Starting a community-based business gives you the chance to create something meaningful that serves a group of people with shared interests or needs. Unlike traditional businesses that focus solely on transactions, community-based businesses thrive on relationships and connections. Here’s how to build one successfully in 2025.
Understand the community you want to serve
Ideally, you are already part of communities similar to the one you want to start. If not, before launching your community-based business, immerse yourself in them. Spend time as a genuine active participant taking part in discussions, and start to note down the things you like about the communities and the things that could be improved. Make notes of recurring problems talked about by other members and identify gaps in what’s currently available. Your business should address a real need that you’ve observed firsthand, not just something you think might work.
Lucy Patterson, a design thinking expert, notes that “personal interaction” is becoming increasingly important in business models. This is especially true for community-based businesses where authentic connections are essential. And as Mel Barfield highlights, “Personal connections, business friendships and IRL meetups will fuel business growth more than algorithm hacks.”
Making money
If your business idea is to create a community, then be part of ones that overlap with the type of community you’d like to start. Remember, to be a business, the community you run will need to provide value and be revenue-generating, so work out how you’ll be doing this. It could be by one or a mixture of:
1. Membership models
Create different levels of membership with increasing benefits:
- Free tier: Basic access and limited features
- Community tier: Full access to community features
- Plus tier: Enhanced access plus exclusive benefits
- VIP tier: Access all areas.
- Founding member tier: Create a special tier for early supporters with lifetime benefits or special recognition. This can provide initial capital and a committed core community.
- Offer discounts for annual payment to improve cash flow and reduce payment processing costs. This also increases member commitment.
2. Event-based revenue
- Workshops and masterclasses
Host paid educational events featuring community experts or external specialists. These can be virtual, in-person, or hybrid. - Conferences and retreats
Organise larger gatherings where community members can connect in person. These events can include ticket sales, sponsorships, and exhibition spaces. - Exclusive experiences
Create special access opportunities that members value, such as VIP dinners, behind-the-scenes tours, or sessions with industry leaders.
3. Content and digital products
- Premium content
Develop valuable resources like guides, templates, or research papers that address specific community needs. - Online courses
Create structured learning experiences that help community members develop new skills relevant to their interests. - Digital tools and applications
Build software solutions that enhance the community experience or solve common problems members face, this could include a member’s directory.
4. Marketplace and transaction fees
- Member-to-member services
Create a platform where community members can offer services to each other, with your business taking a percentage of transactions. - Job boards and opportunity listings
Charge for posting opportunities relevant to your community members. - Curated product marketplace
Sell products (your own or via affiliate partnerships) that specifically serve community needs.
5. Consulting and coaching
- Group coaching programmes
Offer structured support programmes where members work together toward common goals. - Implementation services
Help members apply what they learn in the community to their specific situations. - Customised packages
Provide tailored services to address unique challenges faced by community members.
6. Partnership and sponsorship opportunities (longer-term strategies)
- Brand partnerships
Collaborate with aligned brands to create co-branded content, events, or products. - Sponsored content
Allow relevant businesses to share valuable information with your community (clearly marked as sponsored). - Affiliate relationships
Recommend products or services that benefit your community and earn commission on sales.
Identify your community’s USP (unique selling point)
Be crystal clear about what gaps you’re filling. Ask yourself:
- What frustrations do community members regularly express?
- What solutions have they tried that didn’t work?
- What resources or connections are they missing?
- How can your business address these specific needs?
Choose your tools and building blocks to foster the community feel
Will you create physical spaces where people meet or digital platforms where they connect? Your choice of tools should align with how your target community prefers to interact.
Popular community-building tools include:
- Dedicated community software platforms like Slack or Discord
- Physical co-working or meeting spaces or digital (like Zoom, Butter or Google Meet)
- Hosting regular events (in-person or virtually)
- Member-only content or resources (Substack is good for community content and newsletters)
- Having forums and discussion groups
- Putting on interactive workshops
- Encouraging collaborative projects.
Event manager, Raimonda Richardson points out, “Traditional business events will continue to suffer from decreasing booking numbers and lack of engagement. Only those driven by community and genuine value will prevail.”
Making connections between members
Remember: It’s not a community if you talk to them, or if they talk back to you; it becomes a community when members connect with each other. Facilitate these connections by:
- Creating opportunities for members to collaborate
- Highlighting member expertise and achievements
- Organising small group discussions
- Encouraging peer-to-peer support
- Designing activities that require cooperation
- Featuring member stories and case studies.
Test your concept through crowdfunding
Consider launching your community-led business through crowdfunding. This approach serves multiple purposes:
- It tests whether your concept has real market appeal (will people put their money where their mouth is?)
- It creates early community buy-in and investment
- It generates pre-launch supporters who feel part of your success
- It provides startup capital without loans. (Bear in mind, the crowdfunding platform will take a cut.)
Crowdfunding platforms like Kickstarter, Indiegogo, or Crowdcube allow you to present your vision and see if people are willing to get on board financially. Remember that a successful crowdfunding campaign requires you to give people as much information as possible, including clear communication of your value proposition and how it serves the community.
Grow your community
Develop a three-pronged marketing strategy to nurture and grow your community.
- Audience building: Focus on attracting new people to your database through valuable content, free resources, or entry-level events. Make the barrier to entry low and the value high.
- Membership conversion: Create clear pathways for casual followers to become committed community members. Demonstrate the additional value they’ll receive by deepening their involvement.
- Member retention and upselling: Consistently deliver value to existing members while offering premium products or services that enhance their experience further.
For each part, develop focused messaging, lead magnets, offers, and engagement strategies. It’s easy to drop the ball on one of them while you put your energy into the others so track the numbers and conversion rates between the three areas to identify where you might need to strengthen your approach.
The business belongs to you, but the community doesn’t
It’s important to realise, while you own the business entity, the community itself isn’t something you possess. You’re creating and maintaining the environment where community can flourish, but the community members have agency and ownership of their participation.
Respect their boundaries by:
- Asking for regular feedback
- Being transparent about business decisions that affect the community
- Allowing the community to evolve naturally
- Stepping back when appropriate to let other community leaders emerge
- Recognising that sometimes the community’s needs may differ from your business goals.
Building a thriving community-based business takes time, patience, and care. It requires balancing financial sustainability with making environments where people feel a sense of belonging while receiving tangible value. Profit is necessary for longevity, but it shouldn’t come at the expense of community trust or wellbeing.
