A niche bit of cash: Can you fund a niche company with crowdfunding?
It’s very much part of the accepted fabric of raising the necessary cash for a business, crowdfunding is a useful tool that has been utilized by everybody, from filmmakers to musicians, to goodwill ambassadors, to acquire the necessary funds to get a specific project off the ground.
And while many businesses and ventures can run into crowdfunding issues when it comes to setting aside funds for a business that is classed as niche, or for a very specific purpose within the business, is it achievable, and what do you need in place? Let’s answer the question.
Is it a successful venture?
A lot of people view crowdfunding as a simple way to get guaranteed finances, however, this is not the outcome, especially if you are running a niche business. You may find that your purpose for the campaign is too niche, or people simply don’t believe in the validity of your business endeavours. On the other hand, you may be using the crowdfunding campaign to further bolster your already successful business. And for many, this could be seen as the digital equivalent of pushing your luck. If you’ve got a successful business already, you may not find that you will get sufficient backing. However, on the other end of the spectrum, potential funders, they want to see the fruits of their labours…
The purpose of the campaign
For every campaigner, the purpose of the campaign will be the thing that resonates with your potential backers. If you are looking to fund a farm, this is a type of business that is very appealing to the environmentally conscious, which, nowadays, is pretty much everyone! And so, if you are looking to raise the necessary funds for equipment, show your potential backers why you are doing this. So, make sure that you know exactly what you need to raise the money for, rather than a general campaign, it’s time to get inspired and to say exactly what you need, whether it is machinery, additional workers, or increasing your utilities. If there is a specific aspect of your business that needs to be funded, such as the disposal of waste, there are specific tools and vehicles to help you do this, and you can find more here to get inspired. Make the purpose of the campaign as comprehensive as possible, and show your backers what they are investing into. For any niche business or a company with niche leanings, this has to be front and centre of your crowdfunding campaign.
The key to niche crowdfunding
It sounds very simple, but some crowdfunding platforms lend themselves better to certain ventures than others. A crowdfunding platform like Faith Launcher will work very well if your projects are leaning towards the Christian side of things, whereas Pledge Music is a crowdfunding platform for musicians. By picking your platform in respect of your product or venture, it could mean a world of difference in your outcome.
By no means is any crowdfunding campaign going to guarantee you the money you require, but if you are looking to establish a niche business, it’s very much all on the marketing side of things. This can be a very rude awakening, but if you are looking to market a niche business, you are only going to get funding from niche sectors. So think about this before you press on with your crowdfunding campaign.