Is Alternative Finance Your Next Move?
August 1, 2011Time and time again we hear that lending is as strained as ever between banks and SMEs. To select customers, banks are still rolling out overdrafts and some loans; but we’re in an era where lending from banks isn’t easy as demand outweighs supply. But there is another choice: crowdsourced funding is the means in which businesses can gain finance from a web-based community (no banks involved!).
Crowdsourced investment websites are increasing on the web. The aim is to pitch your idea to an internet based community, in a Dragon’s Den-esque fashion, and leave it to them whether they would like to invest in your business. There are a small amount of investments given, by a high volume of investors. This type of financing has most of the features you would find in an angel investment group, but with none of the big upfront costs. Perfect for Start-Ups!
To help you on your way, here are a few tips to practise:
- Have a plan
- Set a funding goal
- State the ROI
- Cast your net
- Keep them interested
- Keep building your social network
- Convert them to your way of thinking
- Recognise your supporters
- Report on progress
Now that you know that there are alternative finance mechanisms other than the bank, we can help identify which are best suited to your business. Contact us and find out today!
