Getting Started with Crowdfunding

Discussions Include:

• What is Crowdfunding?
• 9 steps to create a successful crowdfunding campaign
• The benefits of crowdfunding
• Is it worth investing the time in a crowdfunding project?
• Tips & inspiration!

The Hangout:

Join Creative Chat Cafe host, Zef Zan, regular co-host, Super Julie Braun of SuperInterns.com, and first time guest, Manolis Sfinarolakis of RealityCrowdTV.com, as they discuss "Getting Started with Crowdfunding!"

The Conversation:

ZEF: The term "crowdfunding" is still new to many. It is a new trend in funding a project or venture by raising money from a large group of people. Crowdfunding is quickly becoming a favorite option among entrepreneurs, but how do many succeed in raising the money they need to grow their idea or business? Is it for every idea out there? What stage of business growth does crowdfunding work? Today, Super Julie and I are excited to have a very special guest with us on Creative Chat Cafe to discuss this topic. It may be new to many in our audience out there, so Manolis, what is crowdfunding?


MANOLIS: Crowdfunding is the ability to turn social capital into actual capital via the internet. A good way to relate to what crowdfunding is from a video that was released by the White House - "take the concept of passing around the basket at church where a group of people contribute to an individual with a need. Take that concept, put it online, apply it to things other than charities, including small business, art, music, and film, and you have crowdfunding."


ZEF: What steps should I take to make my crowdfunding campaign a success?


MANOLIS: Every crowdfunding campaign at one point or another goes through the 9 stages of a crowdfunding campaign. These are performed 3 to 6 months before a crowdfunding campaign ever launches. They are:

• Business Plan
• Intellectual Property
• Social Media
• Public Relations
• Campaign Strategy
• Networking & Team Building
• Website Development
• Profile & Video
• Fulfillment

ZEF: Super Julie, you were the one who had introduced me to this "crowdfunding concept," and you have had some head start in the topic. Do you have any questions for Manolis?

SUPER JULIE: Everyone thinks that crowdfunding is all about getting the money. What are the "other" benefits of crowdfunding?

MANOLIS: Crowdfunding is a great way to validate and prove a concept by gauging the consumer demand for your product or service. If you had appropriately marketed the launch of your crowdfunding campaign and you notice there is no traction, that is usually a good sign that your product or service does not have the consumer demand you thought it would. Other benefits to crowdfunding include the ability to learn new skills the you otherwise would not have had to learn if you did not engage in a crowdfunding campaign. Because social media and public relations are such a huge part of crowdfunding, learning these skills for the crowdfunding project will carry forward to your business far after the campaign has ended and will be invaluable to your development as an entrepreneur. It also builds a tribe around your business, cause, or endeavor. Seeing people helping you to bring your vision to life is something that is truly inspiring. You are now placing yourself in a leadership position and leading the members of your crowd to see the manifestation of the group's desires to see your project comes to life.

SUPER JULIE: In your estimation, is the time investment worth it?

MANOLIS: The time investment is only worth it if you are fully committed to your project. Crowdfunding is an enormous endeavor that usually takes 3 to 6 months of pre-planning before one ever launches the fundraising campaign. I tend to gravitate to entrepreneurs who I know are fully committed and they invest so much of themselves into their business that they have the ability to lead others to see their view of the world. If you are fully committed, then it is most definitely worth it!

SUPER JULIE: At SuperInterns.com, we know how to help companies get help by utilizing virtual interns. What do you think is challenging for most companies to "get" when it comes to having enough help?

MANOLIS: The day to day social media work is extremely important, but not everyone has a knack for it nor do they have enough time to do it. Virtual interns sound like an amazing way to leverage technology and human capital to assist in crowdfunding campaigns in an affordable fashion. Public relations, specifically the multiple touch points one must engage in to get a journalist or blogger's attention, is something that can be outsourced in the early stages and is something with which virtual interns can help.

SUPER JULIE: If you had limited help, time, and energy, what would be the "must have" or "must do" for every crowdfunding campaign? Where would you focus your limited resources?

MANOLIS: To get the most return for your time, the most important job is to leverage your existing connections and traditional network to help you reach the ciritcal 30% of your funding within the first week of your crowdfunding campaign. If you have a strong traditional network behind you, they will be able to leverage their own social channels and connections to share the project and expand your reach exponentially. They also may know some journalists or bloggers personally, whom they may be able to introduce you. With a warm introduction, you are more likely to get an interested journalist to feature you and your product.

Your Hosts:

Meet Zef Here!

SUPER JULIE BRAUN
SuperInterns.com

"Super Julie Braun is the Co-founder of SuperInterns.com and she has worked with hundreds of employers and schools, and thousands of virtual interns all across the country.  As a thought leader in working virtually, Super Julie has helped companies and organization transform their “brick and mortar” thinking to “online” thinking and having the opportunity to work any time and from any place in the world with interns."

MANOLIS SFINAROLAKIS
RealityCrowdTV.com

"Manolis Sfinarolakis graduated from the University of Connecticut with BS in Business Administration with a concentration in Accounting. After two stints working for Deloitte & Touche LLP and brief restaurant management, real estate, and internal audit career, Manolis identified a unique opportunity to create Reality Crowd TV Media Corporation, whose mission is to inform, educate, inspire, and motivate entrepreneurs worldwide to start small businesses through crowdfunding and to provide a blueprint on how to crowdfund. Manolis has been heavily involved in the Greek community as a member of AHEPA and the former Supreme President of the Sons of Pericles."

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post-show conversations!

Tips & Solutions:

TIPS IN GETTING STARTED WITH A CROWDFUNDING PROJECT/CAMPAIGN

1. Preparing 3-6 months before you ever launch a crowdfunding campaign is key.
2. Review other people's campaigns that have similar projects like your own, both successful and unsuccessful, to give you a baseline of knowledge to mimic what good things they did and not mimic the bad things they did in order to increase your chances of success
3. You must have 30% of your funding within the first week of launch lined up prior to launch in order to receive the momentum necessary to reach your funding goal (see # 1 above). Statistics show 90% of campaigns that reach 30% of funding in the first week move on to raise the remaining amount.

Inspiration:

Tree Sleeve Kickstarter Campaign

This campaign cancelled their fundraising, but for good reason. An angel investor came in and gave him the necessary funds he needed and introduced him to Starbucks! I know this gentleman, Raymond, personally and I helped him on the PR end of things by providing him with targeted media lists.

I believe that this angel investor may have had an interest before the campaign, but wanted to see if Raymond and his team had the wherewithal to prove the demand for their Tree Sleeve product. The Kickstarter campaign certainly gave him the exposure he needed to secure the investment from the angel investor.

The reason why he did not finish anyway is because there would have been an associated cost to fulfill those rewards in the Kickstarter that would have resulted in less than a net gain of $100,000. With the angel investment, it was $100,000 net cash influx so that he and his team could use all those funds to build the company to the next level without needing to produce all of the other products that the campaign would have required him to fulfill. The great thing is, he still received all of the email addresses and contact information of all of the individuals who contributed. When the time comes, he will still be able to convert the Kickstarter backers into customers when the production time comes for his finished product.