Starting a side hustle: How to Crowdfund it

You’ve got it! You’ve got that business idea that will make a massive impact for you, on your community, or maybe even the world. 

Crowdfunding is not only an excellent way of raising money for your idea, it can also raise awareness of your brand/organisation and, once your project has successfully closed, you’ll have built a new crowd of supporters and customers to join you on future adventures.

Now, you might be asking, “What are the other benefits of crowdfunding and why is it so good for businesses?” Here are seven reasons to give it a go…

1. It’s a quick & low-cost way of raising funds

Applying for loans or finding investors can be a slow and time-consuming process, but crowdfunding is a quick, affordable, and, not to mention, creative way of raising the money you need to grow your business or get it started!

2. You don’t have to give away any equity

If you choose to start rewards-based crowdfunding, it means that you don’t have to give away shares in your business. To put it simply, rewards-based crowdfunding just involves a supporter giving your project a pledge in exchange for a reward. Remember, if your rewards are tempting then it’s more likely that someone will pledge.

3. You can find new customers

By enticing people to support your project, you’re growing your network and tapping into new customers while simultaneously developing a database for your business. Simple, easy, and effective!

4. You can minimise risk when testing/validating your idea & new product lines

Rewards-based crowdfunding is the perfect place to test out your idea because of the minimal business risk associated with it. If you see lots of support and validation from the crowd, you’ll know that you’re onto something. This saves you from putting lots of valuable time, money and resources into something before you know that it has the potential to work.

5. It builds stronger connections with customers

The wonderful thing about crowdfunding is that everyone who pledges on your project becomes part of a unique story. A connection like this is truly priceless because your customers then become advocates for what you do!

6. It gets people talking

When done effectively, a well thought out crowdfunding campaign can become a driving force for brand awareness. Word can spread via word of mouth, and the internet, making your brand a real talking point for your community, or the world.

7. You’ve probably already got the essentials

When it comes down to it, you’ve probably already got everything you need to start crowdfunding. Along with your great business, all you need is some copy, a bit of a following, some video content and some great images. If you have all that, well, then you’re already 50% there.

Photo by Danielle MacInnes on Unsplash

BONUS TIPS: How can you market your project?

You don’t need to be a professional at marketing to start crowdfunding for your Side Hustle, but you do need to put a lot of thought into promoting your project. To increase your pledges, you’ll need to reach as many people as possible!

Firstly, you need supporters to pledge on your project in order for it to be successful. It sounds simple, but you need a foolproof plan on exactly how you’re going to reach those people. After all, how are they going to know about your project if you don’t actually tell them?

In short, you need to be willing to shout about your project from the rooftops! Reaching more people (and keeping them engaged) can be done by creating a variety of content. Now, when we say content, we mean information, and the overall words, which you use to get potential supporters to engage with, and pledge on, your project. Think about it, as the project owner, you’re the best one to inform the world about your idea.

Building this much-needed momentum and buzz around your project can be done through content. This content can excite people who are already in your network and entice a whole new range of people. Basically, there are so many things you can do which will maximise your success.

We know this can sound daunting, but, if you’re not sure where to begin, you can use these five suggestions to get yourself started. Remember, if you’re not sure about something then never be afraid to ask someone who is.

1. Social media posts

If you’re new to Facebook then we’d recommend checking out this article on how to get started, grow your crowd, and promote your project on Facebook.

Coming in many forms, social media is really one to test out because you never know which channel will work best for your idea/brand/project! Instagram is always good if you have lots of high-quality images, and, if you’ve got lots of good connections, Twitter is also a good place to start. Facebook, though, works for most.

If you’re just starting out, we recommend focusing yourself on just one channel. This will mean that you’re giving it your undivided attention and you won’t get overwhelmed. Beginning this process before your campaign has gone live will mean that, when you finally do get the ball rolling, you’ll already have a crowd around you.

Social media posts have the potential to reach masses of people, and it’s the quickest form of content because it’s generally one-liners or short paragraphs. Looking at your own experiences with how you engage with social media and content can be a massive help.

2. Blog posts

A blog, by definition, is a regularly updated web page that is written in an informal style. Conversational content like this can really lessen the load because you don’t need to worry about formality! You can use a blog to cover all sorts of topics, and, in the end, it will be another trick up your sleeve when it comes to getting your idea out there.

One of the most wonderful things about written content is its collaborative element. Writing your own content is great for telling people what you’re doing, but having someone else show their support for you can be even better. If you can find bloggers who are writing about the topic that you’re working with then reach out to them and see if they’d like to write something about your project. We mean it when we say that collaboration can be the key to tapping into other people’s networks. Don’t forget to share the blog on your social media channels for some extra oomph.

2. Emails/Newsletters

Building a database of emails can be a great way of preparing for your campaign. This way you can reach out to your contacts, letting them know what you’re doing and when you’re going to be launching. Make sure that you’re meeting GDPR requirements!

If you’re a little stuck for inspiration then you can sign up to some newsletters and get a feel for how they’re doing things. Looking at the emails that make their way into your inbox can also be extremely useful because you can identify what they’re doing and how it impacts you.

3. Press

You want everyone to hear about your campaign so you’ll obviously be making a lot of noise about it, but, remember, the noise you’re making needs to be effective. Getting as many people as possible to write (and talk) about you and your campaign can really make your project flourish. As true believers in the crowd, we know that the potential reach of something is far greater when people work together. Why not get in touch with your local newspaper and radio station? It might seem scary, but they’ll be looking for their next story so you might as well take it to them. Don’t forget to check out this blog on writing a press release for your project.

4. Podcast/Interviews

Do you have, or can you make, connections with your local radio station? Is there a podcast that really fits with what you’re trying to do? If so, don’t be afraid to reach out to them! Maybe they’ll say no (and that’s okay – it’s nothing to be afraid of), but maybe they’ll say yes and you’ll get a chance to talk about your project live. It would be an amazing opportunity to really explain why you’re doing what you’re doing!

Crowdfunding is truly your opportunity to put something out into the world and watch it come to life so be bold, be creative, have fun and enjoy your side hustle success!