How Crowdfunding Can Help You Pivot Your Business Through the Pandemic
The pandemic has definitely shown some of the cracks in the surface for small businesses across the nation, who have been disproportionately affected by lockdowns, mandates, and other effects. One of these issues has been lending from banks, which has been on a sharp decline since the pandemic began, and even before had been falling.
However, another effect of the pandemic is that it has shown people how important it is to support local businesses, and thanks to crowdfunding, small businesses can survive, thrive, and even grow through this ongoing unprecedented time. Read on to find four ways that crowdfunding can help you pivot your business and navigate the constantly changing world we’re in.
Finance new revenue streams
Is there a way you haven’t yet adapted your business to helping out with efforts toward mitigating the pandemic’s spread because you didn’t have the funds to do it? It could be something as simple as implementing an online ordering/delivery service in your business, or something more complex like opening a food truck to go with your restaurant - so you can reach people who might not want to dine indoors at the moment. Crowdfunding could be a way of introducing new means of generating revenue for your business.
Justin Strong is a great example of an entrepreneur who used his Honeycomb Credit crowdfunding campaign to pivot during the pandemic. At the start of the pandemic, Justin shifted his business, Strong’s Cleaners, to clean and sanitize medical uniforms. Because of this, he had to invest in new equipment, so he ran a Honeycomb Credit campaign to purchase it, and raised $25,000!
Open outdoor venues
If you’re a restaurant, brewery, bar, or anything like that, one big project that can be useful during the pandemic and beyond is investing in an outdoor space, if you can! An outdoor space can increase the number of customers in your business at a time, and provide more customer satisfaction in many cases. However, it’s often quite an investment to open up an outdoor space, including construction costs, new furniture, increased staffing, and more.
One business that crowdfunded their outdoor space on Honeycomb was Tall Pines Distillery, who’ve run not one but two successful Honeycomb campaigns. For their first campaign, they opened an outdoor seating area for their distillery, and in the second they opened up a gift shop - financing new revenue streams as well!
Hire and keep employees
Maybe at the start of the pandemic, you had to lay off some employees. Or now, you’re having a hard time finding and keeping them thanks to the labor shortage. Including hiring funds in your crowdfunding strategy could be an excellent way of getting enough up-front cash to hire star employees to propel your business’s growth.
Melissa Hirsch of UnBar Cafe was able to rehire all her employees who she had to lay off at the start of the pandemic with her Honeycomb Credit campaign. The campaign also allowed her to invest in more marketing materials and in the ecommerce portion of her business.
Boost your marketing strategy
Perhaps the pandemic has shown you a need for getting your business’s name out there - perhaps there’s less foot traffic around, and you’re not getting as many walk-in customers as you once did. Maybe now is the perfect time to invest in some marketing and distribution growth - get your products into new places and markets.
Myles Powell of 8 Myles Mac ‘N’ Cheese invested in improving the marketing and distribution of his frozen macaroni and cheese brand with his Honeycomb campaign. “Honeycomb was like the jolt in the system that got us to where we are now,” he says. Now, you can find 8 Myle’s Mac ‘N’ Cheese in Targets, Whole Foods, and other stores all around the Mid-Atlantic region!
Let your community have your back
With a crowdfunded loan from Honeycomb Credit, your community can lift up your business by investing in it! Find out more by filling out the form below.