Starting Your Business Using Crowdfunding November 11, 2019

This post was from a post by Kally which I re-blogged How To Start Your Business Without Funding — MiddleMe.

Be warned there are often tax issues with crowdfunding campaigns that many people are not aware of. You need to find out if there are tax implications and factor them into the budget for the campaign. I recommend figuring out the highest level of taxes you could be hit with as a few campaigns exceed beyond their creators’ wildest dreams. Underestimating the taxes you may owe can cost you more grief than it’s worth.

If you opt to go the crowdfunding route, you need to study the various crowdfunding sites and see what one(s) may be a good fit. Things to watch out for are the rules, regulations, and restrictions for each site. With Kickstarter, it’s all or nothing. If you miss your goal by $0.01 (or whatever currency you use), you don’t get funded. Kickstarter has some other rules that you need to be aware of. A big one is you need to offer a new product as part of the campaign. This can be an updated version of an existing product. Some sites allow you to keep, minus miscellaneous fees charged by the crowdfunding site, if you don’t meet your campaign goal. Some are better suited for nonprofit organizations.

The 40+ Best Crowdfunding Websites: Fundly Blog and Update to Earlier Fundly Top 40+ Crowdfunding Sites Post (which links to two earlier posts covering the Top 10 and Top 20 crowdfunding sites) are two posts where I cover many of the more popular crowdfunding sites.  A few are geared towards business opportunities. In a few cases, the type of business or the focus of your business can affect which crowdfunding sites are a better fit for your company.

Time of year can make a difference as many places are approaching the busiest holiday season of the year. That may be a kiss of death for a business related crowdfunding campaign, or conversely, the kiss of life.

One big thing to remember is having good videos highlighting your business.  Depending on your business and its focus as to how cutesy and unprofessional the campaign can be.


About Wichita Genealogist

Originally from Gulfport, Mississippi. Live in Wichita, Kansas now. I suffer Bipolar I, ultra-ultra rapid cycling, mixed episodes. Blog on a variety of topics - genealogy, DNA, mental health, among others. Let's
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