Launching a new business requires capital. You need funds to buy inventory, launch a marketing campaign, and set up shop. Traditionally, you will get the money from a bank or a lending institution.
Over the years, a new way of sourcing funds has gained popularity. This method is called crowdfunding.
With crowdfunding, you get the money from those in your network – say a close relative, a friend, a co-worker, or a total stranger. Instead of getting your funds from a bank, the money will come from the public, regardless if they know you or not. On top of this, putting up a crowdfunding campaign is easy, thanks to a wide variety of options including Shopify.
There are different benefits that you can gain from crowdfunding, and here are some of them:
1. Audience loyalty
When done the right way, crowdfunding will not only provide you with the required capital but also an audience who will stick with you through thick and thin. It will also help you get followers on social media as well as online.
2. Zero debt
Unlike getting money from a bank or lender, crowdfunding will give you the funds that you need for your business without getting into debt. If you need money to turn your idea into reality, you would traditionally go to a local bank and ask for a loan. However, with crowdfunding, you will get the money from willing backers. This way, if your project fails, you do not have to worry about any debts that you will have to pay.
3. Instant market research
Aside from the experience of running a campaign or social media engagement, crowdfunding also provides you with a cheap method of conducting market research.
Crowdfunding is an effective way of eliminating business risks. When you have come up with a product that you think will sell to the public, crowdfunding gives you an opportunity to validate your idea. It’s not the same as a traditional business that requires you to create buzz, contact the product manufacturer, get orders, and create your campaign page, only to find out that people are not that interested with what you have to offer. Ouch!
Crowdfunding is an excellent technique for testing the market to determine whether your product has the potential to sell. You will promote it to your followers and customers to see if it will sell.
4. Better and wider marketing reach
As you are tapping your social media network as well as professional connections, you are creating buzz for your product.
5. Lower overhead costs
As your funds will be coming from friends and other supporters, you can focus on other important expenses. You do not have to worry much about salaries, taxes, employee benefits, and others.
6. Opportunity to get creative
With crowdfunding, you can be as creative as possible in terms of marketing. Crafting an effective marketing strategy for your crowdfunding campaign will ensure that you can be noticed by your target market.
The Bottom Line
Crowdfunding has made business management simpler and less worrisome. It’s an effective way of giving your product the attention it deserves. With the tough competition your business is likely to face, crowdfunding can give your business the competitive edge.
With these benefits, aren’t you excited enough to consider crowdfunding at Shopify? Give crowdfunding a try, and see if it takes your business to the next level.
Crowdfunding With Shopify? It’s Possible!
Did you know that you can set up a new crowdfunding campaign through Shopify? Aside from being one of the most popular e-commerce website providers, Shopify may be used for other business purposes. Check out this Shopify crowdfunding page to help you get started.