Alternative methods of funding businesses have become wildly popular as of late.  One of these methods, crowdfunding, has now become popular with college students as well to fund their education.

Raising Funds From The Crowd

Tuition is expensive, and traditional funding methods do not always cover the entire cost for some students.  This is why crowdfunding has been viewed as a potential alternative for some. 

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Rather than relying on traditional methods of funding your business, you may want to look into the possibilities presented by crowdfunding.  There are a number of reasons why this may be right for your business and we’ve listed five of them below.

1. Free Yourself From Banks

Banks are not always the warm friendly organization they want to present, nor are they that free with loaning out their funds.  They want to make sure that the companies they give their money to will be able to pay them back.  Crazy!

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It is becoming well-known that crowdsourcing platforms are available to fulfill almost any business function.  This fact can be a massive benefit to cash-strapped startups that are not at the point where they can staff entire departments, or even for startups that opt to remain lean.  Of course, which business tasks should be crowdsourced depends on the business model and resources available.  It is not a good idea to assume that we should arbitrarily crowdsource everything.

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You’re a small business, and you’ve just started to experience some real success in your enterprise.  You’ve worked hard to develop a growing customer base, and you love that you have clients whom you can invoice for your work, which means you’re counting on some healthy receivables coming in as a reward for your efforts.  That’s the problem.  The cash is coming in, but in the meantime, you still have to make payroll, pay the rent and pay your vendors for the materials and technology you had to purchase to complete those jobs, and the flow just isn’t there to fill in the gap.

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