While crowdfunding can be a great source of financing for a new business or a business with new product lines, there are more benefits than you might initially think. We found a good article from CNBC that reviews some benefits, especially for manufacturers.
Making it in the US—via crowdfunding…
“One draw of crowdfunding sites such as Kickstarter and Indiegogo”… “is that they let entrepreneurs take preorders. Customers pay in advance for a product that is not yet made, giving fundraisers the money they need ahead of time to buy materials and pay labor costs. ‘You get to sell it first,’ said Bronstein. ‘It brings the money to manufacture the product, as opposed to spending the money and hoping you can sell the product.’” …read full article at http://www.cnbc.com/id/102733449
Hopefully this article is helpful to our small business clients and followers. eRose Web doesn’t provide financing or crowdfunding but do serve a variety of different types of businesses including manufacturing so we wanted to share this article and ask for your feedback on crowdfunding or other financing that you think might be helpful to other entrepreneurs and small business owners that follow this blog and our social media posts. Thanks in advance for sharing!