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10 Ways to Fund Your New Startup Idea and Get it Started Up!



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10 Ways to Fund Your New Startup Idea and Get it Started Up!

10 Ways to Fund Your New Startup Idea and Get it Started Up!
Do you have an excellent startup idea for a business or something and have the idea and plan in place but need the financial help to get your startup idea, started up? Well if you're someone, some individual, that has a new startup idea and wants to actually get it started up and running and ticking over and doing what it was created to do (provide a service and make money). Then it's fair game to say you're probably someone, say, an individual, that could do with a helping hand, financially, a cash injection if you will, that can help you get your startup, started up! Right?

Well if that's you, and you're walking about kicking stones hurting yourself trying to think up ways to raise some funding for it. Hopefully, and maybe, one or more of the 10 ways of raising funds to fund your new startup idea that I'll be sharing with you will be just what you need to get your startup, started up! 10 Ways to Fund Your New Startup Idea and Get it Started Up!

Hint: In my posts, I'll be talking about using Angel Investors to Capitalists, Bootstrapping to Crowdfunding & Seedfunding, Lenders, Incubators and more! I'll share some of the basic stuff of each with you and a little more so you can come to know about these things and how they work and how you can take advantage of them to get your startup - well, you know the rest! 10 Ways to Fund Your New Startup Idea and Get it Started Up!

And to start this off with first of all, I'd like to start off with talking about Crowdfunding!

Think you know everything there basically is to know about crowdfunding and launching new startups from the power of the crowd? Or perhaps you don't know much at all but would like to learn? Well gather round because you're just about to find out all you need to know about crowdfunding from the mind of IdealMike. 10 Ways to Fund Your New Startup Idea and Get it Started Up!

And because, crowdfunding is probably one of the most familiar terms with people these days in this informational and technological age where brains is the new brawn. Or something! But a generation that has and uses clouds and crowds. And just like the animals know, there's safety and power in the crowd! Many people have used crowdfunding to get their new startup up and thriving today!

Of course, there has also been a lot of flops and fails in crowdfunding too. There's been many things the crowd has contributed to that seemed great at first but only headed south and flopped! There's also been many that just sort of stopped dead in their tracks for some reason. But every now and then, there's one that manages to use the crowd to become a great success! 10 Ways to Fund Your New Startup Idea and Get it Started Up!

10 Ways to Fund Your Startup: Crowdfunding

One can use crowdfunding to get his/her business off the ground but there are different types of crowdfunding campaigns and each have their own pros and cons, benefits and disadvantages. I'll talk about two of the most used types of crowdfunding crowds today that individuals and businesses use to get their business idea started.

Traditional (Donation Based) Crowdfunding
With Traditional Crowdfunding you can raise money without giving up any equity from your business. When you use Traditional Crowdfunding it's an excellent way to not only get to know your targeted audience even better but really let you find out ways in which you can tweak or change your idea, business, product etc that you have but it gives you the chance to really improve your pitch to those that would be your most likely backers/contributors. You'll mostly be pitching to everyone that needs your product, but of course, you don't have to give them anything back if they donate to it.

Tip: It's hard to say it to some people sometimes but unlike the Pebble for example, not every good idea makes 500x what their actual fundraising target was. So don't get caught up in the success stories like that out there thinking yours will too. Plus it can take a long time to prepare and execute a successful crowdfunding campaign which requires doing your homework first! 10 Ways to Fund Your New Startup Idea and Get it Started Up!

Equity Crowdfunding
With Equity Crowdfunding you give up a stake in your company in exchange for their contributions. That means a slice of your profits that you would make when and if you do. With Equity Crowdfunding you must have a solid and viable business plan in place and know all the answers to any questions that potential "dragons" would ask you. But you can pitch your startup idea to a bigger crowd of actual investors looking for great ideas to back. So while this can often help if the idea is good and the business plan solid and help to get it started, later down the line it eats some profit.

Tip: Equity crowdfunding is a bit of a trickier thing to pull off as there are a lot of legalities and regulations that go with it as far as your investors/backers go. So it's likely you'll need to do it all through a lawyer as they'll be able to sort out the PPM (Private Placement Memorandum) that you need for any offers you make to them as their stake.

The 4 Types of Crowdfunding

There are several other types of crowdfunding too. Here is a list and description of all 4 types of crowdfunding.

