Crowdfunding for Small Businesses: The Benefits

Starting a small business can be a daunting task, but crowdfunding provides an innovative option for entrepreneurs to access the capital they need to get their business off the ground. Crowdfunding can bring numerous benefits for small businesses, such as increased visibility, access to larger networks, and opportunities for creativity. Here, we explore the benefits of crowdfunding for small businesses, and provide examples of successful crowdfunding campaigns to illustrate these points.

Increased Visibility

Crowdfunding campaigns can help bring visibility to small businesses. When entrepreneurs launch a crowdfunding campaign, it can help to create buzz about their business and attract media attention. This increased visibility can help to bring in more backers and potential customers. For example, the crowdfunding campaign for the Exploding Kittens card game drew attention from the media, ultimately raising more than 8 million dollars from 219,382 backers, making it the most successful Kickstarter campaign ever.

Access to Larger Networks

Crowdfunding allows small businesses to access larger networks of people, which can be invaluable in terms of marketing and growing their customer base. By launching a crowdfunding campaign, entrepreneurs can gain access to a wide range of potential backers, from friends and family to complete strangers. This can be a great way to tap into new networks and find potential customers.

Opportunities for Creativity

Crowdfunding campaigns can also provide entrepreneurs with an opportunity to get creative and think outside the box. Crowdfunding campaigns are a great way to engage potential customers and backers, and create excitement around the product or service. For example, the Pebble smartwatch crowdfunding campaign successfully engaged backers by offering them exclusive rewards, such as limited edition watches and discounts. This creative approach helped them to raise over 10 million dollars from over 68,000 backers.

Crowdfunding can be a great option for entrepreneurs looking to access the capital they need to get their business off the ground. It can provide small businesses with increased visibility, access to larger networks, and opportunities for creativity. The examples above demonstrate the potential of crowdfunding to launch successful businesses, and show how entrepreneurs can get creative and think outside the box when it comes to launching a successful crowdfunding campaign.