Crowdfunding is about persuading individuals to each give you a small donation -- £10, £50, £100, maybe more. Once you get thousands of donors, you have some serious cash on hand.
This has all become possible in recent years thanks to a proliferation of websites that allow nonprofits, artists, musicians -- and yes, businesses -- to raise money. This is the social media version of fundraising.
There are more than 600 crowdfunding platforms around the world, with fundraising reaching billions of dollars annually, according to the research firm Massolution.
Crowdfunding provides another strategy for startups or early stage companies ready to take it to the next level -- such as rolling out a product or service. Before, a business owner was subject to the caprices of individual angel investors or bank loan officers. Now it is possible to pitch a business plan to the masses.
A successful crowdfunding round not only provides your business with needed cash, but creates a base of customers who feel as though they have a stake in the business' success.