What makes crowdfunding work?

As an entrepreneur, I have no doubt that by now you have heard about crowdfunding and are most likely considering it for your own start-up or even the next set of business growth finance that you may need. The great thing about this source of finance is of course that you don't have to go hat in hand to the bank manager and explain to them just how you will pay them back over the next 10 years.

But crowdfunding in itself is not without its challenges. Its certainly not a case of simply adding your project to a crowdfunding platform and waiting for the money to start rolling in. Today we have a look at a few of the enormously successful crowdfunding campaigns we have seen globally and look at what has made them just so successful. Here are a handful of campaigns worth looking at:


Elevation Doc Elevation Dock is a simple idea; it is made out of aluminum, has rubber feet and is designed in proportions that allow it to be used with or without a case. This adds an element of flexibility that was simply not present before it became available. In addition to this, everything else about the product is designed to be of the highest quality possible. Its minimalistic aesthetics make it a suitable choice to go along with the iPhone. 

Penny Arcade Penny Arcade is an Internet comic site that used crowdfunding to improve what it offers to its visitors. Like many other sites on the Internet, Penny Arcade had to convert to an advertiser funded model, which the creators were not quite happy with.

LunaTik LunaTik is a project that started on Kickstarter with a relatively simple, but really quite brilliant, idea. The project involved marketing products that allowed people to turn their iPod Nano devices into watches. Not only did this project utilize a product that was already on the market – and very popular – it also combined that product with an already well-known product – wristwatches – to create something new and that has a natural, built in fan base.

I Draw Comics I Draw Comics was originally started on Kickstarter with a funding goal of $10,000. By the time the project closed, it had raised $245,870. The product, despite the tremendous amount of funding it managed to attract is a relatively simple one but is also one that would be eminently useful to people who are trying to break into the comic book world. 

Righteous Salad Dressing Righteous had quite a few things going in its favor from the start. The company already had a good reputation for its salad dressings and it was a realistic proposition that, with funding, the company could expand successfully into new markets. In addition to this, the salad dressing was already sold in several popular chains, showing that the company already enjoyed some success, which does help with persuading investors to put their money down for a project. 

South Africa's own crowdfunding platform Startme has also already seen a number of success stories in its first few months of operation. If you are keen to use this source of finance, be sure to read the abive cases and make sure your project is engaging enough for the crowd to invest.

All the best with this.

Using Business Plan Services to support your business


If you read a lot of start up stories about small businesses, you should be aware that some of them are cast in very romantic terms. They'll oftentimes be stories about how a business started out with two people who had an idea and R 100 between them or something along those lines. The fact is that small business plans and business plan servicesare vital to making a business successful. This means making the business successful in every regard, including getting funding for that business. For small businesses, having a good plan is of the utmost importance.

Why it Matters

Small businesses have a lot of work to do in inspiring confidence in people who may fund them. This is quite simply because small businesses generally start up with less money of their own and, therefore, are generally looking for a higher percentage of their start up money to be contributed by funders. Small business plans have to be able to assure those funders that the investment is a good one. Small business success stories tend to get a lot of attention. What doesn't get as much attention, unfortunately, is the fact that many small businesses never really take off and end up being abandoned rather quickly.

Small business plans have to give the people responsible for funding the business confidence that the people behind the business are willing to see it through. When the business startup doesn't have a lot of financial resources, the business plan has to be able to instill confidence in funders in other ways.

The People

Having small business plans written by professional business writers presents a significant advantage where describing the qualifications of the people involved in the business is concerned. Looking at the situation as outsiders, business plan writers have an easier time stating things in very factual, empirical terms. They'll tend to avoid trying to sell the business based on how inspired the people behind it are, for instance. Instead of going for those types of sales pitches, professional business plan writers will emphasize the qualifications of the people involved and why those qualifications may contribute to success.

Financials

Small business plans need to have very detailed information on finances. This is oftentimes the most significant shortcoming where businesses written by the entrepreneurs themselves are concerned. What somebody looking to fund a business wants to see is evidence that the business will be able to sustain growth after it is funded and that the investor will make their money back. When you don't have a lot of money to start out with, this is hard to establish, but a professional business plan writer can help you to do so.

Market Analysis

One of the real advantages in using a professional business plan writer is that they can identify weaknesses in small business plans that the entrepreneurs themselves may not have noticed. This ensures that the people who may or may not provide funding for the business are not the first people who see these weaknesses on paper. A good writer can take those weaknesses and present them in a way that doesn't make it seem like they are inevitably going to cause the business to fail.

Good small business plans are at the heart of any successful small business. Without a good plan, a business quite simply has a much lower chance of succeeding and the people who are responsible for funding new businesses know this. If you present them with a good business plan that is professionally written and that is backed up by facts in every regard when it makes a claim, you have a much better chance of getting your dream business funded and on the way to success.


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