First, a quick story:
Like many entrepreneurs between 2008 and 2010, I got crushed over a very badly timed foray into the luxury real estate market. Even though I dusted myself off and got back in the race, my credit score is lagging well behind our personal recovery because we stopped using credit. “If we can’t pay for it, we don’t buy it” is our mantra.
A business we’re launching requires we buy a $45,000 asset. We’ve been working on this Crowdfunding eBook since late September 2013 because I believe the age of small businesses getting bank loans is dead, so I thought I’d apply for a business loan where I bank: People’s United Bank. Even though the asset’s market value is $55,000 and I was putting $20,000 on deposit as additional collateral, my application for a $45,000 loan was denied. The assistant branch manager was very sincere when he said the bank would reconsider if I put $45,000 on deposit with the bank.
“So, I should put $45,000 on deposit for ~1% interest with no ability to access it, and pay People’s 6 3/4% interest so I can get the loan? Do you understand why I’ll pass on that offer?”
Even though, in this case, my theory proved true, I was still annoyed because it shouldn’t be this way. Think of all the TARP money we put into the banking system so banks could correct THEIR OWN MISTAKES… and still, in December 2013 they can’t approve a well securitized loan to a lifelong small business operator with almost 3 decades of proven ability to start and grow a small business? Which is a perfect lead in to this new eBook:
How To Crowdfund Your Small Business to Success | Part 1: Funding New Product Development
Click on the image and it will take you to my company website so you can download this 34 page eBook.
If you check out the Table of Contents you’ll see we assume nothing while taking you through the entire process of launching a crowdfunding campaign of your own:
What started as a blog entry grew into a major project. I thank my son, Daniel, for doing much of the research and the earliest drafts. He also did the design work and photography, multiple draft edits, for learning a new application (Adobe’s InDesign), and helping drive this to completion. I hope you find this provides you with great value.
And I’d love your feedback on where I miss the mark, as I’m happy to update it and fix any omissions. I’m on the fence about writing PART 2 where I’d cover using crowdfunding for securing equity investments and business loans, but that’s for another day. For now, I’m most interested in you reading this eBook and letting me know if you find the content to have real value in your quest to grow your small business.
Running a small business is a lot like giving birth… sometimes it gets a mind of its own, milks you for all your worth, and runs away leaving you wondering what happened! But every now and then, the rewards turn into great pearls of fulfillment and joy.
Merry Christmas, Happy Chanukah, and Happy Holidays to all!
Dan Gallo, The Small Business Lifer
Managing Director, The Allasso Group
Managing Partner, DNA Properties