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How a Kickstarter Campaign Might Launch a Future Fortune 500 Company

New businesses typically struggle with three things—limited financial backing, lack of support, and concern with providing valuable product. As for companies who dream of being a future Fortune 500 company, these three complications can make or break their success. Now thanks to online opportunities and the rising effectiveness of social engagement on the Internet, businesses can surmount these three difficulties. Kickstarter is a form of crowd funding in which a company posts its vision for a product or service online in hopes to receive funding for the venture. You don’t need an online business management degree to know that this is an unique way to raise funds.

Kickstarting Your Business Venture with Kickstarter In order to get started with Kickstarter, you need an idea for a product or service that you intend to provide through your business. This could be in a variety of forms, such as honey collection, a book, a DVD, housecleaning services or food items. You set a monetary goal for your project, such as $5,000 or $75,000, along with pledge prizes to offer for those willing to support your project financially.

Pledging Facts Individuals then pledge funds for your idea with the promise that you will give them something tangible and of value in return. Pledges are made in increments of your choosing, typically $5 to $100 amounts. Businesses that are selling a specific product, such as handmade honey or a new form of technology, would typically offer this product at one of the higher pledge levels. Small pledge amounts are commonly rewarded with merchandise featuring your business logo, such as T-shirts, ink pens, notebooks or posters. Businesses that are interested in getting their name out into the public can take advantage of the pledge prizes by making sure to offer only things that advertise their business.

Legal Program for Entrepreneurs Crowd funding is considered a solid way to secure investments for a new business venture. However, solicitation of investments from the public in general can be deemed illegal. One way to bypass this is to file the opportunity of securing investments with the Securities and Exchange Commission. Yet most entrepreneurs are in the clear just as long as they operate under the guidelines of the Kickstarter program.

This is in part a result of the growing popularity of the crowd funding movement, which is determined as a successful way to boost the economy by providing opportunities for low start up costs for new businesses. As a result President Obama signed the JOBS (Jumpstart Our Business Startups) Act into law in April 2012. This act is focused on protecting the investments of crowd funding.

Success of Kickstarter Some may wonder why strangers would pledge money to help a small business venture get off the ground. The premise is associated with social media and engagement, which have created an online, globalized community that is as powerful in many ways as a face-to-face community. A look at the power of YouTube and Facebook is a great example. Now thanks to crowd funding and Kickstarter, anyone can get on board to what they perceive as the next big thing.

24.06.2013. 17:49


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