ILMA Compoundings – January 2019 - 26

BUSINESS HUB

Crowdfunding for the
Manufacturer
By Jim Moul

R

aising money for a new
manufacturing venture is never
easy, especially if your company
is not a large corporation with large
sums of capital ready and waiting to
be thrown at your next ambitious idea.
Thanks to Silicon Valley, small- and
medium-sized manufacturers have a
new option that can serve as a good
alternative to bank loans or risky lines
of credit: crowdfunding.
Crowdfunding involves raising
funds for a project or cause by asking
for donations, usually in small sums
from many individual people in
exchange for appealing incentives such
as gift cards, company memorabilia,
products, etc. This all takes place
online, so the venture is easily shared
through social media channels to
promote further engagement.
And engagement is the name of the
game when it comes to crowdfunding.
Often, the most successful crowdfunding projects are those that leave donors
and potential donors feeling personally, not just financially, invested.
For manufacturers with a strong
foothold in their local communities,
crowdfunding makes a ton of sense
as a way to utilize their community
involvement to fund a new project or
embark on other business ventures.
For countless manufacturers across
America, the success of their business
feels directly related to the success of
the communities in which they, and
their employees, reside - which is
exactly why crowdfunding works for
manufacturers.

26

JANUARY 2019

| COMPOUNDINGS | ILMA.ORG

WIDE NET, SAFE BET
Crowdfunding can offer several benefits
that a manufacturer might not be
able to find elsewhere. First, it offers a
widespread approach. The project idea
can be pitched to an entire community,
not just a small pool of potential investors, and it can even move beyond the
community to a statewide or national
level if the pitch is unique and engaging

enough. The security factor is also
appealing; since crowdfunding doesn't
rely on just one source of investment,
such as a bank or venture capitalist
firm, companies can feel more secure
by having multiple sources of investment. Another significant benefit of
crowdfunding is that the manufacturer
doesn't have to pay back a bank loan or
worry about interest payments.


http://www.ILMA.ORG

ILMA Compoundings – January 2019

Table of Contents for the Digital Edition of ILMA Compoundings – January 2019

Letter From the Ceo
Inside Ilma
What’s Coming Up
Industry Rundown
In the Know
International Insight
Market Report
Business Hub
Counsel Compound
In Network
Member Connections
Portrait
ILMA Compoundings – January 2019 - Cover1
ILMA Compoundings – January 2019 - Cover2
ILMA Compoundings – January 2019 - 1
ILMA Compoundings – January 2019 - 2
ILMA Compoundings – January 2019 - Letter From the Ceo
ILMA Compoundings – January 2019 - Inside Ilma
ILMA Compoundings – January 2019 - 5
ILMA Compoundings – January 2019 - 6
ILMA Compoundings – January 2019 - 7
ILMA Compoundings – January 2019 - What’s Coming Up
ILMA Compoundings – January 2019 - 9
ILMA Compoundings – January 2019 - Industry Rundown
ILMA Compoundings – January 2019 - In the Know
ILMA Compoundings – January 2019 - International Insight
ILMA Compoundings – January 2019 - 13
ILMA Compoundings – January 2019 - Market Report
ILMA Compoundings – January 2019 - 15
ILMA Compoundings – January 2019 - 16
ILMA Compoundings – January 2019 - 17
ILMA Compoundings – January 2019 - 18
ILMA Compoundings – January 2019 - 19
ILMA Compoundings – January 2019 - 20
ILMA Compoundings – January 2019 - 21
ILMA Compoundings – January 2019 - 22
ILMA Compoundings – January 2019 - 23
ILMA Compoundings – January 2019 - 24
ILMA Compoundings – January 2019 - 25
ILMA Compoundings – January 2019 - Business Hub
ILMA Compoundings – January 2019 - 27
ILMA Compoundings – January 2019 - Counsel Compound
ILMA Compoundings – January 2019 - 29
ILMA Compoundings – January 2019 - Member Connections
ILMA Compoundings – January 2019 - 31
ILMA Compoundings – January 2019 - Portrait
ILMA Compoundings – January 2019 - Cover3
ILMA Compoundings – January 2019 - Cover4
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