We live in a time where the gatekeepers don’t have the last say. The internet has put more power into the hands of the people, and it’s changing the way business is done.
Not only do consumers get more options, businesses today even have more lending options thanks to crowdfunding. With crowdfunding, you get financial support from various private individuals, instead of traditional banks.
Read on to see why crowdfunding for small business can be a good idea, and to learn how it works.
Understand Why Crowdfunding Is Advantageous
First off, crowdfunding lets you get financial help without going through the same red tape you would have to go through when applying for a loan. What’s more, crowdfunding is essentially a form of marketing for you.
For instance, creators of TV shows, movies, comic books, and other brands have been able to revitalize their intellectual properties through crowdfunding.
Fans of cult favorites have been glad to donate money to see a series or movie relaunch, and give the creators the money they need, with plenty of marketing to boot.
With this in mind, it only makes sense to figure out how crowdfunding can work for your small business.
Research the Best Crowdfunding Sites and Services
Before putting the word out about a crowdfunding campaign, make sure you look into the sites that offer the best platform. You’ll want to start your campaign with a company that gets plenty of traffic, with an interface that makes it easy to share posts.
Of course, only do business with a company that takes all security precautions. Many crowdfunding companies also offer easy business loans you can look into for funding.
Figure out Which Form of Crowdfunding you Need
The main types of crowdfunding include rewards-based and equity-based.
With rewards-based crowdfunding, the campaign typically involves a scale. The more a person donates, the larger the reward.
For instance, a small donation for an indie film might receive a free copy of the movie, while a larger donation might get the donor an executive producer credit.
With equity-based crowdfunding, you’re offering some form of stake in your company in exchange for the donation.
Consider your needs and determine which form of crowdfunding works best for your business. Regardless of which you choose, always make sure that there is some value in it for your donors.
When working with crowdfunding sites, always do your research into any fees so that you know how much of the donation you’ll keep. You should also be clear about how and when the money is released, and what sort of financial information you need to provide.
Shop Around to Get Crowdfunding For Small Business
If you’re in need of crowdfunding for small business, there are a number of options you can turn to. The availability of crowdfunding bridges the gap and can help a lot of small businesses get a leg up on their competition.
No matter what sort of funding you need, we’d be happy to help.
Reach out to apply for a loan online, or give us a call at (855) 610-5626.