The post CrowdFunding CrowdSourcing Entrepreneurial Ventures Show 015 was first published on mitchellchadrow.com
0:00you’re listening to the listen up show
0:01door knob entrepreneur podcast I’m
0:03Mitchell Chad row your host today on
0:05shows your own 1/5 today’s show is about
0:08equity crowdfunding and route sourcing
0:14it’s your business it’s your family if
0:17you’re like let’s get started
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1:02in the next 10 years it’s going to be
1:04the next big thing I have a friend who’s
1:06a professional very smart successful and
1:09he done is actually starting a software
1:11company so guess what they’re going to
1:13use it they are not going to use the big
1:15banks or the VCS the venture capitalists
1:18to fund them and if they really wanted
1:20to they could so for passive income this
1:23friend has also bought a lifestyle
1:25franchise so for his next franchise
1:28purchase he’s going to actually sell a
1:30share of the franchise store using
1:33that’s right you guessed it crowdfunding
1:36and he may even consider crowdsourcing
1:38after hearing this podcast today our
1:41startup round for all your hosting needs
1:43head on over to Mitchell Chad Road comm
1:46slash hosting Mitchell Chad Road comm
1:49flash hosting for all your web hosting
1:52need who do you use to host this website
1:54so what is crowd sourcing anyway and why
1:57should you listen up trusted friends out
1:59there to this viable alternative for
2:01obtaining those needed services and
2:03ideas or content by soliciting
2:06contributions from a large group of
2:08people online rather than from
2:10traditional employees or suppliers now
2:13on to crowdfunding it’s the use of small
2:16amounts of capital from a large number
2:18of individuals to finance your next or
2:21new business venture startup
2:23crowdfunding makes use of your network
2:26platforms through social media and other
2:28websites that gets the word out about
2:31your new business and attracts investors
2:33also trust smarter comm for all of your
2:36personal relationship and Bank smarter
2:38com for alternatives to big bang and
2:40banking why you might ask
2:42crowdfunding it increases
2:44entrepreneurship by expanding your pool
2:46of investors from whom funds can be
2:49raised beyond your traditional circle of
2:51owners and relatives but it also more
2:55importantly empowers you to focus beyond
2:58the big banks and the venture
3:00capitalists by using alternative means
3:03to expand your reach remember you’re
3:06smarter than most now a few examples of
3:10websites that you can go to for
3:13crowdfunding is Kickstarter and
3:15IndieGoGo they take small donations for
3:19charitable artistic endeavors or
3:22contributions to launch your new or
3:25existing business in return for the
3:27product being made the service or some
3:30type of a thank you so how can all of
3:33this be done now you may ask well you’d
3:37have to actually turn to the JOBS Act
3:40that was created back in 2012 so let me
3:44just educate you a little bit and also
3:46keep you entertained now this act
3:48creates a special exemption for
3:51crowdfunding so that companies can
3:52actually sell securities by way of
3:55crowdfunding generally under the Act
3:57companies are limited to raising a
3:59million dollars in any 12-month period
4:02using crowdfunding or 2 million dollars
4:05with audited financials now companies
4:08cannot crowd fund on their own but
4:11they’ll have to actually engage in
4:12intermediary someone who’s actually
4:15registered with the Securities Exchange
4:17Commission as a broker or a funding
4:20portal these intermediaries will be
4:22required to vet the company that’s
4:25actually seeking the fund
4:26now individual investors will be limited
4:29in the amount that they can invest by
4:31way of the crowdfunding in any 12-month
4:33period so for example if your annual
4:36income or net worth is less than
4:38$100,000 then it would be the greater of
4:41two thousand or five percent of your
4:44annual income or net worth or if your
4:47annual or net worth is actually more
4:49than a hundred thousand then it would
4:51actually be ten percent of your annual
4:54income or net worth up to a maximum of
4:58$100,000
4:59now when calculating your net worth you
5:01should not count the value of your
5:03primary residence or any loans that are
5:05actually secured by your residence and
5:08that’s how they actually determine who
5:10is considered a non-accredited investors
5:12who can invest in these types of new
5:16startups or new ventures that are
5:20created many other new and young
5:22entrepreneurs startups franchisees will
5:26want to actually do the same thing with
5:28their products and businesses as well so
5:30maybe our guests or trusted friends and
5:34the listen up podcast audience are
5:36thinking gee how can I you know get
5:40funding this particular way well just
5:42look at it the crowdfunding sites that
5:45are there there’s so many of them out
5:47there and many entrepreneurs need this
5:50type of help so I actually right here on
5:53the listen up podcast show the Mitchel
5:55Chad Rowe show I interview these
5:57startups young and new entrepreneurs on
6:00the podcast so take my recent interview
