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Crowdfunding: your entrepreneurship is possible
Money, the universal obstacle for every entrepreneur. You have the idea, you have the will, you have the methods, but you don’t have a cent to put your dreams in practice, do you feel identified? If you want to start-up and what you need is money, crowdfunding might be the solution you’ve been waiting for.
There is nothing worse than having plans and being financially incapacitated; borrowing money seems like the only way left to carry out your projects, and maybe you think that it’s better to leave your entrepreneurship ideas on hold than to ask everyone for the money you need. But, what would you say if you knew there was a way to start-up without owing money to the bank?
Starting-up without money is possible, accessible, and at the reach of your hands. You might’ve heard of it as crowdfunding, maybe you’ve read about it, and you’re not sure if it could really work; we can tell you that its participation in the global economy has added hundreds of thousands of jobs, providing millions of dollars, that by the way are rapidly increasing; a single project could be financed in a matter of hours.
How does crowdfunding work?
In simple words it’s a way of gathering money to launch an entrepreneurship, the money is given by collaborators that support the cause.
Generally and for the sake of time, connectivity, and simplicity to make monetary transactions, crowdfunding relationships are handled virtually. These start with a person or a group that propose an interesting idea to a group of collaborators or contributors, that basically play the role as “investors” (this idea could be a product, a service, or another cause that requires financial aid and support); these collaborators might take an interest in the entrepreneurship, when they do, they’ll monetarily contribute to the cause, increasing its funds. The contributions can be labelled in three ways:
- Donations: If the project succeeds, whoever donated will be rewarded with recognition from the owners, gifts, appreciation, and other forms of saying thanks. The idea of these collaborators isn’t receiving money in return, making this system even more interesting, their idea and motivation is simply being able to participate in an idea they believed in and see how it becomes successful.
- Loans: In this case the money they lent will be returned to them with some interests.
- Investments: The people who invest are the ones who take higher risks, but they can also be rewarded in time, they can be a part of the company, and receive important monetary earnings.
Ultimately, this financial supporting system that helps entrepreneurs that don’t have enough resources to launch their companies is a great idea that promotes solidarity to those who’ve managed to come up with projects with huge potential.
To succeed and ensure that your project gets 100% financed you have to work hard. No one will want to invest in a start-up that isn’t designed, planned, or studied, and that doesn’t look promising. Collaborators know that there are risks associated; therefore they will want to give their money to enterprises that have a future. Devote yourself to get to know your project in 360°. Many collaborators will want to know more details about your idea, and you’ll have to answer them as completely and kindly as possible.
If you were looking for financial support, consider this option, it might be the push needed to create your business, start-up effectively and fulfil your objectives. Don’t let money keep you away from your goals, with crowdfunding your dreams might actually be a close reality.
Image courtesy of Stuart Miles/ freedigitalphotos.net