Author: Michael Rabago

Be Amazing– Use Recession Crowdfunding to Finance Your Business

Use Recession Crowdfunding to Finance Your Business and Tap into the Noble Spirit of Human Kindness

If you have ever wondered how to use recession crowdfunding to finance your business, then this one is for you! But before you commit to numbers, perks, a pitch, or anything of the sort, be sure to read this first. And, in particular, be sure to read this if that last sentence made no sense to you. Seriously!

And don’t despair – even in a bad economy, crowdfunding is still possible. People still want to believe in your dreams. But you will probably need to lower your expectations on funding totals when everyone is feeling the pinch.

Use Recession Crowdfunding to Finance Your Business: What Matters

Crowdfunding has become all the rage and there is no wonder. It is (usually) free money which you do not have to pay back. And you can get these funds without having to give up any ownership or control over your small business.

Plus it can help you to gauge the popularity of an idea or a prototype or invention. Because there is no sense in continuing if there is no interest in your handiwork.

Use Recession Crowdfunding to Finance Your Business: History

Before delving into how to do it, let’s first look at when and how crowdfunding came to be.

A History of Angels

In a way, crowdfunding is the child of angel investing. But what is an angel investor?

According to Investopedia: “Angel investors invest in small startups or entrepreneurs. Often, angel investors are among an entrepreneur’s family and friends. The capital angel investors provide may be a one-time investment to help the business propel or an ongoing injection of money to support and carry the company through its difficult early stages.” 

The term comes from Broadway theater. Angels were originally the investors who backed plays, and they still do so. Those people are also called patrons of the arts.

But it Goes Back Even Earlier

The Statue of Liberty was essentially a crowdfunded endeavor. And that was in 1885. But it goes back more than that, as war bonds are a species of crowdfunding. Plus in the 1730s, the London mercantile community saved the Bank of England by supporting the currency. This averted a confidence disaster.

Heck, even the bank scenes in It’s a Wonderful Life show a form of nascent crowdfunding, because the citizens of the town forego full payments to help each other out.

Back to the Present

And then we get to crowdfunding on the internet. Kickstarter, for example, was started in 2009. And ArtistShare goes back to 2003. Today, there are several crowdfunding platforms. They handle everything from inventions to artistic endeavors to medical bills.

Use Recession Crowdfunding to Finance Your Business: Decisions, Decisions

So let’s get started. But you will have to make a lot of choices before you even start a business crowdfunding campaign.

Use Recession Crowdfunding to Finance Your Business: How much?

Your first decision should be: how much do I need to crowdfund? If you need $1 million, you are going to have to crowdfund more than that.

Why? Because that is how crowdfunding platforms make their money. They take a percentage of whatever money you can raise. Therefore, you will need to take that into consideration. Crowdfunding percentage charges range from 4% to 10%.

Use Recession Crowdfunding to Finance Your Business: Will I succeed?

Another decision is about how successful you believe your campaign is going to be. If you are super confident that you will be 100% funded at the end of your campaign, then traditional funding will be for you.

But if you are not sure, then try something like GoFundMe’s flexible funding. With flexible funding, you, the campaign runner, can keep your donations even if your campaign fails. But for this privilege, you will have to pay a higher fee to GoFundMe.

Other crowdfunding platforms like Kickstarter do not offer this option.

Use Recession Crowdfunding to Finance Your Business: What should I offer for perks?

Yes, you will have to offer perks to your donors. Perks can take several forms. Consider buttons, tee shirts, book marks – all of those are possible physical perks.

Think about a perk format which can dovetail with your business. If you sell homemade jam, then maybe create a special flavor just for the campaign. And offer bigger and bigger-sized jars depending on donation amount. If you are a horseback riding stable, offer a free lesson or a postcard with a favorite horse’s picture on it, or the like. Does your business flip houses? Then consider offering a coupon to a local home supply company or the like. But do work with them beforehand, of course.

