Have a business idea or product that needs funding to get launched? Crowdfunding platforms like Kickstarter may be the answer. For some entrepreneurs and new business owners, crowdfunding or micro-finance may not be the way to go. However, as our Charleston business lawyers has recently seen first hand, many entrepreneurs, start-ups and small businesses are acquiring significant funding from these community platforms.
For many entrepreneurs and new business owners, launching a new idea, product or service can be a risky endeavor. This is especially true if the business or launch of a product is financed by the entrepreneurs own personal savings. More often than not, thee financing or investment dilemma can be a prohibitive barrier to entry in the business marketplace. Just from a legal perspective, the initial legal cost of a business organization, legal documents and agreements, and protecting the intellectual property (trademarks, copyrights and patents), can often cost between three and ten thousand dollars – even for the simple start-up or small business.
What is Kickstarter
In short, Kickstarter is a funding platform that attracts people from all over the world to potentially donate or fund creative new ideas and products of all kinds, including films, albums, custom apparel, new technologies, iPhone and iPad devices, just to name a few. In return for the contributors donations, they receive a product or experience once its manufactured, produced or otherwise launched.
Kickstarter and other crowdfunding platforms work like a pre-ordering outlet for new creative products and services. The entrepreneur or business owner submits an idea or product, also called a project, through Kickstarter website, hopes that it gets a viral reaction within the community, and is ultimately funded. The contributor or backer of the project is rewarded when the idea is launched or the product is manufactured by receiving it before it hits the shelves or is offered in the public marketplace.
Create A Clever Video
One tip for those entrepreneurs and business owners looking at the Kickstarter platform to raise the necessary capital. Create a clever, professional video. In our experience, every project that has been fully funded (most often overfunded), the entrepreneur or business owner has produced very clever, professional video to pitch the creative idea or product. This will be the most essential element to a successful campaign and is worth the additional investment, both time and money.