Entrepreneurs: Help for Getting Started

Entrepreneurs: Help for Getting Started

I had to opportunity to interview Martin “Marty” Zwilling this week.  Marty has an impressive background.  He is a former executive with IBM.  He has served on multiple advisory boards.  He currently works as an author and consultant.  His company, Startup Professionals, is dedicated to helping new entrepreneurs succeed.  He gave some great insight regarding some of the toughest issues facing new entrepreneurs. The following is our six-part interview. Click on the link below the picture.  Scroll to next video with the arrow at the bottom after watching each one. Continue reading “Entrepreneurs: Help for Getting Started” →

Entrepreneurs and Celebrities Use Kickstarter for Funding

 

Kickstarter has been a successful crowdfunding option for potential entrepreneurs to garner cash.  However it has not been without some issues.  According to The Wall Street Journal article The Trouble With Kickstarter, “The only thing worse than having to watch your friend’s arty movie is having to pay for it too.” Aside from the problems associated with pestering friends to donate, there have been some successful ventures thanks to this site.  The following list contains some of names of celebrities who have used the site:

Continue reading “Entrepreneurs and Celebrities Use Kickstarter for Funding” →

Problems with Crowdfunding

 

Crowdfunding occurs when people network through the internet to raise money to support other people’s ideas or interests. Crowdfunding became popular when Obama signed the JOBS Act bill in April.  Since then, sites like Fundable and Kickstarter have garnered media attention.  Not all information about crowdfunding has been positive.  The Harvard Business Review’s article The Road to Crowdfunding Hell explained some of the problems associated with the process.

The Wall Street Journal’s article Crowdfunding Efforts Draw Suspicion contains some of the latest problems.  The SEC was supposed to review the rules for crowdfunding by January 1.  They missed this deadline. In the meantime there may be some people who have taken advantage of the situatoin.  “State regulators already have taken or considered enforcement action against a handful of companies for allegedly exploiting online fundraising to commit fraud—or simply jumping the gun on the planned rules changes.”

There have been a large number of websites dedicated to crowdfunding.  Over 9000 sites include the word in their website name.  “Crowdfunding enthusiasts say the number of websites being registered reflects the pent-up demand for the financing targeted by the JOBS Act.”

The concern is that there is a lot of interest without a lot of control. “The association of securities regulators says the JOBS Act doesn’t do enough to protect investors.” Crowdfunding Insider claims Education is the Best Weapon Against Crowdfunding Posers.

The following video explains:  The JOBS Act and its impact on crowdfunding.

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Top 7 Ways for Entrepreneurs to Obtain Funding

 

The good news is that entrepreneurs have more options for funding than in the past.  According to Entrepreneur.com, access to capital is improving for small businesses. This may be a frightening time to begin an entrepreneurial venture.   However, there are an increasing number of available financing options. The following list contains some of the most prevalent in the current market.

  1. Banks – The number of people going to banks for loans is increasing. “According to a report this week on banks with more than $10 billion in assets, the overall volume of loan applications increased by 5.6 percent in September over August, reports Biz2Credit, an online credit marketplace in New York City that connects small and midsize businesses with lenders.”
  2. SBA Loans – Entrepreneurs have also traditionally gone with loans from the Small Business Association.  “In 2011… it backed $30.5 billion in 61,689 loans to small business.”
  3. Angel Investors – “Angels invested $9.2 billion in 27,280 startups in the first two quarters of 2012, a 3.1 percent increase in dollars and a 3.7 percent increase in number of entrepreneurial ventures over the same time in 2011, according to a report this week from the Center for Venture Research at the University of New Hampshire.”
  4. Venture Capitalists – “In 2012, venture capital firms have raised $16.2 billion, representing a 31 percent increase from the $12.4 billion raised in the first nine months of 2011, according to a report from Thomson Reuters and the National Venture Capital Association released this week.”
  5. Crowdfunding – There have been some unusual ways that entrepreneurs have managed to raise funds.  Crowdfunding has been growing in popularity.  Entrepreneurs can raise funds through networking on the internet.  Supports fund other people’s ideas or interests.
  6. Microlending – One of the top microlending sites is Kiva.org. Kiva is “a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world.”
  7. Pledging – Kickstarter is a unique site allows entrepreneurs to keep ownership and control over their work while tens of thousands of people pledge millions of dollars to help finance their creative ideas. The idea must reach its funding goal or no money changes hands. Entrepreneurs that receive their anticipated funds, can test concepts without risk.

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