When my grandma died she left me quite a generous inheritance back in the UK. I'm finally going to be able to get a decent car that doesn't break down all the time, and I know Gran would be happy about that! Now I just have to figure out how to get the money converted to Australia dollars and into my bank account here. It's more complicated than you think at first, and I'm sure learning a lot more than I expected about transferring money between countries. This blog is all about retrieving inheritances from other countries so that you can use the money.
No matter how good your idea for a new business, if you can't secure the development finance to get it off the ground, your new commercial venture simply won't fly. This is a common problem for many would-be entrepreneurs, especially in the current economic climate where banks are ultra-picky when it comes to lending money. So, what can you do? Well, you might want to consider internet-based 'crowdfunding' as a potential solution to your problem. But, what is 'crowdfunding' and how could it help you? Read on to find out more.
What is crowdfunding?
Crowdfunding is a method of raising money for a business venture or project by asking a large number of investors for a small amount of cash each. You register with a crowdfunding internet site and set up a profile for your business idea which you can then use to pitch for investment.
There are a number of different crowdfunding mechanisms and, if you are to succeed in raising funds, it's crucial that you place your project on the correct platform.
Reward-based crowdfunding sites use a material or financial reward as a motivator to attract potential investors, for example limited edition products or free tickets to the premier of a new film. This kind of crowdfunding is popular with those seeking funds for artistic endeavors or to develop new inventions.
Donation-based crowdfunding is usually associated with fund-raising for a charitable or philanthropic project. Donors are not offered financial incentives, but instead might receive a small souvenir, for example a badge or a 'T'shirt.
Debt based crowdfunding
This form of crowdfunding involves borrowing funds from a group of investors. The loan pays interest to the investors, together with repayment of the original sum invested. The crowdfunding website will carry out credit and background checks on you and your company, will arrange for the transfer of any funds, will advise on decisions concerning interest rates, and will manage the various loans.
This form of crowdfunding is perfect for start-ups and sole entrepreneurs.
Equity-based crowdfunding rewards the investors in the venture with shares in the new company. Equity-based crowdfunding sites are most popular with start-ups.
How to succeed in your crowdfunding pitch
There are a few golden rules to follow in order to ensure success when pitching on a crowdfunding platform.
Crowdfunding can be a great source of commercial funding for the would-be entrepreneur or new business owner if funds cannot be secured from other sources. Choose the right platform for your project, read the rules thoroughly, and create an interesting and informative profile to draw-in investors.Share
13 January 2016