To many of us don’t have the capital to start a new business. Is crowdfunding the answer?
Recently, times have been hard for all of us. The Coronavirus Pandemic has been an uphill struggle for economies all over the world. Many of us, sadly, haven’t made it through. With business after business having to shut its doors, we are here to review new sources of income for start-ups… and crowdfunding might be the answer.
If you’ve been living under a financial rock for the last few years, you might have missed the next big thing in funding your new business. The idea behind crowdfunding is that you select a service that works for you, pitch a business, product, or service idea on their platform, and set yourself a funding target.
Platforms then connect your idea with the masses. People who have a small amount of cash available for investment can then fund part of your project, usually in exchange for perks. Typical perks include a free product when it is manufactured, discounts, memorabilia, and other benefits.
Where do you get Crowdfunding?
There are several sites that are dedicated entirely to the crowdfunding process. They give those with business ideas a place to air their new ideas, pitch products, or sell a service. They also give any would-be investors a chance to reach out to and connect with potential projects for them to fund.
The investors get a return on their money while new businesses get off the ground. Those of you that are interested in funding your new business this way can do so through the following sites:
- GoFundMe – arguably the top site for crowdfunding worldwide, GoFundMe have numerous successes under their belts.
- Crowd Cube – a great name in crowdfunding and the team behind such major successes as the Sugru
- Indiegogo – famous for both the entrepreneurs of this world and for creative project sponsorships. One of the biggest wins on Indiegogo is the Flow Hive, a beehive that allows you to harvest honey without all the work. They raised 13.2 million.
- Kickstarter – this site is aimed primarily at the finance and business start-up options. The most successful project here was the Pebble Time Smartwatch.
- GiveCampus – not all of us can afford to go to school. If you want to easily get all your aunts and uncles to be able to fund your College experience, you can crowdfund that too.
Does Crowdfunding Work?
Absolutely. Crowdfunding is capable of funding your entire startup costs and then some. If your idea is good enough, it could go viral. Ideas that go viral often find they are overfunded, quickly. This method of business finance allows everyone that believes in your ability to make a personal investment. It also minimizes risk to the investor and lets the little guy hold a stake in a business they believe in.
Should I Try it?
If you have a bright idea for a business but think you can’t afford it, then crowdfunding is a brilliant way to do it. IT allows those that believe in your business idea to connect with you, invest in you, and keep up to date with developments as you go along. It’s a brilliant way to make sure everyone is on a level playing field. In this economy? We all need more of that.