Raising money for a non-profit organization used to require a variety of activities that might include phone soliciting, mailing letters or asking for funds through the media. These time-consuming tasks can end up being a full time job. But with the introduction of fund-raising websites such as FundRazr, FirstGiving and DonorsChoose the process has become much easier. At these sites, a donor can easily invest in the non-profit of their choice.
The passing of the JOBS Act of 2012 opened up the opportunity to finance businesses in a similar manner through investment crowdfunding. This means that if you are looking to fund a startup or raise capital to expand a business there is now direct access to investors. Sites such as AngelList, Early Shares and RockThePost give you the opportunity to put your business on display for those looking for a good investment.
While the documentation requirements may vary from site to site, a fifty page business plan probably won’t be required. However you will want to take time to develop a proposal to cover certain points. Start with an eye catching summary of your plans. Keep in mind that you are probably up against many others so write in such a way to capture the reader and make them want to read further. Telling the story clearly is important and having it proofed is a good idea as well. Better yet, have the project reviewed by a third party to see if they can grasp your objectives.
Secondly, let the reader know about you and other founders. Include relevant background information that builds creditability and demonstrate that you will be able to lead the business to success. Thirdly, give the reader reasons why they should invest in your company. Include marketing plans for the products or services. Explain how customers will be attracted and the plans to build a customer base. Also, identify your niche market and why you will be different from competitors. Finally share who is on your startup team including key partners and consultants.
If traditional funding attempts haven’t worked, try this new approach. As usual use your favorite search engine to find a complete list of sites available. Be sure to do your homework and perform complete background research.
Ted Saul is a business coach that assists with Business Plans and Project Management. He holds a master certificate in project management and has earned his MBA from Regis University. Ted can be reached on LinkedIn, TedS787 on Twitter or emailing Ted@tsaul.com.
