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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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      Last Updated on June 26, 2020

      25 Easy Tips on How to Save Money Fast

      25 Easy Tips on How to Save Money Fast

      “How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

      If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

      You don’t really need to order in food. You don’t really need to buy expensive perfume.

      Building from that, you can work out how your regular expenses can be reduced.

      As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

      And remember: a budgeted lifestyle does not mean a bad or boring one!

      But first, understand what budget you can cut down on daily:

      • Regular expenses for the average adult (can be trimmed but not eliminated):
        • food
        • rent/mortgage
        • cell phone
        • insurance
        • socializing/entertainment
        • transportation
        • hygiene products
        • household bills
      • Irregular expenses for the average adult (can be eliminated or cut down a lot):
        • travel
        • clothing
        • medication (*depends)
        • grooming (hair, nails etc.)
        • gifts

      Now, let’s dive right into the 25 ways to save money fast:

      Save Money on Food

      1. Bring a stock of food to the office/work

      Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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      Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

      2. Buy the store-brand version

      Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

      3. Eat cheaper cuts of meat

      Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

      4. Have group dinners

      If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

      Save Money in Transport

      5. Get a bicycle

      Save on gas money and bus/metro fares with this underrated mode of transport.

      6. Use public transport and/or don’t get taxis

      Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

      7. Find the cheapest gas

      Regularly check out where the cheapest gas can be bought.

      Save Money in General Shopping

      8. Shop online

      Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

      9. Sell your old stuff

      Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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      Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

      10. Bulk buying stores

      For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

      Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

      11. Become a flea market/car boot sale/street market guru

      You can find original gifts and develop good negotiation skills at these places.

      12. Generic brand medication

      More often than not, the generic version of paracetamol and other basics work the same as the branded version.

      13. Choose deodorant, not perfume

      It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

      Cut Down on Household Expenses

      14. Printing

      Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

      e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

      Expand the margins of what you are printing as often as you can to save on paper.

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      15. Minimize SMS and phone calls

      A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

      16. Shop around for insurance

      Most people don’t spend enough time searching for the best insurance deal.

      Keep a watchful eye out for deals and new competitors in the market.

      17. Try re-negotiating your rent/mortgage

      If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

      18. Don’t get a TV

      Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

      19. Pool your internet bill with a neighbour

      My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

      Save Money in Socializing, Entertainment And Travel

      20. Have house parties

      Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

      For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

      21. Open festivals, meetups and events

      It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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      22. Volunteer

      If you can’t pay for a ticket, volunteer and get to be there anyway.

      23. Housesit

      There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

      Save Money on Hygiene and Beauty

      24. DIY beauty

      French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

      25. Fewer haircuts/volunteer at a trainee hairdresser

      If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

      Bonus: Effective Money-Saving Tips for Everything

      Here’s a summary of what you can generally do to save more money:

      • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
      • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
      • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
      • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
      • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
      • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
      • Stop and think. Do I really need it?

      Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

      What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

      Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

      More Tips for Personal Finance Management

      Featured photo credit: Unsplash via unsplash.com

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