So, there has been a trend that has been getting more and more popular as of late which is almost the same as another way of starting a business. The term is kickstarting, and It works kind of like getting investors to bankroll the company but instead of getting people with lots of money to help pay for the initial set-up you instead ask smaller investors.
So, What Is It?
The idea of kickstarting has been around for a while and initially was focused more on people who developed video games getting crowdfunded by people who wanted to play the game. Now, however, it’s taken a more significant turn where inventors and even companies ask online for the support of people to help them produce what they want to do. It is the perfect way for a business to get started if they do not have the connections to talk to investors.
The way it works is quite simple. The start-up works on the reasoning behind the desire to be funded. For some it’s to produce new technology and innovations, for others it’s to support a project that they have always wanted to be able to make. From there the ideas are pitched on a crowdfunding site, usually through a video explaining the concept or company they want to build. Sometimes there is also text which has a more significant description, Plans and Goals that they plan on doing with the money given.
The Other Side
After this, they post the idea to the site, and it allows people to view the idea and put in money, sometimes people wonder what the incentive of doing this is. Other than the incentive to see the company or product you invested in finished some sites allow companies to put up levels. These levels mean if you pay the amount say $25 for an example you will be given bonuses on top of seeing it completed. Sometimes the rewards are small, and many companies make it so that the bigger bonuses are for, the bigger donations.
Is It Viable?
This type of way to start a business is great for people who want to start up their own company but also don’t know if the demand is there for the product or service they want to provide. It’s also basically at no loss to try because the only way to get the money that is being funded is by the goal being completed meaning that you won’t have to worry about starting the project only to have to pay back the money when you realise you can’t finish it. Crowdfunding can open a whole new industry of small business making it big.