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6 Positive Things That Came with Crowdfunding

6 Positive Things That Came with Crowdfunding

Crowdfunding is a recently adopted investment concept that creates great opportunities for numerous companies around the world. The rise in popularity occurred back in 2009, with the development of the Kickstarter website. The website made it possible for people to raise money for their awesome ideas on all kinds of services and products.

People are able to see what the project is in complete detail, before giving money to the cause. Back in 2012 the government realized the investment crowdfunding potential and enacted the JOBS act, to make the whole crowdfunding process easier for everybody. The crowdfunding trend created numerous other positive trends in the world of business.

A variety of capital acquisition options

In the past, any company that wanted to grow their business in a shorter period of time had to look for accredited investors and depend on their good will, whether they personally found the idea good and whether they thought it was profitable or not. This made the whole company growth process even more complicated, and many creative and incredible ideas went on to become nothing due to the impossibility of find the right funding.

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With the expansion of crowdfunding platforms, people who want to start a small or big business, have a lot more options open to them. It is now possible to raise money from a much higher number of people. The success lies in the fact that people are not donating for free, but for a reward. This reward-based investment brought many new companies into existence, making it an awesome way of collecting funds from the crowd.

Lower risks

Creating and running a company is quite a challenging task. No matter how well you predict the financial expenses, there are always some things that require more funds, making the whole venture riskier. At some point people have to rely on a loan, which further increases risks. The investors ask for equity in the company, which can complicate things as the company grows and affect the ideas of the company’s initial creator.

All of these risks can now be avoided with reward-based crowdfunding, as all these problems are automatically solved. It is possible to make precise costs and ask for a little bit more just in case, to cover unexpected expenses. The options are endless. There is no loan taking procedure and, most importantly, the owner of the idea and the company doesn’t lose any equity in his or her company, making it go in a safe direction without the interference of other people.

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It is a great marketing campaign

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    Crowdfunding platforms are very popular and are visited by millions of people due to a wide variety of interesting ideas. This much organic traffic is very important when someone is starting a company and there are even brands that realize the marketing potential of crowdfunding platforms. The initial boost can not only increase the amount of funds, but also incredibly improve brand awareness. Additionally, numerous online blogs follow these websites and love to spread the word about interesting concepts, which can additionally drive more traffic to your campaign. This is a perfect way that enables businesses to attract loyal customers from the very moment the company is founded. The internet is a wonderful place where information travels fast, which is why these platforms create incredible results.

    The crowd’s idea support

    Just as all ideas in the world have flaws, so do the campaigns presented on crowdfunding platforms. This makes these platforms even more important, as a vast number of people involved in a campaign can share their opinions and ideas that are important for the whole campaign. This kind of free advice is very hard to get and it can be very effective.

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    Various solutions to problems an entrepreneur couldn’t foresee can be presented among the ideas coming from the crowd. This kind of help is something you cannot lean on, even if you have an incredible team of several people, as more minds working together can always create the most optimal solution to any type of problem.

    It is simply easier than the old funding ways

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      Applying for a loan is a procedure which most businesses have to go through, but the whole process is quite long and preparing all the paperwork is long and tiresome. Additionally, finding an “angel” investor is practically impossible without putting immense effort into it. This is where crowdfunding offers incredible improvement, as registering on any crowdfunding platform is a much easier and faster process. Once registered, all a company needs is an attractive promotional video, and detailed instructions for all the interested visitors.

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      Incredible growth of ideas

      All the crowdfunding possibilities have made people want to pursue their ideas. The crowdfunding platforms also present a perfect funnel for interesting ideas. Every fruitful idea will easily become recognized by the crowd, turning it into a success story. This is very motivating for numerous people around the world, as these platforms are there to give a chance to anyone from around the globe. With the right idea, impossible is nothing.

      These are only some of the positive things associated with the crowdfunding trend. We can sit and watch further growth of investment crowdfunding. The most important things is that now, anyone with a great plan and a good idea has much better chances of reaching the sky. Crowdfunding is probably the best possible thing that happened to the business world and the whole world in general.

      Featured photo credit: Ed Gregory via pexels.com

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      Djordje Todorovic

      Blogger, Gamer Extraordinaire

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      Published on November 20, 2018

      The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

      The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

      The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

      Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

      In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

      Why Your Past Prevents You from Saving Money

      Are you constantly thinking about your financial mistakes?

      If so, these thoughts are holding you back from saving.

      I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

      It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

      For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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      How to Effortlessly Track Your Spending

      Stop manually tracking your spending.

      Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

      When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

      Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

      The Truth on Why You Keep Failing

      Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

      Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

      Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

      If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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      Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

      Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

      1. Save more than 50% of your available money (after expenses)
      2. Only buy nice things after saving
      3. Automate your savings with automatic bank transfers

      These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

      How to Foolproof Yourself out of Debt

      Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

      So how can you separate yourself from the 60%?

      By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

      This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

      For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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      Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

      A Proven Formula to Skyrocket Your Savings

      Having proven systems in place to help you save more is important, but they’re not the best way to save money.

      You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

      What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

      Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

      Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

      During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

      Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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      Transform Yourself into a Saving Money Machine

      Saving money isn’t complicated but it’s one of the hardest things you’ll do.

      By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

      The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

      Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

      Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

      What are you waiting for? Go and start saving money, the sky is your limit.

      Featured photo credit: rawpixel via unsplash.com

      Reference

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