14 Ways of Splitting Equity With Co-Founders or Employees Without Giving the Company Away

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

1. Founder Vesting 

jeff epsteinIt’s imperative to have founder vesting with multiple co-founders. Founder vesting implies that the longer the founders work together, the more they earn (typically over 3-4 years). It’s a pretty standard practice and solves a lot of potential problems that may arise if one of the founders chooses to leave or is removed from the team. – Jeff EpsteinAmbassador 

 

2. Vesting Over Time 

John RoodEveryone should be on a vesting schedule, including co-founders. The worst situation is to have someone quit and walk away with a bunch of stock. Unfortunately, this happens all the time. Protect yourself by having everyone on a multi-year vesting schedule. – John RoodNext Step Test Preparation 

 

 

3. Grunt Fund 

Lane CampbellInstead of signing a static agreement with your co-founders, it makes more sense to use something like the Grunt Fund by Mike Moyer to allocate equity based on who is contributing to the business. It’ll help set the venture on the right path. – Lane CampbellCreately 

 

 

4. Performance Incentive-Based Equity 

Dustin CavanaughA great way to structure equity assignments for early stage founders and employees without giving away the farm is to establish set performance-based metrics. This motivates and incentivizes all stakeholders to reach their performance-based goals while simultaneously protecting the company from assigning equity where it is not earned or deserved. – Dustin CavanaughRenewAge 

 

5. Contracts 

Nicole MunozEquity often dictates who makes the decisions within your company. Decide who’s in charge first, and then develop contracts that make it clear who is responsible for what aspects of the business. You can easily justify a higher equity stake if you are also responsible, as CEO, for the difficult work of growing your company. –Nicole MunozStart Ranking Now 

 

6. Discount to Market 

Nicolas GremionRather than flat out giving out stock based on position or performance, sell shares to founders and employees at a steep discount (AKA the insider deal). Perhaps go as far as making it a rule that, for example, during their first year, everyone has to invest 10 percent of their salary back into the company. They’ll be motivated to see it grow while the company itself benefits from the extra cash infusion. – Nicolas GremionFree-eBooks.net 

 

7. Equity Calculator 

Ajay YadavThe simplest way to do split equity is to use the co-founder equity calculator tool on foundrs.com. I recommend not splitting equity 50/50 because it will help prevent delays and conflicts in decisionmaking, allowing you to move the company forward more quickly and under a unified vision. – Ajay YadavRoomi 

 

 

8. Equally 

David CiccarelliMy partner and I are in a unique position because, not only did we found the company together, we’re also married. Since marriage is an equal union, we took the approach that equality should apply in the company as well. Our first agreement was a 50 percent split when we established the first legal structure, a partnership. When we incorporated, we kept the same 50/50 split. – David CiccarelliVoices.com 

 

9. Standard 10-15 Percent Stock Option Plan

Kristopher JonesAllocating equity to key employees assumes – in the future – you intend to raise capital, sell your company or take your company public. Therefore, it’s critical to align your personal interests with those of your team. Based on experience raising capital, as well as buying and selling multiple companies, I recommend that you implement a standard 10-15 percent equity pool in the form of stock options. –Kristopher JonesLSEO.com 

 

10. Four Years With One Year Cliff 

Hongwei LiuAs every founder knows, the challenges a startup faces are completely different every six months. It’s hard to know if someone, be it a founder or early employee, is going to grow with the company, if their skills on Day 1 will be as valuable on Day 1,000. Somake sure everyone is vesting (four years with one year cliff is standard). And don’t be afraid to have an annual heart-to-heart between founders. – Hongwei Liumappedin 

 

11. Hybrid System 

Joshua LeeWith co-founders, I like to split the company evenly. This aligns us because it’s in each of our best interest to apply 100 percent effort and creativity to the company’s success. For early employees, I like to award ”phantom shares” that vest based on timelines and reaching agreed on performance milestones. Chobani yogurt CEO, Hamdi Ulukaya, followed a similar path with his employees.  – Joshua LeeStandOut Authority 

 

12. Milestone-Based 

Raoul DavisDivvying up equity to team members can dilute the valuation of the company.  The best way to justify the equity that was shared to an investor is by tying it to performance.  If team members earned equity based on completing significant milestones, it becomes much more digestible. – Raoul DavisAscendant Group 

 

 

13. Deferred Rewards 

Brandon StapperYou can assign bonuses that are redeemable at any schedule you like. Shares can be non-redeemable until retirement, for example. On the other hand, you don’t want to give away too much fluff. Employees deserve to enjoy their compensation as they see fit. – Brandon Stapper858 Graphics 

 

 

14. Revenue Sharing Rather Than Equity 

Blair ThomasCo-founders should always have skin in the game, but early employees that are seeking wealth beyond their normal salaries can be incentivized with revenue sharing rather than with raw equity. This gives them the motivation they need to operate at high capacity and push the business forward without robbing the company of much-needed equity come time for investment or exit. – Blair ThomasFirst American Merchant 

15 Mistakes Entrepreneurs Make When Deciding on an Exit Strategy

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

 

1. Trying to Exit as Fast as Possible 

Kim KaupeEntrepreneurs can get so excited about how quickly they can exit that they fail to look at the big picture. The mantra of start it, pour gas on it, and sell it fast isn’t always the best strategy. If Mark Zuckerberg had taken the first offer he received for Facebook, he wouldn’t have nearly as many zeros in his net worth. Take time to look at the big, long-term picture before selling fast. – Kim KaupeZinePak 

 

2. Not Understanding Cash Up Front Versus Earnout 

Nick ChasinovA buyer will often need the entrepreneur to stay on after the sale, which will dictate the payment terms, typically in the form of a performance-based earnout with future upside. Committing to an earnout with performance-based triggers that are out of your control can be catastrophic. Once you relinquish ownership you are not in charge, so it is critical to negotiate the cash up front. – Nick ChasinovTeknicks

 

3. Issuing the Wrong Types of Shares 

john ramptonEarly on in business you will decide on the types of shares that are issued. This can ultimately sink or swim your business into an exit strategy. Make sure you’re issuing the correct types of shares to founders, employees, investors, advisers and anyone else getting shares so that you don’t screw yourself out of an exit strategy. – John RamptonDue 

