How to Use Crowdfunding to Start a Business

If you have a great idea for a start up company but you don’t have investors or the funds you can raise money by creating a crowdfunding campaign. Many business owners have raised money through crowdfunding for various projects and in many cases to start a company.

The producers of Services On TV did a bit of research and came up with a few important things to consider and include in your crowdfunding strategy.

What is Crowdfunding? according to research there are about 600 crowdfunding platforms around the world. You can raise money by persuading people to donate money to your cause, project or startup. The more persuasive your story the more money you will collect. People invest in your idea for equity, a product or even an opportunity to help design a product.

Clear Message-your message needs to be clear and intriguing. You are trying to get people to buy into your idea. The more they believe in your product or idea the more money they will invest.

Define the Amount You Need-before starting a crowdfunding campaign you need to be clear about how much money you need. It’s important to be realistic about the amount you will need to start this company. Keep in mind that you won’t receive any funds until you reach the number you asked for.

Budget Your Time-these campaigns can take a while to finish. Don’t expect to receive the money in a month. You will also need to dedicate a certain amount of time to your campaign.

Network-let your friends, family and business associates know about your crowdfunding campaign. Use social media sites like LinkedIn and Facebook to let people know about your business idea and that you’re in the process of raising money.

The most successful crowdfunding campaigns solve a problem or have a specific purpose. Keep this in mind as you create your strategy. A few of the popular crowdfunding sites are KickStarter, IndieGoGo and Fundable.


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