Every summer, millions of us will put down our tools and find somewhere sunny for a well-earned break, but for small businesses, the summer holidays can cause a whole lot of stress. Staff are away, business is slow and revenue slows down. By the time everything is back up to speed, they often find themselves running short of cash.
In the past five years, crowdfunding has skyrocketed in popularity as a way to bring innovations to life and has become a great contender to more traditional methods of funding. It has given entrepreneurs access to capital through the people who are most excited about their idea, and want to help it become a reality. This real-time interaction with ‘the crowd’ provides invaluable insights into the market for a given product, and allows entrepreneurs to tweak their products to better fit their customers’ needs. There’s no denying that there are are some major crowdfunding mistakes which can be made, however they can be easily avoided.
What started as a way for startups and entrepreneurs to gain access to capital has transformed into a industry worth over $34 billion (£23.9 billion). Most people think of crowdfunding as simply a way of raising funds for projects, but it’s actually much, much more. It’s also a great promotional tool and an effective way to build a community of supporters, so to use crowdfunding as a marketing platform only makes seems natural.