 

4. Giving Into Pressure From Others, Like Investors 

Peter DaisymeWhile investors do have a say in your exit strategy, it’s a mistake to just give into pressure from others when deciding on an exit strategy. Often, those pressuring for the exit are just looking for that fast return and not considering the health or benefit for the business. Waiting a bit longer for a better offer could even yield more return. – Peter DaisymeDue 

 

5. Taking the First Offer 

Murray NewlandsThe first offer may not be the best offer for your business. It’s easy to get excited and just say yes to the first bidder. A “wait and see” strategy is better as word gets around that someone is interested in your company. This may generate better offers and drive up the demand. This also gives you time to further study the offer. – Murray NewlandsDue.com 

 

6. Looking Only at the Money on the Table 

Andrew ThomasThere’s more to an acquisition than just the check you receive. This acquirer will now have control over your product, customers and brand. There’s also a great chance that you’ll be working for them the next couple of years. Avoid the mistakeof just selling for the money. Consider your mission and ask if this company will help you enhance your ability to reach the goals you set for yourself. – Andrew ThomasSkyBell Doorbell 

 

7. Not Understanding What Drives Value 

Mark DaoustI see many entrepreneurs spend a lot of time and energy building their companies in ways that add little to no value to their business. Worse yet, many plan for an exit but implement strategies that actually hurt their value. When planning your exit, keep in mind four principles: reduce potential risk, demonstrate growth prospects, make it easy to transfer and make it easily verifiable. – Mark DaoustQuiet Light Brokerage, Inc. 

 

8. Focusing on an Exit From the Start 

Jennifer MellonBuilding a company that is built to last, one you could still be running 40 years from now, is the greatest exit strategy you can implement. If you build a great company, the rest will fall into place. Focusing on an exit can lead to mistakes, sloppy processes and a faulty foundation. – Jennifer MellonTrustify 

 

 

9. Not Hiring a Banker 

Kristopher JonesThe key to getting multiple offers and the highest price for your business is to hire a banker. A banker or broker will have the requisite experience to prepare you for a road show, help you schedule dozens of meetings with prospective buyers and help you negotiate term sheets. Furthermore, once you decide on a buyer, the banker will help you through a successful due diligence process. – Kristopher JonesLSEO.com 

 

10. Over-Valuing the Business 

Nicole MunozIn order to earn the highest profit from the sale of your business, you need to directly correlate your valuation of the company to your book of business. When you prepare to sell, the buyer will not have the same emotional ties to your company that you do. Therefore, supporting the sale with excellent accounting records ensures you receive the full amount you expect for your business. – Nicole MunozStart Ranking Now 

 

11. Not Considering the Lifestyle Factor 

Jesse LearExit strategy plans are typically very money-centered and can fail to account for the possibility that you could end up loving what you do. Ask yourself why each potential exit strategy sounds attractive to you. For example, if your motivation behind pursuing acquisition is personal financial security, will you still be motivated to sell when you’re making a $1M/year salary? – Jesse LearV.I.P. Waste Services, LLC 

 

12. Being Afraid of Talking to “Competitors”

Andy KaruzaMany entrepreneurs are worried about getting close to competitors or even talking to them. In fact, these very same competitors could make for an easy acquisition. If you’re in the process of looking for an exit, start talking to the right people over at your competitor’s company. Don’t divulge critical details, but keep the discussion open at a high level until qualified interest is determined. – Andy KaruzaFenSens 

 

13. Not Thinking Two or Three Moves Ahead 

Doug BendRegardless of which exit strategy you pick, you are likely to go through a due diligence review. It is wise to work with an attorney to go through a mock due diligence process to make sure that all of your legal ducks are in a row before engaging with a potential exit partner, rather than having to scramble to get everything in order once you have found an ideal exit strategy. – Doug BendBend Law Group, PC 

 

14. Viewing the Value of Your Company Through Your Eyes Only 

Peter BonacIt is a mistake to view the value of your company through your eyes only. The true value of your company depends on the buyer, so it is best to view it from the buyer’s perspective. As every buyer will see different values in your business, ask yourself what areas of your company will add the greatest value to that particular buyer and grow those areas to make them more appealing. – Peter BonacBonac Innovation Corp. 

 

15. Not Adequately Training Key Team Members 

Andrew SchrageIf the company falls flat on its face after you leave, the person you’re handing it over to isn’t going to be very happy. Even worse, the transfer of the business may not happen at all if the other party sees this as a risk beforehand. – Andrew SchrageMoney Crashers Personal Finance 

The Pros and Cons of Marketing Automation for an Early-Stage Startup

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

What is one pro or con of marketing automation for an early-stage startup?

 

1. Pro: You Can Scale Quickly With Minimal Resources

Diana GoodwinMarketing automation can be a lifesaver for an early-stage startup that has to gain traction quickly because it allows a startup to quickly reach a large number of prospects with minimal manpower. Marketing automation has come a long way, and there are many hacks to ensure that yourcustomers still feel like they are getting a customized or personal message, despite the automation.

– Diana GoodwinAquaMobile Swim School

 

2. Pro: It Sets the Stage for Efficiency from the Start

Peter DaisymeWhile many stress that they don’t have enough hands to take care of all the work in a startup, it’s good to think lean and efficient from the start with as many marketing automation tasks as possible. This gives you more time to develop your messaging and personalization strategies as well as access greater amounts of data than if you had focused on manual marketing tasks.

– Peter DaisymeDue.com

 

3. Con: Automated Tasks Are Too Easy to Forget About

jared-brownWhen you’re starting out it’s important to save time and work efficiently. Marketing automation makes sense, but it also makes it easy for you to forget the process. Unless you’re automating menial marketing tasks like data entry, I recommend doing your marketing manually until you get a good understanding of the process and everyone involved.

– Jared BrownHubstaff

 

4. Con: You Don’t Know Who You Are Yet

Murray NewlandsSending out automated messages about your brand before it is fully formed is a mistake. During this time, who you are and what you offer could change. Without a personal touch, you might only confuse your audience. It’s better to wait until a later stage when this identity if more fully formed.

