In this world of difficult financing and complicated business deals, it is sometimes refreshing to get a breath of fresh air, a fresh way to do business.
This is precisely what Kickstarter is all about.
Kickstarter is an online funding system where people get to pledge funds for entrepreneurial projects. The project could be a movie, a music presentation, or even a food-related endeavor like a restaurant. Kickstarter is all about the “publicly-funded” enterprise. Kickstarter helps entrepreneurs to bypass traditional methods of seeking funds.
The whole process begins by having the prospective entrepreneur advertise in the Kickstarter website their desire to put a business, for example, a restaurant. They would then state the amount that they need to start, and the deadline to meet the sum. Once the goal is reached, they could then start with the business. If the amount is not reached by the deadline, the pledgers are not charged and the entrepreneur goes home empty handed. The Amazon payment system is used to collect payments, with the person collecting the funds required to open a U.S. bank account.
Entrepreneurs seeking funds for their restaurant project can sweeten the deal by offering some incentives to those who might want to make a pledge. For example, they can offer VIP seats to pledgers on opening night, free meals, a special service from staff, and other things that can make pledging to fund a project even more exciting.
While the whole system may be seen as doubtful by skeptics, it has already produced some admirable results. A good example is a restaurant concept called What Happens When. This is a temporary restaurant concept in which every month, for nine months, the whole theme of the restaurant will change. This is the brainchild of a group of creative people who wants to give people a say on how the restaurant will look like. The project enjoyed a 121% success rate in gathering funding.
Another food project of note is that of Sterling Sweets. This is another restaurant project where the business has been in operation already. However, because of the increase in demand, the owners needed additional equipment and materials for a successful business expansion. They also needed extra funds to improve their online presence in the marketplace as well as to enhance the user experience of their customers. Fortunately, they were able to gain a 109% success in obtaining funds.
Next restaurant project that was able to use Kickstarter’s amazing fund raising ability is Colonie Restaurant. The project is still in its planning stages, but it shows great promise. The project is led by a trio of Brooklyn natives who love to dine and wine, and wants to set up a restaurant right at Brooklyn Heights. The place is a wonderful area, with a good view, but the lack of restaurants there certainly puts its potentials to waste. With the assistance of Kickstarter donors, the restaurant gained a 153% success in gathering funds, which enables the entrepreneurs to kick start the setting up of the restaurant.
These are just some example of businesses that has benefitted from the use of Kickstarter. Certainly, there are others more that have seen their dreams become a reality thanks to this incredible fund-raising strategy. This time, it is the people that matters now. They can finally have a say on what business can and cannot begin. It is definitely a positive step towards business improvements.