Hi, I am Fiona and I am Chief Operating Officer at Sian’s Plan. We’re raising €120,000/£100,000 through Seedrs. Check out our campaign here.
Why did we at Sian’s Plan think that this was a good option?
1. Show Me the Money
We’d be lying if we said that our main aim with a crowdfunding round was not to bring in the money. Crowdfunding can be a great, relatively speedy way to bring in the cash. However, one word of caution, make sure you’ve done your homework. We’ve been revising business models, preparing business plans, tailoring pitch decks and meeting with VCs and Angel Investors for the last year. This practice and those relationships are a key part of having a successful crowdfunding round.
2. Build the Sian’s Plan Community
As well as raising cash, this is a great way to build loyalty within your community. We offered all our members advance access to our crowdfunding platform, enabling them to invest in a product they believe in. We also gave a lifetime membership to people who invested above a certain amount. This vested interest means our community is extremely bought in to what we do and are waiting with baited breath for second iterations of our product.
3. Testing Ground
Another key benefit is that it can be used as a testing ground for your product and business model. By putting it out on the market, you can see whether people believe in your idea. It provides validation for your hypotheses. On the flip side, if the crowdfunding isn’t forthcoming, it can give you a heads up that perhaps this version of your product is not right and it’s time to get back to the drawing board. These are vital learnings, particularly when you operate a lean business model.
Crowdfunding is an excellent marketing hook. In order to be successful in a campaign, it is vital to be trending on every media. But the crowdfunding story is a news hook itself. If you are successful in raising finance through such a round, the benefits thereafter in terms of increased market awareness are unquantifiable.
5. Proves valuation
Valuing a company is a distinctly unprecise science and a number of variables can influence this. The valuation we have arrived at reflects previous valuations, additional work and proven statistics. When people buy into the crowdfunding campaign, they buy into this valuation!
6. Increase Advisor Base
Crowdfunding entices a crowd. WIthin that crowd are some key business players with broad skill sets – marketeers, UX advisors, mummy bloggers, accountants, traders etc. By putting Sian’s Plan on a crowdfunding map, we are opening our product to advice and help from these people. If you think you would be one of these people, do check out our crowdfunding platform.
7. Global Reach
Sian’s Plan has global sights. We’ve already launched in the UK and Ireland, but our plans include US and Australia (where we already have angel investors) and further beyond (Canada, Europe etc). Through crowdfunding you can get investors from all over the world, which can only help the global reach. This global reach can also be beneficial if finance is restricted in your country of incorporation or business.
8. Lower Risk
We have a big network of family and friends who want to invest in Sian’s Plan. By bringing them into a crowdfunding platform, we are letting them spread the risk and share the gains. This makes sense to us.
REAL WAYS TO FUND YOUR BUSINESS
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