It’s incredible to see just how far business has come because fairly recently, the ways to finance a company were limited to board meetings and close associates. Because of the digital age, a lot of that has improved and now there are quite a few options that may offer greater effectiveness. LenderKit suggests that one such option is the use of crowdfunding software. But what factor contributes to its effectiveness? What makes this path both accessible and potential for remarkable results?
Creating a platform of excellent quality is the key to ensuring both accessibility and impressive outcomes. Let’s find out exactly how to build quality crowdfunding software, as well as see its importance.
Also you can check out What is MVP & How Does it Work?
Table of Contents
About Crowdfunding and its Importance
Crowdfunding is a way of raising money that involves a large number of backers pledging to put their money into your project via online means. This way of raising money is so popular that fully-formed businesses and feature-length films and series have been made in this way. This way of raising money is so popular that literally millions of dollars have been poured into them, forming some juggernauts in business.
The standard crowdfunding application or website follows a set path to achieve the proprietor’s goal. Four paths in particular the most popular ways in which the attention of potential backers is grabbed and these include the following:
- Debt platform in which backers will receive their money with interest at the end;
- Donation platform in which backers give towards charities and other good causes;
- Equity platform in which backers are investing their money into a project in exchange for some ownership of it;
- Reward platform in which backers receive the end product they’re putting their money towards.
The typical platform will follow one of the above paths while also ensuring that the method matches their business practice, otherwise, things may not work. In short, a film project is more likely to use a rewards-based platform and won’t be successful if treated as a charity.
As stated earlier, crowdfunding can bring you great results, which is done through exposure to a large number of potential backers. What makes it beneficial is that it gives people who can’t get a meeting with the corporate world a chance to raise money. In doing so, said people also find human capital in the form of ideas on how to improve the project.
Going About the Build the Crowdfunding Software
With the above types of platforms in mind, you can begin preparing for the build as well as seeing it through to the end. There are a few ways in which crowdfunding software can be developed and these include the following:
- In-house method in which you hire a team to build something to your specifications
- White label method in which a fully formed platform is simply bought
- Customization method in which a developer is hired to build you a platform..
In any case, the platform built at the end of either project will result in something that’s probably going to function the way the proprietor intended. As such, the building of them is more or less the same. Below is a guide showing you just how these sites are built:
Step 1: Researching
This is especially important if you have no experience in the field. Ideally, it should be done several months before the build to prepare for it. Among the many things to look at are the successes of competitors, check their mistakes, explore top competitors’ marketing strategy as well as what they do to avoid disaster.
Step 2: Making the initial choices
With an analysis of rivals completed, you can write down what their successful characteristics are as well as what works for your vision. Some of the things include the type of platform, payment methods, and a specific target audience.
Step 3: Planning and budgeting
Once you have an idea and its intricacies set, you can focus on how much all of it’s going to cost. Remember that the budget has to incorporate every aspect of the build, which includes all the legal and auditing fees.
Step 4: Finding developers
To ensure that the site is of the highest quality, you have to find the right developer. This should always be someone with a name in the business as they will always have the tools to deliver as well as a track record of doing so.
Step 5: Beginning Prototyping
With the idea fully formed and the developers decided upon, you can proceed with building a prototype to test the viability of the site. This is achieved with a minimum viable product or MVP, which will then allow you to see how successful the idea is and how teams can improve it.
Step 6: Having the site designed
With your team in place, you can begin to go over the UI/UX of the site. For it to be successful, it should be iconic, appealing, safe, and easy to use.
Step 7: Beginning initial testing
With the prototype built and the design incorporated into it, you can move forward with initial testing. Doing this at this stage will allow you to properly look at any errors and fix them.
Step 8: Building the site
With the testing out of the way, the building of the actual site can begin. At this point, teams will put all their expertise and technical tools into fashioning the fully-formed crowdfunding site.
Step 9: Launching the final version and management
Before the launch of the fully-formed site, it has to go through one more round of testing. Once this is done and the site is seen as operational, you can go through the marketing phase in the lead-up to the launch. After a successful launch you have to focus on the proper managing of software.
The process of building any project from scratch has become significantly more accessible to individuals. Actually building any project from the ground up has been made far more accessible for people, beginners and newcomers. As such, the desire to build crowdfunding software and other platforms has greatly risen.
Going forward, the ability to build these tools is set to get even more streamlined as many are trying to incorporate AI into it. That’s a while away, though, so your focus should be on the above steps and finding a worthy business idea.