Having the idea of running a business on your own, your idea, your little comfy-room planning and the right stones to throw at, but low in funds? In business, money has always been the plain highlight as it is the problem, as well as the solution. What if, the many solutions to financial aids does not solely comes from making loans from giant banks, borrowing a large amount from wealthy friend or to the extent of going to loan sharks.
Introducing, crowdfunding. A practice where a business starters are funded by a group of people or individuals to pass to a project or idea to sell. This generally was to assist new emerging businesses to stay afloat surviving the great current of entrepreneurial. Crowdfunding offers a helping hand for a chance to make it big in their own respective industry.
Not only crowdfunding could be the saviour to your 5-years-pending dream, it also helps you reach out to these funders or the crowd whom is responsible to the visibility of your brand. Financial aid and networking at once sounds like a good business plan doesn’t it? Discussing more on crowdfunding, there are three very common categories of crowdfunding. Donation, rewards and equity-based crowdfunding.
Types of Crowdfunding
Donation-based crowdfunding is basically collecting funds with no financial returns to the investors or funders. A relief bank, medical bills, or simply charity are examples of donation-based crowdfunding. An equity-based crowdfunding allows the funders or contributors to become part-owner of the company or brand they’re funding, and receive a financial return on their investment and ultimately receive a share of the profits.
Crowdfunding for Fashion
In this case, Royale Demure is more on a rewards-based since people who crowdfund our campaigns will get what they have agreed to put their money at. It is typically a product or service provided by the owner and in return, the funders will get back what they funded. This is a pretty decent win-win situation for both parties.
In order to be rewarded so, at Royale Demure, pledging is then introduced. It is just as simple as voting and the concept is somewhat similar to pre-order. It is a mutual agreement for the pledgers to transfer some amount of money as a collateral loan for something that they will get back after the campaign ends. A design campaign that is launched on Royale Demure, allows pledgers to pledge/purchase a product during a specific period of time. At Royale Demure, after the campaign has received the maximum amount of pledges, the campaign will then be sent into production and the pledgers will receiving a garment made especially for them. Though worry not, if the campaign did not reach the maximum amount needed to proceed with production, we practiced the money back guarantee policy.
Believe it or not, crowdfunding has been around way back in 1700 and in some way possible, it has helped shaped and transform the industry of business. Ever think of crowdfunding your idea now? You are never too late to achieve wonders.
Written by Anas Roshad