Establishing a startup could be truly challenging when it comes to funding. As an entrepreneur, having a good business plan is a requirement for you to maximize your financial resources. Yet the exhilarating part is that the real plot goes in so many ways that are beyond the plans.
As a result, a shortage in funding could lead to other discrepancies wherein being resourceful becomes the huge savior. As one of the well-known and indeed ideal methods, crowdfunding has entirely created a great concept of unity and attainable endeavor. And as one of the best states to consider for business, New York would be your choice.
The Idea of Crowdfunding
Crowdfunding has become popular due to its ideal concept of funding for a purpose. The goal is to raise small amounts of funds for a cause or a project from a huge group of donors that promotes the collectivistic value of helping from the built camaraderie of a spectrum of patrons and sponsors. These attributes make New York ideal for crowdfunding.
● Business-friendliness and reputation
The state of New York (NY) is well-known for its friendliness in startups and small businesses that want to establish their business foundation and reputation.
● Ideal community and economic atmosphere
New York is indeed a good option for business crowdfunding given that the state has a huge entrepreneurial community, supportive citizens, inclusive culture, and competitive economic atmosphere.
How to Start a Business through Crowdfunding in New York
What makes the state also ideal for crowdfunding is that there are almost infinite means for social activities, which drive interaction and negotiation easier for information dissemination and relationship building. So how to start one here?
1. Legitimize your business
Before anything else, you need to make sure that your business is legally approved to operate. Not being able to show business legitimacy makes people or future investors wary of doing business transactions with you. There are different business structures you can choose from in forming your business such as Sole Proprietorship, Partnership, Corporation, and LLC. If you want to build a business with an LLC structure, you need to know all the requirements needed and should also be well-informed about the various LLC costs. For instance, if you would ask how much does an LLC cost in NY, you will be needing $200 for the state filing fee.
2. Establish a good reputation
It takes years to build someone’s trust but it only needs a few seconds to break it. As a startup business, you want to establish a trustworthy brand that large sponsors and supportive communities want to get engaged with. A good way of doing this is by having a business website which you can use to market your business. Aside from having a user-friendly and eye-catching interface, make sure your website includes pages or sections where you can explain the purpose of your business projects, who are the people behind them, and why you need crowdfunding support. Secure relevant information that justifies them all.
3. Be clear and transparent
You need to have a focused niche and definite plan that the community should know so you will be more likely to be recognized by huge companies as well. You should also be transparent with your goals by enumerating the funds that you will be needing and where or what you are planning to spend it on such as your business projects or future expansion plans.
4. Emphasize your purpose
As a business, you don’t want to be misinterpreted. You should vividly define your purpose and how it could help the community once this business is established. Crowdfunding is all about values, unity, and helping so it must reflect what are the things that will make it relevant to society.
5. Choose a crowdfunding platform
When you’ve established everything else, it’s time to choose a crowdfunding platform that can help raise the money that you need. Research is a must in choosing a crowdfunding platform. Make sure to choose the platform that allows your crowdfunding campaign to be easily seen by investors. The structure and fees are also important factors to consider as it will affect your fundraising results. Some of the popular crowdfunding platforms you can consider are Fundly and Kickstarter.
With a proper research and execution, finding funds for your business can be attainable. As long as your goals are clear in your fundraising campaign for your business, it could help attract sponsors and investors. Also make sure to choose the best crowdfunding platform based on your needs and its features.