Local Small Businesses Using Crowd Source Funding - 19 Action News|Cleveland, OH|News, Weather, Sports

Local Small Businesses Using Crowd Source Funding

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CLEVELAND, OH (WOIO) -

Got a winning idea or want to expand your business, but don't have the money? Crowd source funding may be the ticket.

Local entrepreneurs, artists and inventors are using web sites like KickstarterGo Fund Me, and Fund Anything to make their business dreams a reality.

They help small businesses start or grow by generating pledges toward a goal.

"You're going directly to the people that would want to buy your product and asking them for donations," says artist Len Peralta.

Through Kickstarter, Peralta published comic books and trading cards. Fresh Brewed Tees founder, Tony Madalone got a truck that he wrapped with his logo.  He uses it to sell locally-themed T-shirts.  The platform that worked for them offers rewards and incentives for those who donate.

"The first was a high five for five bucks, next was a sticker. Then we had a cook out, free T-shirt for 50 bucks and name on the side of the truck," said Madalone.

Small business owners like Megan Manning, the chef behind The Little Lakewood Pasta Company.  She made a pitch video and is now spreading the word about her vegan pasta.

Peralta is one of the area's top fund raisers, doubling his last goal. The key to his six successful campaigns? He says, know your audience and what will trigger them, then work at it.

"There's this misconception that it's like 'I just put this on the net and people will give me money.' There's an immense amount of work behind it," Peralta said.

He uses the format as a pre-order model. That way he doesn't waste materials or come up short on inventory.

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