Do you know that crowdfunding can be an effective cash management tool for raising capital?
Crowdfunding is pre-selling products that are in development. You owe people something, but usually at a good profit margin. You don't sell equity in your company and you don't go into debt. You do get:
- Publicity before you launch
- Feedback on your product
- Ideas for additional product
- An idea for market acceptance
- Names for your mailing list
- The cash you need to launch the product or business
Most people think of Kickstarter or Indiegogo (I've used Indiegogo) as only for new companies...wrong! You can introduce new products as well.
I've done crowdfunding for non-profit as well as for-profit organizations. Possibilities for funding:
- Book launches
- Food vendors
- Service providers
- Race/adventure organizers
- Non-profit fundraising
The possibilities are literally endless.
Have you done any crowdfunding? I'm looking for any reason not to do it.
Have you bought something from crowdfunding? I've only had positive experiences and I'd like to learn from others.
Let me know in the comments below!
#crowdfunding #wtcfg #finance #leanstartups