Using Crowdfunding Sites Like Kickstarter to Start Your Business
Kickstarting your business can sometimes be tough, especially with so many questions. One of the most significant worries a business owner has is money. Using a crowdfunding platform to get your business running can help reduce that worry. Sites like Kickstarter and Indiegogo use crowdfunding as an innovative way to raise money for your new business. This new method is changing the business world for the better and has been on the rise over 2015. Keep reading on to learn the benefits of crowdfunding and how you can do it too!
What Is Crowdfunding?
“CSEF or crowdfunding is an emerging way for start-ups and early-stage businesses to access the funding and investors they need, while maintaining adequate protections for retail investors who share in the risk and successes of these businesses” See more.
Use a Crowdsourcing Website
“Crowdfunding has become a popular method of raising funds to start a small business, thanks to such sites like Kickstarter and Indiegogo, which let you launch online campaigns to solicit funds. Instead of paying back your donors, you give them gifts, which is why this system is also called rewards crowdfunding.” Keep reading.
Use Indiegogo to Fund Your Startup
“2015 was an incredible year for Indiegogo. More than 2.5 million people from 226 countries and territories contributed to 175,479 campaigns, ranging from innovative technology, to creative film and entertainment, to social impact. A father-son duo revolutionized beekeeping and made honey-on-tap accessible to anyone. Fans united and set a record for most funds raised in 24 hours to create the sequel of a cult classic. The world came together to address global issues and react to crises. 2015 was a year for people around the world to fund what mattered to them, and the breadth of creativity and the entrepreneurial spirit never ceases to amaze us. Here are just some of the highlights from a truly incredible year.” Learn more here.
Kickstarter and Sites Like It Can Crowdfund Your Small Business
“It is impossible to predict with one hundred percent accuracy exactly what is going to happen in any industry, and this is especially true of sectors like the world of video games that are continuing to evolve at a truly remarkable pace. We are already enjoying experiences that to our grandparents would have been considered the stuff of science fiction movies. Who knows what sort of gaming experience our own grandchildren have to look forward to? One thing that does look likely however is that the continued growth in popularity of crowdfunding will continue to open up the industry to smaller independent game creators and bring designers closer to their ultimate client, the gamer. One way or another, it is helping to lay the foundation for a genuinely exciting future.” You can continue reading about crowdfunding and the gaming business here.
Use the Opportunity For Multiple Platforms
“Typically companies tap this resource when they start out, but the Everyday Messenger was Peak Design’s fifth crowdfunding campaign. The company has introduced all of its new products on the site and along the way has honed a sophisticated strategy not just for raising money efficiently but also for reaching its most enthusiastic customers. “We essentially consider Kickstarter a third sales channel for us,” says David Anhalt, the company’s financial chief, alongside its own website and the more than a thousand retail stores that stock Peak Design products.” Read the article.
Fight the Financial Woes of the Startup Business
“Funding your business idea today is just a few clicks away. And all credit goes to crowdfunding. With the emergence of crowdfunding, startup entrepreneurs are finding it easy to finance their ideas. For those unfamiliar with crowdfunding, it is nothing but a way to raise funds from large groups. The crowdfunding has actually changed the whole landscape of startups. It fights the financial woes of the startup business. In the past, only a few investors might have shown interest in innovations or project ideas. Businesses gained smaller crowds with higher stakes. But with crowdfunding, you do not need to find a perfect investor or appeal them. You just need to do a little research on the internet, find some like-minded people to donate a little bit of money.” Learn the different types of crowdfunding.
The Difference Between “P2P” and Crowdfunding
“Peer-to-peer loans are considered debt funding. Small businesses borrow money from their peers through an online platform like Prosper Marketplace and pay the capital back with interest over a fixed term of years – three to five years is the norm. Both models pool together business financing through online platforms and organize small investments that go on to help small businesses. That doesn’t mean you can just show up and get money though. The people that donate and/or invest in your business often want to see a detailed plan, financial statements, appraisals and information about the central figures who are going to be involved in running the business. For startups looking towards crowdfunding, the business plan is often the key factor of your campaign’s success since they won’t have a track record to judge you by.” Keep reading to learn more.
Use the Crowdfunding Formula
“You see, according to the SBA, the #1 reason why entrepreneurs fail to launch and grow successful companies is “lack of funding”. I mean, if you don’t have any money or funding, you can’t even start your business in the first place. And even if you do start it, if you have too little funding, chances are you’ll go out of business! But now, there is finally a new money source that was NEVER AVAILABLE BEFORE. And I’m going to show you how to get it.” View the presentation here.
Did you use any crowdfunding sources for your startup? Maybe you’ve donated to help a small business get up and running. Let us know in the comments!