Kickstarter Bringing Big Rewards to Illinois Businesses

crowdfunding, Kickstarter Illinois businesses, local Illinois businesses, Naperville small business attorneys, Gierach Law Firm, Kickstarter, Bang Bang Pie Shop, Kickstarter campaign, crowdfunding website, Small businesses throughout Illinois have found significant success through the use of Kickstarter, the nation’s leading crowdfunding website. Take, for example, the former owners of the Bang Bang Pie Shop in Lincoln Square, Chicago. The owners had dreamed of opening a storefront for their business through the creation of a local area pie shop. They originally set a goal for raising $3,000 on Kickstarter. Online investors found their business plan so compelling that they ended up investing $10,000 through the Kickstarter campaign.

Now, the owners have sold the Bang Bang Pie Shop and have decided to open a storefront for their new business, the Baker Miller Flour Co. Once again, the owners returned to Kickstarter for funding. The most recent Kickstarter campaign was so successful that they ended up raising almost $14,000, which provided them with the funds necessary to purchase a big stone mill, something that will help the owners significantly reduce their business’s operating costs. The success that local Illinois businesses have had in receiving investments and funding through Kickstarter highlight how this website can be an important tool that all small business owners should be aware of.

How Does Kickstarter Work?

Crowdfunding is the process of raising funds, through a common website such as Kickstarter, which allows the public to both learn about a business’s financial needs, and to also make donations of various amounts that can be used to assist various business operations. Kickstarter is commonly used by business owners who are trying to raise $10,000 or less in funding for their business. Donations are submitted as “pledges,” which do not grant any equity in the enterprise in exchange for funding.

In order to use Kickstarter for fundraising, the business owner(s) must be engaged in “creative endeavors.” A dollar goal is set by the business owner, and a fundraising term of no more than 60 days is chosen. When the goal is reached, each donor’s credit card is charged, with Kickstarter taking a five percent fee. If a goal is not met, payouts are not received and all funds pledged are cancelled. Business owners who are loan applicants are encouraged to submit presentations either in video or print, which should clearly outline the various aspects of the project requiring funding. Kickstarter campaigns are more likely to be funded if the business owner provides something tangible in return for pledge donations. For example, bakers could offer free cupcakes to any pledge that reaches or exceeds a specified amount.

Kickstarter campaigns can be used to fund businesses that span a broad assortment of different industries, including film, the arts, education, cuisine, and scientific invention, just to name a few. In fact, successful Kickstarter campaigns have even served to finance the production of recent movies in theatres, including the film adaption of the cult classic TV show Veronica Mars.

Do you have questions about how Kickstarter could help your small business? Contact the Naperville small business attorneys at the Gierach Law Firm today for any assistance you need.