Crowdfunding: The Answer to Startups’ Financial Woes? |  |
- Crowdfunding: The Answer to Startups’ Financial Woes?
- The WE In Your Social ME-dia
- When It Comes To Business, All Communication Is Marketing
- SOPA, CISPA and Other Cyber Laws: The Impact on Business
| Crowdfunding: The Answer to Startups’ Financial Woes? Posted: 31 May 2012 11:00 AM PDT Getting funded is one of the biggest challenges for startups. Venture capitalists and angel investors are bombarded with “great” ideas for businesses, and they can only invest in so many. Banks are turning small businesses away for loans. So what’s a startup founder to do if they need money?
Obama says try crowdfunding. Rather than rely on banks or private investors to help get your business running with an injection of cash, put it in the hands of the people. With crowdfunding, anyone can invest in a company (in smaller increments ranging from $5 to $1000). And with President Obama’s JOBS Act, it will be easier for startups to get that funding without jumping through so many hoops. The Act says that nonaccredited investors (read: you and I) can invest in a company, and that company can raise up to $1 million a year without having to register with the Securities and Exchange Commission (SEC). There have been several crowdfunding websites connecting companies with individuals wanting to invest, but since the JOBS Act was passed, their numbers are at an all-time high. Where to Find the Crowds There are generic sites that offer a variety of projects people can contribute to, such as Prosper, as well as others more tailored to specific niches, like the creative projects found on Kickstarter. The Act says that people who invest in these startups are now entitled to stock, and some sites like PeoplesVC will facilitate that transaction once the SEC works out the details. Others like IndieGoGo are more lighthearted and simply offer investors perks like stickers, access to special events and products. Raising $1 million from total strangers may take as much work as pitching VCs. Many people aren’t convinced that crowdfunding will really work to garner large amounts of money from so many investors. It’s clear that getting your project in front of enough investors to actually meet your financial goal will take a lot of promotion (social media looks like the best avenue), but the key is to have an idea that people can get excited about. How it Works Let’s look at bikedabs, a startup seeking funding on the site Fundable. The startup’s profile page on Fundable is detailed, explaining its product (a removable attachment that allows bikers to ride clipless pedals with street shoes). The company aims to raise $25,000, and as of this post, had raised about $5,000. Backers of the project receive a variety of rewards, from a t-shirt to an expensive road bike. It’s clear the backers of this project are excited about it: many have offered their own marketing services and connections to help bikedabs succeed. Visitors can follow a startup’s path toward funding, get updates and share the project through social channels. It’s truly a new way of supporting small business. The site takes a fee from the money raised; Peerbackers takes a 5% “success fee” to cover its own expenses. The money doesn’t have to be paid back. Worth a Shot For a startup that needs a smaller injection of cash, or that simply wants to try a different path, crowdfunding is worth a try. Remember, the key is self-promotion. Crowdfunding sites are just now starting to be recognized by the general public and media, so educating potential investors on how they work and why they’d want to invest in your company is necessary. Crowdfunding Sites IndieGoGo: Variety of types of projects available to fund. Fee: 9% if you don’t meet your goal; 4% if you do. PeoplesVC: Variety of types of projects available to fund. Fee: 9% KickStarter: Funds Art, Comics, Dance, Design, Fashion, Film, Food, Games, Music, Photography, Publishing, Technology, and Theater projects. Fee: does not list. Microventures: Interested in any industry but Real Estate and Oil and Gas. Fee: $350 up front application fees, plus 10% after funding.
From Small Business Trends |
| Posted: 31 May 2012 08:00 AM PDT The social media revolution and evolution is being called the new “Digital Darwinism.” It’s an important idea and movement for all of us to heed.
