Business Ideas to make money are always exciting. We only know money is hard to earn, and if you work hard for someone else, you are just sustaining yourself. That is not guaranteeing your freedom for money. Money-making is tough, but the easiest way anyone can do is work on multiple things at a time to make money from over one place. Work for your business as you work at fulltime job. Earn extra and keep yourself warm. Digital has helped with such aspirations, small business is easy to form. But we even hold our horses for lack of funds. It’s easy to think about businesses. Very tough to gather the courage to fund a small business. The reason is the doubt about the small business concept.
It can be difficult to start a small business. A business can have a requirement to sustain-cum-growth. You feel the potential opportunity for the idea you germinated. It would need funds to reach different markets and grow the operation to maximize profit-making. Business with investment becomes a passion for real profit-making business. Businesses that only think of working will never grow in the real world.
There is a need to fund a small business. There are multiple ways to fund a small business and here are some quick thoughts:
- Traditional loans
- Fintech funding
- Peer-to-Peer lending
- Venture capital
- Angel investment
- Pitch Competition
We will talk about the Crowdfunding method to fund a small business.
The crowdfunding name itself suggests you get money from the crowd. Crowdfunding can raise money for a small business. It is also a way to promote your product to the masses. While you ask for the fund, they would realize the potential of your product idea and be the first customers.
Not just crowdfunding, our team has got multiple ways to fund a small business.
How does crowdfunding work
Traditional fundraising methods are the easiest option to choose. But the surrounding bureaucracy takes away the charm of doing business. The crowd won’t be burdened by a small amount. Crowd will eventually aggregate to a chunk of money to fund a small business.
There are many crowdfunding sites available. Choice should be based on the vertical and region you are focusing on for crowdfund. The funder is called a backer. They access your credential and idea of business to decide on funding a small business. Sites offer incentives to these backers like:
- First you or early adopters of innovative product
- Access to beta product and give essential inputs of improvements
- Pre-order the product
- Reward or early bird discounts
- Equity is cases where the product is non-consumer facing
Every crowdfunding site has its unique features to attract side-hustlers and investors. Some with fees, others helping to make a great proposal, and some boast their subscribers. Make a project plan, which is as good as a business plan, submit it to the site with the deadline for investments and do social media campaign for maximum traffic to your page on the crowdfunding site.
Let’s check out the best 10 crowdfunding sites. Do check out each site for their specialty, go through case studies, and get crowdfunding way to fund a small business.
Top 10 crowdfunding sites to fund a small business
1. Kickstarter to fund a small business
Kickstarter launched in 2009 to help artists, musicians, designers, filmmakers, and other creators. It has 15 million backers pledged $3.5 billion funding for more than 150k projects. Kickstarter has a good track record and pioneer in crowdfunding way to fund a small business.
What’s good: Widely used and trusted platform for crowdfunding. Users actively look to support startups and fund a small business.
Price: Free for backers and potential entrepreneurs. It charges easy 3-5% processing fees and around 5% fee if successfully funded.
2. Indiegogo way to fund a small business
Indiegogo helped with more than $1 billion for more than 600k projects. They offer crowdfunding campaigns and innovative products in their marketplace. Global network to fund a small business. It comes with no complication of the funding target. Apply for equity, offer securities, revenue sharing, and the latest cryptocurrency sales.
What’s good: The backers invest and campaign for your cause.
Price to pay: Platform charges a 5% fee and, in case your project is for a cause, then it will be free.
3. Causes for social cause funding
Causes platform funded the social cause, political, cultural causes. A non-profit platform for a cause. To make it viable, it connects donors, backers, partners, and investors with entrepreneurs and small businesses. A right way of investing your firm if it makes a necessary social cause.
What’s good: Fast way to raise a fund with zero upfront fees.
Price to pay: Free
It backs artists, writers, musicians, and more hobbyists who want a reason to cherish their work by a quick motivation payment. The backers of Patreon back and buy or subscribe to exclusive content by the artist. It has paid around $400 million to creators of exclusive content. The best way for an individual to fund a small business.
What’s good: Creators can monetize
Price to pay: 5% processing fee is charged for the successful raise of the fund.
5. Fundable to fund a small business
The best crowdfunding site for equity program is between $50k to $10 million. It can fund products, services, or even B2B businesses. Just become a member and choose if you want an investment or fund a small business.
What’s good: Best to fund B2B or B2C products and services.
Price to pay: Become a member and pay a subscription of $179/month
It has active 12k venture capitalists and angel investors for the potential entrepreneur. This site allows you to be a member and to be an active fund seeker. You need to pay $299 per month. It allows the seeker to set up a room within the site and potential investors check your collaterals to decide to fund a small business.
What’s good: $299 per month to create an active profile and deal room
Price to pay: $299 per month
7. GoFundMe way to fund a small business
Made to fund for a cause. Especially, it can help to fund personal causes. Anyone can be a member of the site and post their cause. It even supports a cause of commercial reason. If your product and service idea needs a wing of money, then this place is right for an entrepreneur to fund their small business.
What’s good: From a cause to commercial reason
Price to pay: Free
8. Crowdcube for funding your small business
Just not an investment. It even helps you set a realistic target, a valuation that makes sense, an effective pitch, and a plan to execute. When your pitch reaches 20% of the goal you set, it will make pitch public. It takes around 22 days to reach 20% of the set goal on an average on Crowdcube.
What’s good: It supports seed, early, and growth stage finance options.
Price to pay: No fees to subscribe and a 7% fee will be charged for a successful raise.
9. Experiment to fund a small business
As the name suggests, it’s a platform to fund scientific discoveries. Backers will fund if they buy the idea of your discoveries. There are guidelines to follow and I suggest you visit the Experiment site and get started.
What’s good: There is no barrier of experiments, big, small and any.
Price to pay: 3-5% processing fees and 8% platform fee for successful funding.
10. Chuffed to fund a small business helping animals
In case you are working for the wellbeing of animals and need a fund to back your cause, then Chuffed becomes the best way to get investment. Your cause needs to be a non-profit organization. Around 8000 NGOs got funding of around $8k and that aggregates to $18 million backings.
What’s good: You can use 100% fund and processing fees are charged to backers
Price to pay: Donors or backers will pay processing fees to run the show of Chuffed.
This blog discusses Crowdfunding to fund a small business.
You can also explore more about The dark site of Crowdfunding: