My answer to Is Kickstarter a viable alternative to seeking angel funding for a consumer product company?
Answer by Raad Ahmed:
Think “in conjunction with” rather than “alternative”. Kickstarter can bring in some funds, but like others have indicated, quality investors are more likely to take notice if they know your business plan. If your plan is super appealing to the public then you may be able to utilize social media to start funneling some preliminary funding, but angel investing will likely reap more results.
Here are a few tips to better you chances of catching the eye of an investor:
- Clearly explain the financial situation of your business. Ideally, you’ve already created some revenue or can clearly explain projected revenue.
- Your plan is unique and viable in the marketplace. If you aren’t providing a new product or at least a new perspective, investors won’t be as interested.
- You have experience. Indicate how your background/education/experiences makes you knowledgeable in your particular business.
- You have a solid business plan. Investors want to see that you have given this though and have your bases covered. They need your business to be as solid as possible so that it’s a quality investment for them, too.
I would encourage you to look into many resources for funding. A good tool to include is a quality business attorney. They will help you navigate the temperamental waters of start-ups.
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