Until a few years ago, what did you do if you had a brilliant business idea and no bank loan? Perhaps you prayed for a miracle. And now? Well now… you simply crowdfund your business.
Known by many names- crowd sourced capital, crowd financing, and fan funding, crowdfunding is the savior of people with extreme talent but no capital. It is the latest buzz in the world of small entrepreneurship.
It is interesting to note that while the buzz is new, the concept itself is very old. One of the greatest musicians of all time, Beethoven, used crowdfunding to procure funds to compose and play. You, as experts will agree, have an obvious advantage over Beethoven- maybe not in terms of talent, but definitely in terms of opportunities available to you to make your sales pitch heard.
Are you still wondering about what Beethoven never had at his disposal, but you do? Well… the answer is: numerous crowdfunding websites.
So, if you have a brilliant business idea and are high on confidence but, unfortunately, low on cash, make use of online crowdfunding platforms to turn your dreams into reality.
Want to know how you can do this? Read on to find out.
Tips for using crowdfunding for business
Crowdfunding, which is an offshoot of crowdsourcing, is one of the latest and most effective ways of getting money for art projects, but the usefulness of this process extends way beyond just money. To understand how and why crowdfunding should be used for the arts, it is important to know what the process is all about first.
What is crowdfunding?
In simple terms, crowdfunding is the process of getting money from the general public for funding an art project or work of art. This method of raising funds can be used for anything from painting to music, and even films. In the last few years, crowdfunding has been used for helping many artists get the necessary money to use their skills and talents and create some great pieces of art. This method is not limited to South Africa either; it has been used successful across Europe, U.K., and the United States as well.
The reason for the emergence of crowdfunding is quite obvious. When it comes to art projects, banks and financial institutions are not very likely to provide a single source of capital because there is no surefire way to evaluate the project for its profitability.
In the case of music and films, popular producers are less likely to help out a new artist on the scene unless they are exceptionally talented and have been able to pique the producers’ interests. While there are several talented filmmakers and musicians out there, only a few are lucky and resourceful enough to get the backing of a producer. Even if they find a producer, the artist would most likely have to sacrifice a certain amount of their artistic freedom in return. As a result, the final film or music that is produced will not be a complete creation of the artist’s vision.