5 Types of Businesses That Will Do Well on Crowdfunding Sites
Crowdfunding is one of the recent developments brought about by the internet that helps empower budding entrepreneurs to get the exposure they need for their novel ideas. Not only do they get exposure, but crowdfunding sites also help business owners get backers and funding for their products.
photo/ fancycrave1
But not all business models are compatible with crowdfunding. Although many ideas of various types have gained success, it is not a formula that fits all. Here are five examples of business models that work perfectly with crowdfunding sites like Locodor.com.
Books and other publications
The economics of publishing require that an author invests a significant amount on research and other expenses even before the book is written and published. How it works is that you sell the idea for a book to backers for a certain amount to get the capital you need. This process saves you the time and effort of pitching your idea to a group of publishers and agents because you are already dealing with your intended target market.
New-age tech gadgets
Tech gadgets are trendy in crowdfunding sites because there is always a big demand for items that trump what’s already on the market. The key to using crowdfunding sites in promoting a new tech gadget is to make sure that you already have a working prototype. With a discriminating market to attract, tech gadgets must be original and stand out from the competition to get strong backing from potential customers.
A local service-oriented business
Supporting local entrepreneurs is big on crowdfunding sites. If you own a local business and you are looking to get support from your target market, crowdfunding is an excellent avenue to gauge how well the community will accept the business.
Tools for home cooks
Home cooking is a revolution in itself thanks to the popularity of food blogs and celebrity chefs. More and more people nowadays are concerned with eating healthy and manufacturing tools for home cooks is a lucrative industry. There are many specialized tools and gadgets used in cooking which have received support through crowdfunding. If you have a new idea for a cooking tool, crowdfunding is an excellent avenue to reach a massive market of cooking enthusiasts and foodies.
Unique inventions for the home
One thing you need to keep in mind when pitching an idea on a crowdfunding site is to make sure it is exciting and unique. Potential customers who are willing to back an invention or a business idea are always looking for unusual, yet useful items that will effectively catch the attention of a mass market. One thing that never goes out of style is to come up with inventions for the home, such as tools for killing flies and the like. Many brands and inventions became successful through television advertising, and it could work when you choose a crowdfunding platform to get a following and financial support from your would-be customers. If you are sitting on a great idea, perhaps it is time to start looking into crowdfunding to get the start you need.
Author: Joana Green
