Think about how crowd sourcing can connect you with the money you need for your small business, and it may be easier to obtain than a traditional loan. This process involves working with multiple investors who share the risk and pony up smaller amounts of money instead of one or two funding the whole project. There are a few good websites that allow seekers to connect with funders, create a proposal and a pitch, set funding goals and benchmarks along the way. People can seek funding for almost anything and there are even sites that serve as a donation platform where well-heeled or generous investors will simply give you money with no strings attached.
In order to make a successful pitch for this type of funding, you really need to be organized. You need a solid business plan, a top-notch proposal that is persuasive as well as strategic and realistic goals. You also need to prove that your idea has traction and generates interest from others in order to get most investors to step up and throw money your way. If you have friends or family who support your idea and have also started other fund raising avenues, sharing the results with crowd sourcing investors can boost your chances of getting the funding that you need. However, there are no hard and fast rules when it comes to successfully getting funding, and it’s up to you to find the right approach that works best in your situation.
Crowd sourcing is popular among small startup and non-traditional businesses, such as those started by artists, writers and musicians. Some sources of funding are good for non-profits or a business that is oriented towards helping others. People can get money for almost anything, and this is one option that should not be overlooked when considering your next funding source. The requirements are far less stringent than traditional loans, and it is usually much easier to persuade a group of people to give you smaller amounts of money then trying to get one person to fund the whole project.
Two popular crowdsourcing sites are Kickstarter and Indiegogo
If you are serious about your business, and you can relate your dedication, focus and commitment to potential funders, then you can get money. It may take time, effort, selling yourself and perfecting your approach and pitch before people join your cause but it is possible. Many small business owners have received the money they need from this source of fund raising and you should think about how it can work for you as well.
While crowd sourcing is relatively new, it is growing by leaps and bounds as government regulations are more relaxed and banks are scared to lend money. Consider this option and visit a few different websites to see which ones align with your overall goals and expectations. It is easy to build a profile and start to work on a pitch in order to persuade potential investors, and you can start your fund raising efforts almost right away.