The internet has opened up a world of possibilities for businesses to get the capital they need and farms are no exception. Farmers everywhere are turning to friends, family, and even complete strangers to help
fund their farming venture.
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Is crowdfunding the next big thing when it comes to funding your farm? While we tend to think that it can work, there are some things you should know before you get started.
You Can’t Raise Funds Overnight
It takes a long time to get the funds you need if you need any amount of significant money. First, you can’t expect to raise the funds if you have a small ‘crowd.’ You need the potential to advertise your need for funds to a large number of people – we are talking in the thousands. If you limit your request to your small circle of family and friends, your ability to raise the necessary funds could be greatly limited.
You Must be Transparent
Because you are reaching outside of your inner circle of friends and family, you are going to need to share your plans for your farm. This includes the need to share your budget and plans. The more transparent you are, the more likely it is that you will have
willing investors. If you don’t share your budget and plans, potential investors won’t know what your money is for and may not be willing to donate.
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You Will Need Help
Don’t expect your crowdfunding attempt to go viral overnight. In fact, it may never go viral if you don’t ask for help. You cannot be shy when asking friends and family to share your request. If they are on social media, it will only take them a few seconds to share it. You never know who is in your friends’ and family members’ contact list that may find an interest in helping an aspiring farmer.
You Must Time Your Request for Capital Right
Choosing the right time of year can also help your crowdfunding request to be successful. There’s no doubt about it that asking for money around the holidays will not work in your favor. Keep your request away from the end of the year to avoid disappointment. In fact, investors are often looking for good opportunities at the start of a new year, so you may want to time your request to hit around that time.
You May Need an Incentive
Since you are looking for capital for a business, investors or donors may be looking for a return. It doesn’t have to be something huge, but any type of return will increase your likelihood of getting more funds. Think of ways you can thank your donors or ways you can bring in investors to help you get your farm going.
Crowdfunding can be a great way to get the capital you need for your farming venture, but you have to do it right. Just throwing out a request for funds to your inner circle is not going to work. You need a
marketing and business plan put together before you send out the request to ensure that your campaign is as successful as possible.
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