Equity Crowdfunding For Flexibility and Innovation
It's said that small business is the backbone of any economy. Starting a small business is a huge gamble in today's market, and banks are skittish about loaning money without a tangible asset or backup funds to claim if things go south.
That's where equity crowdfunding comes in.
If You're A Small Business Owner, Or Plan To Be
Whether you're starting your business on a part-time basis in addition to your full-time job or hoping to get back into the work force with your own small business, you're going to need some cash to help you get rolling. Depending on the funding you seek, the people who scope your business and invest will either own a portion of your business or will hold a debt that you are obligated to pay. Equity crowdfunding is not free money, so be prepared to either share your business or make payments.
If You're a Lender Or An Investor
Tired of watching your savings account earn almost nothing from month to month? Consider investing as a crowdfunder. Not only can you get a better rate of return as a lender, you can become part owner of a great idea and develop an income stream from your investments.
While crowdfunding regulations favor investors, there are no guarantees. Scope out the business ideas out there, select one that resonates with you, and offer your terms for a loan or part ownership. While none of us like to think about losing money, don't offer an amount that will hurt if it can't be quickly accessed. Your investee will put that money to work, so liquidity may be hard to guarantee.
There are great business ideas out there, from virtual assistance to part-time personal assistant markets. The savvy investor connected with the perfect hard-working small business owner could lead to a powerful financial relationship.