Why A Business Plan Is Essential When Crowdfunding Your Startup

Business Plans and Crowdfunding
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Letting the crowd fund your startup doesn’t mean allowing your business plan to go unwritten.

In the business world, approximately 543,000 new businesses get started each month and funding those businesses comes from a variety of sources.

Most recently, startups are beginning to utilize crowdfunding sites to promote their ventures and raise the capital they need through online platforms.

Similar to the popular TV show Shark Tank, startups have the opportunity to present their business to a number of “backers” who can potentially finance their business. Such crowdfunding websites are making it easier for new business owners to spread the word of their company and search for possible investors.

On the flipside websites like Kickstarter, Indiegogo, and Fundable are allowing for investors to check out a multitude of emerging businesses for possible fruitful endeavors, which leads us to….


5 Reasons Why A Business Plan Is Essential When Crowdfunding Your Startup

1) A business plan will be used as a blueprint for your crowdfunding campaign.

It will help define the purpose of your business/project, how it will operate, specify the exact amount of capital needed, and it how it will reward/benefit those that invest. These details are the key ingredients necessary for a successfully funded campaign.

2) A business plan is a SYSTEM (S)aves (Y)ou (S)tress
(T)ime (E)nergy and (M)oney
when building and launching your business, both on and offline. Going through the process ahead of time, can prevent and even correct mistakes that might have otherwise gone overlooked.

3) A business plan is one of the most compelling marketing tools available to enroll others in your mission. After all, a crowdfunding campaign is only as successful as it’s amount of supporters.

4) A business plan will be used as an internal tool for you business as well, guiding your company through the first 3-5 years. Following this document with in your business will provide structure and stability, even during the most uncertain of times.

5) Eventually crowdfunding capital runs dry, and you need to look for your next funding source. Most likely that would be an angel investor, an individual who typically invest between $25,000- $100,000 of their own money. Angel investors want to see facts and figures. They want a well thought out business plan, one that demonstrates you have taken the time to do research, plan and organize your startup business. Exemplifying less risk and more return on investment.

2015 will be a revolutionary year for crowdfunding; with current trends stating an average of 325 new crowdfunding campaigns launching everyday.

This means investment opportunities and competition for funding are expanding at a rapid pace. Are you ready to #GetFunded?

Don’t let your business plan remain unwritten.

If you have a question about your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.