Crowdfunding: A Revolutionary New Alternative Funding for Small Businesses

A revolutionary new source of funding to sweep across the internet in droves is crowdfunding!

When you are starting or growing a small business, it typically comes down to a lack of resources to raise that much needed capital! Funding is a very important element to the success of any business remaining relevant in a competitive marketplace. If you've applied for a traditional loan; SBA Micro Loan; Unsecured Line of Credit; or even a Credit Card to no avail, then consider the HOT new trend in financing... CROWDFUNDING!

What is Crowdfunding?

Crowdfunding is a cutting edge way of raising the much needed money required by businesses to sustain. A group of investors share their resources to support endeavors initiated by individuals or organizations. Many industries can take advantage of best crowdfunding; from political campaigns; service or product based businesses; artist; scientific researchers to software development.

 

3 Business Preparation Tips for Crowdfunding

Select the Best Platform: There are many crowdfunding platforms available with new ones forming daily. It is important to choose the one that can best fit your project funding needs.

Create a 'WIFM' Rewards Program: Remember that old WIFM (what's in it for me)? Well, if you want to have a successful campaign, you'd better come up with some juicy reward for prospective investors. The rewards you create should be based on the type of campaign you are running. For example, the Crescent Theater was forced to upgrade its equipment and as a part of their reward program, the lowest reward offer is a free movie pass.

Design a Stellar Marketing Strategy: Consider multiple ways to connect with potential investors. The key is creating a diverse marketing campaign. A favorite by many and Google as well are videos! You can also add a slide presentation, a podcast and a simple written message.

 

3 ways that Crowdfunding can help you:

Independence from Banking Institutions

Banks are sitting on their cash and aren't lending to start-ups or small businesses that need capital. At a recent lecture at George Washington University, Federal Reserve Chairman Ben Bernanke innocuously remarked that lately "small businesses have... found it difficult to get credit." Most banks have high unreachable expectations along with a daunting process. Indeed, best crowdfunding sites for startups offers a more realistic approach to funding.

Free Publicity

The opportunity to publicly raise funds for your business idea or existing company to a gazillions of potential investors by way of the internet is astounding! Many entrepreneurs yearn for a chance to receive the type of publicity crowdfunding offers. If well handled, publicity can greatly catapult your business to immense success.

Validation

Validation of your business idea is important. Knowing that there are people globally who believe in your concept is empowering. People will generally invest in opportunities that are viable. So every contribution you receive from people simply means that they believe in the validity of it!