“Do what you love and the money will follow” is a popular bit of advice that has been passed on throughout the ages. It’s a beautiful piece of guidance that can be very true. Frankly, the same can be said when reversing the saying. When you have money, it’s very easy to do what you love. Sometimes, as most business owners will acknowledge, acquiring extra funding can be a headache. But all hope is not be lost as you can easily do what you love and the money will follow— if other people love what you do as well. If you have considered acquiring loans, and have explored other additional financing opportunities with limited success, crowdfunding may be a viable option to consider.
Crowdfunding is the process of fundraising money from a collective and anonymous group of people who are interested in supporting your business idea. Crowdfunding is used for networking and exposing your brand over the internet to gain support in the sustainability and growth of your business.
Some reasons to consider crowdfunding are the following:
- You won’t have to give up a percentage of your business in exchange for the additional funding- it is granted based on the recognition of the possibility of success in your venture.
- Crowdfunding your idea will encourage you to set realistic goals and look to achieve those goals.
- When it comes to crowdfunding or similar websites, those individuals looking to support your idea, will likely be inclined to tell their friends about your business. In this way, even at the very least without even acquiring additional funding, it can prove to be a great marketing tool as well.
- If you do receive funding from your supporters, it’s likely that those individuals will become customers of yours.
Here are some crowdfunding websites to consider:
- Kickstarter: the most recognized crowdfunding website across Canada, the US and the UK. Kickstarter focuses on creative endeavours in particular, including design, the arts, gaming and technology. Mostly, Kickstarter can accept original products that can have remarkably successful campaigns, including approximately 50 that have generated more than one million dollars in funding. For more information on how to run a successful kickstarter campaign see: https://www.mint.com/blog/how-to/tips-on-running-a-successful-kickstarter-campaign-0313/
- Indiegogo: a worldwide crowdfunding platform that support businesses, artists and non-profits. They launched in 2008 with the goal of making sure that anyone interested in business could have their dreams realized. For more information on crowdfunding tips with indiegogo visit their webpage:
- Rockethub: also a worldwide crowdfunding platform that has assisted businesses, governments, educators, and communities realize their financing goals. See their webpage for more information on how to launch a successful crowdfunding page: http://www.rockethub.com/education
- Fundable: is a crowdfunding platform that functions to allow start-up businesses the ability to offer rewards or equity in exchange for funding. According to the website, start-ups that typically offers rewards will raise up to $50,000, and start-ups that offer equity can expect to raise even more. For more information see their webpage: http://www.fundable.com/blog/gearing-up-for-a-successful-crowdfund
One last word to help you get funded:
Before you decide to pursue crowdfunding, ensure that you include a high quality and confident video that can convince your viewers to support your business idea. When thinking of possible incentives, ensure that you are offering quality rewards that are worth investing in. You will want to promote your existence on these pages as much as possible, whether through social media outlets or by word of mouth to ensure your business gets out to the public. Always remember that the best quality photos and videos can always go viral on social platforms like Pinterest- so invest your energy on developing great photos representing your brand.