– Murray NewlandsDue.com

 

5. Con: You Don’t Get to Know Your Audience

Nicole MunozBrands that automate too soon may risk the advantage that comes with getting to know your audience on a deep, personal level. People buy from people. So to sell to your ideal customer, you have to understand every single thing that motivates them to buy from you over yourcompetitors. Engagement is the only way to do this. Be certain you know exactly who your buyers are before you automate.

– Nicole MunozStart Ranking Now

 

6. Pro: No Audience Is a Bad Audience

Andrew Namminga (1)Using automation to grow social accounts is great for early-stage startups. Whether the growth is targeted or not, having a following in itself encourages growth. Of course, engagement will be low, but it’s better to have a decent following with low engagement than it is to have no following with no engagement.

– Andrew NammingaAndesign

 

7. Con: You Can Lose Focus on the Main Objective

Zac JohnsonAutomation is great, but it can also lead to distraction and lack of focus. A good example of this would be if you were focusing on customer support and built a knowledge base to essentially “automate” any and all support questions. If you completely automate this process, you’d be lacking in support and missing out on the user experience. This same principle applies when starting a business.

– Zac JohnsonHow to Start a Blog

 

8. Pro: It Helps Startups Define Engaging Language

Nick EubanksWhile direct human interaction is critical in the early stages of learning about a company‘s ideal customer profile, automation can also provide big wins in helping define engaging language and offers. With a thoughtful and well-defined conversion funnel up front, startups get the advantage of quickly gaining insight into what offers drive responses.

– Nick EubanksI’m From The Future

 

9. Pro: You Improve Efficiency

Marcela DeVivoWith the limited resources usually associated with early-stage startups, it’s important to maximize efficiency from the beginning in order to accelerate growth. Startups that invest in marketing automation from the very beginning can do more with less. Reducing labor overhead is a massive savings for startups, who can then use savings to invest in sales and marketing.

– Marcela De VivoBrilliance

 

10. Con: You Don’t Know What a Good Lead Looks Like

Vik PatelGood marketing automation requires an understanding of leads and their behavior, which differs for every company. The major benefit of marketing automatization is the ability to send personalized marketing content. But, unless your business understands what a good lead looks like and which content is likely to increase conversion rates, it’s difficult to design effective automation processes.

– Vik PatelFuture Hosting

 

11. Con: It’s Easy to Make Mistakes

Myles VivesIt’s easy to spread yourself out too thinly as an early-stage startup. Marketing automation might sound great, but it takes time and expertise to set up properly. If you have no experience with automation or cannot hire an expert, you risk sending your customers the wrong emails at the wrong times. Your customers will know that software is really behind your email messages.

– Myles ViveseREACH

 

12. Pro: You Get Valuable Data for Later

Patrick BarnhillUsing marketing automation as an early stage startup is the immediate collection of data. By automating your marketing processes up front, you will get data collection early on without having to spend too many hours on marketing. This data will become more and more valuable as you growyour company.

– Patrick BarnhillSpecialist ID, Inc.

15 Unusual Ways to Find an Investor

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

Name one unusual way I might find an investor.

1. Your Former Boss

Brian PallasHaving known you professionally from a previous work experience, your former boss might be the best person to invest in your company in case he or she likes the idea.

– Brian PallasOpportunity Network

 

2. An Angel Group

Nick ChasinovThere are angel investing groups all throughout the United States that are actively seeking prospective new members. One unusual way to find an investor is to attend an angel group meeting as a guest to evaluate the opportunity as a prospective member. You will have full access to all attendees and an opportunity to network with a potential future investor in your company.

– Nick ChasinovTeknicks

 

3. Friends and Family

Nicole MunozThose closest to you might be more inclined to invest in you. Offer them a fair return on their investment, and make sure you stick to it. When you start small with those you know and who know you, you can fine-tune your process so that when it’s time to reach out to larger investors, you’re confident, professional, and well aware of what it takes to do business.

– Nicole MunozStart Ranking Now

 

4. An Adventurous Hobby

Adam SteeleFinding an investor who is passionate about your work is the holy grail, and finding them is easier when you already share a passion. Active hobbies like skiing have made it easy for me to meet people who work as hard as they play, and some of them have been in a good position to invest if I wanted to pursue that.

– Adam SteeleThe Magistrate

 

5. Customers

Nicolas GremionThey know your products and/or services. Hopefully they also enjoy using them, and they have some money to spend. So who better to ask? Done the right way, your customers should also appreciate that you’re trying to grow and offer better products/services. By demonstrating you have their best interest at heart it’s a win-win.

– Nicolas GremionFree-eBooks.net

 

6. Thought Leadership Articles

Brittany HodakI write regularly for Forbes — and semi-regularly for several other outlets — and although I’m not explicitly writing about my company, every piece is a reflection of it. I’ve had multiple VCs inquire about ZinePak because they landed on an article I wrote and saw that I have a marketing company. Writing is a wonderful way to boost your profile and reputation as an expert in your field.

– Brittany HodakZinePak

 

7. Social Clubs

Peter DaisymeSocial clubs are reemerging in major cities around the country and world for professionals and entrepreneurs to meet up and socialize. This offers a more low-key way to network that could potentially connect you to an investor over a social event, game of tennis or round of golf.

– Peter DaisymeInvoicing

 

8. First Class

Carter ThomasWhile this isn’t groundbreaking, it’s definitely not an actively pursued strategy for startups and founders. I’ve met some of the most influential people in first class simply because I have no competition for attention and the environment is self-qualifying. They know I’m legit because I’m there and I have to time to build a relationship before the pitch because I have more time than others would.

– Carter ThomasBluecloud Solutions

 

9. Someone You Don’t Expect

Christopher KellyTreat every person that you meet as being, at most, one degree removed from being your future investor, because they probably are. Next time someone asks, “What do you do?” answer as if they asked, “How can I help you?” This format works for investment, but it is just as applicable to business development or any other thing that you are trying to develop.

– Christopher KellyConvene

 

10. Vendors

Piyush JainWe are an IT services company and work for lots of startups. Sometimes, when a project is really good and our client lacks some funding, we also take some equity in the project. Lots of IT (also non-IT) vendors provide this option. Talk to your vendors and see if they would be interested in investing. It not only brings you money, but can reduce your cost.