Physical versus Virtual Perks

Pro tip: physical perks are a pain! A lot of people love them, and they will attract attention. But physical perks also need to be shipped. International shipping is extremely expensive, even for small items. So if you offer physical perks, specify if you will allow international donor addresses.

And even if everything has to be shipped in America, you are still left with dealing with a database of names and addresses. And some of which might have typos or be incomplete.

Plus you often have to deal with a variety of available perks. Did Jane want the stuffed teddy bear or the bookmark? Did Alan want the pennant or the tee shirt? Do Jane and Alan live at the same address so maybe you can combine their perks?

What happens if a perk is lost or damaged in the mail?

Therefore, if you can do it, try for virtual perks. For a house flipping company, you might record videos about home decorating or repairs. Or for a bakery, you could offer downloads of recipes. And for a health club, maybe offer electronic coupons for a free month of membership.

Give the People what they (think they) Want

There is absolutely nothing wrong with just going ahead and asking your potential donors about what they might like for perks. They might surprise you. Of course, the final decision will be your own.

But this is an excellent means of investing your donors and potential donors in the process. This is far more vital than you may think. That is because, when the donors are invested in your process, they will be invested in you. And they will want very badly for you to succeed. This will stand you in good stead if you have delays. And it will also help you out, big time, when your company is up and running.

Furthermore, if you ever crowdfund again, treating your donors right and giving them a seat at the table will assure that they just might follow you to your next campaign.

Use Recession Crowdfunding to Finance Your Business: Your Campaign

Your campaign’s success will be far from guaranteed. But you can take advantage of a few known strategies. First of all consider these four feelings that you want to engender in donors. Use one or more of them as the centerpiece of your campaign as a starting point. We will start with two today and the other two in the next post.

Urgency

The first two and last two days of a crowdfunding campaign are nearly always the days with the biggest payoffs. Often, dragging out the campaign does not make you significantly more money.

So why not open a campaign for just a week? Do not let donors think they can contribute any old time they feel like it. If you give them the feeling that they had better act now, or else lose out, you will get more people to donate.

The fear of missing out is a very real thing.

Recession Crowdfunding Credit Suite

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Scarcity

If you have thousands of something or other to offer as a perk, it will not be as desirable to your donors. But if you only have one or two of a particular perk, that will create a feeling in some people that they just have to have it. Scarcity can create a bit of anxiety in your donors. And you do want that.

So do this with your higher donation levels only. Therefore, you might want to set up a perk/donation level scheme which looks something like this:

Donation Level Number of Perks
Lowest 1,000
Second lowest 500 (this reward also includes the lowest level reward)
Middle 100 (this reward also includes the two lower level rewards)
Second highest 50 (this reward also includes the three lower level rewards)
Highest 10 (this reward also includes all of the other level rewards)

But be sure to remember: a lot of variation in physical perks will make fulfillment a lot harder. So do not work with more than maybe five separate types of physical perks. And even that is pushing it. After all, look at the complexity already inherent in five tiers (see the table, above).

Multiply that by all of the donors you get to your campaign. Larger platforms offer software for fulfillment purposes. It will nearly always be best to work with it.

But if you have to do it all yourself, then seriously consider no more than three tiers. Trust me. You will thank me later.

Novelty

If you are offering the same thing as a thousand other places, no one will want to make a donation. Your widget has to be lighter, hotter, cheaper, or more durable. Your food has to be lower in calories or higher in nutrition. Or at least it should be better-tasting.

Or your services have to be delivered better, by friendlier and more knowledgeable people. And they should come with a money back guarantee your competitors just plain do not offer.

Think about how services or goods can differentiate themselves. Why do some people prefer Macs? Why do others prefer PCs? And why do some people want to get their insurance from Progressive? But others want theirs from Liberty Mutual.

Consumer choice, particularly in the United States these days, is huge! So offering true novelty can be a way to try to get beyond all of that clutter. And it is a lot of clutter indeed. Have you been to a toothpaste aisle in a drug store lately? Yeah. It is just like that.

