Happy weekend to y'all. It's cold right here and I'm excited that the weekend will be breaking into a great week for me.
Looking back at how far we've covered in this series of fundraising for business wows me. It all started with bootstrapping, then followed by bartering, the TTP Code and borrowing techniques. A cursory look at these fundraising techniques would have an entrepreneur on foot to have his ideas actualized.
This module is capturing the well known crowdfunding technique for fundraising. However, keep cool and share some new breathe on this theme as I share a fresh perspective.
For a truth, finances is not the entrepreneur's problem, all he needs is the right knowledge, people and strategy. My business coach often tells me "you don't have a money problem, all you have is a network problem". Crowdfunding is all abut having a wealth of network of people.
Investopedia defines crowdfunding as the use of small amounts of capital from a large number of individuals to finance a new business venture. The emphasis of this definition accessibility to a vast network of investment-minded people leveraging a platform of choice. This technique expands the pool of investors beyond the traditional circle of owners, relatives and venture capitalists.
Modern technology has made it easier for people to pitch their business ideas interactive social platforms where people with like minds for investment can be linked. A blockchain-blogging platform like Hive is a typically a coalition of people who are seeking financial freedom and decentralization.
What is expected of the fellow or entrepreneur who is requesting funding are:
- A solid business model,
- Great brand story,
- Business growth potential/Unique Value Proposition
- Possible takeaways for supporters.
- Great personality
The awesome thing about this fundraising technique is that crowdfunding essentially creates public interest for a business idea, thus, providing a dual benefit of free marketing and funding. Here, simpletons on the crowdfunding platform are less difficult to manage than singular investors.
The Constraints
The challenges that beguile crowdfunding is that there is a tendency for heavy competition when a similar project is pitched on the same platform. For me, this calls for precision, expertise and clear visionary capabilities of the entrepreneur.
Crowdfunding is not as free as many think and wish. This fundraising initiative requires peak performance on the part of the entrepreneur. Every backer of the project must see it as a worthwhile venture before giving a support. Where a blockchain-blogging platform like ours is adopted, there could be a feature for disagreement of support such as downvote.
Crowdfunding shows the ability of the entrepreneur to exhibit a solid social capacity while maintaining an unequivocal strength of his professionalism, virtue and entrepreneurial effectiveness.
I would be glad to share thoughts with you on this subject. Let's maximize the comments section of this blog post.
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