– Piyush JainSIMpalm

 

11. Local Business Owners

Ismael WrixenIt might seem counterintuitive if they have a brick-and-mortar store and you’re starting a business in the online space, but you might be surprised to find that there are owners out there with enough capital and enough interest in modern business to want to invest in a startup.

– Ismael WrixenFE International

 

12. Meet Walter

Brian David CraneI really like Meet Walter, which is a powerful data-backed tool to help narrow down whom you should be pitching to. This is an “unusual” way to find an investor in that the tool can present people you’ve never heard of and who’ve invested in companies like yours.

– Brian David CraneCaller Smart Inc.

 

13. School

Drew HendricksIn more universities and colleges, there are programs and seminars led by investors and business people interested in moving into the investment world. As a student with a potentially good business idea, this is a good place to connect as the instructor may want to mentor and fund you after working with you over the course of a semester or other program.

– Drew HendricksButtercup

 

14. Outdated Advertising Platforms

Nathan HaleWith all the new ways we can get and stay in touch, we often forget there are still other avenues of communication. There are investors who aren’t on LinkedIn, Twitter or Facebook, who still read the local paper, and who may know how to use Craigslist but have never been on Instagram. Use those odd channels to fish out potential investors; you’ll be surprised with what you find.

– Nathan HaleFirst American Merchant

 

15. Your Parents’ Circle

Alexandra Levit 2Millennial business owners often have high-performing parents. These parents and their friends, who are usually members of the Baby Boomer generation, are retiring from traditional work and looking for smart and intriguing places to invest their time, expertise and money. Work with your parents to host a party or outing where you share information about your business without a hard sell.

– Alexandra LevitInspiration at Work

14 Experts Explain the Difference Between a Good Pitch Deck and a Great One

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

What is one thing that distinguishes good pitch decks from great ones?

 

1. The Right Amount of Information

Kevin HenriksonIncluding too much information in your initial pitch can be counterproductive. Leave some questions unanswered and avoid over-sharing. It also helps keep the meeting focus on you and not reading slides.

– Kevin HenriksonOutlook iOS & Android @ Microsoft

 

2. The Presenter

Douglas HutchingsA good presenter can be more effective with blank slides than a bad presenter with the best slides. Make sure that you know your stuff, breathe, and focus on engaging your audience rather than pitching them. Having a conversation is the best outcome you could hope for, so encourage interruptions.

– Douglas HutchingsPicasolar

 

3. A Competitive Landscape Graph

Doug BendA compelling competitive landscape graph can effectively show investors how your product is distinct from others in the space. In a few seconds, it effectively conveys what makes your company unique and why they should get out their checkbooks to help take it to the next level.

– Doug BendBend Law Group, PC

 

4. Growth Curves That Demonstrate Traction

David CiccarelliAt the seed stage, investors invest in ideas that are explained through compelling stories. But once you’ve raised a few million, investors will want to see how efficiently you used the proceeds from your previous round. Demonstrate your traction by showing growth curves for your key performance indicators. Good traction is hard to ignore and will make them want to invest again.

– David CiccarelliVoices.com

 

5. Graphic Design

Brandon StapperI see so many pitch decks with horrible graphic design and I immediately lose all respect for the presenter. It is so easy to improve a design these days. You can get it professionally designed on 99Designs.com for a few hundred bucks or download a template from Themeforest.net. Make sure your presentation is 10/10 quality and people will take you seriously.

– Brandon Stapper858 Graphics

 

6. Clarity

Trevor SummersSo often I see pitch decks that have proprietary concepts, unnecessary technical jargon or overly obscure ideas. Investors are looking for simple things in a pitch deck. What is the problem, what is your solution, who is your team, what’s the size of market, and how much money do you need to prove the opportunity? Don’t get too caught in overly intricate, vague or highly technical concepts.

– Trevor SumnerLocalVox

 

7. Brevity

Ben LangI find the shorter you can make the deck, the better. If you can explain everything concisely and efficiently that’s a good sign that you understand what you’re doing.

– Ben LangMapme

 

 

8. Past Strategic Plans and Real Data

Brandon DempseyA great pitch deck will include a company’s past strategic plan, complete with dates, and will have data demonstrating how the company did achieving the milestones they set out to achieve.

– Brandon DempseygoBRANDgo!

 

9. Focus

Andrew SchrageA good pitch deck hits all of the major points needed to secure investors. A great one does this while remaining focused and brief. It includes a maximum of 10 slides (if you’re using that format), and is no longer than 20 minutes. If you take the time to pare down your pitch deck, you should enjoy more success.

– Andrew SchrageMoney Crashers Personal Finance

 

10. The Right Amount of the Right Data

Nafus ZebarjadiInvestors want to see a solid command of the metrics that are important to your business. This includes a solid reading of key industry data supporting your hypotheses and an articulation of how your success should be measured (not vanity metrics). The best pitch decks are those that can clearly show your traction and the market potential through a few key data points.

– Nafis ZebarjadiMedicast

 

11. The Benefits to the Investor

Peter DaisymeA good pitch deck tells you about the business model and why it is different from the rest. However, a great pitch deck speaks directly to the investor in terms of what their involvement will do for them, especially how much money they will make through their investment and how long it will take to get that return. A great pitch deck also includes how that investor can participate in the success.

– Peter DaisymeHosting

 

12. Well-Organized Information Flow

dave-nevogtIf you can understand (and are inspired by) a pitch deck even without its presenter, it’s a great one. To make a pitch deck easy to understand, make sure it has all the needed components, answers all the important questions, and orders everything into a sensible flow of information. Limit one slide to one big idea, and hyperlink key sections to your references and other resources to learn more.

– Dave NevogtHubstaff.com

 

13. Visual Communication

Amy BallietAs attention spans have continued to dwindle, savvy professionals have turned to visual communication tools like infographics and animated video to get their message across. Visuals get to the brain faster than any other form of communication and are retained 90 percent more often. When competing for money, powerful visuals will connect with your audience faster and ensure your pitch isn’t forgotten.

