Top Crowdfunding Reads of the Week (8/7/2015)

Recommended Read #1

crowdfunding is making an impact all over the world. From country to country, entrepreneurs everywhere are finding their own way to use crowdfunding for their own businesses. But the crowdfunding world is continuing to grow with its next stop: television.

In “Rocket Hub and Ovation Team Up to Bring crowdfunding to TV,” Clifford shares more about the partnership of RocketHub and EFactor. EFactor, which recently acquired RocketHub for $15 million, has decided to pursue the television realm and launch a special that shares the stories of unique individuals that use crowdfunding to obtain capital for their growing businesses.

While the special is currently planning to focus on three individuals and the ins and outs of their crowdfunding journeys, they will also each receive a $5,000 for their projects, or whatever project they want to use it for.

The opportunity to submit creative ideas is still open and accepting applications. Will this television debut provide yet another route for entrepreneurs to market their businesses to the world, or is this just another reality show in the making?

Recommended Read #2

It’s becoming more and more apparent that crowdfunding is a great way to raise capital for your business, but it is absolutely no magical solution to obtaining funding. A lot of companies succeed on crowdfunding platforms, but there are also many that don’t. A whopping three out of every five campaigns fail on crowdfunding sites and only about 3% of small businesses actually succeed in reaching their funding goals.

So how do you know if crowdfunding is the right choice for your business? You don’t want to wind up spending time and effort in a campaign that isn’t going to make it against the competition, but you may be uncertain if a traditional loan is your best bet either.

If you choose the crowdfunding route, remember a few tips: test the market and keep your marketing appealing to the audience; gain backers, whether it’s friends or family, before the product launches into a live campaign; and keep in mind that depending on your target audience, you may need to find different methods outside of social media to reach them.

Remember that crowdfunding isn’t the only option available. When you consider other important factors, like your credit or how much money you’ll actually need, you may only require a small loan or a business credit card.

Whatever route you choose to take, always have backup plan. You don’t want to put all of your eggs in one basket, because if your plan fails, you’ll be left with nothing.

To read the full story, click here.