4 Amazing Ways to Cure Your Entrepreneurial Itch With Crowfunding
Investing in companies using crowdfunding platforms is a great way to scratch your entrepreneurial itch without quitting the day job. For many of us, starting a business is a goal or an aspiration. The practicalities of day-to-day life make it difficult to commit ourselves to a venture like a start-up. The opportunity cost of giving up a good career can be huge whether its gaining valuable experience, having stability for your family, or making a regular income. Getting involved in crowdfunding is a great way to be entrepreneurial in your spare time. Here’s a few reason’s why
Become a 10% entrepreneur
To be entrepreneurial you don’t have to be Richard Brandson. There’s such a thing as being a 10% entrepreneur, where you commit a small portion of your time to entrepreneurial activities like investing. By researching and investing in a company you get many of the benefits of owning your own start-up from capital appreciation to seeing an idea come to life. Angel or VC investing was once the preserve of the rich. Crowdfunding has really democratized the process allowing the man on the street to get in on the action. You can invest in companies for as little as £10 on site’s such as Crowdcude and Seedrs.
Build a network
I love the start-up community. In business and in life you are the average of the 5 people you spend the most time with, but it can be difficult to break into the start-up community even if you are a business owner. Investing in companies is a great way to extend your existing network with new and interesting people. On many of the popular crowdfunding websites like Crowdcube and Seedrs you can connect with the management of companies directly before investing. The more you delve into the world of crowdfunding the more people you will meet and the more you will learn. You will find yourself bumping into people from the companies you have invested in at events and start-up evenings as your network develops over time.
You learn a lot about business simply by researching companies looking for crowdfunding . You see a lot of different companies from everyday retailers to high growth technology companies. Its really interesting to learn about different business models, get the perspective of founders, understand new valuation methodologies etc. Fund-seekers will share a lot of this information with you before you make an investment. The more companies you research, the more you learn and hopefully the more prudent your investments become. The knowledge and network you build is a great launch-pad for those seeking to invest more or start their own businesses one day.
Of course. Make money
Crowd funding is risky. If you spot the right opportunity you can make money. Brewdog, the craft beer company, is the first crowdfunding unicorn with a valuation of over $1bns. Success stories like Brewdog are few and far between, however its feasible to make good returns by investing in a portfolio of companies. The reality is its still early days for the industry. Not many companies have exited their crowdfunding rounds so time will tell. Its easy to dabble with small investments in crowdfunding which makes it attractive. However, those seeking to make bigger commitments should seek financial advice.
Thoughts are my own