Launching an online store is no mean feat. From sourcing the right products to managing deliveries, you have your work cut out for you. But the venture needs more than just your time. Since all of these aspects call for a robust infrastructure, you also need to have sufficient capital on your hands.
Seeing that an online store requires a large investment, it’s difficult to fund it all by yourself. That’s where you can turn to crowdfunding to launch your e-commerce operation.
To understand why this funding method is viable for an e-commerce venture, here are 4 reasons to crowdfund your online store.
It Helps You Reduce Your Risk
Launching an online store by yourself may cause you to put your life savings on the line. But even when it launches your operation, the approach increases your risk and tugs off any safety nets you had set up for yourself and your family. You might be tempted to dig into your savings and take out another loan on your house when financing your business, but this is a huge risk.
Since crowdfunding doesn’t require you to take these huge risks, it allows you to build your operations from the ground up without affecting your stability.
It Helps You Gather Funds Faster
Even when you reach out to institutional investors, the process to make pitches and secure deals takes more than a few weeks. At the same time, its success rate for first-time entrepreneurs remains quite low.
Crowdfunding resolves this problem quite effectively. As long as you comply with best practices crowdfunding entities need to follow, you are able to gain your required capital in a timely manner. It can also help you reach a bigger audience through online platforms, which will result in gathering more funds.
It Helps You Build Interest Around Your Venture
One of the biggest factors towards an online store’s success is the time it takes to build a customer base. If the business achieves this objective quickly, its brand rakes in the big bucks. If it doesn’t, no one remembers its name.
Crowdfunding is a surefire way to build interest around an online store. Since you have plenty of stakeholders to spread the word, you have a potential customer base even before launching your operations.
It Gives You a Headstart to Establish Partnerships
Since renowned companies want to steer clear of potentially fraudulent or poorly managed operations, it is pretty difficult for an obscure store to nab big brand partnerships.
Generating significant buzz through crowdfunding helps in this aspect. By establishing your brand and its presence before launch, it’s easier to secure partnerships with popular suppliers and vendors. You will be more likely to build up a supportive clientele right away by crowdfunding. People who contribute to your campaign will likely stick with you and offer support in the future.
Overall, crowdfunding goes a long way in launching a successful online store. By using this funding method, you can turn your business dreams into reality in no time.
Emma is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. She recommends using best practices crowdfunding for your startup. Say hi on Twitter @EmmaSturgis2