Looking for Alternative ways to fund your next project?
Are you looking for alternative ways to raise money for your next project? Here's why a Kickstarter Campaign might be your best strategy. On average 64% of small business owners start with $10,000 or less, and are primarily self-funded. (Source: Intuit 2014) And a staggering 75% of small businesses used their own personal finances as primary startup funding. Other funding options were banks at 16% and family/friends at 6%. (Source: BlueVine 2015)
A Kickstarter Campaign is an alternative to funding your projects and or business ideas when you're low on capital.
The Good news?
While social media has its pros and cons, it has actually helped launch, fund and bring many entrepreneurial ideas to fruition, along with increasing brand recognition for entrepreneurs and creatives.
For starters, social media has produced some of the greatest cultural contributions of our generation, from musicians, to artists, raising awareness regarding certain issues, to giving brands a platform to grow their business, minus the incalculable amount of narcissists that also share this space called “social media”.
Social media has however, helped leverage Kickstarter campaigns, giving the platform a much needed boost in marketing projects. In fact, 2 million people have raised $100 million dollars towards art projects in an attempt to dispel the “starving artist” myth. Another great initiative the platform raised funds for is The “Muse Project” which puts actresses front and center in theater production.
"Kickstarter Campaigns" have been a "vehicle" if you will, that has lead creatives and entrepreneurs, closer towards fulfilling their dreams.
What is a "Kickstarter Campaign"? It's a fundraising platform entirely sourced through crowd funding initiatives.
What is “Crowdfunding”? The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.
In essence, the general public funds projects presented online through an online platform called “Kickstarter”.
Who uses "Kickstarter Campaigns"?
Film producers, Founders, Small Business Owners, creatives including Musicians, Designers, Painters and more!
Are there fees associated with Kickstarter Campaigns?
Yes, Kickstarter takes a 5% fee of whatever your goal is, however, if the goal is not reached, no fees will be collected.
How does it work?
You setup a Kickstarter page, add a detailed summary of your project and your funding goal. Once you set up your campaign, you can then market and promote your project.
You must apply with Kickstarter, before launching your campaign and then wait for an approval to start your campaign.
What does the approval process entail? Here's a breakdown, Kickstarter has guidelines in which you have to abide by, however, a large portion of those who do apply to launch a Kickstarter Campaign are approved.
Here’s 6 reasons why a Kickstarter campaign may be a great alternative to funding your business ideas:
Jump start your projects today
Kickstarter campaigns help you jump start your initiatives faster without having to wait on raising the funds traditionally, through banking institutions or other sources. You can launch your projects much sooner by utilizing crowd funding platforms.
The platform is broken down into categories which include Food, Film, Games, Music Publishing, Design and Tech. Having a Kickstarter Campaign gives you great exposure as the total number of backers to date is 15,143,121 with a total number of 149,834 projects funded!
Easy to set up
Technology and the crowdfunding platform, makes it super easy to set up campaigns, even if you’re “technologically challenged”. You can also include a payment processing feature on the site, an online store as well.
Sense of community
It’s one thing to walk a path alone, it’s another to know that there are others in your position, walking the same path! Crowdfunding campaigns provides a sense of community. You have an entire community of people either raising funds, or rooting for you which is the most incredible feeling in the world!
Skip the Equity Sharing
Crowdfunding gives you 100% control over your project meaning, you aren’t “giving something” to “gain something”, i.e. equity. Most traditional investors require equity along with relinquishing creative control. Not all but some. Once you give up that control, you’re no longer able to ensure the quality of your products or services.
Validate your business idea
Crowdfunding somewhat validates your business idea without having to produce products and goods first. Most investors will want to see a certain amount of sales and cash flow, prior to investing in your company. With crowdfunding, the “backers” understand that no product will be delivered by a specific deadline and or date. The platform does however encourage those who start Kickstarter Campaigns to update their backers after the campaign is over, creating transparency.
Crowdfunding your business ideas has its benefits. There are alternatives to raising capital for your projects outside of traditional financing options. Kickstarter campaigns are better options due to no equity sharing. You can get your projects funded sooner. You don’t have to produce products and or goods upfront, before launching your campaign.