Not since venture capitalism got underway in 1957, for elite groups of idea developers to attract financial backing from wealthy individuals and corporations, has there been such an opportunity for entrepreneurs as crowd funding. Once again, technology of computers and the internet has changed the game in business opportunities. Crowd Funding is an innovative way for budding entrepreneurs with good ideas to obtain funding.
Since there are quite a few crowd funding sites available, how does one go about finding the right one? Careful research and investigation will separate the funding sites more suitable for the particular needs of an idea or business plan from others. Some, like “Kick Starter” are geared for performing arts, photography, fashion and films. They will help find backing for creative arts projects only. They do not take charity projects, funding for life, or any contests, raffles and certain products like drugs. If you are unsure if your project falls within Kick Starter’s guidelines, click here.
You simply register, fill out the project information and wait for the powers-to-be at Kick Starter to review your application. It is imperative that your initial presentation and idea be sharp, to the point, and inviting to Kick Starter to include in their list of projects. Many of the ideas do not get accepted after review, from poor organization, even if the core idea is sound. You usually get only one chance, so it must be a focused and well-defined project, perfectly explained. Usually this is done within two days. If it is a “thumbs up”, you will be notified and once you have set your goal, it will be active on their website.
Kick Starter works off of an “all or nothing” premise. They feel it is safer and less risk involved all around. If you need $10,000 for a project and only receive $6,000, you would have a lot of people waiting on results and not enough cash to complete. Kick Starter will only pay out the funds when the entire goal is met. This method is also more motivating for the entrepreneur to make all possible contacts. Offering rewards is usually expected and crucial in the funding project. Examples of rewards for creative projects are: copies of the DVD or album; a mention in a publication or comic; visiting a set; a call from an author; or a mention in the credits.
Don’t forget regardless of which crowdfunding platform you choose for your campaign, there is no crowdfunding without the crowd. Even if accepted on to the Kickstarter platform unless your project is chosen to appear on the kickstarter homepage, you will not likely get funded unless you promote your kickstarter campaign. Our suggestion for where to promote your kickstarter project can be found here . The biggest misconception about the crowdfunding industry is that its easy, this is fostered by the ease in which sites like kickstarter and other kickstarter alternatives make it to create your crowdfunding campaign. The hard part is getting your project seen by possible donors.
Although Kickstarter.com is currently the most common name we hear regarding crowdfunding, we highly recommend that you consider taking a look at GoFundMe. Many very worthy crowdfunding projects are denied by kickstarter, you will not have that problem with our top recommendation.
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