How to harness crowdfunding to boost your business

We saw the launch of North42 Gin here in Leicester last night – a new spirit developed and distilled by the fine dining restaurant North Bar & Kitchen.

What makes this product so different is that the business raised the capital to craft batch number one using a crowdfunding platform. Their first project aimed for £10k and raised over £12k. At the invitation of Crowdfunder, their second project aimed for £5k. In the end they made nearly £8k, thanks to the addition of a 50% grant. This came from the Natwest Back Her Business scheme.

If it sounds like easy money, make no mistake… Crowdfunding takes a lot of dedication and work to be successful. You can’t just put up a page and watch the pennies roll in.

How do I start a crowdfunding project?

So if you’re thinking of using crowdfunding to fund the next stage of your business development, here are a few tips to consider.

  • Aim low! Be realistic and comprehensive about the costs your project will include. Don’t forget crowdfunding platform fees and any marketing or management costs. Set your target as the minimum amount of money you realistically need to achieve the goal.
  • Think how much time you have to devote to the project now, and in the future. Don’t offer 50 different rewards if you can’t afford to get them all made and haven’t time to distribute them all at the end. 10 good rewards, related to the project are enough.
  • Plan a pre-campaign. Give yourself a few weeks run up to launching your crowdfunding to get your friends, families and loyal clients on board. That way, your project will get a good boost of funds on the first day. Success breeds success!
  • Have a great story! People are investing in you, not your product.
  • Use video – be a visual story teller to help bring people on board.

If you have an idea but you don’t know where to go next, talk to Thirst Media. We can help you with planning a campaign and seeing it through to success.

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