Lack of money is no longer the problem it used to be for entrepreneurs who have a great idea but empty pockets. Don’t know rich people? Don’t have connections to venture capitalists? Local bankers can’t give you a loan? No fear. With new crowdfunding rules, as long as you have a broad range of skills, a solid work ethic, a thorough plan of execution, and a little marketing savvy, there are ways to get your startup off the ground, including generating much-needed funds.
Leverage Your Sweat Equity
Make the most of your own knowledge, skills and talents. Work around the clock, if necessary, without compromising your health, and do everything you can do yourself. Ensuring your business is based on what you already really know will help you avoid, or delay, the need to pay other experts.
Talk It Up
Tell everyone what you’re doing, without giving away intellectual property secrets. Talk to your friends, family, former colleagues, business contacts, etc. Phone them, buy them coffee, send emails. Word of mouth is free, and in addition to building your audience, it can often open doors to marketing or operational opportunities you weren’t aware of before.
Keep It Lean
Focus on your immediate needs only and keep expenses to a minimum. Work out of a virtual office, buy only what you absolutely need at the time, and avoid racking up credit card debt.
Don’t Scrimp on Important Stuff
Future investors are going to want to know the business is solid. It’s not worth it to cut corners on things like engineering, business planning, financial and accounting records, legal structure and documents. Document relevant processes as you go, with an eye to what future investors may wish to review. Take care of any legalities early. If your intellectual property gets stolen before you have a chance to capitalize on it, you will have wasted all your time and energy.
Rely on Freelance Consultants
When you need help beyond your own considerable skillset, make use of talented freelance help. You only pay for what you need, when you need it, and you’ll benefit tremendously from the expertise.
When You’re Ready, Crowdfund!
However attractive it may see to get into crowdfunding early to boost your cash flow, it’s important to first make sure you’re ready with a solid business plan, a solid contact list, large social media footprint, and a very well thought-out campaign. Will you offer rewards? Make sure you don’t overpromise and run into fulfillment problems. If your planning has been solid and your idea is good, expect the “crowd” to help you validate your startup with much-needed injections of capital.
Some forms of crowdfunding require investors to be accredited. VerifyInvestor.com can assist you verify the accredited status of your investors with its confidential, fast and secure services.
