Its the fact that so many businesses are battling to stay afloat that has made crowdfunding being seen as a lifeline. Some businesses are unfamiliar to crowdfunding and are not yet aware of the benefits. The way it works for a small business is that the business creates a profile of their products and services for instance, and through a video they reach hosts of readers. On the video they will offer a reward for a donation. The thing with crowdfunding is that its actually not all about funding, though that is the most important part.
Your business can also gain some visibility, more so if you consider some media coverage such as a including a feature on your business in a popular local newspaper for instance. Crowdsourcing- or funding shouldn’t just be seen as a means for asking for handouts. You’ll need to make use of email distribution lists and social media to reach your goals.
You can’t forget that you are actually getting funding from your fans around the globe. Your project or product should be so appealing to like minded people that instead of more or less begging for a loan, you’re connecting with people who love what you offer and are forthcoming with donations.
You’ve just got to remember that with crowdfunding you’re actually reducing business risks too because Crowdfunding is actually a way to test the market to see if the product you want to sell has got what it takes and if people are willing to part with their money in exchange for your innovative offerings.