Crowdfunding Your Business November 13, 2012My MoneyOff

Got a million dollars laying around? Not many entrepreneurs do. That’s why Jac Piette turned to crowdfunding.

She and her partner created a Kickstarter campaign that received nearly three times the money they had planned to raise. Their goal was $6,000 and they received $16,263.

Besides financial benefits, Piette says crowdfunding has increased their network, volunteers and exposure.

“Kickstarter has given us a platform that’s almost unparalleled – a small, safe, unbiased space where we can present our project to interested investors and volunteers.”

Crowdfunding is for small business owners, budding entrepreneurs, and creative thinkers. An investor alternative, crowdfunding appeals to “crowds” of people over the internet via websites like Kickstarter, IndiGoGo and GoFundMe.

New laws allow friends, family and strangers to back your endeavor. Contributions range from as little as a buck to hundreds or thousands of dollars. Entrepreneurs can collect up to $1 million annually.

Studies show that crowdfunding successfully supported over one million campaigns and raised almost $1.5 billion in 2011. Total funding volume is expected to double during 2012.

Ready to begin?

First, choose a website based on your goals. For example, Kickstarter is for creative projects. To use it for your business, have a narrow project in mind.

Then create your campaign page. Presentation is everything, Piette says. “Entrepreneurs should realize that they are soliciting funds from the general public, most of whom don’t understand the processes that produce a product.”

Some campaigns offer backers incentives. Incentives shouldn’t be so huge that they strip away the funding generated, but should convey gratitude appropriately, Piette advises.

Next, share your page, especially on social media. Encourage friends and family to share, too.

Bonus PINK Link: Crowdfunding is about short-term funding. Our online exclusive helps you plan for long-term care.

Have you crowdfunded for your business?

 

By Sarah Grace Alexander

“Do it now. You become successful the moment you start moving toward a worthwhile goal.” Unknown

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