There is a great opportunity for UK entrepreneurs but working smart is key to growth and success. Although crowdfunding ticks the funding box, it can bolster other crucial aspects of your business as you grow.
You have your business idea or even a prototype of your product, but you’ve hit a stumbling block: Money.
VCs won’t invest because they want to see market interest first, and you can’t take your business further through your own money, so what do you do?
Hitting the funding road-block can be frustrating, especially when you have given your blood, sweat, and tears to get so far.
However, there are other routes for creating capital for your startup, which will not only give you funding but can help your business in many other ways.
Here are the top three ways in which crowdfunding can help you achieve this:
The rate of innovation in the UK is at a record high with the number of UK startups that have popped up all over the country. This is fantastic news because it shows the rapidly growing opportunities for entrepreneurs.
At the same time, this means that a lot of businesses are working on the same gadgets, and consumers are feeling this.
Instead of hungrily buying all the gadgets, consumers are more interested in what curated collection of gadgets works for me.
The biggest risk for you, as an entrepreneur, is launching a product, and six months later discovering that it hasn’t succeeded because the demand isn’t as strong as you thought it was.
Crowdfunding provides a litmus test of consumer interest. A successful campaign proves without a doubt that there is a market for that product.
Boost In Product Development
The second benefit of crowdfunding is – Getting help with product development.
Wouldn’t it be great to have a crystal ball and see the product features your consumers want?
Sadly, only Mystic Meg can conjure that up. Crowdfunding, however, gets pretty close to crystal ball capabilities.
As crowdfunding campaign backers share their feedback throughout the crowdfunding process, you gain valuable insight into how to tweak your product while it’s still a prototype, creating a stronger final product at the end of it.
Building A Brand
Now you’ve got your product, where’s the fan club? As an unknown business, it can be daunting to dip your toe into the social media pool.
With tasks including managing a website, sending promotional emails and posting on social media – marketing itself can be a full-time job.
Whilst friends and family are usually the first to get signed-up to back your crowdfunding campaign, there is also a whole collective of people who are on the lookout for the next must-have gadget.
A captive audience can bolster your brand and turn it into the next company to watch.
The added bonus – Your backers.
They would have seen your journey as you reach each milestone and this will turn them into brand advocates.
Your brand advocates will spread awareness through word-of-mouth, social sharing, and will come back for repeat sales once you have your product online or next product released.