One of the best things spawned by the Internet is how it has transformed the numerous industries that became familiar with it after it was commercialized. Back in the day, there were no online advertisements. Now, companies like 300bees.com, which focuses on online marketing, are important to many businesses that want to at least stay relevant to their respective industries.
But more than that, the Internet has come to a point where it can even help fund business ideas and startups. This is known as “crowdfunding” and the act of asking to be “crowdfunded” is known as “e-begging”. It works like this: You go to crowdfunding sites, create an account detailing who you are, your idea or business you want to start, and then promote or advertise your account to your friends and families. You can ask them to help you by spreading the word to their friends and families as well.
Many startups and businesses have already been funded this way, and there are several crowdfunding websites to choose from. But this isn’t easy. It basically relies on how fast word about your business spreads and how many people would be interested in funding your business venture. Crowdfunding websites usually ask you for a goal amount that needs to be reached before a deadline. Once the deadline ends, the website stops the project and returns the donations to the donors.
The advantages of crowdfunding are:
- Anyone can do it as long as they have ways to connect to the Internet. This is a great way to get funded if you’re just starting and have no prior experience in business.
- People can comment on it and you may use the feedback to improve your project, which can lead to attracting more donors. You can also use this to gauge the actual demand for any products and/or services you may be offering.
- The money you receive is all yours to use. Except for the promises you made to get funded, there are no other responsibilities tied to it. Just make sure all the other promises you made are kept.
As with everything, crowdfunding also has its disadvantages.
- As mentioned before, crowdfunding usually takes time, though there are instances of projects that get funded in less than a day.
- While everyone can do this, that means that there are others who might be planning the same business as you who are also planning to get crowdfunded, meaning there’s a potential for rivals. Right off the bat, you need to sell your product or service better, so in exchange for other ways to fund your startup, like applying for a loan, you’ll have to work hard to promote and advertise yourself instead.
- If you fail to get funded, there’s no problem, you can try again. However, if you cause a controversy, you may find yourself permanently losing any chance of getting funded, so plan your PR accordingly.
Still, the benefits outweigh the disadvantages and crowdfunding is still one of the best ways to get your business funded.