Do you have a business idea you think would make a lot of money, but don’t have the funds to get it off the ground? You could go down the traditional route of getting a loan from a bank, but there are different ways to get money.
Crowdfunding has helped a lot of people fund amazing ideas and launch new businesses and products. As of April 2017 over 350,000 campaigns have been launched on a variety of crowd funding sites. The only trouble with using crowd funding is figuring out how to pick the one you want to use.
How to Pick a Crowdfunding Platform
If you’re here, you’re looking for a crowdfunding platform for your startup. A lot of factors go into picking a platform, and you need to be aware of them before you make a decision.
Are you ready to pick your crowd funding platform? If you follow these tips, you’ll be able to make the right choice.
Think About the Ultimate Outcome
Do you want people that are going to eventually become longtime investors in your business? Are you looking for a few one-time backers to give some money and get a token of appreciation in return?
All of these are important things to consider before you pick your crowdfunding platform. Crowdfunding platforms aren’t the same, many have different purposes.
If you want to know how to pick a crowdfunding platform that will work for you, be sure to think about the outcome. When you have that in mind you’ll be able to pick something that can easily meet your needs.
Think About The Money Goal
Crowdfunding platforms are designed to help people that need to make money for their business or idea. Ideally, you’ll be able to make your funding goal, but what would happen if you didn’t?
Everybody wants to be an optimist, but you have to prepare for a worst case scenario. Some platforms don’t have stipulations about meeting a goal, so campaign creators won’t face repercussions if they fall short.
Other platforms are different. Failing to meet a goal could resort in a mass refund for people that donated, or could find you in other kinds of financial problems.
Before you choose any kind of crowd funding platform, take a long look at the user agreement. Make sure you know what you’re agreeing to financially. If you don’t, you could find yourself in a lot of trouble.
Think About The Product/Service
Are you planning on developing software that will make paying taxes and managing finances easy? Do you need money to help make the next big social media app? Is there a service you’re thinking of that could change the way people eat food?
The kind of idea you have should influence the crowd funding platform you pick. Some platforms do better than others depending on what you’re trying to do.
Some platforms do better for creative endeavors, and others are ideal for people that want to get a head start in tech. When you’re thinking of how to pick your platform, think about what other projects have found success in the same place.
Do you have any advice for people that want to crowd fund their startup? Tell us about it in the comments section! If you have any questions about crowd funding and startups, you can always contact us for help and advice.