– Amy BalliettKiller Infographics

 

14. Metrics on Competitors and Market Share

Shawn SchulzeDoes the deck contain industry and competitor research? I want to know that the business plan has a solid understanding of the market it is in, the competitors, their market share, market growth, pricing and/or monetization strategies. I want a deck to demonstrate that the company has a general idea of the market it’s after and who it must compete with or create a better service than.

– Shawn SchulzeSeniorCare.com

14 Red Flags an Investor Is Not a Good Fit for You

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

What is one red flag that tells you an investor is not a good fit for you?

1. A Lack of Preparation

Luigi WewegeA dismissive attitude towards reviewing vital documents, such as an agreement proposal or strategic plans, is a red flag. After the initial due diligence, I like to have a one-on-one meeting scheduled with the investor to discuss the investment in depth, its financials, its motivation, and our company philosophy. Then I can be certain we’re a good fit and clarify any misunderstandings before moving forward.

– Luigi WewegeVivier Group

2. A Weak Network

Cody McLainWhen you partner up with an investor, you’re not just relying on their guidance and expertise. In many cases, you are also counting on having  some level of access to their network that will allow you to bring a superior product to the fore. If your investor is all money and no network, that’s a huge red flag. It means to me that we both won’t have a clue what do with his/her money.

– Cody McLainSupportNinja

3. Wanting to Change Who You Are

Laura LandIt constantly amazes me how many people will take a look an already successful business that is looking to grow and tell them to change the core of who they are or what their brand is. It’s a big red flag if the investor doesn’t understand and appreciate what is it that you already produce versus throwing out a million ways you could be a different company.

– Laura LandEMPIRE Cell Phone Accessories

4. Being Overly Emotional

Ty MorseBusiness can be stressful. When you see someone completely lose it — get emotional, upset, disturbed, or angry — during negotiations, you know that person does not have the maturity and professionalism you want in an investor. We’ve found people we thought were a good fit, but when we got into negotiations, they acted out. That’s when we knew we needed to get them out.

– Ty MorseSongwhale

5. A Lack of Niche-Experience

Adam SteeleIf you’ve never worked in/have no experience with my industry and niche, I can’t be sure of what your motivations are. What I am pretty sure of though, is that you didn’t pick us out of a fundamental understanding of what we do. Assuming that, I will be uncomfortable with almost any level of influence you want to exert over our operations.

– Adam SteeleThe Magistrate

6. Focusing Too Heavily on the Exit

Travis HoltWhen the first question out of their mouth is about the exit, I know it’s time to run for the hills. The exit is the product of many long hours, tough decisions and wrong turns. If the investor isn’t interested in being there for the process, they’re going to grow impatient and be a drain on your most valuable resource — your time!

– Travis HoltBrush Creek Partners

7. Not Understanding the Stage You’re In

Omer TrajmanEvery stage of growth needs a different kind of investor. Early on, look for an investor who thinks like a business partner. As you grow, ideal investors are on the same page as you are in terms of target customers, model for the business, and eventually look to invest based on your financials. At each stage, the red flag is different. Overall the biggest red flag is a mismatch in expectations.

– Omer TrajmanRocana

8. Asking About Becoming a Board Member Too Soon

Afif KhouryAll money is not the same. Investors can make or break your business. One red flag you definitely need to be aware of is the investor asking about being a board member early in your talks. This is a reasonable question, but should come later in the process. If you’re asked this at your first meeting, you are probably dealing with someone who is going to try to micromanage you and your team.

– Afif KhourySOCi, Inc

9. Wanting You to Fill a Quota

Brittany HodakZinePak is self-funded, but I’m constantly shocked by how many would-be investors approach me and say things like, “We’re looking for more women-led companies in our portfolio,” or “I like that you guys aren’t tech-first. I need five non-tech companies this year.” If/when we take on investors, it will be because they believe in our company and mission — not because they want to check a box off for their portfolio.

– Brittany HodakZinePak

10. Having Unrealistic Expectations

Nicolas GremionIt’s okay to take on an investor with limited investment or industry experience.  But be careful when it comes to taking one on with unrealistic expectations. For example, becoming an overnight sensation, or wondering why Warren Buffett hasn’t asked how many zeros your acquisition check should contain. Make sure they either understand the investment landscape or can be realistic about it. .

– Nicolas GremionFree-eBooks.net

11. Not Respecting Your Time

jeff epsteinInvestors are busy. The fastest way to get on their bad side is to waste their time. The same should be true for you. I’ve found that the best investors respect my time as much as their own. If they don’t during the ‘courting’ process, you better believe they won’t when they are on your board (or have rights).

– Jeff EpsteinAmbassador

12. Dwelling on Mistakes

Jayna CookeRed flags depend on what you are looking for. Are you looking for additional resources or just money? We’re looking for investors who approach things as opportunities for improvement rather than dwelling on mistakes. At the end of the day, if you can’t see yourself having a beer with them, then I don’t suggest doing business with them.

– Jayna CookeEVENTup

13. Wanting Too Much Control

Shawn PoratWhen I’m looking for investors, I want someone who believes in my company and who also trusts me to continue to make the major decisions. If I want to relinquish control, I’ll just sell the business. But it’s a red flag if an investor expects his investment to give him the right to start making all the decisions. So I prefer investors who believe in my vision and doesn’t want too much influence.

– Shawn PoratFortune Cookie Advertising

14. Poor References

Jonny SimkinMost companies go through at least one rough period. You need an investor that will support you through the good times, but even more so during the bad times. The best way to find out if an investor is supportive during the bad times is to talk with founders who have raised money from the investor you’re speaking with.

– Jonny SimkinSwyft

13 Tips for Determining Your Company’s Valuation Prior to Starting Fundraising

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

What top tip do you have for determining your company’s valuation prior to starting fundraising?

1. Determine How Much Cash You Need Over the Next 18 Months

Mark CenicolaTry to raise money at a valuation that will leave you and your founders in control and provide you with enough cash to execute your plan over the next 18 months. If you can’t do that, then either change your plan or seek other investors. It may take a lot of no’s before you find investors who say yes.

