Crowdfunding For Business Funding and Personal Finance

How to Fund Your Start-ups Through Crowdfunding

Crowdfunding means you fund your projects by collecting money from multitudes of people. Crowdfunding literally means funding through a crowd.

So, how do you fund your project through crowdfunding?

GoFundMe: You can use this platform to fund any kind of project, a start-up, a business, personal necessities such as paying tuition fees, paying medical bills, you name it. You can collect whatever amount is donated to your campaign.

Kickstarter: This crowdfunding platform is basically for individuals and businesses to fund their projects. You are allowed to collect only when you meet the pledged amount.

Indigegogo: This crowdfunding platform is also aimed at helping entrepreneurs. However, you can also use this platform to collect money for charity.

CircleUP: It is an investment and loan service for equity funding. This company has financed a lot of businesses and start-ups to grow big. If you have a business that is already making money but you need more money to grow big, this is the ideal company to get funds.

If you want to launch a crowdfunding campaign for a business or start-up, I recommend Kickstarter. This platform is ideal for building funds to develop creative or serviceable products. However, if you want money for personal use, GoFundMe is ideal.

Unless you are very rich or you inherit money from somewhere, it is not possible to start a start-up or a business on your own. Crowdfunding can be a good option to fund your start-ups. Well, you can also try funding your business through crowdfunding but it is very less likely that you will be successful. Since businesses are only focused on gearing profits and start-ups are focused on changing the lives of people, funding your start-ups through crowdfunding is possible whereas funding your business through crowdfunding can be quite difficult but not impossible at all.

How to Use Crowdfunding Platform to Improve Your Personal Finance

There are a lot of crowdfunding platforms where you can start your crowdfunding campaign for various causes such as business, start-ups, charity, or even your personal needs such as paying tuition fees, education loan repayment, paying medical bills, buying a car, etc. You can use crowdfunding sites to raise funds for personal finances. Here’s how to do it.

Go to GoFundMe. Register and create your campaign.

On your campaign page, start with how much money you need, and why you need money. Just don’t say you need money to pay back your education loan, explain why you have not been able to pay back your education and how it is affecting your personal finance badly due to the loan. If you need money for a medical bill, explain properly why you have been unable to pay for a medical bill. The key is to plead your case and let people truly believe in your cause.

Provide authenticity to your campaign by adding photos, and videos, and linking your campaign to your social profile.

Lunch your campaign.

Share your campaign on various social media platforms.

GoFundMe is a crowdfunding platform basically designed for raising funds for charity and personal issues, therefore, you might be able to raise money to meet your financial goal.

The Basics of Crowdfunding Campaigns

If you are thinking about starting a crowdfunding campaign, you will have to understand the basics. Generally speaking, Crowdfunding has two different categories, one, you can get away with the entire funds without having any obligations to pay back the donors (you will have to pay certain fees for the crowdfunding platform, though); and two, you will have to pay the backers (people who fund your campaigns) with some sort of incentives such as interest on finds, share in the company/business, or even free products.

If you use GoFundMe, every donation you receive will incur a transaction fee of 2.9 percent plus a $0.30 service charge and you can keep the remaining money, without having to worry about repayment. When people donate to your GoFundMe campaign, they don’t expect repayment of any sort.

If you use Kickstarter, when you start your campaign, you will have to offer something to the backers. While this is not mandatory, it is recommended that you offer some reward to those who backed your project.