needs an online strategy to survive these days. Regardless of the type of business they engage in, it is mandatory to build to build an online presence in order to reach every nook and corner of the world. With the help of crowdfunding campaign, one can be sure that they are building an online presence without their product/ service even being launched.
When someone chooses to share their campaign or their idea through various social networking platforms that in turn induces more sharing. If person X shares their campaign, then the extended circle of friends and professional acquaintances will also be able to view it. Other than word of mouth or referrals, visibility forms an important part of online strategy these days. Instead of paying money and sharing it with a lot of people, a clever hack is to share it with your friends and acquaintances, after which you can incentivize them to share it with their respective external circles.
3- Build a community of backers
Visibility is not just limited to friends, it also extends beyond. By sharing your campaign continuously, you never know when it might be picked up by a media house or a newspaper. It can also enable in building a community rather than building a database of donors. This can happen by fumbling upon someone who has a genuine interest in what you do or finding passionate people who do rather than reaching out to people while just keeping finance at the center of it.
Building a community is very different from building a database of investors or donors. Building a community means endless resources, referrals, genuine interest and more importantly, having a group of people who are ready to back you up, come what may.
Crowdfunding is not just limited to being an alternative to raising funds. While finance is just a facet of crowdfunding, a lot of good things happen as a by-product of crowdfunding which does wonders for your business.