Now let’s look at the main disadvantages, as well as points that can be attributed to the advantages of crowdfunding. Every entrepreneur should know about them before deciding to start raising funds in this way. It is necessary to understand what pitfalls this method of financing has in order to avoid unnecessary risks and understand exactly whether this model is suitable for your business.
Advantages
1. Speed of fundraising and cost of capital. Crowdfunding allows startups and small businesses to raise capital without having to build relationships with banks or venture investors. Even an inexperienced entrepreneur who has only recently registered as an individual entrepreneur can raise such capital relatively easily and quickly.
If the idea is liked by users
In particular, money is most often attracted with almost wedding photo editing no risks. This minimizes the possibility of bankruptcy. The fact is that usually the costs of crowdfunding (collective collection of funds) are minimal. For example, you can promise to write and send a thank-you letter to backers – nothing more. And attract funds almost for free. The organization will not have debts and obligations.
2. Testing the idea . A crowdfunding campaign is a great test of the viability of your model. If this business project attracts people at the funding stage, then this is a signal that the product or service will be in demand on the market.
3. Feedback from users.
Donors or ordinary people can give advice, share ideas Googleove EAT smjernice: Pouzdanost and leave feedback, which helps to improve the new project. In this way, you can create a community of supporters who will later become first-circle customers.
4. Reduced risks. A startup can choose the most convenient format for raising funds. For example, “all or nothing,” when only the full completion of the campaign is afb directory considered a success. Otherwise, all the money will be returned to investors. This reduces the likelihood of failure due to lack of funding.
5. Diversity.
You can try crowdfunding in completely different business areas: there are no restrictions. Financial support from donors can always come. People love new projects that can help develop new technologies in Russia and abroad.
