Why Does Honeycomb Work?
At Honeycomb, we like to say that we have the "secret sauce" when it comes to crowdfunding small business loans. But what exactly is in that secret sauce?
Businesses that crowdfund with Honeycomb have community buy-in
All of the small businesses that work with Honeycomb Credit to crowdfund their growth projects have some form of community buy-in. What this means is that their community is interested in their success, and want to invest in the business because they perceive it as an important part of their neighborhood.
Whether a business is a local favorite like Square Cafe in Pittsburgh or an up-and-coming new concept like Little Spark Refill Shop in Cleveland, what Honeycomb campaigns have in common is that the community wants to see businesses like them thrive in their communities, and will put their money where their mouths are to make it happen.
Honeycomb has the playbook to crowdfunding success
Every small business that runs a Honeycomb campaign has access to a crowdfunding campaign manager who’s an expert in crowdfunding and getting them to reach their maximum potential. Your campaign manager works with you to create your campaign page, organize a free video shoot for you to promote your small business, and form a strategy to help you hit your crowdfunding goals.
This is part of our “secret sauce,” and the reason why Honeycomb has an 80% success rate, compared to the 22% industry average.
A Honeycomb crowdfunding campaign lets customers invest in a business, not donate to it
One common misconception about crowdfunding is that it’s asking your community for handouts. Not with Honeycomb! Honeycomb is a loan crowdfunding platform, which means that instead of donating to your business, your customers can invest in it for a fixed-income interest rate.
This means that you get to pay back the ones who love your business the most, not a Wall Street bank. It also means that you’re not giving up any equity, meaning you retain ownership of your company and its profits.
Crowdfunding with Honeycomb turns business customers into brand advocates
Another part of Honeycomb’s unique model is that by turning your customers into investors, you also turn them into brand advocates. Brand advocates are invested in your success, because when you thrive, so do they!
Customers who invest in your Honeycomb campaign are more likely to return to your business to spend money, market your business by word-of-mouth, and even possibly connect you to lucrative opportunities to grow your business.
Honeycomb works with businesses every step of the crowdfunding journey
You know how we mentioned that crowdfunding campaign strategist, right? Well, their role goes beyond just helping you set up your campaign page. They also help you promote your crowdfunding campaign and connect you to opportunities like pitch events so you can make your case for why people should invest in your business.
After your campaign wraps up, you’re still part of the Honeycomb alumni network. You’ll have access to our cohort of other rockstar small business who you have the chance to collaborate and connect with. This network has led to some pretty cool collaborations, like UnBar Cafe carrying products from Go Buddha and Squash the Beef Vegan Catering.
What’s the main reason why Honeycomb works?
Well, not to be cheesy, but the main reason why Honeycomb works as well as it does, giving us an 80% success rate (compared to the industry average of 22%) is because the small businesses that work with us are ambitious, community-minded, and driven to grow. Does this sound like you? Fill out the form below to receive more information!