Crowdfunding is an excellent way to secure the money you need to begin or expand your business without begging the bank. From the perspective of the business owner or the investor, there are a few ways to get the most out of the experience.
As the entrepreneur in search of funds, don’t forget to do your part when marketing your campaign. The site isn’t going to do it for you. If you want your project to meet its goal, you’ll need to create a promotional plan. In it, be sure to consider your agreement with your investors and create a way to follow through on your commitments.
From the investor’s perspective, there’s always a risk to consider. Rather than placing all of your money into one or two campaigns, spread it out to a larger market. If you’re looking to invest $100,000, try 15-20 small investments rather than lump sums.
According to Marc Nager, the CEO of UpGlobal, a nonprofit tailored to entrepreneurs says there’s no better advice than creating your own crowdfunding campaign and going through the experience. There’s stiff competition in popular markets. You’ll have to make sure that your campaign is memorable. This is done through a great video and awesome incentives. Depending on your circumstances, both may require a minimal investments before your campaign reaches success.
CLICK HERE to subscribe to the Professor Savings YouTube channel for more information on how to make a financial plan before and after your campaign.