Over the last decade, particularly after the country’s recent economic recession, the increase in startup businesses has been higher than this country has ever seen in such a short amount of time. However, while we are starting to see the economy finally on the mend, finding capital for a startup business can still be a challenge. As a result, the launching of crowd funding campaigns is now more popular than ever.
While discovering, establishing, and funding a startup business or project has proven to be highly successful as well as show true entrepreneurial initiative, it can also involve a lot more work than many entrepreneurs are willing to admit, or realize in the beginning.
Here are a few important marketing and administrative areas that need to be considered prior to determining if crowd funding a startup or project is right for you.
Financial Reporting. In running any small business, startup, or project, there is a great deal of financial reporting that is required. A lot of this can even involve a lot of math…which may or may not be your forte, depending on your working style and strengths or weaknesses. If basic arithmetic or playing and analyzing numbers doesn’t really appeal to, and you aren’t in the position to hire an accountant or bookkeeper, then you might want to think long and hard about a startup business or project.
Organization. Running a business, regardless of size, industry, or product or service, requires immense organization. It requires a lot of documentation, file keeping, reporting, (in both hard copy and electronic formats) and even physical organization of technology, resources, marketing materials, and product samples, if your entity is product-based. Many supremely organized entrepreneurs find that they have difficulty working in a cluttered or messy environment. Organization is both smart and crucial to running a successful startup business.
Networking. Networking is another crucial aspect of getting the word out about your startup business or project. If you are running a crowd funding campaign, then you will need to properly network and market your startup, project or idea in order to increase traffic, sponsors, and support. Networking requires presenting marketing materials, product samples, as well as talking with potential customers and sponsors. Networking is an optimum practice for an entrepreneur who is a “people person”.
Exit Strategy. You’ve been immersed in your start up business and you have launched a crowd funding campaign and everything is going swimmingly. But maybe you are beginning to have second thoughts about fully launching your startup business or project. Maybe another aspect of life is getting in the way or maybe you’ve just decided that a startup business isn’t for you. It happens. However, if your crowd funding campaign has generated sponsors and support from all walks of life, it’s important to have an exit strategy in place that won’t leave sponsors or investors angry.
Regardless of your project, idea, or what you plan to offer with your startup, launching your idea is a big deal. Therefore, it’s important to take it seriously, even if it is just for fun. There are a lot of financial and even legal considerations to take note of before deciding if launching a startup business and crowd funding campaign is right for you.