– Mark CenicolaBannerView.com

 

2. Look at Comparables

Jonny SimkinThe easiest thing to do is find comparable companies, see how much they raised and what their valuations were. A great resource is angel.co for tech companies. Once you have a sense of what the market will value your company at, start talking with investors and test that valuation. If they think it’s reasonable, proceed. If they laugh at your valuation, revise and try again.

– Jonny SimkinSwyft

3. Find Balance

Omer TrajmanThere’s no hard and fast rule for setting valuation. It’s a negotiation between the company and investor. The company needs to have several interested investors (multiple term sheets really) in order to negotiate. Most important is finding a balance between cash needs and the implicit expectations that come with the valuation. The non-financial terms of an investment are often just as important.

– Omer TrajmanRocana

4. Ignore Industry Buzzwords

Matthew MoisanValuation of a pre-revenue company will always be tricky. Avoid the industry pitfalls of focusing on buzzwords like “traction” or “hotness,” and instead consider the following: Calculate how much you need for 18 months of growth. Then, figure out how much of the company you are willing to give in exchange. Let’s say you want $200,000 for 20 percent — then the range of valuation will be around $1 million.

– Matthew MoisanMoisan Legal, P.C.

5. Have as Many “Friendly” Meetings as Possible

Aaron SchwartzEarly on, there is no easy way for you to independently set valuation. You might be profitable, or you might be growing, but there are no companies on your same trajectory. Before any formal fundraiser, I spend a few weeks with investors and founders whom I know will not invest. Multiple viewpoints will help you narrow in on value, and friends tearing apart your pitch makes you better for primetime!

– Aaron SchwartzModify Watches

6. Do Your Homework

Zohar SteinbergEarly on, valuations are a function of the impression you make on your investors. Investors are looking to make as much money as they can and reduce the risk they are taking. Showing examples of similar companies’ valuations in different stages will do just that. Show your investors that you did you homework and that you’re basing your valuation on a proven model.

– Zohar Steinbergtoken

7. Know What Details Are Important

Jordan FliegelRely on your investor to make an offer and place a value on your company. You don’t need to mention or hint at what you expect the valuation to be. You do, however, need to be prepared to say how much money you are raising, and what you plan to do with the new funding to grow your business. Once you have a lead investor, it’s easier to fill out the rest of the round on the same terms.

– Jordan FliegelCoachUp, Inc.

8. Focus on Growth Potential

Obinna EkezieWhen raising capital, focus on growth potential versus how your business is currently performing. If you are going to raise money from a VC, you’ll want to put together, at a minimum, 24-month revenue projections. If your business will take longer to develop into a revenue producing machine, you may want to project out 3-5 years. Leverage revenue growth to shoot for highest valuation possible.

– Obinna EkezieWakanow.com

9. Use a Third Party

Adam RootIt will have more credibility than pulling a number at random. Early Growth Financial is great for very early stage companies and Silicon Valley Bank is helpful after you have received funding and want a 409A valuation or deep analysis on what other startups similar to yours are worth.

– Adam RootSocialCentiv

10. Listen to the Market

Mattan GriffelIn the early stages, determining a valuation for fundraising is more of an art than a science. It’s more about what you can convince investors you’re worth than about applying a multiple or doing a discounted cash flow analysis. Start out with a fairly conservative number based on comparable valuations, and don’t be afraid to adjust it based on how the investors you talk to respond.

– Mattan GriffelOne Month

11. Seek Input From Peers

Douglas BaldasareIf this is your first round, get input from peers about what you can realistically raise based on your industry and stage. Then soft circle to a few friendly investors (friends and family) with your desired terms. It’s harder for new investors to change the terms once you have already raised some of the round. I also recommend Fenwick & West’s venture surveys. They offer data on average valuations.

– Douglas BaldasareChargeItSpot

12. Don’t Get Caught Up

Katrina LakeMost outcomes are binary. You’re going to make money, or you’re going to make none. I see a lot of entrepreneurs nickel and dime valuations and focus on dilution at the expense of a quality investor. You should focus on what is most likely to get you on the successful side. Valuation and dilution are only one element of the decision you are making and I encourage people to have a long-term approach.

– Katrina LakeStitch Fix

13. Know the Demand and Longevity

Fam MirzaCompany valuation should be determined by demand and longevity of a business. Most tech company valuation is built off the growth of a user database. The goal is to build up a massive amount of users to monetize on them somewhere in the future, usually in the form of ads and data capitalization. However, for product based companies, it’s based off demand for the product and lifecycle of the brand.

– Fam Mirza1:Face

11 Ways to Practice for a Pitch Competition

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

What’s the best way to practice for a pitch competition?

1. Record Yourself on Video and Watch It Back

Brittany HodakWhile practicing for “Shark Tank,” one of the most intimidating pitch competitions on the planet, I found it very helpful to video my pitch and watch it back until I was satisfied with my performance. Watching on video with another person for objective feedback, if possible, is a great way torecognize and correct any flaws in your speech, hand movements, posture and more.

– Brittany HodakZinePak

2. Practice With a Time Limit

Andrew ThomasThe hardest part of pitch competitions is the short time you have to make the pitch. Plan for success by timing yourself while youpractice. There are two benefits. First, you can alter the length to ensure you‘re as concise as possible. Second, you can create mental “markers” so you know where you are in your pitch for each minute of the pitch. This helps keep pace when you feel nervous.

– Andrew ThomasSkyBell Video Doorbell

3. Write and Rehearse

Corey BlakeAs a frequent presenter, I set up time blocks in my calendar — one hour per day, four days a week for two weeks. During that time, I rewrite my presentation from scratch each time. Writing it over and over helps solidify the key points in my mind. Then I set up time blocks to actually go through it out loud and I’m ready to rock. The key to this formula is keeping those appointments with yourself!

– Corey BlakeRound Table Companies

4. Don’t Have Too Many Notes

Kofi KankamMost slide presentations have too many notes. Try practicing your presentation with an increasingly fewer set of words each time untilyou can whittle it down to seven words or so and give a consistent presentation. Then, you are ready.

– Kofi KankamAdmit.me

 

5. Practice in Front of the Meanest Friends You Have

dave-nevogtGet people from your circle of friends who have the most difficult personalities and tell them you want them to be really mean to youwhile you present. Tell them that if they make you lose your cool, you‘ll buy them coffee or something similar. Then don’t stop practicing until you can get all the way through without losing focus. You‘ll go into the pitch competition with total confidence.

