Crowdfunding is the twenty-first century’s alternative funding. We are familiar with huge multi-national corporations raising funds through their initial public offering (IPO) on a stock exchange market, but not sure how it will work for small unlisted companies who want to do the same.
Entrepreneurship is the HOT, NEW CAREER path for the adventurous today. And, with crowdfunding leading the way in financing some of the best business ideas, the bold and ever-ready entrepreneur has one less worry when it comes to starting a business – because raising fund is made simple through this concept of crowdfunding or crowdsourcing.
The good news about equity crowdfunding is that its online platform must be approved by a local securities commission to ensure proper guidelines of investing in a business are adhere to.
Here are TOP 3 Reasons why you should consider crowdfunding when you need to fund your business:-
1. Tapping into the resources of the crowd
Let’s face the truth when it comes to creating wealth from a business, you can never run your business alone. Especially when you are inexperienced and lacking certain skills that can take your business to the next level, you will need a team to work with. And, what can be better than equity crowdfunding where you can obtain capital through small equity investments from relatively large number of investors.
You will never know what experience, skills and resources your investors can bring to the table when he invests in your business. An ideal situation from this will allow the business owners to have their own professional advisors and customers already on board with them before they sell anything! (Hey, your investors can be your customers too, right?!)
2. Getting feedback from the market
In other words, getting feedback from potential customers and investors are as important as raising capital. As an entrepreneur, you will want to know (as early as possible) if there are any adjustments you should make before spending a tonne of money on production, operation and marketing expenses.
These are two strong reasons why entrepreneurs should consider raising capital through a crowdfunding platform because they not only gain investments to launch their projects, but also valuable assets of a team, market feedback and the experience of selling their own products to an already open-minded crowd first.
3. Offer first-hand experience marketing a business
One potential danger that new entrepreneurs and startups overlook is their ability to market their own business! Most did not know how important marketing is until their business is almost sinking and needing funds!
So, what crowdfunding platforms can do is that they provide enough support to educate and guide these new business owners to market their products well. The platform is already a reflection of their own marketing skills by telling them how much they can raise in how short (or long) a period of time. These entrepreneurs now have at least a tracking system – which is the Green Bar on their crowdfunding page telling them how close they are to their goals, and how many people are buying into the vision/purpose of their business.
There is no other better platforms that I know of that will have such proper, accurate and honest tracking system than a crowdfunding platform. Remember, those who are willing to fund your business are also those who potentially will buy your products or services.
Good luck funding your business there!
The Success Team
Energetic bunch of entrepreneurs who cannot sit still!
Contributor. Cynthia is a Public Speaking and Communication Trainer. She is also the founder of The Success Factory.