In the previous article "6 steps to start your own startup" we referred to crowdfunding as a financing method for startup companies. But what is crowdfunding and how can you use it for your own startup;
Crowdfunding is considered the way of public financing of a business idea by different financiers. Donations can come either from companies or investors, or from ordinary people and potential customers of the product or service they supported.
This method shows some positive as well as negative elements. Let's start with the positives. Crowdfunding can in a relatively short time generate the desired revenue for the start of your business and without great financial risk. With this method you test the resonance that your idea can receive and with a careful and eye catching campaign there is the possibility that it will go viral. Finally, the public placement of the new idea offers you an ideal feedback that can be exploited after the marketing department.
On the contrary, with crowdfunding, some negative elements can also arise. The disclosure of your idea before it is launched by you can be intercepted by someone who can afford to implement it immediately. Also, because there is no guarantee of satisfaction of the final goal there is the risk of bad publicity of your idea and never be able to "bring it to life". In this case, you must return the accumulated amount to the investor.
These were some points that you should pay attention to before using crowdfunding to find the necessary capital for your company.
If you're struggling with crowdfunding and you have not an idea how to create the right campaign to raise your funds, you should find an experienced freelancer on Fiverr to get it done for you with success.
Until next time like and subscribe!
M.R.
NOTE: This post may contain affiliate links. Please read my disclosure for more info. This adds no cost to you but it helps me focus on giving as much value as possible in every single post by being compensated for recommending products that I love using.
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