Category Archives: Financial Services
Today’s Ask The Expert Post is from Dr. Letitia Wright America’s Crowd Funding Strategist! Be sure to Join us for at Stiletto Wealth Experience 2012 In November where Dr. Wright will be sharing her crowd funding know how on our financial resource panel.
There is nothing wrong with Indie GoGo and using it for crowd funding. But what happens when it all goes wrong? What happens when no matter what you do, you just don’t raise the money? This is really what this article is about. There have been plenty of successful people on Indie GoGo. If you follow a few rules, you will find success there too!
Understand what crowd funding is: Many people think crowd funding is just a bunch of people on social media handing you money. You just put the link on your social media and if 10% of the people click and give, you would be a millionaire! I am not sure how that rumor started but that is NOT how it works. Social media is a part of it, but only a part. You have to understand the strategy behind a successful campaign. You have to know what they did and be able to duplicate it. For example, if someone tells you they had a mailing list of 10,000 and they send each one three postcards. You have to look at your situation and figure out if you have the budget to do the same thing. If you have the budget, you must then find out what they had on each post card and how far apart were the mailings done. If you can’t duplicate that, then that strategy won’t help you as much as it did the other person.
Create a specific plan: For most people the plan is the basic 2 x 2 x 2. You know this plan. They have 2 websites to choose from- Indie Go Go or Kickstarter, They have 2 sets of people to share with- Their family and everyone else, They have 2 ways to get the word out- Emails and Social Media. That plan won’t work, as the millions of people who have tried it. Many people go into crowd funding without a budget, so the 2 x 2 x 2 plan is the only one they can afford. Your plan has to be more specific than that. There are over 500 websites to choose from and the list grows daily. If you only know of those 2, you have not done your homework. If you are only going to do a few emails and social media then you are making it hard. Most people do not have a large enough list for that to work.
Be sure you can deliver on your gifts: After you raise the money you have to perform. Currently, this is not a huge problem. There are some people who have not performed but no real scandal has happened in the industry. You don’t want to be the first one either! This is your tribe, if you scam them, it’s about you and your brand that is damaged. Almost no one does this intentionally. Be sure you budget enough money to do what you say you are going to deliver. There are a lot of hidden costs to doing crowd funding.
Dr. Letitia Wright is America’s Crowd Funding Strategist and has created a video series for those who are about to start crowd funding. You can access these videos at www.acflife.com
As a woman entrepreneur, whether your business is robustly moving forward or you’re just getting started, its common to have a bit of “emotional baggage” (or negative money B.S. as I like to call it) you may be carrying around, that is slowing you down. For example, maybe you have debt or perhaps you’re ready to increase your fees. but you’re feeling a slight twinge of guilt or fear that people won’t pay. Or maybe you see the perfect mentoring program you want to invest in but your spouse is skeptical that it will be a wise investment. Once thing is certain, if you carry past baggage with you into the new year, you’ll have a much tougher time creating success. which is why this is the perfect time of the year to give your finances a fresh start.
The mistake that most women entrepreneurs make is not knowing exactly what type of financial actions they should take. Let’s be real, it just isn’t a topic that is discussed. which is why i’m sharing 3 of my BEST tips with you on how to give your finances a fresh start as you head into the new year. And while you may not be able to wave a magic wand or sprinkle a little pixie dust and magically make your debt dissapear or make your husband change his mind, you can create a plan that addresses the emotional and practical aspects that make of every woman business ownere’s financial future.
Tip #1 – Stop Being A Victim of The Past and Falling Prey to Your Money B.S.
Women hold themselves to a level of perfectionism that leaves no room for mistakes. Trust me we’ve all lent money to people we shouldn’t have, let worrying about what others think keep us playing small, given away our power with money, or we’ve made decisions to purchase something that we later regretted. You can’t change the past but what you can do is stop carrying it around with you! So instead of feeling guilt or shame or blaming fate or circumstances for what’s happened, learn to forgive yourself. Forgiveness is an act of the will, extreme compassion and understanding for the tiny part of you that was doing her best when you made those decisions.
