Is Crowdfunding Your Business’ Knight In Shining Armour?
Funding from a bank or investors for you latest and greatest idea is not always as forthcoming as you would like. You may have a million pound idea but lack the credit or credit score required to get the funding you need to bring your idea to a money producing product. Entrepreneurs now have a new way of finding funding for their next great project through crowdfunding. Crowdfunding lets you present your idea to the world via crowdfunding sites in order for anyone to offer a bit of cash towards your project. This is a way for everyone from rock bands to scientists and movie script writers to gadget genius’ and contractor accountants to find funding in order to pursue viable ideas and take them from schemes to a finished product. This is changing the way people think about generating revenue as well as investors.
One Investor at a Time
Crowdfunding sites such as Kickstarter are true innovators allowing those with the ideas but lacking the funds to pursue their dreams. In the UK there is an actual association dedicated to crowd funding and you can access a list of crowd funding sites such as Abundance Generation, CrowdBnk and Angels Den. It does not mean cash will always be forthcoming as you still have to present your ideas to their team via a proposal and demonstrate you are able to produce your idea once funded. Your proposal is key to getting you the funds required. Once approved you can plead your case online and entice investors to submit funds to go towards your project. You may be receiving as little as a few pounds at a time, but the point is you are generating funds that would not have otherwise been available to you.
Available to All Entrepreneurs
The beauty of crowdfunding is that it is available to all entrepreneurs. Even small businesses that are already set up can look to find funding for their next big project (depending on the site). As long as you are able to demonstrate you have the means (original idea and schematics) you can ask for funding. A good example is a company out of the U.S. called Livid. They have already established themselves in a niche market custom producing control surfaces for guitars. Their latest idea, Guitar Wing, is a wireless control surface that allows guitarists to access special effects without the need for troublesome wires. The control surface works with MIDI controls, iOS devices and DAW. Funding was required to cover costs of materials that would allow them to produce in larger quantities to bring the product to the end user at a more affordable price.
Although categories may vary from site to site many are skewed towards the arts. A good sampling of categories includes:
It is important to pay particular attention to having definable end results such as a CD, Movie, or unique line of clothing in order to obtain funding.