The dream of having a successful crowdfunding campaign is something that many entrepreneurs have right now. Some are seeing their dreams come true, only to discover that the complexity of using those funds is a nightmare that wouldn’t wish on anyone. Who is sitting at your entrepreneurial table when you have a successful campaign? These are the folks that you’re going to need.
1. You.
You’d better be at your entrepreneurial table. If you’re not willing to invest time into your project, why should anyone else?
2. Your Legal Counsel.
There are tax issues and regulatory compliance concerns that must be addressed with modern crowdfunding. If you’re only raising $5k for a book, maybe you don’t need this representative. Otherwise you’ll want your best interests protected.
3. Your Crowdfunding Platform.
All crowdfunding platforms take a cut out of your profits as a commission for serving your campaign. Some of these platforms have an automatic equity interest in successful campaigns. Make sure you read the terms and conditions of your crowdfunding agreement carefully before raising money if you don’t want this representative at your entrepreneurial table.
4. Your Broker.
Not every broker knows the crowdfunding industry. If you want to experience continued success, then make sure your broker knows how to make that success happen through what you’re doing.
5. Your Investors.
No matter what form of crowdfunding you decided to take on, your investors are going to deserve a seat at your entrepreneurial table. Without them you wouldn’t have the cash you need, so make sure you take their feedback seriously. If you have high level investors, then expect to see their legal counsel at your table as well.
6. The SEC.
The Securities and Exchange Commission is going to be keeping an eye on you, especially if you’re equity crowdfunding. They have over 80 years of experience making sure that the market is fair and orderly. The SEC might not always be sitting at your entrepreneurial table, but make sure you reserve a seat for them.
It can be difficult to get all of these folks around one table to have a productive meeting. With crowdfunding cash in hand, you’ve got to find a way to make this work. The best solution is to form relationships with all those involved and build them into something strong and close. This will allow you to work as an entrepreneur while having everyone understand what you’re doing – and you’ll understand what the expectations of everyone else happen to be as well.
Strong proponent of individual liberty and free speech. My goal is to present information that expands our awareness of crucial issues and exposes the manufactured illusion of freedom that we are sold in America. Question everything because nothing is what it seems.
