Crowdfunding like any funding method has its pros and cons but it can be an ideal way to not only pay for a new venture but also to test the market and see what response you get.
It’s a simple method to get funding but don’t under estimate that it’ll be a quick fix – it can be just as stressful as any other type of funding and, as a research project, you may be astonished at how honest people will be about the project.
But in saying all that it does make it possible for good ideas that do not appeal to the conventional investor to raise finance and at the same time raise support from potential customers.
There are various platforms that you can use and you may need to do some research to decide which one is best for you but there are plenty of local (Aberdeen) examples, Food Story, Summerhouse drinks, Adelphi Kitchen and just recently the Cat Café that have used this funding to success.
However you also need to consider that there is one potential disadvantage ; you need to disclose your idea. Which does run the risk of the project being copied by competitors who may have better financing.
You also need to offer good rewards that people will buy into and as such this type of funding may not be suitable for your project. It’s not an easy fix, the campaign will take up a lot of your time but it will also raise your brand awareness.
Crowdfunding is definitely an option that you should consider as a tool for your business funding and research but be realistic, it maybe isn’t right for your business, and although it will be fun, be prepared for a lot of hard work.
If I can help with your crowdfunding please do not hesitate to get in touch