  • Equity Crowdfunding: This is where the backers get back a cut from your monthly or annual profits for the rest of the life of your business. It has the best success but least ROI.
  • Lending Based Crowdfunding: This is where the backers are paid back their money over a length of time. They basically invest something and get their money back plus a little on top.
  • Reward Based Crowdfunding: This is where the backers will get back something in return for their contribution, like t-shirts of a first edition of the Pebble watch or something.
  • Donation Based Crowdfunding: This is where the backers contributions go towards helping a charity of some kind such as starving kids in Africa or or life straws, etc etc.
Okay and that's part 1 of 10 Ways to Fund Your Startup: Crowdfunding. What types there are of it and how each of them basically works. And can or could work for you and your new startup idea too! I hope this has been insightful for you and you've learned something new. Even if you're already fairly clued up on how crowdfunding works and have done it yourself successfully, or not.

Have you ever used the power of the crowd and used crowdfunding to successfully launch your new startup?

Do you have a unique and solid business idea or plan that can be helped with the power of crowdfunding?

Thanks!

IdealMike.
Follow me, I'll make your dreams come true.

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centurion

Hello Idealmike
Have a wonderful day.

Thank you very much for giving us details about crowdfunding. I was not clearly aware about this topics. I got a huge knowledge from your writings and its helping me a great idea. I have some idea and I will send you a message about my idea so that I can get the next necessary steps from you.

About crowd sourcing fund I got a website. Hope it will help every readers.
https://www.crowdfunding.com/


Wish you all the best.
Thanks
Centurion




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idealmike

Thanks and you're welcome yes you're more than welcome too!

Cheers!




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Makefort

When it comes to crowdfunding I would always give a try to donation based crowdfunding in start. Even if it doesn't give you enough, you still might get some money to cover the certain parts of your start-up. If you didn't reach the goal you were aiming for I would go for either equiety or lending based crowdfunding afterwards. Lending based crowdfunding is better since you will eventually pay off your "debts" and the rest of income is all yours afterwards.

I have seen some start-ups running on donation based crowdfunding that have gotten way more money than they needed. It all comes to you, your idea, your presentation and good marketing and promotion in the end.




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idealmike

Yeah that's it, it's all about how you package it. That and how much you promote it and where and how and how much! lol cheers!




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vinaya

I have online business and brick and mortar business. I have funded my online business through the money I have saved over the years. I started my brick and mortar business from bank loan. Both of my businesses are not doing well at this moment. If my online business fails, I will lose money that I invested. However, if my brick and mortar business fails, I will not only lose my investment but also have to pay back to the bank.
I have tried crowd funding (donation based) but it did not work. I am thinking to equity crowd funding, however, I don't know how to start this. I hope someone guides me on equity crowdfunding.




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idealmike

Interesting. I hope it all works out well for you! And that's something I'll post more on in the near future on equity crowdfunding. The what, the why, the how etc so maybe it will help you. 10 Ways to Fund Your New Startup Idea and Get it Started Up! Cheers!




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johnfranklin1

I am really thankful for sharing a lot of information on funding our new business. Most of the writers are suffering from a condition that they don't have money to start their own blog and they don't have time for it too as they have to meet their expenses.

I was thinking to start my own blog but I have been unable to do that because as a writer I get paid on the same day and I don't have to wait. I need someone to invest some money and time with me in my business.

Now I have a lot of options after reading your this article. I would love to avail one of them.




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idealmike

Oh yes, There it's only hard when you don't know how. That's why they say it's easy when you do! 10 Ways to Fund Your New Startup Idea and Get it Started Up!




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clara1993

Thanks Man I think You already made my dream come true whith these ides, Thank you sooo much I had an idea to start online business and now you remind me of how I can fund it! I wonder why it never crosses my mind:-( but Better late than never right ???




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idealmike

Oh yeah? well that's great! Just what it's all about. Follow me to get notified on the next fun and creative fundraising ideas I post. I think you're gunna like them cheers! 10 Ways to Fund Your New Startup Idea and Get it Started Up!




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simplymh

I never really explored crowdfunding, a lot of thought would be needed to come up with how to propose the plan, in order to start a crowdfund.




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Corzhens

When you go crowdfunding for your start up, I guess it will take a lot of effort and you will be needing good connections to potential investors. I have seen how a movie director engaged in crowdfunding that did not succeed. He got some pledges but did not materialize at all. One idea of crowdfunding is to have a substantial amount as your capitalization before the investors would come in. It’s not good to start a crowdfunding drive with no capital from you.




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