Crowdfunding is a trending way to fund a business. But is it really work for your business? The popular crowdfunding sites tend to be ones which offer a tech-sexy or a savvy and marketable product.
When a business pursues crowdfunding they are often happy with the all-or-nothing risks that come with it. For instance you could spend weeks or even months raising your profile, getting your friends and family to promote the life out of your product and still not get any backing at all if you don’t manage to reach the minimum threshold figure.
The key to crowdfunding is having your product so well-tested it speaks for itself becoming a simple, understandable concept. This funding is still just a way of exposing your product or business to willing investors and they will only see it if you manage to conduct a healthy amount of old-school marketing and promotion. Some of the well-known crowdfunding sites such as :-
- Kickstarter – Kickstarter is an enormous global community built around creativity and creative projects. Over 10 million people from around the world have backed a Kickstarter project. It helps artists, musicians, filmamakers, designers and other creators find the resources and support they need to make their ideas turn into reality.
- IndieGogo – IndieGogo is a sites that Launchpad for entrepreneurial ideas. It get fund from community of backers for 650K projects.
- RocketHub – Rockethub is one the most popular crowdfunding sites. It is a global community where entrepreneurs connect, inspire and grow. It also introduce Elequity the equity crowd funding platform of choice for companies which is seek to match new and innovative product ideas with high-end, sophisticated campaigns from classic luxury products to the ‘new’ luxury of artisanal and curated products.
For a crowdfunded business, they tend to be either tech startups or based on products that may only have a short shelf life and the exposure, combined with rapid investment can help the company generate quick profits.
It’s important to know which things to do in the correct sequence. It isn’t guaranteed way to raise investment. Nearly every business that tries its hand in crowdfunding will also be seeking to secure standard loan options as well. Be reasonable with your funding goals and don’t make mistake of leaving it all to the crowdfunding sites to do all the marketing.
Crowdfunding has become a competitive marketplace and more will fail to get their funding than succeed. So is Crowdfunding is suit for your business?