Crowdfunding

 

These days it id very difficult to start a big project like a business. Many people don't have enough money to do themselves and they don't know if the business will be successful. Asking for a loan means that you will have to pay back a little more money. Many musicians and artists have used crowdfunding to do it by themselves.

To raise money by crowdfunding you have to have an original idea. After that you have to have a third of the investors between your family and friends, the platform would provide another third of investors and finally the last third would be among the customers. Crowdfunding needs also a lot of work. Potential investors will write emails asking for details of the project and after answering all the questions they may only invest 10 euros or even they might decide not investing anything! You can also know if the business will be successful. If there are many customers between the investors the business has a high chance of being successful.

Crowdfunding has also its dangers. Here in Spain there was a man who said that he had over 2,000 tumors and he needed a special treatment. Lots of people paid for his treatment. He was arrested a few years ago, but he only will return around 15% of the money he raised and will spend some years in prison.

I believe that crowdfunding may be a good idea, but you need to make people trust on you because they don't want to be cheated. If you can make people trust on the project and show them what you are doing with the money. Crowdfunding can make people able to start a project and they only need an idea, some friends and luck.