Cool factor

Is your product a form of art? Is it a new, gadget-like invention?

Then it might have a coolness factor. And then you can build your campaign around that. But do not be discouraged if it is not! These days, some of the most memorable ad campaigns are based around a product most people found dull not ten years ago – insurance.

Now is the time for us to get back into the nitty gritty of the crowdfunding campaign itself.

Use Recession Crowdfunding to Finance Your Business: Strategy

Here are a few words on strategy.

There’s the Windup and here’s the Pitch!

You will not get anywhere without a pitch video. Yes, even you, you camera shy business owner, you!

Your pitch video needs to be good. Use a professional to film it and write the script. Can’t afford professionals? Then try schools, both students and teachers. Your script does not have to be word for word. But you should have points you want to make and not ramble. A script will help you to focus on exactly what you need to say. This is absolutely not the time to wing it.

Taking time with a script will show in every frame of the finished product. And your professional film maker? They might be charging you by the hour. So it is a really good idea to spend some time on a script or at least an outline of one. Do this before your professional film maker goes on the clock.

Evidence, Your Honor

If you have physical evidence of your project, show it in your campaign video and on your campaign page. This means a picture of your health club’s sign. Or it could be a short video of your prototype robot.

A lot of people are understandably skeptical about crowdfunding. A picture and a tangible thing will go a long way to assuring them that your project is not vaporware.

Recession Crowdfunding Credit Suite

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Your Mother Was Right

Manners matter. ALWAYS. Say please, thank you, and you’re welcome to everyone. Use these magic words in your pitch and in your communications with your donors. And even use them in the cover letters you send with your perks. This is because even virtual perks can come with a cover email. And they should, as that is another chance to connect with your donors.

Greed is Not Good

Do not get greedy! If you need $250,000 for your campaign, but you ask for $1,000,000, that does not do anyone any good. You will just look like you want to freeload off others’ generosity.

Instead, work hard to account for your expenses as clearly and transparently as possible. And by the way, if you misuse your funds, you might find yourself in an uncomfortable meeting with your state’s attorney general. So always, always, ALWAYS be honest!

If you need help, then hire an accountant or at least a bookkeeper. Much like with your pitch video, if you are low on cash, you can then try a local school.

Keep Your Feet on the Ground, and Your Head in the Clouds

Your stretch goals should be a mix of easily attainable and pie in the sky. If you are crowdfunding for $100,000, a fairly easy to attain stretch goal could be $125,000. Pie in the sky could be $300,000. Only you know your donors, or at least you know some of them. Be realistic about your prospects when it comes to your base. But for stretch goals, feel free to go just a little bit wild.

Make it abundantly clear what you will do with any extra cash if you are fortunate enough to get it. Will you buy the building your business is in? Hire five more people? Replace your old equipment? Open up a new market on another continent? Let your donors know what you are striving for.

This is also an excellent way to help get your donors to feel more invested in your project.

Grace is Amazing

Be gracious if your campaign fails. Even if you use GoFundMe’s flexible funding option, you still might not get enough to make a dent in your funding needs. And of course with most forms of crowdfunding, you have to give everything back no matter what.

But let’s look at how to handle this kind of a situation if you took advantage of the flexible funding option.

Make an executive decision about the funds. If you wanted $100,000 and you only got $500, then your best bet is to just return the money. This kind of a shortfall should also give you a reason to take a good, hard look at your pitch, your campaign, and even your idea. Maybe you are being overly optimistic. A bad failure in crowdfunding can have a way of throwing a bucket of cold water on your dream, yes. But sometimes, that is exactly what you need.

If you almost made it with $95,000, then thank everyone who donated. And see what you can do, even though you have a shortfall. But also tell them what you are doing! Maybe you really will buy your building next year, or hire four people instead of five. Once again, get your donors invested in what you are doing. It will make an enormous difference.

