SA Crowdfunding Blog

Tuesday, 23 October 2012 13:55

10 Great Things About Crowdfunding

With all the talk of crowdfunding as a source of small business funding, art funding and music funding in South Africa, we look at some of the great benefits of getting involved.

1) It provides access to capital.
As an entrepreneur, artist or musician, finding the finance you need to get your project of the ground will be one of the most business challenges that you will face. Provided that you have a great concept and is able to convince others of that, with hard work and allot of networking you will quickly see that you can turn buzz about your business into capital with which you can get started.

2) It reduces risk.
The basic nature of crowdfunding is that small portions of the money needed to start with the received from a many others. The Crowd. So comparing this to the traditional business model where risk is normally taken on by the entrepreneur and either the bank or the one or two investors, clearly in the case there is far less risk for all involved. – A real bonus for entrepreneurship and creativity in general don’t you agree?

3) It’s a great marketing tool
This benefit comes in two parts:
• You all of a suddenly have the greatest excise ever to shamelessly promote your idea to every one everywhere. Your personnel and social network all get to hear about your creativity and you have a real reason to shout your message from the roof tops.

• The crowdfunding platform itself attract allot of interest. Crowdfunding is very newsworthy right now and the media loves it. Radio, press, everyone wants to get involved. Not only will a platform like StartMe promote your projects to everyone who asks but will actively be sharing your opportunity with their networks, in their newsletters and you even get the benefit of their aggressive Search engine marketing campaigns.

Published in SA Crowd Funding Blog

A large number of small to intermediate companies were placed under great stress when the banks stopped or cut back on lending. It was a situation in which short-term loans were often what kept many businesses afloat while they awaited delayed compensation for services or products they supplied. The bank problems made the situation even worse because the clients and customers businesses relied on for their cash flow were strapped financially, too. Work became harder to find, and without small business funding from other sources, some companies were forced to close their doors.

The range of necessary funds can vary from R1,000 to R100,000 or more in small business funding. The amount needed has provided for various and creative ways of crowd source funding. Based on circumstance, there is usually at least one way and often several of procuring small business funding through a crowdfund.

There are four primary crowdfunding models, and there are variations within each.

Published in SA Crowd Funding Blog

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