Crowdfunding Bum is making Startup fundraising viable.

The first thing you should know is that “CrowdFundingBum” as a concept has a huge fundraise potential. Even today, there are many fundraising sites that are operating throughout the world. Some focus on a particular industry while others are more interested in open projects.

In short, the possibilities are infinite. Whether you are a start-up entrepreneur or a keen innovator, you can save big money by being a part of a crowd-funding community that has built in backers among other innovative perks.

Read this article to know more about what crowdfunding platforms like Crowd-funding Bum are all about and things you should know before you start to crowdfund.

WHAT IS CROWDFUNDING AND HOW DOES IT WORK?

Most crowdfunding sites have their own dynamics, some like Crowd-funding Bum focus on startups and entrepreneurs while others like Gofundme focus on individual personal needs. However, every crowdsourcing site operates with the sole purpose, to pair the Campaigner with the Backer. Hence, CrowdFundingBum built-in mechanism does so on autopilot.

This Built-in backers fundraising site is the next big thing when it comes to raising money. It gives you more reasons to be a part of this new exciting phenomenon and raise money via reward for new startups and entrepreneurs unlike donation based sites like gofundme who focus is on individual support. Additionally, our crowdfunding platform is the only platform that successfully provides financial support to new startups via built-in backers and backer chat.

We are the new avatar of online funding and support for potentially promising startups.

This is because it offers built in backers, backer chat and free pitch write-up by our experts for busy entrepreneurs.

FRAUD IS LIKELY ON OTHER CROWDFUNDING SITES.

As the saying goes, “Where there is money, there is fraud”. This is true in the case of all crowdfunding platform, but CrowdFundingBum could be the exception to the rule. No matter how secure a crowd-funding site is and how many safety protocols are in place, the possibility of a fraud is always there when it’s donations, reward or equity based.

CAUTION IS THE KEY.

Every donation based crowdfunding platform is potentially risky, and is more so on popular online crowdfunding platforms. You never know whether you have donated in the right types of reward or equity crowdfunding campaign or not. Ironically, a small percentage of donations are often lost to fraud. CrowdFundingBum believes that their types of crowdfunding website is safe from scammers since it’s not in the nature of a scammer to give.

This is why we unlike other types of Crowdfunding platforms require every campaigner to give a small percentage of what is raised as a pay it forward donation based percent rather than the typical “give me” rewards based crowdfunding. Rewards based and equity based crowdfunding websites allows for different things to happen. There are quite a few ways to raise money for your reward or equity based crowdfunding campaigns. We’ll explore your options.

Donation based crowdfunding sites like gofundme is the right way to go if your types of crowdfunding campaign is solely to support an individual need; an example, paying medical bills. Choosing the right crowdfunding site to raise money for your campaign can be complicated. Just be cautious when evaluating crowdfunding platforms choices especially when finding the right mix of reward or donation based crowdfunding options. We’re a reward platform supporting both startups and entrepreneurs unlike gofundme or kickstarter with its all or nothing pledge platform.

NOT ALL STARTUPS ARE SUCCESSFUL AT ATTRACTING BACKERS.

Keep in mind that a failed startup isn’t necessarily the result of a fraud. Some startups, despite their potential and proper use of funds, couldn’t sustain the pace they started with. As a result, a few promising startups end up in failure.

There is no conspiracy here as this is quite common in crowdfunding communities, and is considered as a norm in the corporate world. Just be sure that you find crowdfunding platforms that are donation based or better yet rewards based.

Gofundme (which is a personal needs donations platform) has been on the news for several fraud incidents despite rigorous screening.

There are many fundraiser sites like Indiegogo, Crowdfunder, Crowdcube etc., but none with built in backers.

DEVELOP A VISION AND PLAN OF EXECUTION

A business model is often a requirement for securing a loan from a financial institution. Why? Because it outlines how you intend to keep your venture running and profitable to afford the repayments (and interest!). When using sites that are based crowdfunding such as crowd-funding bum, there is a similar concept expected of you, but a little different.

You need to be able to explain to your potential financiers (backers) precisely what your objectives are for launching your project. First, you need to have a tight grasp of what your business idea is, aims to achieve, how it operates, and, above all, have a vision.

Note that a majority of promoters are more likely to be attracted by your innovative concepts that have a clear plan of execution.

HUMILITY IS A VIRTUE

Not only is that statement right in your everyday life, but it is equally crucial in the business community too. You will inevitably run into an online barrage of criticism while your novel idea faces public exposure. Never take condemnations personally, or blurt out an irresponsible retort to a harsh appraisal.

At times, it may feel like everyone is out to belittle or to try to break down your concept.

However, do not fret since this treatment is a way of probing for vulnerabilities in your ideas. More importantly, this treatment may clarify your project’s execution viability. Stand firmly by your project and apply the previously elucidated strength of vision.

By being humble, you will ride this seemingly uncomfortable wave to success.

SHARPEN YOUR CROWDFUNDING MESSAGE

To avoid losing sight of your unique crowdfunded proposition, you must have a straightforward message when using crowdfunding platforms. Please understand that potential backers on crowd-funding bum are out for those ideas that focus on particular solutions to a problem.