Timing is everything

Line up the biggest donors you can before you get started. Talk to your mother or your brother in law or your former high school football coach. And ask them to hold off on handing over their $1,000 or $10,000 donation until you start your campaign.

Also ask them (nicely!) to release their funds at a very specific time. Which time? The best times will always be the first or last day of the campaign.

Take advantage of the novelty factor of the first day of the campaign. Or take advantage of the urgency factor on the last day of your campaign.

Think about the busker (street musician) with a few of her own dollars in her hat, to encourage people to throw a few bucks for a song. Taking your cue from her, you want your biggest donors to show other donors that they have confidence in you and in your project.

Recession Finance Credit Suite

Demolish your funding problems with our rock-solid guide about 27 killer ways to get cash for your business. Get money even during the worst of a recession.

When You Care, You Share

Make sure to share your campaign on social media. And always ask your friends and family to do so, too. Tweet the link. Add it as a Facebook status. Make it a Tumblr post or a snap on Snapchat. Or write a blog post about it. Be proud of what you are doing! Tell the world!

Also, ask your network to circulate the link. The best way to get your network to help you out is by helping them in return. So if your cousin’s band is on Facebook, share their page, or tweet about it.

Be a cooperative member of your own personal community. And then your network will be far more likely to help you out when you ask.

Use Recession Crowdfunding to Finance Your Business: Takeaways

Finally, if your small business recession crowdfunding campaign is successful, consider donating a few bucks to others’ campaigns. Or at least donate a few dollars to charity. And this is because business goodwill and a good reputation are going to be priceless. Karma in crowdfunding matters. 

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Convictional (YC W19) Is Hiring Software Engineers for B2B Trade Enablement

Article URL: https://jobs.ashbyhq.com/Convictional/91fa08f9-0850-4429-9000-19c1f5fe9ef3

Comments URL: https://news.ycombinator.com/item?id=24423054

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Nasdaq Indexes Lead Way on Both Sides of Atlantic

The William D Ford Direct Student Loan Program

The William D Ford Direct Student Loan Program

The William D Ford Direct Student Loan Program
The Direct trainee financing program began around 15 years back and also was planned to remove the center male to make sure that, as opposed to entailing financial institutions, cooperative credit union as well as various other exclusive lending institutions, the Federal federal government car loans the cash straight to moms and dads and also trainees.
Straight lending programs overlap the option which is called the FFELP, or Federal Family Education Loan Program, which is a program developed to resolve a network of exclusive loan providers. Because straight lending programs replicate in lots of means the FFEL programs, it is necessary to determine which program you desire. Both programs use both Stafford as well as PLUS financings.
The standards for qualification on both programs coincides as well as they adhere to the same requirement based standards, or have the same credit history check demands as those for non demand based programs. Because both programs basically offer the exact same finance financing this elevates the all-natural concern of exactly how to pick in between them.
To some extent the choice includes selecting which of 2 suppliers you will certainly need to handle. Although both will certainly supply client solution employees to respond to any kind of concerns, in some instances you might locate that personal lending institutions will certainly be much more adaptable and also handy while the federal government will certainly be uncaring or extra administrative. This will certainly not constantly hold true naturally and also in some cases you will certainly discover that simply the reverse holds true.
Among the very best methods to obtain a feeling for the solution you are most likely to obtain from various lending institutions is to review a few of the Internet online forums managing the topic of pupil finances. With the significant development of social networks in current years it has actually ended up being a lot less complicated to discover a varied collection of point of views. Obviously you do need to take care as most of the sights shared are based a lot more on individual preference than unbiased standards, yet reviewing the messages will swiftly reveal you which side the poster prefers.
There are nevertheless some a lot more concrete distinctions in between both kinds of funding. Due to the fact that FFELP car loans are both financed as well as serviced by exclusive economic establishments the company with which you authorize a promissory note could not be the company to which you make payments. It is a typical technique nowadays for loan providers to ‘market’ lendings on various other business in similar as a lot of home loan firms do.
This is a crucial factor to consider due to the fact that you may have mosted likely to the problem of locating a lending institution you such as, selecting past just the rates of interest on the car loan and also settlement terms as well as liking their customer support, just to locate that your lending is offered on as well as you are handling a business which you had actually formerly denied. When it comes to straight fundings nevertheless, due to the fact that finances are not offered on by the Federal federal government, this trouble does not occur.
Probably one of the most crucial distinction for most of loan providers nevertheless will certainly be the distinction in prices, payment terms and also charges in between both. Below you require to bear in mind that while the rates of interest on Stafford and also PLUS fundings are formally repaired personal loan providers do take pleasure in some adaptability in various other locations.
They could or may except instance fee both source and also insurance coverage costs, which are presently examined at 3% and also 1%, according to Federal policies. These costs will certainly still be used to your funding, a personal loan provider may concur to soak up these in order to obtain your service. They may as an instance pick to change the days on which rate of interest costs are determined or to either expand a moratorium or raise your payment duration.
At the end of the day the only means to uncover simply what is offered is to search in similar means as you would certainly if you were trying to find any type of various other sort of lending.

