In the world of entrepreneurship few are the mechanisms which make your adventure more fun and successful whilst not costing you an arm and a leg. If the term Crowdfunding is either new to you, or you are vaguely familiar with it, now is the time to do your research.
Traditionally, to fund your business your options were split between using your own funds, securing a loan or getting equity investment. Using your own money is straight forward, but if things go south you risk losing part of all your life savings. Going into debt or getting equity investments means doing hours of number crunching work, which means having less time to focus on your business or spending money to have other people crunch the numbers for you, professionally.
Enter Crowdfunding, the game changer.
There is an English saying, the proof is in the pudding! You can carry out the best market research before launching a product, but the answers given by your prospective clients are just…words. Crowdfunding allows your prospective clients to show how interested they are in your product (or service, or project or charity, etc.) by donating or investing a sum of money. The amount can start from €1 which means that anyone can participate. In exchange, people who donate receive rewards or special privileges.
So, all of a sudden, the wider community, which depending on the project could mean a great portion of the world, can be directly involved in the creation and growth of your business.
Imagine it! This community would spread the word about your product, provide feedback if you request it and encourage others to get to know more about it, before you’ve even sold your first one.