Alternative ways to get funding for your business-Part 1

There are a myriad of ways to get funding for your business. I have come across some interesting ways to accumulate funding for your business. One of the fastest growing ways is to use-crowdfunding.

Crowdfunding is not for all businesses. Usually, you have to have a product that someone wants in order to crowdfund. Or maybe have a social cause or a new invention. For your business, crowdfunding can be a great way to get funding.

There are 2 types of crowfunding:

1. Rewards-based
2. Equity-based

Rewards-based crowdfunding means that you are accepting donations from people and in return provide them with a reward. You can have multiple levels of rewards depending on the level of donation. Anyone can donate and receive rewards.

Equity-based crowdfunding is not something that is all the way legal yet in the US. This means that anyone can invest in your company and receive equity (shares) of your company as compensation. Not always a good thing if you do not want to give up part of your profit, but still will get you the cash that you need. 

Some popular crowdfunding site are:

1. Indegogo
2. Gofundme
3. Kickstarter

Business Fiance Store offers consulting services for businesses that need to crowdfund. We will do all the marketing, setup, and everything for your campaign. For a free consultation, click here.

Check out my next article on another alternative way besides going to a bank to get funding for your business.