– Dave NevogtHubstaff.com

6. Practice Using a Microphone

David CiccarelliSo many entrepreneurs obsess over their slides but fail to grasp the basics of a good performance. Project your voice by speaking louder than you think is necessary. If you can, practice with a microphone. Hold the microphone right up to your chin, literally against your face. And never point the microphone at the speakers. That’s what causes that screeching feedback.

– David CiccarelliVoices.com

7. Forget That It’s a Competition

Blair ThomasRather than trying to “beat out” your competitor, remember that the point is to win the pitch for your business. If your pitch is off, it doesn’t matter who you‘re competing against, you will have lost an opportunity without any intervention from anyone else. Refine your language and messaging; be passionate about what it is you‘re trying to communicate. Lastly, be clear, concise and confident.

– Blair ThomasEMerchantBroker

8. Learn From Others

Cody McLainIn order to make it less intimidating for yourself, watch how someone else presents a pitch — there are plenty of TV shows dedicatedto this (“Dragon’s Den,” “Shark Tank”). If you can see what went wrong (or right) in someone else’s pitch, you can just as well incorporate those properties into your own.

– Cody McLainSupportNinja

9. Practice With Distractions

Afif KhouryHave your kids run in front of your screen, have your Internet go out — create imperfect scenarios. You know your pitch, and if everything runs smoothly, you’re fine. But this is the real world. It’s not going to go smoothly. Every time I help an entrepreneur practice for a pitch competition, I close his or her computer halfway through and say, “Your computer just died, but please continue.”

– Afif KhourySOCi, Inc

10. Make Your Own Slides

Andy KaruzaYou will be much more well-versed with your presentation if you actually make it. Surprisingly, some people have others make portions or even all of the presentation deck. Spend the time to make the content yourself, but have somebody else make it look nice if you need it. Your memory retention is higher for something you actually write or create.

– Andy Karuzabrandbuddee

11. Practice Like You Play

Eric MathewsDavid Cohen of TechStars fame said it best: “Practice Like You Play.” Put yourself into the same context and setup as you will find at the competition. That means standing up without notes, do-overs or looking at the screen. You stand and deliver a pitch in practice as if the judges and investors were standing right in front of you. Otherwise, you risk practicing in mistakes and crutches.

– Eric MathewsStart Co.

 

11 Instances When You Should Ignore Advice From an Investor or Advisor

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

When should you ignore advice from an investor or advisor?

1. It Isn’t True to Your Mission

Michael SpinosaIgnoring advice is never easy, but it is necessary when people blindly apply detailed actions or tasks to a situation/model you know they haven’t fully comprehended. Large scale recommendations that go against the very principles of why you embarked on this journey should be disregarded. Stay true to your mission. Keep external advice focused around common occurrences.

– Michael SpinosaUnleashed Technologies

2. The Context It’s Based on Is Outdated

Michael KleinmannSometimes investors/advisors think because they have 30 or more years of experience than you, they know how to handle situations. While many situations are the same as they used to be once you peel back the layers of the onion, many are not. Reframing the advice in the context of modern business and listening to your gut are very important.

– Michael KleinmannThe Underwear Expert, Inc.

3. They Can’t Substantiate It

Andrew ThomasIf you receive advice from an investor or advisor that just doesn’t feel right, ask them to support their position. If they can’t articulate exactly why they advocate for a certain decision or can’t substantiate their position with past experiences, then you should consider passing on the advice. When asking, politely state that you want additional insight so you can better understand.

– Andrew ThomasSkyBell Video Doorbell

4. Their Background Isn’t Aligned With What You‘re Doing

Brandon StapperI also consider the background of the investor/advisor and take their advice accordingly. Everyone wants to give you advice, and there is such a thing as bad advice. If you are taking business advice, make sure they’ve personally been there and done that.

– Brandon Stapper858 Graphics

 

5. It Doesn’t Resonate

Erica EasleySavvy leaders are good listeners, but that doesn’t mean they take all advice they are given. If advice, even from a key advisor, doesn’t resonate with you, than it isn’t the right move for your business. That said, ignoring advice from respected sources is sloppy. Reflect on what you don’t agree with, and why you are choosing a different path. That reflection will make you and your company stronger.

– Erica EasleyGumball Poodle

6. They Interfere in Day-to-Day Activities

Piyush JainInvestors and advisors are there to support long-term goals and management, not for micromanagement. As a business owner, youshould have full freedom for day-to-day operation. If investors/advisors are meddling with your daily work or tend to advise you on trivial items, you want toignore them or express your displeasure. You can listen to them, but be the final decision maker.

– Piyush JainSIMpalm

7. It’s Hard and Fast

Dan GoldenAdvice, whether paid or free, is just that — advice. It’s never a “must do.” It’s a “Hmm, maybe I should.” When it comes to not taking advice, any that comes hard and fast is usually worth turning down. “Dan, you have to change;” or “Dan, I’ve seen this a million times, you‘re doing it wrong!” I still consider the source, but most often, I won’t implement.

– Dan GoldenBe Found Online

8. It’s Short-Term

Elle KaplanAt LexION Capital, I advise a long-term approach to investing, and the same holds true for entrepreneurship. Chasing short term gains will not ensure long-term success. You should always be looking at how advice will affect you years down the road, because any gains now could be ruined out by potential damage in the future. Any advice that doesn’t follow this should be thrown out the window.

– Elle KaplanLexION Capital

9. They Are a “Check-in Advisor”

Roger BryanThe number one thing to look out for is advisors or mentors that are assigned to you via an incubator or accelerator that seem to jump in, have a bunch of ideas, and then jump out of conversations. These advisors are very easy to spot after about one or two meetings. They want you to make major critical changes but then don’t respond to emails when you have questions. Fire them fast (you can).

– Roger BryanEnfusen Digital Marketing

10. Never Ignore Advice

Mark SamuelNever ignore advice. The real question is whether or not you use that advice or act upon that advice, but you can’t do either if yousimply ignore it. If someone is offering guidance, be happy to receive it, whether or not it’s in line with your own thoughts. It allows you to look at it from another position and evaluate which direction to choose.

