Vinod Ramchandra Jadhav On 4 Game-Changing Benefits to Crowdfunding in Starting Your Business
Business Leader Vinod Ramchandra Jadhav Talks About The Benefits Of Crowdfunding in Starting Your Business
4 Game-Changing Benefits of Crowdfunding When Starting Your Business
Many people have realized their dreams through the use of crowdfunding. Crowdfunding provided an estimated 2.8 billion USD to start-ups in 2012, up 91% from 2011. Crowdfunding allows would-be business owners to say goodbye to the lack of capital access and complicated paperwork requirements in starting their business. The following are four main benefits of crowdfunding, including the more straightforward process, valuable feedback, reduced risk, and targeted marketing.
Forget those tedious documents required from banks and financial institutions to apply for loans. Crowdfunding allows you to access funds by telling the story of your business, featuring a promotional video, and highlighting rewards for investors all in one convenient place.
Starting a business takes a lot of hard work. There are a million new things to do every day, and no available time to finish them. When it comes to paperwork, easier is better. Less time gathering paper and filling in redundant paperwork leaves more time to focus on your customers, devise marketing strategies, and improve production systems.
Raising capital for your business idea is a priority at an early stage in starting your business. During these early stages, feedback and ideas from others are valuable sources of input for improving your already awesome business idea. Getting feedback on your business idea from would-be investors provides different, and extremely valuable, perspectives for strengthening your business idea as well as developing relationships. That is an excellent source of constructive input for your business when it needs it most.
Also, people who are providing you feedback care enough about your idea to spend their time giving you ideas on how to improve products or features. These are the perfect potential customers for you to focus on. Critics at this stage provide the perfect opportunity for you to build relationships, improve products, and make some initial sales by turning these critics into early adopters.
Launching a new product is risky. Securing financing is extremely difficult. Crowdfunding solves many of these problems by simplifying processes and presenting a clearly defined business opportunity to potential investors.
As a result of crowdfunding validating the market, both entrepreneurs, as well as investors, face limited risk. Neither party must blindly invest their life savings into a business venture that ultimately never gets off the ground. By creating a crowdfunding pitch, you are mainly risking your time as the cost involved is minimal. And if the campaign isn't successful in reaching its targets, all investors get their money returned, and the crowdfunding creator has avoided investing a lot of their hard-earned dollars and hard work for nothing.
A crowdfunding campaign is an excellent way to introduce your company's vision and product to the market. Crowdfunding is virtually a free marketing channel and reaches a diverse consumer base. Many crowdfunding platforms integrate social media platforms, making it extremely easy to share and gain marketing momentum via viral marketing.
There are many additional benefits to starting your business through crowdfunding. One such advantage is that the momentum from a successful crowdfunding campaign is excellent material for new stories or features. Spinoff publicity from the success of your crowdfunding campaign can take many forms including blog posts, television features, newspaper stories, and radio interviews. You never know where a crowdfunding campaign will take you and your business idea.
Crowdfunding provides an incredible funding opportunity for new business owners that never existed for our parents. And there is no better time than now to take advantage of the growing opportunity for crowdfunding to start your business today.
About the author: Mr. Vinod Ramchandra Jadhav is a chairman, philanthropist, and first generation entrepreneur. Since 2001, he has been building successful businesses in the pharmaceutical and technology spaces through improving supply chain management to create long-term sustainable companies. He’s passionate about rethinking traditional business processes and playing a role in making the communities he operates in better.