Esteemed marketer Brian Solis says:
I’ll take opportunity over obsolescence any day, but I do wonder why way too many business people are still so resistant when the up side is so exciting and rewarding? Gathering together in tribes, communities and networks is the most natural thing that humans do as a species. It is why we have survived and evolved. We populate, learn, help and support each other because we need to socialize. WE need each other. I personally am fascinated by this and have always been a very social person and love lots of stimulation from people. As Appliedsoc.org explains:
This very idea is at the core of the answer a psychologist gave on an NPR story segment about why the popularity of social networks has exploded in such a short time. We need to socialize and social media networks gives us the mediums to do that now more than ever. This can only be a good thing for us. Dolphins, one of the smartest mammals on earth, show the longevity of their evolution is because they are highly social and one of the happiest of all animals. In an article in Psychology Today titled “The Psychology of Social Networking,” Dr. Tomas Chamorro-Premuzic, AP of Psychology at the University of London, talks about the psychology of social networking:
In lay terms, your DNA personality drives why and how you socialize. Author and Media sociologist Brian Solis says:
WE, is why social media networking works so well and has exploded so fast. It will continue to socially revolutionize us. We Are All About Immediacy And Real Time Now. We want it all and we want it now – instant gratification. The advantage of getting information immediately gives us the ability to act on it faster. The Pure Sociology And Psychology Of It All Makes Sense. We are naturally drawn to socially interactive platforms, centers of influence for news and information, hubs for sharing content. Facebook, Mashable, CNN, Technorati all epicenters for gathering now as well as parks, town squares, streets and town halls. Tribes, Communities, Families And Networks Have Always Built Commonality. Our Need To Mentor, Help, Grow And Lead Each Other Is Greatly Enhanced By Social Media. We Now Have A Way To Leave A Legacy Personally And Virtually. As we continue to blend and balance our in person relationships with our online and social relationships, it will only enrich and expand our human connections and potential. Meet up with some cool people face to face and on social networks everyday. It will make you feel more connected, happier and a part of what we now know is a new revolution and evolution: “Digital Darwinism.” How do you do the “WE” in your social ME-dia world? Community Photo via Shutterstock From Small Business Trends |
| When It Comes To Business, All Communication Is Marketing Posted: 31 May 2012 05:00 AM PDT Instead of leaving your marketing to others, it pays to learn the lay of the land, and then do the parts that work best for your personality — and contract the rest (because you don't have to do it all yourself).
For the budget conscious small business owner, there are several ways to contract help. This ranges from paying high end professionals to college interns specializing in the service that you need. Truly, when it comes to getting help, where there's a will, there is a way. But before you start bringing people in to help with your marketing, you need a marketing plan that you understand. To develop your strategy you can do a few things. 1.) Pay for professional training and their team. In order to be a good driver you have to practice. Teachers, doctors and administrative assistants acquire training. And when it's time to implementing an effective marketing strategy, it pays for you to learn from successful others. The training can save you time, money (in the long run) and confusion. 2.) Read great marketing books. Some of us are working with a smaller training budget, so grab a great book and make it a habit. At a minimum, as the seasons change, learn something new about marketing. This habit will lead to creative ideas when you need them the most. 3.) Wing it and watch it work. This philosophy is more effective after you have completed number one and two. Winging it without a sound marketing mind can be dangerous. But after all the training, there comes a time when you just have to jump off and fly. Marketing Isn’t Easy For Every Personality Type…However, it's necessary for every business. Truth is, when it becomes important you find ways to get it done no matter what. In “Harness the Innovative Power of Introverts” Anita Campbell, Founder of Small Business Trends, says:
While Anita is talking about maximizing these personalities in a company environment, technology can also help the introvert market her business without leaving her shell. Since your website is (should be) an automatic staple to your marketing strategy, it's a perfect initial platform for any business, especially the shy business owner. Your website is a way to share and spread your message without having to constantly put yourself out there (in a traditional sense). Well Chosen And Well Placed Words…Pictures and videos on your site can speak for you while you rest or work one-on-one with a client. Since an effective website is more than just throwing up a brochure page, there's plenty to pay attention to. To get you started or tweak what you have (as well as other aspects of your marketing) Ivana Taylor of DIYMarketing shares some must have tools for your business in “7 Technologies Marketers Can't Live Without.” In “Cultivate In-House Geniuses to Inspire Innovation“ Anita also highlights the role that your employees play. She says that innovation can come from your team if you cultivate a genius environment (like Apple). They can also become key players in your marketing strategy. The Goal Is To Tune Your Employees In…Create a team that gets excited by helping your clients, to turn them into experts about what you have to offer and how it can help your clients. These ground floor ambassadors hold a key position in your marketing. When it comes to your business, all communication is marketing, so make the most of it.
From Small Business Trends |
| SOPA, CISPA and Other Cyber Laws: The Impact on Business Posted: 31 May 2012 02:30 AM PDT Rules that strengthen security and protect intellectual property may sound good for business at first, but some critics are concerned proposed laws like the Stop Online Piracy Act (SOPA), Protect IP Act (PIPA), Cybersecurity Information Sharing Act (CISPA), and Anti-Counterfeiting Trade Agreement (ACTA) may pose threats to Internet job creators and innovators. Some of these proposed rules like SOPA and PIPA have been taken off the table for now – but threaten to rear their ugly heads in various forms. An OverviewThe pros and cons of SOPA and PIPA. Though both laws have been taken off the table in Washington (for now), chances are that similar intellectual property and security regulations for the Internet will continue to be floated. Here are the facts behind these proposed laws and a look at the arguments for and against their implementation. Would your company do well or poorly in a SOPA world? PC World Do CISPA, SOPA, and PIPA supporters understand the Internet? It’s a question posed by blogger Mike Masnick when examining people like Chris Dodd, Chairman and CEO of the Motion Picture Association of America, who claims the Internet was developed by strict copyright enforcement. Many opponents of SOPA and PIPA respect intellectual property but have other concerns about the slippery slopes the regulations may represent. TechDirt CISPA RisingCISPA emerges following SOPA and PIPA. Is the Cybersecurity Information Sharing Act of 2012 an honest attempt to improve security in the online world, or just the latest in an attempt to attack online privacy and liberty? Jim Harper, Director of Information Policy Studies at the Cato Institute has some definite opinions. Cato@Liberty Microsoft and Facebook support CISPA, but should you? The Cyber Intelligence Sharing and Protection Act could let government agencies gain access to customer data from Internet service providers and websites if that data represents a threat to cyber-security. But how exactly is this threat defined, and what could the new Internet regulation mean to privacy and freedom? Lifehacker Security and FreedomSOPA and PIPA foreshadow battle over Internet control. Who should control the Internet? The battles over SOPA and PIPA, which raised many concerns about intellectual property versus freedom of expression, may have only been the first volley. In December, 193 nations gather in Dubai for renegotiation of the United Nations treaty on International Telecommunications Regulations. What will the impact be on you and your business? Vanity Fair Do SOPA, PIPA, and CISPA undermine your rights? Internet threats are quite real, says US policy advisor and computer scientist, David Gewirtz, but are not neutralized by legislation that curbs online liberties. Some of those security regulations—he mentions SOPA, PIPA and CISPA specifically—are misguided efforts that, in reality, protect special interests while they erode our liberty. ZDNet Concerns AboundInternet Defense League started. So many anti-piracy regulations have been proposed (which critics argue are also anti-freedom) that an organization backed by tech companies like WordPress, Reddit, Cheezburger, and others has been organized to raise awareness of the issues and to organize opposition to those the group believes pose a threat to online freedom. All Things Digital What age group cares most about Internet freedom? It may not be surprising that concerns over Internet freedom are highest amongst the 18 to 29 demographic. This articles reports on statistics compiled by the Pew Research Center at the height of the controversy over online privacy legislation earlier this year. To what degree do you think creators of online content and online businesses were also concerned? The Atlantic ACTA: A whole new threat? According to one California congressman, the proposed Anti-Counterfeiting Trade Agreement, an international agreement that nations, including the US, are considering, could be a huge threat to “job creators, Internet service providers, innovators, and individual Americans.” VentureBeat From Small Business Trends |
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