Hey There Y'all...Welcome Back to Que-Licious!
I first heard the term crowd funding while watching something on Fox News in regard to the Jobs Act; and my curiosity was peeked. Although I hadn't heard this exact term used as a source for start-up capital, I was familiar with similar options such as Angel Investing and Venture Capital. Was crowd-funding just another “trendy” term used to re-invent the financial backing wheel? Or was this something different? Turns out; something different.
“What the heck is crowd funding anyway?”, well…here is my take on it.
Crowd-funding is the combined effort of individuals making up a “virtual-crowd” usually via social media or a website to pool their money and support your cause or project. Again…just the way I see it. Crowd-funding projects can range from start-up capital to scientific research and virtually everything in between. A person or group sets a financial goal, describes what the money will be used for, finds an online portal like Kick Starter or GoFundMe to collect contributions for their project, and updates contributors on the progress of the project.
I had mixed feelings about this approach and to a certain degree, still do. This particular source for obtaining capital would most likely attract some unsavory characters and allow scammers to run a muck. And…to be honest with you...it kind of reminded me of begging. I don’t go for handouts! So like I usually do; I picked up the shovel and yet again began to dig. (I should be almost to Kansas City by now!)
There are some amazing, legitimate organizations and individuals out there helping people just like me achieve their goals. Sadly; the complete opposite end of that spectrum is true as well. Dishonest people are going to be encountered everywhere, but it seems as though the Internet is their favorite place to dwell. Your greatest weapon against being scammed is research. Research the crowd-funding site through the Better Business Bureau. Research the individual asking for backing or support. If they don’t have contact information or can verify they are who they say they are…don’t invest. Whether you are investing $10 or $10,000,000 the same principles apply.
After searching the Internet over and reading article after article on crowd-funding from websites I trust such as Forbes and Fortune; I decided to give it a try. But I wasn't about to ask for a contribution without contributors getting something in return.
…and that is where the home bakery comes into play.
I decided to implement a crowd-funding campaign in hopes of raising the funds necessary to purchase our food truck. I found a dealer close to us just over the border in Indiana and have priced the trucks between $8,000 and $10,000. Details of the project can be found on “GoFundMe”, the crowd-funding site where my project is hosted.
Success or Epic Fail it's all on me; and I am perfectly fine with that. What I would not be fine with is quietly waiting on the sidelines for my turn to play. I know my own capabilities and my own limitations. Unfortunately my major limitation at the moment is cold hard cash. Yes…I know I’m not the only one and I have exhausted all other resources to fund my little barbecue biz. However, in today’s unpredictable economy; financial institutions are not only limiting the amount of funds they will lend, but the type of loans they will approve, SBA backed or not. I believe this to be the primary reason for such an explosion of crowd-funding sites and a true testament of the American Entrepreneurial Spirit not to give up simply because of someone else’s decision.
If you are inclined to donate toward my cause, please click on the GoFundMe link to the right for details on my project. If not, I sincerely hope you take the time to look over the site and find a project you feel strongly about and invest in someone’s dream.
Until next time…Keep cookin’ y’all!
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