For the next four weeks, we will outline how to help you reach your goal and raise capital through a successful, reward-based crowdfunding campaign. First, follow these five critical steps to start securing funding for your venture.

By Carolyn M. Brown

Crowdfunding has had its share of success stories. Fundraisers have secured millions to develop everything from hotels and electric cars, to devices that track lost wallets to creative film projects. Along with offering a chance to bypass the loan process, crowdfunding presents an opportunity to interface directly with your customer base and offer advanced previews or other goods in exchange for a monetary donation.

There are rewards-based crowdfunding sites—like GoFundMeRocketHub, and KickStarter—that enable you to give perks to donors, like t-shirts or first dibs on the up-and-coming product. There’s also equity crowdfunding portals, in which you not only offer perks, but give company shares in exchange for capital. The popular fundraising site IndieGoGo recently partnered with Micro Ventures, an online venture capital platform, to offer equity-based crowdfunding.

While crowdfunding can be a viable option for raising funds for your business or launching a new product, in order to achieve success with this process, you need to familiarize yourself with some facts about crowdfunding and learn some of the best practices utilized to operate this type of funding medium.

This 30-day challenge to help you launch a successful, reward-based crowdfunding campaign. Over the next four weeks, we will post content that will outline some steps you can to take to reach your goal and raise much needed capital for your venture.

Read the rest of the story on Black Enterprise here.

BLACK ENTERPRISE is the premier business, investing, and wealth-building resource for African Americans. Since 1970, BLACK ENTERPRISE has provided essential business information and advice to professionals, corporate executives, entrepreneurs, and decision makers.