The art and science of building a ‘crowd’ for Investment crowdfunding may be compared with running for mayor in a small community.
A person who starts their business becomes their own boss. However, when an entrepreneur accepts investment money, they now have an obligation to look out for that investment money for the benefit of the investors. There is a new boss.
When a person raises money from their community through crowdfunding, they have a responsibility to their community. But, first, to obtain investments from their community, their community has to know them and respect them. The actions taken to become known and to gain respect can be called ‘crowd building’.
The steps taken to become mayor may serve as a template for an entrepreneur raising community from their community.
- Know the people in the community
- Know the needs and problems of the people within the community
- Take active steps to address the needs and solve the problems with the community
- Be a leader
a. Participate in one or more civic organization
b. Participate in one or more professional organizations
c. Support two or more local charities
One that is aligned with the business
One that cannot be monetize
5. Be visible
a. Speak - share knowledge
b. Write – set up a website, post blogs, write editorials
c. Act – dedicate time and resources to making the world a better place
Engage the community
a. Ask for their input
b. Ask for their help and support
c. Acknowledge those who try
d. Acknowledge greater those who succeed
e. Support those who are making a difference
A community may be defined as a geographic area, an industry sector, a social cause or other group that has common interests.
All of these activities place a person and their business in a position where a proposal to invest will be well received. This is largely due to the fact that the person and their business are perceived as giving more than they get.
This takes a lot of work. It usually takes a lot of time. But, this investment may pay rewards over a long period of time. And, if a ballot box is set up within the community, this work can get a person elected by the community as the CEO of their own business.
Karl Dakin, President
Dakin Capital Guild LLC