I have seen people in the past who wants to start their own business but have no money to fund it and often they have a good idea. Today we will discuss two ways of funding your business. The first one is Crowdfunding. This is where people would donate money to fund the project and often the donations are small as the donators don’t normally get anything in return. The other method is finding investors. This is where the investors would fund the project in return for ownership of a part of the company.
The advantage of crowdfunding is that you don’t have to give away a part of your company but it will take longer to raise funds and people may not donate because they get nothing in return. Some people however, may offer discounts or other perks to donators.
The advantage of finding an investor is that they will fund the whole project and if your idea is good, this is much easier than crowdfunding as there are lots of people out there who are willing to fund projects with potential. The disadvantage is that you won’t own the whole company.
My question is, when you start a website and you don’t have enough money to fund it, would you use crowdfunding or find an investor and why?