Learn About CrowdFunding

For additional information please contactBill Joyce, PresidentVision ManagementA CrowdCreative Company817-918-4667wcbs2008@gmail.com

Are you ready to grab the bull by the

horns?

Picture by permission from: http://www.startup2startup.net/

We have all seen growth patterns like this….

In fact if we were to start an new Widget Company we would hope to convince our potential investors that our product would grow along these lines.

CrowdFunding is real and it will be a major process within our economy for the foreseeable future.

en·ter·prise (ntr-prz)n.1. An undertaking, especially one of some scope, complication, and risk.2. A business organization.3. Industrious, systematic activity, especially when directed toward profit: Private enterprise is basic to capitalism.4. Willingness to undertake new ventures; initiative: "Through want of enterprise and faith men are where they are, buying and selling, and spending their lives like serfs" (Henry David Thoreau).[Middle English, from Old French entreprise, from past participle of entreprendre, to undertake : entre-, between (from Latin inter-; see inter-) + prendre, to take (from Latin prehendere, prndere; see ghend- in Indo-European roots).]enter·priser n.

The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.

mom-and-pop   [mom-uhn-pop] Show IPA adjective, noun, plural mom-and-pops. adjective

1.of or pertaining to a small retail business, usually owned and operated by members of a family: a mom-and-pop grocery.

2.of or indicating something, as an enterprise, investment, or project, that is independent, small in scope, and modestly financed.

http://dictionary.reference.com/browse/mom-and-pop

Breakdown of the types of

CrowdFunding?Like people, no two projects are the same but there are clear segments of CrowdFunding emerging:

•Non-Equity CrowdFunding•Advance Product Sales•Cause Contribution

•CrowdLending•Peer-to-Peer Loans•Micro / Business Loans

•Equity Level CrowdFunding•2013 for USA

Reason Mom & Pop Enterprise

Money Requirements YES YES

Expand Customer Base YES YES

Understand your customer better YES YES

Build Relationships with your Customer YES YES

Link others to your Vision / Mission – vendors Social Networks

YES YES

Be part of the “in-Crowd” YES YES

Reason to CrowdFund

ACTIVITY Time Money

Prepare for the Social Marketing Effort 30 days

Create a convincing presentation 30 days

Be ready to respond 1 day

DO IT! 30-45 days

Measure your activities Ongoing

Continue to communicate Ongoing

CrowdFund Step-by-Step

Argument Mom & Pop

Enterprise

An Unsaturated Market. Few capital sources exist for sub-$10 million consumer products businesses. Historically, venture capitalists and angels have focused their attention (although not exclusively, of course) on high tech companies in Silicon Valley and Boston.

YES YES

The crowd understands consumer products best. Professional investors will tell you the most important part of their job is due diligence, the process where investors look beneath the hood of a company — analyzing business plans, financials, products, markets, organization, legal issues, and a host of other items — before they invest in a business.

YES YES

Consumer product companies are efficient users of funding. Consumer products companies are often cash flow positive very early on and require minimal startup capital.

YES YES

Consumer Products Market Segment

http://venturebeat.com/2012/04/04/3-reasons-crowdfunders-will-hit-consumer-products-first/

Key Characteristics Mom & Pop Enterprise

In need of a reasonably low amount of capital Yes Maybe

The company is interesting Yes Yes

The entrepreneur is open to sharing his ideas and welcomes input from investors

??? ???

The entrepreneur knows how to use social media tools

Important Important

Characteristics of Suitable CrowdCos

http://www.smartermoney.nl/?p=619

Mom & Pop Enterprise

You need to dress up:

If you’re not careful, you might get burned:

Standing out from the crowd is critical:

3 Reasons Why Crowdfunding is like Trick-or-Treating

http://www.entreviewblog.com/2011/10/3-reasons-why-crowdfunding-is-like.html

Benefit Mom & Pop Enterprise

Building Community

Do-it-Yourself attitude with the crowd behind you.

See it grow

Build ongoing connection

Local benefit

http://www.hispanicbusiness.com/2012/4/18/crowdfunding_a_new_way_of_investing.htm

INVESTOR PROTECTION:When discussing the current crowd funding taking place, the question is raised: "Why are people doing this?"

If only 43% of projects on Kickstarter succeed, why aren't people crying foul but instead pledging more than ever before? ($7M in March on Kickstarter compared to $4M in January).

The answer is simple. They want to help someone they know. They want to support an idea. They want to be part of a community and they want some recognition for it. People are drawn to crowd funding because they are capitalists. They admire entrepreneurs, and they know that sooner or later they may be entrepreneurs as well.

http://www.sbecouncil.org/legaction/display.cfm?ID=4575

Emphasis added – wcj iii

Crowdfund Investing is more than just money - it is facilitation, diligence, team building, and valuation. Most importantly, it is the engine that will create much needed jobs.

CrowdCreative

The new way to build great ideas!

Together we can make it happen…