6:03with Scott Peck Arella on show zero one
6:06two and actually this coming up Friday
6:09I’ll be interviewing Amira
6:11andris Oren show zero one six these
6:14types of startups arm that are
6:18interesting to listen to they have
6:21wonderful outlets actually right here on
6:24the listen up podcast show the mitchell
6:26chad row show and at mitchell chad row
6:29calm to increase their visibility so you
6:32have all these free premium resources
6:34that we provide right here
6:37as they are getting going now all you
6:40have to do is subscribe at Mitchel
6:42chadroy comm so the take away listen up
6:45now here’s some actual startup news that
6:50you can you can use to raise
6:52crowdfunding and sourcing from
6:54non-accredited investors that you’ve
6:57actually been able to do since 2012 as I
6:59mentioned before so what you may ask
7:02well this is really a big deal now don’t
7:05let someone scare you out of this
7:07possibility and I would say that it’s
7:10extremely appealing as a viable option
7:13instead of going directly to big banks
7:15and VC’s so do you have to know what
7:19you’re doing sure thing that’s why we
7:22have this community of trusted friends
7:24right here education trust not just
7:28saying that we are authentic but we’re
7:31also authentic in the actions not just
7:34in the words when coming here as a place
7:39to get your information doesn’t matter
7:41if you can raise money from accredited
7:43Wester z’ big banks or VCS you see you
7:47can’t rely on these entities to always
7:49help you in the new new economy and you
7:53must take action to consider other
7:55alternative options to raise your own
7:57funds now the crowdfunding and sourcing
8:01way is what I’m calling it and sure
8:03there can be a lot of noise in the crowd
8:06but the crowd our crowd is smarter right
8:11well maybe you’ll get funded as well
8:15they will whisper to you but remember
8:18there’s no guarantee there are not many
8:21guarantees in life there is no problem
8:24here however you are just trying to
8:27stack the deck in your favor now
8:30naysayers will say beware caution ahead
8:33well dealing with the big banks and the
8:35VCS that that also is a as a cautionary
8:40tale and there just may be better
8:44opportunities to empower yourselves out
8:47there
8:48so what must you and your non-accredited
8:51investors know right off the bat
8:54yes it’s the collective crowdsourcing
8:57experience of the group
8:59well you renew or young entrepreneur so
9:02we are all all noticed correct the
9:05non-accredited investors are not the big
9:08banks or the theses precisely what
9:13that’s why we want them by our side I
9:16hope that it is obvious that the
9:18non-accredited investors may have
9:21collective crowdsourcing sales or
9:24distribution experience and have
9:26experience in purchasing stocks and
9:28companies with great ideas now that’s
9:32not the point we are tired of relying on
9:35big banks and venture capitalists for
9:38our education training and thought
9:42control on what is or is not a good
9:45investment
9:45these non-accredited investors do love
9:48your startup concept and they do
9:50envision one in every household that’s
9:53the point of our interest in you and
9:56your company and our crowdsourcing and
10:00the group collectively is smarter and
10:03they even know more about getting it to
10:05the market how to run the business or
10:07achieve positive cash flow we know that
10:09startups write business plans and the
10:12non-accredited investors use that to
10:14fund it but our experienced business
10:17owner guests and collective
10:18non-accredited investors are smarter
10:21than you may think they know cash flow
10:23is important as well which at the end of
10:27the day provides the business with a
10:29viable business not merely a business
10:32plan so do you really think that the big
10:35banks and the VCS are the only
10:38individuals that can actually drill down
10:40and ask the right questions of our
10:42startups or are the only people that
10:45have the secret sauce to success about
10:47just how these products will be brought
10:50to market and become sustained
10:52sustainable well folks think again our
10:56trusted friends and the non-accredited
10:58investors out there are being educated
11:01right here and we’ll know about the
11:04importance of the cash flow plan in
11:06addition to the business plan of these
11:08startups as being an essential focus
11:11point for success in their own
11:13investment we actually interviewed
11:16Damian Salas who was the assistant dean
11:18of the close school for entrepreneurship
11:21back on show zero one four and these
11:26young entrepreneurs and new startups
11:29need to tell their story they they know
11:32they have a wonderful platform right
11:33here on our show our trusted friends the
11:36non-accredited investors they’re not
11:39naive we know we know about sales that
11:43are essential part of any good idea for
11:46a startup and we have the crowd and
11:50sourcing here for education and training
11:53and wisdom from our own collective past
11:56experiences while we enjoy focusing on
11:59the product were smart enough through
12:01proper crowd sourcing and delegating and
12:04listening to these start-up management
12:07stories of the companies right here sure