Do not present your startup concept with a communique that emphasizes your project’s intended benefits.

Due to the fierce competition from other similar ventures vying for the same financiers, your message has to be clear, simple, and sharpened enough on to which to latch.

UNDERSTAND YOUR POTENTIAL CROWDFUNDING BACKERS

This specific advice is akin to knowing your audience when pitching an idea. Since you aim to secure fundraising through crowd-funding bum, financial benefactors are your audience in this particular scenario.

Consider how exhausting and mentally draining it is to try selling a product to a public that is not, in the least bit, even interested.

This frustration is the probable risk that you run if you fail to recognize and appreciate your kind of patrons. Targeting the right audience goes hand in hand with a sharpened, specific message about your proposal especially on social media platforms.

A direct and refined marketing campaign of your plan should net you a particular caliber of patronage to attain your desired crowdfunded target.

WHERE DO YOU FIT IN THE MARKET?

Now, surely you must know that you are probably not the first or only one to think of your type of project. The sooner you appreciate this inevitability, the better you will be at positioning yourself well within your niche. Learn to familiarize yourself with the kind of competition you may be up against and respond accordingly.

A failure to recognize the rat race involved in securing funds would be your main downfall.

Always match your intention to your message while presenting it to an interested audience. Once done with that, focus on convincing your benefactors why your proprietary concept is better at solving a specific problem than your competitor’s. In online funding, the realization of your place in the market is among the vital intuitions that you can have.

Nowadays entrepreneurs and accredited investors have plenty of platforms to choose from. Crowdsourcing platforms like Circleup, Funder, Peer lending, Angellist, Fundrise, Youcaring, Patreon and crowdrise to name a few. You can raise money online via these community funded platforms the hard way or the easy way with the help of CrowdFundingBum’s built in backers.

HOW TO PREPARE FOR CROWD FUNDING?

For most people looking to raise funds for a project, the traditional methods of raising capital to jumpstart a project via bank reach-out efforts are dwindling. As a result, alternative finance schemes like crowd funding have become an increasingly popular way of getting business ventures off the ground. Alternative investments are typically not regulated by the Securities and Exchange Commission (SEC), making it easier for non-accredited investors to invest in startups. A recent example of the expanding popularity of alternative investing has been the rise in online crowdfunding sites that have grown the crowdfunding market into a multi-billion dollar industry.  

HOW DO CROWD FUNDING SITES WORK?

A crowdfunding campaign is a process by which a project raises money through small donations from a large number of funders rather than seeking seed funding from a few high-net-worth angel investors. Most modern-day crowdsourced fundraising campaigns utilize crowdfunding websites to simplify the process. These sites primarily use two methods of crowdfunding: rewards-based funding and peer to peer lending. In a rewards-based system, pledged investors essentially pre-pay for products and rewards that are delivered at a later date. However, a large portion of crowdfunding today occurs through peer to peer lending where accredited investors buy into a fund that issues loans to entrepreneurs, and the accredited investors make money from interest on the loan. 

THE POWER OF NETWORKING

Due-diligence is of the utmost importance when researching fundraising websites to raise funds. Funding alternatives like Fundable, Crowdfunders, Lending club, Fundly and other crowdsourcing platforms are useless without social media integration. To reach your funding goal via the fundraising process social media outreach is critical.

Understanding mass psychology, when it comes to financial management, is a big plus when applying the influence of pre-existing support. Within our current online society, you are better having a following just before launching your proposal. Potential crowd funding bum sponsors would naturally be interested in an idea that gathers online attention due to its perceived viability.

Psychologically, people are unlikely to associate with a sterile or stagnant proposition. Such networking support is obtainable from your social media followers, bloggers, previous colleagues, existing customers, and your friends too. A significant pre-existing following is bound to sway financiers to your corner. Therefore, utilize this psychological advantage to your benefit and see your donor list grow.

MANAGE YOUR BUDGET

The need for startup capital casts budget management at the center of your fundraising venture. Before launching your proposition, make sure to have a detailed account of the financial demands of each step of the process. Ideally, it is not smart to set up a massive request for an overall project without giving a precise breakdown of your operational plan. Remember the business plan analogy?

Yes, you are better positioned for successful fundraising if you can itemize your budget into stages.

With such an approach, even your backers will have a chance of tracking the progress of their funding since it is much easier to achieve a smaller goal than an astronomical target. Learn to set an attainable goal from which, when successful, you can launch your next course of action.

Furthermore, by racking up these smaller wins, you will be setting up a prosperous track record that can only be appealing to your potential future patrons in the next stage(s) of execution.

Conclusion

Finally, having internalized the prospective guidelines outlined above, the next step is putting them into action. Be mindful of the fact that not all ideas are guaranteed success in public fundraising. Eventually, any breakthrough that you seek is entirely dependent on the vigilant execution of these pointers.

All in all, check out CrowdFundingBum for your startup online fundraising. To raise capital there’s no need to invest or deal with the jobs act regulations . Raising funds is a no-brainer at Crowdfundingbum.com.