Traditionally, small and medium-sized enterprises have always been reliant on big banks when they have needed loans, but crowd funding changes all of that. The concept takes the 'Dragon's Den' method of finance and applies it to the internet. So instead of pitching your business idea to four fire-breathing mythical entities, you're encouraging everyone in the world to invest in your project.
Here are some guide for small businesses who may be looking to take advantage of crowd financing:
-Who would want to invest?Before you even think about setting up your page,you need to think about who will want to pledge money to your business.
-How to promote your crowd fundraiser?If you have a loyal customer base,some of this will be achieved through word-of-mouth.But even so, make sure you make an effort to get people talking.
-What can you afford?Even if you succeed in collecting for your goal, crowd funding projects can still fail if you underestimate how much your rewards cost.
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space,
Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
practice expertise and unbiased thought leadership.