Probability of fraud
Investors may encounter charlatans, authors refusing to fully fulfill their obligations. After all, there is no personal communication between the parties to the project, and information about the idea can only be obtained on the crowdfunding platform.
To prevent fraud, crowdfunding service hotel email list moderators check ideas for adequacy, feasibility, and request documents. They have the right to block access to the project at any stage.
There are platforms with the function of insuring donors' money. Investors can find the author of the idea on social networks to discuss everything in person or study his page, getting an idea of the recipient's online reputation.
Poorly thought out business plan
This mistake is fraught with a discrepancy between the required amount and the planned profit and the actual indicators. Some platforms allow you to change these figures as the plan is being implemented.
Cases of plagiarism
The idea and business plan are fully published on the crowdfunding platform, so there is always a risk that the project will be stolen or copied.
Lack of sufficient funding
You may not be able to collect the entire amount to implement your idea, even if you have taken into account all the recommendations and selected an attractive idea. When making calculations, it is important to remember the portal commission, taxes, and risks associated with the closure of the service. You can simplify your work a little by refusing the services of a resource that has not yet established itself on the market.
Even if you cooperate with a crowdfunding platform, you will have to invest additionally in promoting the project, and its implementation will require a lot of time.
Crowdfunding is a separate area of business. It is often referred to as people's financing, that is, a method that allows ordinary people to act as project sponsors. This approach allows entrepreneurs to assess what is interesting to their audience, what attracts them.
Crowdfunding in our country is in its early stages of development, but already has enormous potential. In the future, it will become a serious help for the development of small and medium businesses.
Potential risks of crowdfunding
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Re: Potential risks of crowdfunding
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