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.
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.
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.
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