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    1 Reply Latest reply on Dec 21, 2013 1:51 PM by Moderator_JoleK

    Funding sources

    Ranger

      Your small business probably is on your mind a lot. Funding is a primary concern at all stages of success .How many different funding sources have you used? I'll bet the average is two or three different sources.

      Today Steve Strauss has an article for us to read and share about Crowdfunding . Have you heard of it? Have you used it? We would love to hear your thoughts and experiences with this relatively new funding source.

       

      Read Steve's thoughts on it here ,Crowdfunding and Your Business and let's talk about it.

       

      Joleen

        • Re: Funding sources
          kimmy burguess Adventurer

          Almost every small business owner faces this problem as they try to open a business, especially in the beginning phase. The first place everyone thinks of when searching for funding sources is the local banks. Alternative funding source is business credit card. But before going for this, check with SBA. Certain types of businesses are able to receive grants, and the SBA helps you in getting those loans. Angel investor is another option.


          • Re: Funding sources
            pauljoachim Scout

            I think crowdfunding can be highly effective if it's the right business model.  I have several friends that did this successfully and it certainly gave them the working capital they needed to start their businesses. 

             

            Steve has a very good point about it being hard work.   Just like anything else in life the harder you work the more you put yourself into a position to succeed.  There are no guarantees of course  

             

            Crowdfunding is amazing in that you have a group of 'investors' that you owe very little to.  There is no bank or person(s) to pay back.  You simply get the cash you need based on a great idea you put into cyberspace.  Keeping in mind getting the cash you need for a concept is one SMALL step in the success of your business. 

             

            Paul Joachim

            businesscash.com

             

            • Re: Funding sources
              AngelBiz Tracker

              Excellent article. Crowdfunding has come a long way in the last year or two. Sites like Kickstarter and Prosper are excellent sources of money when looking for cash funding.

                • Re: Funding sources
                  Ranger

                  Thanks for your responses!

                  Paul , you say you know folks who have successfully used Crowd funding . How long ago ? How did it work for them in the long term?

                  What do you all think is the next step for such funding?

                   

                  Joleen

                    • Re: Funding sources
                      pauljoachim Scout

                      Hi Joleen, Happy Holidays.

                       

                      It was in the past year.  So, the businesses are new.  One is in the food business and they successfully purchased all their equipment and started a marketing campaign with the funds.    Long term is totally up to them and how well they run their business.  The crowdfunding certainly got them into the game.   Interesting question about the next step of crowdfunding.   When Kickstarter began they only took creative ventures, not strictly business ventures.  That matured to more and more crowdfunding web sites and allowing any kinds of business venture to participate.  Which in turn opened the door to many more people to leverage crowdfunding.   If you look at the sources of credit available to start-ups and small business I see it simply expanding and more and more people using it.    It's very difficult to get a bank loan, credit cards and family are quite risky.  Angel investors may not be appropriate for many.  Factoring companies can help, but you need to have a big invoice or purchase order to leverage.  Crowdfunding is certainly a viable solution for many.