Straight car loan programs overlap the choice which is called the FFELP, or Federal Family Education Loan Program, which is a program made to function via a network of exclusive loan providers. Because straight car loan programs replicate in lots of methods the FFEL programs, it is essential to choose which program you desire. Both programs provide both Stafford and also PLUS financings.
One of the ideal means to obtain a feeling for the solution you are most likely to obtain from various lending institutions is to check out some of the Internet discussion forums dealing with the topic of trainee financings. These fees will certainly still be used to your finance, an exclusive lending institution may concur to soak up these in order to obtain your company.

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Buying Savings Bonds

Buying Savings Bonds

Seeking a dependable, low-risk financial investment for your cash? Think about spending in cost savings bonds.

Undoubtedly, purchasing cost savings bonds is among the least attractive financial investments available, ranking right together with interest-bearing accounts. 1 in 5 Americans are spending in cost savings bonds. Definitely, there have to be a reason they would certainly select to spend their hard-earned cash by doing this as well as acquisition United States cost savings bonds.

Buying cost savings bonds can imply a variety of advantages for the financier. While it will definitely not lead you to a homerun, it is, nevertheless, the best, most trustworthy financial investment alternative readily available. The factor, certainly, is that purchasing cost savings bonds indicates you are completely assured by the United States Government itself.

One more factor is that spending in cost savings bond can release you from regional as well as state revenue tax obligation returns to a particular level. The financial savings bonds themselves are tax-free, and also this, of program, enhances their return.

Apart from that, if you got your bonds prior to January 1990, they might be without government tax obligation completely if you utilized them to spend for your university tuition of your youngster. Keep in mind that this advantage just relates to moms and dads that are qualified under the earnings degree need.

Unlike the supply market, spending in financial savings bonds does not guarantee any kind of high returns. Still, spending in financial savings bonds is a risk-free wager if you are preparing to utilize the cash to pay for your kid’s university tuition or for supplement retired life earnings.

One can never ever anticipate the efficiency of the securities market. That becomes part of the danger entailed, which you can prevent by buying financial savings bonds. Financial savings bonds end up being extra appealing if the supply market dives as well as financial savings rate of interest prices are also not executing well.

Remember this: do not make use of financial savings bonds as basis for your retired life strategy. When you retire, they do not supply sufficient return to effectively sustain you. Rather, buy cost savings bonds as a supplement to your existing 401(k) or various other retired life choices.

The charm in purchasing financial savings bonds is that, while you will not obtain abundant, you are not most likely to shed your t-shirt either. When you come right to it, you are secure, which is certainly not a poor point.

