If you have a great idea for a small business, there are ways to get funding without taking out a long-term business loan or heading down the slippery credit slope.
There are many online platforms which feature up-and-coming business ideas and organize funding through online payment. One of these sites, Kickstarter, has pledged over $25 million to 4,000 funded projects by more than 300,000 people so far.
If this seems like the right fit for your startup, here are some tips to improve your chances of being funded.
Have a Clear Vision
When you post your business idea online, make sure it is clear for the reader.
Put together a simplified version of your business plan that is straightforward and easy to understand. It is important to give your audience a clear version of what may still be a logistical mess in your brain.
Make sure you can outline key aspects of your plan and include possible areas for growth and development.
Be Creative and Engaging
Many small-time investors are scanning through numerous projects per day, searching for ones that are creative and progressive.
Often times, even if your business plan have a few slight errors or pitfalls, if you are engaging in your presentation and can convince the reader to support you, they will be more likely to fund your business venture.
Online customers like you to be friendly and approachable. And while being available via phone or email is good, make sure that you can be found on social networks for whatever questions or comments they might have at any given moment.
Offer Good Incentives
On some people’s Kickstarter or ChipIn pages, they offer incentives to investors that will make them more likely to receive funding for their project.
Incentives for investors may include certain perks once your business is established.
This could be a free give-a-way, access to certain events, or special features on your business website. Even if the perks are relatively small, it’s common knowledge that people like to get something in return for their investments.
Don’t Overwhelm the Customer
Even though you might feel like including as much information on your project as possible, be careful you do not overwhelm your customer.
If you hit them with too much information at once, they might be confused about what or how much you are asking them for.
Be sure to that you are clear and simple when explaining your business venture, and don’t ask for too much funding at one time as it might come off as demanding.
When posting your business ideas on line, be careful that they are protected.
In some cases ideas are stolen or mimicked in a way that reduces funding for the original idea. Be sure to not give away too much information about your startup; for example: details about specific materials could easily be taken up by a similar competing idea.
Registering your copyright with the U.S. Copyright Office is cheap, relatively simple, and definitely worth the effort.
If you can use it prove that an idea of yours has been adapted or stolen, it can result in a profitable settlement instead of prolonged resentment.
Crowdfunding is a smart and simple way to get funding for your new business venture. Without the weight of more debt on your shoulders, you can start your business with a peace of mind and money in your pocket.