If you are curious but mostly unfamiliar with crowdfunding for small businesses, I suggest that these three concepts are the most important points to understand first:
- Crowdfunding is evolving. It is still not the best financing choice for most small businesses, but that is changing. In the meanwhile, it makes sense to prepare your small business for the future.
- It isn’t what you think it is. Crowdfunding isn’t a single business event and it probably isn’t even what you think it is. One type of business equity crowdfunding grabs most of the media attention but in reality the many other types are more important to small businesses. Crowdfunding is a process, a business quality culture, that will ensure access to markets and capital for the life of your business.
- Crowdfunding = Accounting. Successful business crowdfunding is synonymous with good accounting practices. You can’t legally or practically have one without the other. It is essential that your small business accountant be familiar with crowdfunding law and be able to advise you in the practical issues of the new arenas of alternative financing.