Need a little start up money?

08-04-2010 at 12:00 AM
Category: Uncategorized

Every business person knows that having enough start up capital can make the difference between success and failure. But for new start up businesses finding investors or funding for an unproven business can be difficult. But there is a new website that may be able to help. It's called www.kickstarter.com and it's based on a sort of ebay style system. Basically, you post your business idea online and state what your funding goals are. For example. Lets say you want to start an organic bakery. You might say that you want to raise $10,000 in the next 60 days and set donation increments of say $25, $50, $100. Then people who think you have a good idea can choose to donate/invest some money. Buy wait a minute, what's in it for them. That's the interesting part. Unlike traditional investing, they don't get a percentage of ownership in your business. Instead you promise them some small reward from your business. So in the case of an organic bakery, you would post that anyone donating $25 gets a free package of gourmet cake batter, those who pledge $50 get an autographed cook book, etc. So this isn't the perfect solution for every business, and is really best suited for either creative endeavor or service based business. But if you have a little creativity, you may be able to make it pay off big. My favorite example was a musician who wanted to produce a new album. He managed to raise over $27,000 in just 60 days, and in exchange, promised things like pre-release copies of his albums, autographed merchandise, and even lunch with him and the band for the largest donations.

 

Keywords: need-a-little-start-up-money, kickstarter.com, entrepreneur, start a business, startup funding
  • Print
  • Share/Bookmark