Crowdfunding, kick starer, gofundme

Let’s take a look at crowdfunding from the ground up.

The definition of crowdfunding is ” raising money for a project or venture from a group of people”. These aren’t people you know necessarily but they are what I like to call potential investors.

Crowdfunding or peer to peer lending assumes, the lender will get something back in return. Don’t believe this could work? A statistical source from (2013) quoted about 5.1 billion in world wide crowdfunding. Getting funding may sound easy but it is far from it.

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A project takes a very good idea and planning . A plan of attack is your best bet in this case. Something that people would feel invested in. Unless your cause is very sympathetic. Even Taylor Swift has been noted to donate to crowdfunding. You can read about that here.

So why not using crowdfunding for business ideas or even a strap? It  is a reasonable idea Spike Lee used a campaign on Kick Starter to fund his movie idea. Capital is an issue every business faces; whether your a start up or even an established company.  Deciding whether a project is worth the risk of spending money is tough.

 

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It isn’t a risk if you understand your customers. That’s why crowdfunding makes so much  sense. You have people investing into your project who want to see it finished. No searching for people to bring your products to once the project is complete. You customer base will be willing to purchase. Your not catering to your customer base, the base of followers  will cater to your needs long as the price is right.

The smart thing to do is have money to make money. Having a bit of help along the way can’t hurt. Popular sites like Kick Starter, or GoFundMe are a few funding platforms you can start on.

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  • KRPS

    I wasn’t sure what crowd funding was but this was an easy, helpful read that is informative 🙂

  • Paige Strand

    “It isn’t a risk if you understand your customers” – so true! Very helpful for those contemplating this 🙂

  • How Big Are They

    I think the best part about crowdfunding is that even before your project is in operation, you know that there exists a significant audience who is genuinely ready to invest in your project; an audience that believes in you and your business idea. If you’re smart enough, you can use this information to your great advantage.

    Furthermore, crowdfunding brings in the “trust” factor. The people who put money in your project show their faith in you. If you can manage to deliver on your promises, which you must, then it is an amazing way to create a very good public image about your brand. Win win!