NYC Business Solutions + Kiva Zip: Crowdfunding 101 Guide for Small Biz
So you want tocrowdfundyour startup?1. Crowdfunding inPlain English is...Lots of individuals, eachcontributing small amounts... that add up to fund a creativeproject, a business or a cause... facilitated by low-cost online,digital platforms... Platforms can either be for-proﬁt (charging either fees orinterest) or non-proﬁt (free).The 4 most common models ofstartup crowdfunding for USsmall businesses are:-1) Pay-with-Reward (e.g.Kickstarter)2) Charity/Donation (e.g. Causes)3) Crowdlending / Crowdfundedloans (e.g. Kiva Zip),4) Investment (e.g. Prosper.com)What every small business needs to know about thecomplex wold of crowdfunding. Information providedby Kiva Zip for clients of NYC Business Solutions.zip.kiva.org2. How to choosewhatʼs right for me?Selecting the right “crowd” tosuit your businessDifferent sites suit different kindsof businesses. Most sites cater tocreative, entertainment or techstartups because these inspiretheir donors (their ʻcrowdʼ). Others- say, agriculture or cleaningservices - can still deﬁnitelybeneﬁt from crowd-funding butonly via select sites (see below).Compare different costs,success rates, speed of fundingDo factor in all costs -commission/fees, rewards andpostage, videos, credit card fees.Also, the larger the site volume,the faster and more likely aproject gets funded on average.3. How not to fund andnot fail?71.3% of all campaigns fail toreach their crowdfunding goalA creative reward and a well-crafted, well-told storydramatically increase your fundingcampaignʼs chances at success.Web resources on reward andstory-telling best-practicesFree articles and tips on howcreatively and effectivelyfundraise without wastingprecious time and money areavailable on slideshare.net(search for crowdfunding tips),rockethub success school(www.rockethub.com/education),and on twitter.com (search for#crowdfunding).4. Whoʼs right forcrowdfunded loansNot all businesses are suited tothe reward and/or donation-based crowdfunding sites.Kickstarter and Indiegogo - the 2biggest sites - work well forstartups that can reward donorswith desirable gifts or exclusiveexperiences. They work less wellfor ʻeveryday main streetʼ smallbusinesses who cannot offerexclusive rewards.Your best option is an interest-free crowdfunded loan if...You’re an everyday smallbusiness or startup with a clearbusiness plan....AND you could use a 0%interest zero fee small loan <$5000 to help your business start/grow more profitably....Etiam sit amet estDonec quis nuncCurabitur labore. Ac augue donec, sed gravida a dolor luctus, congue arcu id diam conguepraesent, pretium ac
The topcrowdfundingsites for smallbusiness:A side-by-side comparisonFind out more:NYC Business SolutionsBrooklyn: Manuel Dominguez MDominguez@brooklynchamber.comBronx: Courtney Williams email@example.comKiva ZipNew York: firstname.lastname@example.orgHQ: email@example.comSmall business loansfunded directly byordinary peopleʼsgenerosity. No onemakes money but you.Non-proﬁt crowdlending to small businessSmall loans to entrepreneurs and startups <$5000All loans are 0% interestZero fee to Kiva or PayPal - no one takes a cutNo penalty charges for goal not met, also 99.5% of loans posted onKiva Zip will be fully fundedNo type-of-business restrictionsStartups <6 months and pre-startups also qualifyAny kind of small business/enterprise qualiﬁes: farms, cleaners,handmade crafts, home contractors, cleaning services, landscapersNo minimum credit scoreStrictly character-based lending programInstead of a credit score, Kiva Zip requires a public and writtenendorsement of a loan applicantʼs trustworthiness - their personalcharacter and their business competence
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