August 1, 2013 by Josh Buscay
Crowdfunding has generated $2.7 billion dollars in 2012 for businesses. What could that kind of money do for your business?
The concept of crowdfunding has been around a long time but it has become more mainstream with the promotion of numerous crowdfunding on-line platforms that allow people to launch a business campaign to raise funds. Crowdfunding, also known as crowdfinancing or crowdsourcing is a way to collaboratively raise funds primarily through the internet using social networks. It usually involves small infusions of money from a large amount of people.
Crowdfunding is allowing start-ups and existing businesses to tap into the global community to receive the funding them need to move forward. There are a number of crowdfunding platforms you can use to market your business.
Crowdfunding is based on individuals coming together to provide funding to start-ups and existing companies.
Crowdfunding is allowing innovative companies to acquire funding without going through the usual channels or having to give up equity in their business. In exchange for funding people are given a reward or incentive based upon the level of funding they pledge. For example if your project involves some type of innovative technology maybe you offer to give funders first access to the technology. If you want to write a book then you provide funders a signed copy of the book. There are a variety of ways to compensate the people giving you funds.
The amazing thing about crowdfunding is it allows people to come together who have similar interests, providing them a platform to be part of something bigger than themselves. One of the steps to a successful crowdfunding campaign is to attract people will have an emotional connection to the project and want to spread the news about how they supported the product, service, invention, or cause. When people start talking about what you are doing then you can leverage that energy swell to produce the funding you need to move your project forward.
There is a lot of work and due diligence that goes into producing a successful crowdfunding campaign. The biggest mistake you can make is to launch a project without having done your homework. There have been many cases where a campaign was launched, they reached their revenue goal and then ended up losing everything because they didn’t put pen to paper and work a plan.
How successful is crowdfunding? Well just like any business venture you win some and lose some. Take a few minutes and Google successful crowdfunding campaigns and you will come across $35,000 The difference come from knowing how to put the right messaging to your campaign, researching success stories, having a social network to promote your project to and understanding the rules. Crowdfunding is expected to generate over $500 billion for small business over the next few years. The key to being part of this incredible opportunity is knowing how to ask for the money. If you are interested in learning how you can leverage crowdfunding for your next project or existing business then join us for the Global Crowdfunding Bootcamp.
The good news is there are resources available to help you succeed and prepare for your campaign, but it is important to get started now. One of the events we are recommending is a Crowdfunding Bootcamp on October 14th through the 16th in Las Vegas.
It is one of the bigger industry events and is designed to help participants walk away with a plan in hand and the resources and connections to make it happen. In addition to all of the major funding platforms there will be law firms, accounting firms, VC firms, Angel investor groups, and professional service providers all giving out advice and free services to ensure you are prepared when you launch your crowdfunding campaign.