Crowdfunding Is A New Way To Get Capital For Your Business

There is a new way to attract funding for your business

, and you dont even have to make a presentation in person to please such investors. You can easily be granted the funding by uploading your ideas on the Internet and announcing your need for capital and investments. This is called crowdfunding. It was a concept developed only early this year, which refers to the collective efforts of individuals or groups to pool their resources and fund a specific project, organization or business. Aside from profit-oriented activities, it can also be used to finance disaster relief efforts, citizen journalism, political campaigns, free software development, scientific research, medical aid, inventions and support for artists or politicians.

Starting a crowdfunding

If you have a business idea in mind but dont have the funding for it, you should start a crowdfunding account. What you should do is select from the numerous of crowdfunding websites, and sign up for an account. Once you have made sure that the particular website is reputable and trustworthy, you can then pitch a business idea and ask for funding. Most websites provide their own collections account, so that you can withdraw the funding and transfer it to your own bank account.

Pitching an idea does not need to be comprehensive. You just have to write a description of your business proposal with the exact figure of your targeted funding. You must also include your name, the expiration date of the business pitch, where you are located and the sectors that you are addressing. You must write the description in a well-mannered and engaging way, so that you may be able to attract potential funders.

The advantages and disadvantages of crowdfunding

Most business investors are looking for a particular pattern that will attract them to put in money into a project. With crowdfunding, you put your business future into the hands of those who have a unique sense of what they want to invest in. Most proponents of crowdfunding call this the wisdom of the crowd. They also think that this new funding scheme will attract more customers and clients after the business has been launched. Word of mouth can be a viable form of advertisement, and this will be effective especially because those who funded a business will most likely talk about it with their friends or relatives.

However, although there are many benefits to crowdfunding, there is also one serious consequence of this new fund scheme. Crowdfunding requires that you pitch in your business and upload it on the Internet. This means that a lot of people can see and review it, and maybe even steal the idea. Your ownership and your intellectual property rights are not guaranteed when you upload a business idea on the Internet. Anyone can claim it as their own, and you wont have the law to back you up when your cried foul.

But even with such a disadvantage, many believe that crowdfunding is an excellent way to attract investors and rake in the much-needed funding for your business.

by: Jamar Surace

POST COMMENT

Video Marketing: A New Progressive Way To Market Your Business Wedding Sherwanis: New Fashion Trend With Style Logix Blossom County Noida The New Features Of High Rise Apartments In Noida Uncover Yourself With A New Cut From Your Local Salon Best Eyelash Growth Products - Available To Help Wear A New Attractive Look Seo News: Smm In The New Year Online Education - A New Trend Reasons A Home Inspection Is Necessary Before Paying For A New Property Opt A New Way To Recycle Your Collection Ladies Designer Handbags - New Fashion Statement Protect Our Mother Nature And Save Energy With Coal Briquette Key Aspects For Hair Care - Some New Information Solar Systems: Save Energy Consumption And Preserve Man-made Resources