Anyone who pays attentions to major advances in the online arena has likely heard of Kickstarter, the crowdfunding provides you with an alternative that not only helps you avoid the corporate lending process, but also creates a community of supporters to help build your brand.
Maintain control. In most situations that involve investors, you’re going to give up some measure of control in exchange for financial support. This is how innovative ideas are ruined – too many cooks in the kitchen. But with crowdfunding, all of your many investors are relying on you to get it done right, and their reward will not be a stake in your company, but rather a finite agreement for goods or services. Often, they’re essentially pre-ordering your product. This allows you to maintain total control over your business, a benefit that few professional entrepreneurs can claim.
Buy time. What crowdfunding really buys you is the opportunity to get your product made, and it does so by essentially buying you time. Although this form of financing can certainly help to pay for materials and labor, what it really allows for is your time away from a paying job – time that you need to make your entrepreneurial dreams into a functioning business entity.