Who can get the most out of crowdfunding?
"Aha!" says Bloom intern Cara Pleym. "The answer reveals one of the most brilliant features of crowdfunding – anyone and everyone!"
The reason that everyone can benefit is that everyone can access crowdfunding – there’s no need for business plans or a good financial history. Not only that, but here at Bloom we don’t apply selection criteria as we want to give all ideas the same chance of success. All you need is a great idea and the willingness to work hard at it.
However, we have highlighted a few key groups below that could highly benefit from crowdfunding.
Trying to set up a business can be difficult without funds and awareness. Running a crowdfunding campaign can fix both problems, and also establish credibility, showing determination and proving that there is demand for your idea. Not only that but you can even pre-sell your product or service and fill your order book before you start trading!
As expansion becomes a priority businesses often look to investors, but in the current climate it’s extremely difficult to secure funding. Successful crowdfunding can involve pre-selling products, proving customer demand and increasing publicity – all of which strengthens your position for investment. You could trigger matched funding, or even be approached by an interested private investor (like Mhairia Mackenzine of Bonnie Bling – http://www.bloomvc.com/blog-post/bonnie-bling-crowdfunding-success-story)
Students are often sources of great ideas, which never lead to action due to lack of cash, or fear of failure. With most students already deep in debt, crowdfunding is a simple method of raising finance while allowing students to develop skills and experience in communication, social media, project management and much more. The benefit is two fold, students can fund their ideas and perhaps their own businesses, and also enhance their CV at the same time, increasing the chances of getting a job after graduation.
Don’t be put off if you don’t have a business idea, crowdfunding can work just as well for social ventures, community projects and even charities. Giving to a social cause through crowdfunding allows backers to be publicly recognised, and gives you the opportunity to raise awareness of your goals. Projects always perform better when they engage people emotionally, and a social or community project is perfect for attracting backers who want the feel good factor of helping a cause.
All in all, crowdfunding is a fantastic new funding option that allows everyone the same chance to achieve success. Instead of a few bankers deciding the future of your idea, we hand the power over to the crowd, and you never know what they’ll go for! So if you have a dream you want to make a reality, get in touch and we’ll help!
(image courtesy of allthingsd.com)