BENEFITS OF CROWDFUNDING

Benefits of Crowdfunding If you are considering raising funds for your project or business through
crowdfunding, there are a number of factors that you might want to consider for
instance the benefits and disadvantages of crowdfunding as discussed below;

Advantages (Benefits of Crowdfunding):

1. It can be a fast way to raise funds
   When you are a starting company focused on building your company and
   attracting capital, setting up a successful crowdfunding campaign is far more
   effective and efficient in getting your message out to the right people compared
   to applying for a loan or seeking out potential investors yourself.
2. It can be a valuable form of marketing and result in media attention
   It  is a great way to bring in backers outside of your personal
   network as its open to the public.
3. Your investors can often become your most loyal customers through the
   financing process
   The people that power your idea’s social proof are your early adopters and
   potential investors. They are the people who believe in your story, product, or
   service enough to stake their money on its long-term success. These early
   adopters are key to the success of your crowdfunding campaign and the
   momentum you keep after closing.
4. Sharing your idea, you can often get feedback and expert guidance on how to
   improve it
   One of the greatest things about crowdfunding is how close it gets you to
   customers giving you a chance to engage and field questions, complaints,
   feedback and ideas. You never know your company’s next great idea could come from somebody you don’t know. Thus, it’s important to seize any opportunity for
   customer feedback and consider it in planning.
5. It gives proof of concept
   The first question that any investor will ask will often be in the lines of proof of
   concept and a good way to gain some respect and credibility is be able to show
   that your project had a successful crowdfunding campaign.
6. It’s easier than traditional applications
   Applying for a loan or pursuing other capital investments are two most painful
   processes that every entrepreneur has to go through especially at the early stages
   of the company.

Thankfully, the application process for crowdfunding is a walk
over. In order to get started, all you need to do is set up your project, create a link
for the project, and make a video related to your idea then contact Easypay for
approval and your project will be set live to start receiving funds.

Ref:
Crowdfunding – What is crowdfunding and how does it work in Uganda
Setup crowdfunding cause – Start receiving donations

Disadvantages:

1. If you don’t protect your idea well during the crowdfunding process, some
   people may steal it.
2. Failed projects risk damage to the reputation of your business and people who
   have pledged money to you

How to run a successful crowdfunding campaign

If you are looking to get attention and funding for your business idea, Easypay
crowdfunding might give you the initial push you need to make your dreams a
reality. The following are factors to running a successful crowdfunding campaign;

1. Share your story.
   Let your potential funders know how your product or business idea can benefit
   them. Share who you are, what you are planning to do, what your budget is and
   why they should back you. This shows that you have actually put some thought
   into the idea which helps prove credibility of your project.
2. Set a funding goal
   At this point, it’s important to think about how much money you need to get your
   business up and running, and how many people you know might be willing to
   pledge. Although you may attract the attention of new people with your
   campaign, most of your support is going to come from those who already know
   you. Be realistic. Also keep in mind that you can’t change your funding goal once
   you’ve initiated the campaign.
3. Promote your project campaign
   There are many different ways to make people aware of your crowdfunding
   campaign for instance create a link for your project and share it to your family,
   friends and the entire public through social media platforms like Facebook,
   twitter, Whatsapp etc… This will help create awareness for your campaign
   hence attracting potential funders.
4. Keep your campaign short
   You may choose to make your project campaign long but statics show giving
   people more time does not necessarily make them give more results. Shorter
   projects get more success as they show confidence and add an element of
   urgency.
5. Use your existing network
   Inform your friends, family, colleagues, business partners and anyone else you
   know about your crowdfunding campaign and use them to tell your story and
   why they should back you.
6. Update your funders as the project progresses
   You need to keep your project funders in the line as you move forward with your
   campaign. If you don’t share regular updates with them, you could lose their
   interest and might not be able to attract as many pledgers as you’d like. Be
   honest and regular with your updates. If things aren’t going exactly as you hoped
   they would, be transparent and tell them that.
7. Make changes based on the feedback
   Getting feedback from your people is essential to making any necessary
   improvements before starting a campaign. You must take consumer and feedback
   seriously. You may have an amazing idea, but that doesn’t mean it can’t be even
   better with a little extra work.