Unquestionably, spending in financial savings bonds is one of the least hot financial investments out there, ranking right along with cost savings accounts. An additional factor is that spending in financial savings bond can release you from neighborhood as well as state revenue tax obligation returns to a specific level. Unlike the supply market, spending in financial savings bonds does not guarantee any kind of high returns. Still, spending in cost savings bonds is a risk-free wager if you are intending to make use of the cash to pay for your youngster’s university tuition or for supplement retired life earnings. If the supply market dives and also financial savings rate of interest prices are furthermore not doing well, cost savings bonds end up being a lot more eye-catching.

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The Senate and the Judiciary

New Guide Provides Framework Guide Strategy Planning Convers…

New Guide Provides Framework Guide Strategy Planning Conversations With Directors as well as Management Lots of B2B suppliers continue in typical earnings development strategies, declining to offer durable on-line possibility experiences or to captivate alternate B2B profits versions. This cost-free overview will certainly aid execs as well as boards to start the important, reflective job …

Domain name Registration: Why You Need Private Whois Service

Domain name Registration: Why You Need Private Whois Service Personal privacy is the control of one’s very own individual details, control over what others understand concerning one, and also control over just how others might utilize or make use of the individual info. Making required, the disclosure of directly recognizable info, as under existing WhoIs …

What are Penny Stocks?

What are Penny Stocks?

Purely talking, cent supplies are supplies that the starting financier, in numerous situations, can in fact manage to acquire. For the purpose of this write-up nonetheless, dime supplies are in some cases huge business going with a down spiral, which makes them, simply like the brand-new business, rather of a threat.

Basically, dime supplies are those that are not traded on the significant supply exchanges such as NYCE, AMEX, are NASDAQ. Dime supplies are a little bit a lot more dangerous than several of the remainder nevertheless for great factor. Simply as they are extremely high-risk nonetheless, they are likewise rather rewarding for those that handle to trade cent supplies effectively.

There is really little ability that goes right into efficiently trading dime supplies however a whole lot of good luck. It is really essential nonetheless that you get in right into cent supplies trading with the company understanding that you aren’t most likely to be effective. There are those nevertheless, that have actually taken care of to oppose the chances as well as win rather handsomely in the video game we’ve come to understand as cent supply trading.

Of all, cent supplies are not such as normal supplies where they are greatly traded as well as there is practically constantly somebody waiting in line to buy. This implies that cent supplies are not the most fluid supplies on the world and also if you require fast accessibility to your cash this is certainly not the supply for you.

When it comes to cent supplies is that there is typically really little details on these business, an additional point to maintain in mind. Unless you have superb study abilities and also the moment as well as power to place them to utilize for your trading undertakings you are really not likely to locate much history as well as monetary details on these business in contrast to several openly traded business that are virtually called for to open their publications to capitalists. Due to the fact that understanding is essential and also systems are plenty, this is unsafe to capitalists.

Every cent you spend in cent supplies must be a dime that you are really well prepared to completely delighted and also loosened to make a return with. You can strike the lotto game on your dime supply financial investment as well as gain essentially 3 to 4 (or even more) times what you spent in your supplies. When making your choices regarding the kinds of supplies, funds, or bonds you want to consist of in your profile you might desire to consist of a couple of dime supplies for the benefit of variety and also to take the chance of a little amount of cash on a lengthy shot.

Purely talking, dime supplies are supplies that the starting capitalist, in several instances, can really manage to acquire. Basically, cent supplies are those that are not traded on the significant supply exchanges such as NYCE, AMEX, are NASDAQ. Of all, cent supplies are not such as routine supplies where they are greatly traded and also there is practically constantly somebody waiting in line to acquire. You can strike the lotto on your cent supply financial investment as well as make essentially 3 to 4 (or even more) times what you spent in your supplies. When making your choices concerning the kinds of bonds, supplies, or funds you desire to consist of in your profile you might desire to consist of a couple of cent supplies for the benefit of variety as well as to run the risk of a tiny amount of cash on a lengthy shot.

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Canadians Humble Trudeau