Starting a business or project in this economy can be a challenge. Business Insider states that a first-time entrepreneur has only 18 percent chance at succeeding. To increase your chances you’ll need confidence, a bulletproof plan and, most importantly, secure finances. You can always ask your family and friends to spot you a few bucks, secure a loan/investor, or maybe you can try giving the new digital trend of crowdfunding a try.
Crowdfunding is a type of online social investing that can help entrepreneurs and creative minds raise money for their projects and potential businesses. After posting all of information for their projects on crowdfunding websites friends, family members, and complete strangers have the opportunity to donate to their cause. Crowdfunding can help people create films, mobile apps, libraries, and research projects.
Does it sound too good to be true?
Well there is a small catch. Creators have a specific amount of time to raise their set funds goal. If the goal is not reached in time, some crowdfunding sites have the funds returned. The websites generally take a percentage from funds received, typically 3 to 9 percent. There’s also a processing fee attached which can also be a 3 to 5 percent. For their contribution, creators must honor their donors with some kind of recognition; however, they do not have rights to the final work.
Not convinced yet?
Sites like IndieGoGo and Kickstarter have raised millions of dollars for thousands of projects in just a few short years. With the help of Kickstarter Scott Wilson surpassed his $15,000 goal and raised nearly $1 million for his iPod Nano Wrist Watch design. Kickstarter also saved a short funded film, “Save Blue Like Jazz”, with over $345,000 raised through crowdfunding.
If you are interested in crowdfunding maybe you should try these websites. IndieGoGo allows you to keep the money you raise even if the goal is not reached. Kickstarter is becoming a very popular site for American creators. 33needs promotes projects that can make a difference like sustainability and community enrichment. And appbackr is a website for creators of apps.