Crowdfunding has created a real buzz around businesses raising finance. Since the recession, traditional loans from banks has become difficult for start ups to obtain.
From personal experience, I’ve been trying to finance one of my start up companies for some time now and it has been a very difficult process. However, crowdfunding keeps popping everywhere I go and now I am considering this for my business.
Here’s how Crowdfunding works, think of an idea and develop it. Once you have enough information about your idea, you put this idea on a crowdsourcing platform such as Indiegogo, Kickstarter, Crowdfunder (there are many more). With the idea, create a good presentation including images of your products/services, an introduction or showcase video, a website (if you have one). This will put you in a good position with potential investors, no one wants to invest in an idea if the owner doesn’t have the passion or put in the effort to produce a good presentation. If people like the idea, lots of people will give small amounts of money until you hit your target. For each level of investment, you’ll have to create a reward. The higher the investment the higher the reward.
Now that you’ve got your crowdsourcing idea live it’s time to get the word out there and get as people to invest so you can reach your financial target. Create some sort of online and offline campaign to promote the crowdsourcing idea, social media will play a big role.
Once you reach your target you can turn your idea into an actual business. For many crowdsourcing has been a great way for start up’s to get started in a recession.
To find out more about Crowdsourcing and what it has done, read this article from Global Banking & Finance Review Disruptive Finance: Crowdfunding dated November 29, 2012.
How has Crowdfunding helped you in your own ventures or career? Got any crowdfunding campaign stories that you would like to share? Leave your comments below – we’d love to hear your stories here at Biz Gazette!