Crowdfunding can be an invaluable resource for businesses of all kinds. Smaller and medium-sized companies, though, will perhaps benefit the most. Crowdfunding green business campaigns can draw from all over the world, so if you’re considering using a crowdfunding site, you should keep the following green business tips to achieve success.
When to Use Crowdfunding
Crowdfunding is a tactic for anyone who needs to raise money quickly. You may see lower-income people setting up GoFundMe campaigns to raise funds for expenses like moving or getting surgery. Green businesses can follow suit and use crowdfunding sites to get financial support.
When beginning, the first green business tips are to figure out what you’re raising money for and decide what kind of crowdfunding it will be.
A donation-based campaign includes contributors donating money but not receiving anything in return — which is how many crowdfunding projects work. Another option you can choose is a reward-based campaign, where contributors get a product or share of the project. Last, equity-based campaigns involve contributors receiving ownership of some sort.
Then, focus on what you’re crowdfunding for. The process itself can be an excellent way to weed out good ideas from bad ones. For instance, if you’re not receiving traction or donations, it might be a sign to change things up.
Use successful stories to compare. Affordable Community Energy Services Company used StartEngine, a popular site for crowdfunding green business, and raised $22,500 from contributors and donations. The project seeks to provide environmental and monetary stability to individuals in low-income housing.
Once you have your footing, it’s time to roll out your plan.
How to Crowdfund for Green Businesses
Each of these steps is imperative. Following them ensures a successful outcome for your crowdfunding campaign.
1. Choose your service
The very first step is to choose a site for crowdfunding. It should be one that supports environmental initiatives. Some well-known examples are StartEngine, Indiegogo and Kickstarter. Of course, you can use other sites like GoFundMe, but resources that specialize in environmentally friendly projects will already have a green following.
Get to know the site’s ins and outs, rules and security. Once you have a good grasp of these, you can set up your engaging project. If it draws people in, you’re on the right track.
2. Don’t forget the smaller details
It’s easy to get excited about your project’s possibilities — which is a good thing! However, don’t forget about the subtle details. For instance, research the fees and transfers of the site you’re using. What happens if you don’t meet your goal? Remember to cover your legal bases as well.
These details will pop up as you go. Address them as they come along, so you don’t run into issues later on down the road.
3. Take action
Last, you’ll need to stay active throughout the process. For each donor, you should send out either automated or manual thank-you emails as a sign of appreciation. Keep their contact information to solidify the connection for future projects or networking.
If you have a team in place, the steps become easier. From there, you can run a successful campaign and keep them going in the future. You’ll be getting your company’s name out while making a sustainable, green difference in the world.
A Successful Crowdfunding Campaign
With willing donors all over the world, your next crowdfunding green business project is waiting on the horizon. Following the above green business tips, you’ll be able to carry it out to its most successful potential.
Though the internet has made connecting instant, remember that crowdfunding takes time. Spread the word about your crowdfunding project. Ensure people know about it and keep sharing it across the virtual world. Then, watch it grow into tangible action.
Emily Folk is a freelance writer, covering conservation and sustainability. You can read her blog, Conservation Folks, for more of her work.