Ask any creative and enterprising individual for concepts of an awesome new product or business idea. Go ahead. In minutes, most can provide you with a list of new inventions or ventures that they are sure will be sought after by many.  How come these ideas never come to fruition? Three words – lack of funding. With really high interest rates and stringent bank loan requirements, it is really tough to find institutions that will give you money for your venture.  Thankfully, there are now numerous Crowdfunding websites that can help you find financing for your great idea.

Why Is It So Hard to Get New Products and Business Ventures Off the Ground?  

If you have a great idea for a product, you will need money in order to make a prototype for testing. Then, if it passes muster, you will need money in order to mass produce it. You will also need money to make the packaging. Then more money will be required in order to market them to the public. You get the idea. If you are like many creatives, you probably do not have bags of cash lying around to fund your project. 

So, you’d have to go to the bank to get a loan. Unfortunately, if you cannot prove to a bank that you have the ability to pay back your loan, they will not grant you the funding for your venture. You can also approach alternative lenders or credit unions, but, again, if you cannot show that you have an established cash flow, your chances of securing a loan is very slim. Thankfully, we have seen the emergence of a new source of funding that can be tapped by people who have great ideas for ventures or products. You can get your financing from investors from Crowdfunding websites.

How Do I Get Money from Crowdfunding Websites?

If your small business needs money for upgrades or if you have a product that you want to create and sell, the first thing that you will need to do is to go to several Crowdfunding websites and see if the platform fits your venture. While most are familiar with Kickstarter and Indiegogo, these Crowdfunding websites may not be the right platform for you. First of all, they have geographic limitations. If you are not in the US or UK, you won’t be able to use them for your campaign. To choose the right platform, you need to consider the following:

What Is the Product or Venture That You Want to Fund? 

Kickstarter only allows campaigns for creative projects. If you plan to raise money for a charitable project, then you cannot use this platform. You can try other platforms like Network for Good or Crowdrise. These platforms allow you to set up ways so your donors can donate online in order to support philanthropic projects.

What Kind of Reward or Perk Are You Planning to Provide Your Investors? 

If you are already operating a successful business and only need extra financing for upgrades, you can explore equity-based crowdfunding platforms like Startup Valley. Here, you will find investors that are willing to give financing to entities that already have a solid track record and proven business model. In exchange, these investors will become a partial owner of the company and have a share of the profits. If you have a new video game that you want to pitch, Indiegogo can be an option. 

For aspiring food truck operators, you can try RocketHub. This Crowdfunding website is easy to use, and campaigners get to keep the donations even if they do not reach their goal amount. Just make sure that you can provide the perks that you promised your investors in a timely manner. In Crowdfunding Bum, for example, backers are guaranteed to receive their rewards because the platform hold on to 70% of their donations as security. Once the backers have received their perks, platform releases 70%. Hence, campaigner receives the entire amount of the donation. 

How Connected Are You? 

The effectivity of crowdfunding is that you don’t need a few investors putting in huge sums for your venture. Many people pledging small amounts could actually be better. For that to work, you need to be able to reach a lot of individuals in order to reach your goal. If your network is wide, this might not be an issue. 

All you would need is to join any Crowdfunding website that will enable these people to give you funding. If you have a very small circle of friends, you will need to choose from crowdfunding websites that have an established community such as Kickstarter. You can also look into the newcomers like Crowdfunding Bum. This platform has built-in backers because every new campaigner has to support an already existing campaign with 3% of his or her funds raised. 

Once you have chosen a crowdfunding platform, you will need to set up an account and start working on your campaign. Make sure that you present your concept creatively. Try to grab the attention of future investors by making them realize that they cannot live their lives without your product. Once the campaign goes live, post the links on your social media accounts and ask the people in your network to spread the word. Remember, the more people who know about your venture, the more money you might be able to raise. Wait for your campaign to hit its goal so that you can get your funds and begin your project.

How Can I Make Sure That My Campaign Succeeds?

Another factor in the success or failure of any crowdfunding campaign is competition. The more popular Crowdfunding websites attract all sorts of campaigners. If you have no means to develop a really attention-grabbing campaign, your efforts will just get lost in a sea of other campaigns. It might be advisable to find niched Crowdfunding websites to better connect to investors that are looking to put in some money in your industry. Here are some examples:

  • Idea.Me, for example, has carved a niche in the market in Latin America. If you belong in this category, this could be something to explore.
  • Pando is another niched crowdfunding website that provides financing for products and projects by women. 
  • If your project is related to real estate, you can visit CrowdStreet. They have helped businesses finance projects like hotel development, building storage facilities, and condo redevelopment. Another similar platform is FundThatFlip. They connect investors and businesses that resell properties. Flippers can get financing for their remodeling projects in as short as one week.
  • For computer hardware companies that require financing, CrowdSupply is among the top Crowdfunding websites for the industry. They actually beat Kickstarter when it comes to the success rate of their funded campaign.
  • If you have a research project that has a modest target amount, you can go to Experiment. They cater to startups that need less than $5,000 to conduct their researches in various fields like biology, political science, computers, etc.
  • Are you a filmmaker who has a good movie concept? Go to Seed&Spark in order to find your audience and future investors. 

Conclusion

Getting into the top niched Crowdfunding websites may be ideal for people who believe in their ideas but do not have the audience reach that is required to make the campaign a success in other mainstream platforms. They get to reach out to a more targeted pool of investors to give their campaigns a better chance of being backed.

At the end of the day, any successful campaign will require the right pitch, placed in the right platform, to reach the right audience. If you are able to hit all three of these, you can be assured that you will receive financing for your project. 

You may have to visit countless Crowdfunding websites before you find one that will work best for your project. So, be ready to put in the effort. It just might be the step that will help you produce the world’s next greatest invention.  

Final thoughts.

We hope you stick around a while to find out more about all that Crowdfunding Bum has to offer. You will find ample reasons to choose us as your funding source.

Fresh out of excuses? Click the link below.

Start Now – It’s FREE! >>>

or see our frequently asked questions page