12:10we believe in our guests products and
12:13solutions especially when we’re given a
12:15sample product so that these
12:16entrepreneurs can continue to grow and
12:18yes we believe that the startup will be
12:20able to manufacture and distribute the
12:23product in the future by the way that’s
12:26why we’re smarter non-accredited
12:29investors are investing smaller amounts
12:32of money in a number of companies so
12:36that it can actually help them diversify
12:38their own investment portfolio we are
12:42smarter than you think and believe in
12:45the management team and the story of the
12:48start-up that’s what determines the
12:50success or failure of the product and we
12:53all know that no we are not going to
12:56oversimplify the sales process to low us
12:59into a false sense of security in the
13:02product or the startup there is a lot of
13:04information out there online in the
13:07stores and each day we could be
13:09overwhelmed by all of that information
13:11here
13:13s we are consumers but we’re also
13:15entrepreneurs and trusted friends of
13:18this community where we pride ourselves
13:20on educating ourselves learning from one
13:24another at right here right now so yes
13:28we are all producers and we have faith
13:31in what it takes to just have a positive
13:35response to what the company is actually
13:38offering we must be realistic however of
13:42the timing between the product offering
13:46and when it actually is going to be
13:49available for the public so you know as
13:53a startup that the cost and time of
13:55production and distribution can be
13:57greater than the anticipated and
14:00building of that right into your plan so
14:04our fast pitch Mitchell Chad wrote calm
14:07slash books for books audio books
14:10guest recommendations and the books that
14:13I read to start off each day sponsors
14:17are fast pitch my book club
14:19recommendations that get Mitchell Chad
14:21rode calm slash books to see more of my
14:24recommendations and recommendations of
14:26our guests just go to Mitchell Chad
14:28wrote calm slash books it’s your number
14:31one resource for book reviews and
14:33recommendation so folks when you create
14:36your business plan you need to also
14:38obviously address the the cost and the
14:41time of production and what it’s going
14:43to actually take to distribute your
14:45product and we realize that we know that
14:48because we’re here and we’re listening
14:49and it won’t deter us nor discourage us
14:53as the trusted friends here in this
14:56community are actually being supportive
14:59of you meanwhile you know that you’re
15:03going to get great publicity right here
15:05providing you and your company with free
15:08premium resources and better access to
15:11the markets non-accredited investors
15:13through this new Jobs Act that can level
15:16the playing field
15:18and help you move on these good ideas
15:20and have those your new ventures and
15:23startups move first to market this can
15:26help the startups idea get to market so
15:30that it doesn’t become outdated the
15:32guest startups here they don’t get a
15:35false sense of security
15:36after a successful crowdfunding because
15:39you know we’re well grounded
15:41we’re realistic we especially know this
15:43because we’re able to take constructive
15:45feedback news that we get from the crowd
15:49from our trusted friends here that the
15:52ideas can be better improved upon by
15:55looking at the management of the company
15:57how the product is actually delivered to
16:00the market and this will also help us
16:05look to and put in our plans how we’re
16:08going to achieve positive cash flow so
16:12launching the business is just merely
16:15the starting point folks and we know
16:17that it doesn’t matter you know that
16:21we’re able to raise twice as much money
16:23as we anticipated it’s all about the
16:26startups education and lessons learned
16:28which are required for what it takes to
16:30get to the market and quantifying that
16:33in actual cost of sales that’s what our
16:36people want to hear because we’re
16:38smarter than you think
16:40regardless of how much is actually
16:43raised I wrap up round mitchell chad row
16:46comm slash photos for all your graphic
16:50design me i hope that you’ve enjoyed
16:54this show on crowdfunding and
16:57crowdsourcing because it really is an
17:01important concept in starting up our new
17:05ventures and our business ideas and we
17:08always know that we have a platform here
17:11of trusted friends to talk to to be able
17:14to communicate with and help i’m looking
17:16forward to our next episode where we
17:20interview another young entrepreneur on
17:24our show 16 amir address and we’re
17:29looking forward to that so until next
17:31time
17:32in closing let me have for my listeners
17:34help first please subscribe to my email
17:36list at Mitchell Chad Road comm slash
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17:41interview transcripts my ebook 30 tools
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17:58[Music]
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18:38until next time
CrowdFunding CrowdSourcing Entrepreneurial Ventures Show 015 was republished on startupssmarter.com
