Raising capital has been a great challenge for many entrepreneurs. Some have incredible business ideas that are likely to succeed, but because they don’t have sufficient funds, they never realize their dreams.
Although Singapore has created mechanisms to make access to capital easy for entrepreneurs, startups are a challenge for many lenders because they carry a greater risk than established businesses. Fortunately, crowdfunding has increasingly become an option for creative entrepreneurs who believe in their business prospects and seek financial support from multiple sources.
Kickstarter Singapore shops are one of the platforms available for entrepreneurs to seek financial support from those who believe the business is likely to succeed. There are several benefits to choosing this option as a source of capital for a startup. Kickstarter shops are a way of doing business that benefits the customer and the designers of such products. Delivering quality and innovative products to customers helps to improve lives and allows new solutions to help the world. An example of a Kickstarter product selling online platform that does so successfully can be found here.
Great way to market and validate your ideas
Although all business ideas deserve a chance, not all of them are valid. Sometimes your business idea may have a wrong concept, or it may not be viable. Unfortunately, some of the startups that fail do so because the entrepreneur did not carry out an extensive feasibility study. Using Kickstarter to raise funds is a great way to discover what people think about your business idea.
Not all entrepreneurs who seek support in the Kickstarter shop get the funds they need. If your business idea is not getting a positive response, you should use this chance to analyze and improve it. Otherwise, it may be best to develop a different strategy that potential investors will find appealing.
Quickly build a following
In this age of social media, most companies have come to rely on having a massive following because many followers often translate to a greater client base. Kickstarter campaigns will help you get funding and a client base ready to purchase your products.
You will also save time and money since you will not follow the traditional production process. For example, if you are going into manufacturing, potential buyers would already be anticipating the products even before you officially start marketing them.
A more rewarding and faster way of raising funds
Anyone who has sought financing from a bank will tell you how time-consuming and cumbersome the process is. Even though you are getting capital from one place, the number of times you will need to visit the bank to plead your case can be overwhelming.
Kickstarter makes it possible for you to reach out to hundreds or thousands of people, so you might raise all the capital you need within a short time. Some of the people who will contribute will focus on the project’s potential, while others may only be interested in giving you a hand.
Others may choose to support you because of the return on investment, depending on what you have promised them in return for the investment. So, given that contributors have various reasons for supporting you, you are more likely to raise funds much faster with minimal effort.
On the other hand, banks must weigh the risk because bad debts have an impact on the institution’s credibility. So, they do everything possible to ensure they are investing in a worthwhile venture.
Before giving up on your business plan because you do not have capital, it is best to ensure you try all avenue, including crowdfunding sites like Kickstarter. You need to remember that you are competing with other business ideas, so you need to have a convincing and appealing profile that will attract more people.