Is the idea of ‘Crowdfunding’ going to be one that takes off and is an option as part of the funding mix, for future businesses looking for investment? Interesting article on this today about a middle eastern firm looking to get investment from ‘the crowd’ in order to grow his business. He is looking at customers, friends, supporters rather than traditional investors as a way of growing the business. Of course there are pros and cons to this concept. Read the article to find out more.
The aspect that is interesting from a marketing perspective is not just involving the crowd as a way of growing your business, but this idea of transparency. I have mentioned it in previous blogs, but it is growing in importance. Even for this company that is in the Middle East, where they are conservative about exposing information about their company, the owner is seeing the growing need to involve the public in his business. He says, “In the Middle East there is also a culture of keeping everything a secret in terms of running a private company – you don’t want other people knowing how it’s going. But we want to grow our business and this means we have to be transparent about it”.
Transparency. Involving customers in your business. Whatever the size of your business, it’s important to look at this – whether it is getting input on products you are developing, or of the perceived brand of the business, or seeking input from customers on events that you are running that affect them, try and look at ways of involving customers. It helps build the bond with the customers and make them more connected with you and less likely to go to your competition. Social media is particularly helpful in building this bond, but there are many ways it can be done.