The Basics of Crowdfunding

Today’s blog post is written by Mrs. Shanta Lana Hereford. She’s sharing valuable information about crowdfunding and how it can transform your life as a woman entrepreneur. 

Are you a female entrepreneur who’s struggling to secure funding for your business? Do you have a great business idea but lack the resources to bring it to life?

If so, crowdfunding could be the solution you’ve been looking for. 

As a female crowdfunding expert, I’ve seen firsthand the transformative power of crowdfunding. It’s a great way to raise capital and connect with your community. 

This type of fundraising is particularly beneficial for underrepresented entrepreneurs like women and minorities.

Here’s what I mean.

Dawn’s Story

One inspiring example of a woman who used crowdfunding to achieve success is Dawn Dickson-Akpoghene, CEO of PopCom and founder of Flat Out of Heels. Dawn used crowdfunding to raise millions of dollars for her businesses, and her success serves as a testament to the power of crowdfunding for women entrepreneurs.

Dawn’s story is one of resilience and determination. She created Flat Out of Heels out of necessity when she couldn’t find affordable relief for her aching feet after wearing six-inch heels to an event. 

Her solution was to create fashionable, rollable flats that could be purchased from vending machines.

Dawn’s success with Flat Out of Heels led her to startup PopCom, a company that develops artificially intelligent vending machines. She used crowdfunding to raise over $3 million from over 5,000 investors. 

And in 2019, Dawn became the first female CEO globally to raise a security token offering (STO) of over $1 million using equity crowdfunding under Reg CF of the JOBS Act.

Dawn’s success story is not unique. Crowdfunding has helped many women entrepreneurs achieve their dreams.

Dawn’s success inspired Amber Anderson to launch her own crowdfunding campaign for her company, Kayson, a clothing line that empowers women through fashion.

What is Crowdfunding?

So, what exactly is crowdfunding, and how can it help your business?

Crowdfunding is the process of raising small amounts of money from a large number of people, typically through online platforms. 

It’s a way to raise capital and validate your business idea without relying solely on traditional funding sources like banks and venture capitalists. 

Crowdfunding has several benefits for women entrepreneurs. First, it allows you to connect with your community and build a network of supporters. 

This is particularly important for underrepresented entrepreneurs who may have a harder time accessing traditional funding sources.

Secondly, this type of funding can help you test the market for your product or service. 

By putting your idea out there and seeing who’s willing to invest, you can gauge interest and make adjustments as needed. 

Thirdly, crowdfunding can help you overcome the funding gap that many women entrepreneurs face, especially Black women.

According to a study by digitalundivided, Black women receive less than 1% of venture capital funding, despite being the fastest-growing group of entrepreneurs in the US.

Therefore, crowdfunding can help you bridge this gap and secure the funding you need to grow your business. 

How to Get Started With Crowdfunding

So, how can you get started with crowdfunding? 

First, one of the most important steps is building a crowd. 

The first step in building a crowd is identifying your target audience. 

Who is your ideal backer or supporter? 

What are their interests, demographics, and behaviors? 

Once you have a clear understanding of your target audience, you can start to craft your messaging and outreach strategies to appeal to them. 

Next, do your research and find a crowdfunding platform that aligns with your business goals and values.

There are several platforms to choose from.

 You can check out: 

• WeFunder
• Kickstarter
• StartEngine
• Rise Up Crowdfunding
• Republic
• Indiegogo.com
• and others. 

(Editor’s note: We also love Kiva as a crowdfunding platform)

Then, create a compelling campaign that tells your story and explains why your business is worth supporting. 

This may include a video, product photos, and testimonials from satisfied customers. 

Be prepared to put in the work to promote your campaign and engage with potential investors. 

This may include reaching out to your personal and professional networks, creating social media content, and participating in online communities. 

Conclusion

In conclusion, crowdfunding can be a powerful tool for women entrepreneurs looking to start or grow their businesses. It allows you to connect with your community, test the market, and overcome funding barriers.

So, if you have a great business idea but lack the resources to bring it to life, don’t give up, tap into the Power of Crowdfunding. 

Interested in discussing crowdfunding as an option for financing your business? 

Schedule a complimentary consultation with H.E. Shanta Lana Hereford.

About the Author

Shanta Lana Hereford is an entrepreneur that considers her story to be one of resilience and determination. Like many other women, she faced several challenges on her path to entrepreneurship, including financial struggles and personal setbacks. But through it all, she has remained committed to her vision and has used her experiences to fuel her passion and push through. She helps encourage women to embrace their unique talents and abilities and to use them to create a positive impact in the world. Her company, Shanta Lana LLC, is a testament to the power of dreaming big and the importance of not giving up on your personal and professional journeys.

You can follow her on LinkedIn, Facebook, Instagram and Twitter.