– Mark SamuelFitmark

11. It Ignores Customer Data

Adam RootInvestors and advisors provide invaluable expertise, but they can be wrong. If you suffer from the HIPPO complex (i.g., Highest-Paid-Person’s Opinion counts most), remember: that’s not your customer. If investors ignore customer data, ignore them. Following such advice shows your customers, employees and colleagues that you cower when things get tough.

– Adam RootSocialCentiv

15 Ways to Reach Potential Funders on Kickstarter or Indiegogo

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

What is the best way to reach potential funders when launching a Kickstarter or Indiegogo campaign?

1. Find Influences in Your Niche

Andrew ThomasIn the beginning of the campaign, I recommend reaching out to bloggers and influencers in your niche, either directly or through an early-stage PR firm. Find people who will join your mission and share it with their community. You want to focus on your niche and avoid casting too wide a net. This was a key part of our success — raising almost $600,000 on Indiegogo for our video doorbell.

– Andrew ThomasSkyBell Video Doorbell

2. Snowball Fast with Media Support

Jonathan LongSuccessful crowdfunding campaigns all have one thing in common: They launched with a bang. When sites like Mashable and TechCrunch write a story about a crowdfunding campaign, it creates instant credibility and the campaign snowballs into a funding monster. Establish media contacts well in advance and make sure your campaign has some major press ready to help you get it out there at launch.

– Jonathan LongMarket Domination Media

3. Work With a Strong Marketing and PR Company

Ken CauleyCrowdfunding is the future, no doubt about that. But success in crowdfunding is easier said than done. As this space continues tomature, startups will need to hire a qualified company to help manage the marketing and PR element of successfully raising capital.

Ken CauleyAdvanced Media

 

4. Start Early

Wei-Shin Lai, M.DWe funded in less than two hours, and it was because we did a lot of promotional activities before the campaign launched. We sent press releases to the local media, which put us on air and in the papers. We let our social media fans know, and we sent out emails to tell previous customers the exact hour of the launch. I exported my contacts from Gmail and sent most of them emails using the BCC field.

– Wei-Shin Lai, M.D.AcousticSheep LLC

 

5. Create a Video

Stanley MeytinCreate more content to encourage people to invest in your project. Consider creating videos like behind-the-scenes, inside the technology, or even a simple video that will update funders on the campaign progress. You want to create content that will make people excited about the product or service, leading them to share within their communities.

– Stanley MeytinTrue Film Production

6. Connect With Bloggers Who Reach Your Audience

Andy KaruzaGo after the major PR channels, but don’t count out the smaller, tier-two bloggers who still have a considerable following. It’s pretty easy to identify the audience they cater to based on their profile and the types of articles they write about. Many of them who would be happy to review and share your product with their followers without requiring a large budget to do it.

– Andy Karuzabrandbuddee

7. Launch An Event

RahulAn event already has a captive audience, press, influencers, bloggers and the potential for your product to go viral. The Pebble Watch, for instance, launched at SXSW. It surely helped Pebble get the word out there. They went on to have the most successful (potentially second highest grossing campaign) Kickstarter launch. You can even run an event-specific promotion for your campaign.

– Rahul VarshneyaArkenea LLC

8. Find Social Media Influencers

Marcela DeVivoUnless you are a social media rockstar already, leveraging your social circles won’t yield much visibility. An ideal way to gain massive exposure is to reach out to existing influencers on Youtube, Instagram and other channels and tell them about your campaign. Additionally, write for sites like Buzzfeed, Medium.com and Linkedin Voices to get instant visibility.

– Marcela DeVivoHomeselfe

9. Give Back

Miles JenningsAs an incentive for funders to put money into your Kickstarter campaign, give them something back for their donation and contribution toward your idea. You could give them anything from a branded T-shirt to a coupon to your products and/or services. You could even make them a part of your company in some way. This will push funders to get involved and even stay involved in the future.

– Miles JenningsRecruiter.com

10. Get Feedback

Andrew SchrageElicit feedback from potential donors and use this to improve your pitch and overall campaign. Folks will be more willing to invest when they’re engaged and involved.

– Andrew SchrageMoney Crashers Personal Finance

 

11. Spend to Get Started

Blair ThomasAlthough you‘re already looking for funding to help launch your business, spend some of that all important starting capital on hiring contractors to make your campaign a worthwhile endeavor. A well-designed, well-written page, with focused content and clear messaging, can go a long way — and it’s going to take a team of (part-time) professionals to ensure a win!

– Blair ThomasEMerchantBroker

 

12. Learn from Others

Clayton DeanCrowdfunding is a challenge and there’s no exact science to it, but you can start on the right foot by researching what other successful Kickstarter or Indigegogo campaigners have done to generate visibility. Better yet, find and connect with them on Twitter or Facebook and ask them. From my experience, most are more than happy to share their strategies and fundraising secrets.

– Clayton DeanCirca Interactive

13. Facebook Ads

Andrew TorbaFacebook advertising is something you should consider experimenting with for crowdfunding campaigns. Set up a few small budget experiments to test out different target markets and see how well they convert. Start small and scale as you learn what works best. Facebook’s video ads are also great for creating awareness and driving traffic back to your campaign page itself.

– Andrew TorbaAutomate Ads

14. Build an Email List in Advance

Mattan GriffelBefore running a Kickstarter or Indiegogo campaign, it’s very important to build a potential audience to promote your launch to; ,otherwise. you‘re starting at zero. One of the best ways to do this is to set up a blog-style site using Weebly, Squarespace or WordPress, and start writing regularly. You should shoot to get to at least 1000 emails before launching any sort of crowdfunding campaign.

– Mattan GriffelOne Month

15. Ask Mom and Dad to “Kick Start” Your Campaign

Obinna EkezieSuccessful Kickstarter campaigns generate social proof by getting backers right out of the gate. The most tried and true way to get early backers is to start with first level connections. Family (mom and dad), friends, co-workers, whatever it takes. Kickstarter investors invest in companies with traction. Don’t launch a Kickstarter campaign without having early friends and family backers.

– Obinna EkezieWakanow.com