Tip #2 – Don’t Let The Debt Demon Stop You From Growing Your Business
I often this from many women entrepreneurs, ” Shameca, how can I invest in growing my business when I have debt?” Or they’ll say, ” I don’t want to pile on more debt”. First realize the best way (or chance) to pay off your debt (most likely) will be by growing your business, because you’ll have the increased cash you need to make more than your minimum monthly payments. Next, understand that investing in growing your business while you may still have debt makes perfect sense if you are committed to taking action and implementing. I’ve metored hundreds of women entrepreneurs on my simple cash flow debt pay-off strategy and i’ve discovered that those who take massive decisive action in their business are the ones who also pay off their debt faster than others.
Tip #3 – Create Boundries Around Money That Empower You And Others
Women tend to cave in on their boundries because in some way they feel responsible for other people’s feelings. But giving in means giving up on your self-respect and losing the respect of others. And those yucky feelings and negative energy ofter flow through to other areas of your business, impacting your fees, the types of clients you attract, and so much more. My advice? Its far better to experience a moment of discomfort while upholding a boundary than it is to untangle a money mess later on. No I’m not saying you need to be the wicked witch when it comes to maintaining a boundary. Boundaries are easily upheld from a place of kindness, consideration, and connection, all of which helps you stand in your power with confidence!
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Shameca Tankerson, is a Speaker, Trainer, Author, and Cash Flow Success Mentor to entrepreneurs and service professionals. Using a proven system, she opens a candid dialogue about money that teaches her clients how to breakthrough to their next income level and expand into a cash flowing business with a new collaborative business model that is liberating, Inspiring and Powerful. To get your F.R.E.E. “Spark Your Cash Flow Financial Success Kit” – Making Room For Money: 5 Financial Mistakes Entrepreneurs Make That Sabotage Their Cash Flow (And How To Avoid Them). Visit: http://www.MakingRoomForMoney.com
Here’s the deal. Wealthy individuals, and many who have plans to build wealth, hire financial planners. What is a financial planner’s job? They manage assets. One of the most common problems that business owners face is not in management of their assets but in managing their debt. The more wealth people have the more debt they usually inccur and in order for the business to grow they must have access to capital (aka Mulah, Money, Cash). Access to capital usually means creating more debt. The key is to properly structue or create the debt. To do this successfuly requires strategies that most business owners are not trained or prepared to do.
Managing Business Debt is not just about paying your bills on time. When done properly you can create a well oiled machine that turns your company into a widly successful thriving enterprise.
Manage Business Debt Effectively
Leverage ALL of Your Companies Resources
Create Assets an Increase Cashflow
At some point in time, the reality with most businesses is that fluctuation periods would eventually come and such companies will have to face problems regarding their cash flow. A company may experience a financial crisis wherein more cash may be going out than entering as profit.
It is very important for any enterprise to never run out of funds. Having an unsecured business line of credit could make all the difference. Assuring that your company has an unsecured line of credit will be a big step of precautionary on your part to keep your company afloat, even when faced with financial crises.
What Is An Unsecured Business Line of Credit and How Does It Help?
An unsecured credit line for your business is a type of financing resource that can provide your company with the money that it needs without requiring collateral. Having such a credit line for your company can be of great benefit, especially when faced with problems on cash flow. This can provide you with the temporary funds that your company may need for operations to continue.
In running your own company, sometimes being prepared for possible problems play a big role in helping you ride the tides of business. For sharp entrepreneurs, even when there is no immediate need for the extra funds, having an unsecured credit account at hand will be a good cautionary tool for anything that could possibly go wrong with the business.
After all, you can never know exactly when your company might experience cash flow problems. But knowing that you have back up when funds become unexpectedly tight through unsecured business lines of credit, will surely set a whole lot of difference for your business to step up the ladder.
CEO’s of new businesses should be aware that most Start-up businesses do not reach a level of profitablility and cashflow for while. The accurate use of business lines of credit along with a great business idea and plan can kick start the process. Business Lines of Credit are very flexible tools that allow you to make payments out of th money you have set aside from your initial cash draw while you uild your business!
In the world of Business Credit, this is called seasoning money. Seasoning money means to set aside some of the cash you withdraw from your business lines of credit and place it into another account for future use.
Here are some great reasons to season money from your business lines of credit:
- keep money that can be used to repay the monthly payments on initial credit lines while you build the business
- have money available for salaries during business start-up
- Strengthen your balance sheet with good cash reserves
- Use cash as collatoral or leverage to secure new loans
- Cash cushion available for emergencies
The most powerfule way to leverage business credit is to use the cash from business credit lines to open accounts and establish relationships with small regional lenders. These local lenders are more likely to offer you lines of credit if you season money in an account at your local bank.