When seeking for funds to start a business, there are many options available. One option that regularly gets ignored is crowdfunding. This piece takes a look at major reasons why you should consider crowdfunding when starting your van business.
It is Inexpensive
With crowdfunding, you only need to create properly drafted campaign messages for your audience on the crowdfunding platform. There are no long meetings to navigate and you don’t have to travel half around the country to meet prospective investors. You can completely run a campaign on your own, using money saved to take care of other important aspects of business such as buying van insurance for business and advertising.
Your Business Remains Yours
Many sources of income for a new van business will involve giving up some stake in the business to the investor. Crowdfunding removes this problem. Of course, there needs to be some form of value for backers to be able to invest in your campaign but you only need to worry about fulfilling the offer promised instead of worrying about shared ownership of your business. As a van business, possible offers could include 50% off rates for a specific period of time, free services for a specified number of days in a month for backers, and more.
Build a Loyal Community
With a properly organised crowdfunding campaign, you can create a community around your business. Instead of starting from scratch to source for clients, you will already have a small army of backers ready to spread word about your new van business and help you get it off the ground.
Get Actionable Feedback
You may have created a quality plan for your new van business but direct feedback from backers can help you fine tune the business plan for an improved shot at success. Similarly, when your backers see you approach to taking valuable advice on-board it can lead to more display of goodwill which will encourage other backers to invest in your business.
Easier access to additional funds
If your van business gets off the ground and backers can see tangible progress being made, it is easier to source for a second round of funding. The extra funding campaign doesn’t have to be expansion-related to be a success. Investors are more likely to put in money into a business when there is enough and traceable traction.
So as you plan funding for your van business, do not make the mistake of ignoring crowdfunding as a source of business capital.