People generally think about crowdfunding as a tool to support the launch of a new project, suitable only for the initial stages of a business. Yet crowdfunding is an excellent means not only for the launch of a startup but also for its subsequent development. In this article, we'll explain how to do business development with crowdfunding.
What is the meaning of business development?
The term business development, in business jargon, refers to any idea or strategy aimed at the growth of a company. Doing business development therefore means taking care of the company's development over the long term, e.g., by creating strategic partnerships, expanding into new markets, optimizing resources, reducing costs, etc.
The heart of business development lies, in particular, in strategic planning activities: from identifying new opportunities and customers to defining new objectives, using in-depth market analyses, and elaborating detailed action plans aimed at increasing business. Fundamental in business development are also marketing and communication activities, aimed at increasing the company's presence in the market and enhancing brand reputation.
How to develop your business trough crowdfunding
Crowdfunding is becoming an increasingly relevant tool for those who want to start an entrepreneurial project. Still, it's also an equally valid solution for growing an already established business as part of a business development strategy.
Crowdfunding not only provides access to the funds necessary to realize one's development plans but also offers the possibility of creating a base of passionate supporters willing to actively promote the brand. In addition, a crowdfunding campaign is an excellent way to validate a product, service, or business idea, as the interest and financial support obtained during the campaign can indicate market potential and confirm that there is demand for one's offer. Crowdfunding, in this sense, can serve as a real market test, before fully investing in the launch of a new product or service. In addition, the flexibility that characterizes crowdfunding makes it possible to quickly adapt the development strategy according to audience feedback, optimizing the growth process.
The important aspect to consider is that crowdfunding is not just a financial operation aimed at raising capital, but much more: it is a true marketing operation that can increase brand visibility and attract investors, potential customers, and business partners. To obtain satisfactory results, however, it is essential to approach crowdfunding in the right way, through careful planning and the adoption of appropriate strategies. By doing this, always remember that crowdfunding is not only a funding source but much more!
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Launch a business development crowdfunding campaign in 5 steps
To ensure that your crowdfunding campaign is successful, it is essential not to leave anything to chance, but to plan each step carefully. In particular, you should always refer to the following points:
1. Clearly define the crowdfunding purpose
Before embarking on a crowdfunding campaign, it is essential to clearly define the purpose of the funding. This could be the launch of a new product, the expansion of the business into new markets, or even the research and development of new technologies. A well-defined objective will help to communicate effectively with potential investors.
2. Create a structured campaign
The key to success in crowdfunding is to create a well-structured campaign. Presenting the project attractively using quality pictures and videos, clearly explaining how the funds will be used and what benefits supporters will gain, and offering attractive rewards: here are some of the actions that can be put in place to engage stakeholders and incentivize them to invest.
3. Involve the funding community
Crowdfunding is not only about raising funds but also about actively involving the investor community. Responding promptly to questions, regularly updating investors on the status of the project, and involving them in the decision-making phase, if possible, are all ways to increase trust and create a deeper bond between the company and its backer base.
4. Use the appropriate crowdfunding platforms
There are different crowdfunding platforms with their own characteristics and audiences. Choosing the most suitable crowdfunding platform for the type of project (some platforms, for instance, specialize in a specific economic sector) and the target audience, as well as the type of crowdfunding (equity, lending, reward, etc.), is therefore crucial. It should be noted that, according to the new European Crowdfunding Regulation, it is now possible to launch a crowdfunding campaign on any platform of any EU State under the same conditions: an option to consider, for those who want to find investors abroad.
5. Create engaging social media content
Social media is a crucial element for the success of a crowdfunding campaign. It is therefore important to communicate with your potential investors via Facebook, LinkedIn, Twitter, and Instagram, sharing regular updates on the campaign and business project, achievements, plans for the future, etc.
6. Implement a post-campaign strategy
Once the funding goal has been reached, it is essential not to let your guard down. Instead, stay alert by implementing a post-campaign strategy that includes timely delivery of rewards, punctual updates on project development and future plans. This will help maintain community support in the long term.
To start taking your first steps into the world of crowdfunding and learn about the experience of other entrepreneurs in crowd collections, we also invite you to join our "Crowdfounders Italy" Facebook group.
Do you need support in preparing a successful crowdfunding campaign and seeking potential investors for your project?
Turbo Crowd can accompany you throughout the process, from organizing the precrowd to closing the collection, developing effective and innovative marketing strategies to best promote your campaign.
