How to Fund an Idea without Using Venture Capital, Angel Investors or Banks

Do you have a creative idea or project that needs funding?

Is keeping 100% ownership and control over your work sound good to you?

The good news is there’s now a way to fund an idea without having to rely on the traditional sources of financing such as venture capitalists, angel investors, or banks.

Let’s face it in today’s economic environment entrepreneurs need a new form of funding and patronage that can support their creative ideas and projects.

So what is it?

It’s called crowd funding.

Did you know that each month, tens of thousands of people are pledging millions of dollars to fund ideas from the worlds of music, film, art, technology, design, food, publishing and other creative fields?

For example, one company called Kickstarter uses crowd funding and utlizes an all or nothing funding approach. What is beneficial with platforms like this is because once an entrepreneur posts a project and sets a funding deadline it can either meet or even surpass the funding goal.

For example, Melissa Niemann who recently posted a Pop Culture Paper Doll Project has already exceeded her funding goal with 20 days still left to go. Her project was even featured on the Kickstarter blog.

This is just one of many examples of how crowd funding can be a great way to fund an idea or project without having to resort to some of the more difficult approaches that entrepreneurs typically lean towards.

If an entrepreneur doesn’t reach their funding goal then all the pledges from backers are canceled and no money is transferred which protects everyone involved with this type of funding.

My good friend Arvind Ramkrishna, owner of Driven Mavens, says “Anyone that is driven and entrepreneurial minded, dreams of starting their own gig and being successful. Often times, getting funding for an idea is difficult. Crowd funding allows you to pitch your idea to the masses to obtain funding for your project without all the headaches and risks that are involved when funding a business with banks and investors.”

Here are some of the additional advantages that crowd funding provides:

*Allows you to test the marketability of your idea

*You keep 100% ownership of your company

*You keep 100% control over your work

*Allows you to connect with people interested in your idea

*Allows you to get feedback from backers

Keep in mind there are project guidelines that sites like Kickstarter have in place so not all projects or ideas are accepted.

For example you cannot submit charity or fundraising projects as well as submit projects to cover company expenses or hiring of web developers.

Another key aspect of crowd funding is the social aspect. What better way to test the market then getting firsthand feedback from people willing to back your project. You can even make adjustments and improvements to better serve the needs of your backers.

Don’t take this kind of feedback lightly because it can help you take your ideas to a whole new level and direction that you may have not considered before.

Another key aspect to funding your idea is in the presentation of your project to potential backers. Video seems to be the preferred method of delivery supported with samples and benefits for backers.

So if you have a great idea and can communicate it effectively then crowd funding with companies like Kickstarter can be a tremendous source of money and encouragement for your project.