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JOBS Act Opens Up Equity-Based Crowdfunding Opportunities

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					                    JOBS Act Opens Up Equity-Based
                      Crowdfunding Opportunities
                                         By Dave Lavinsky
Here's a recent development that is a great sign of things to come for entrepreneurs like you and
me, who want to raise capital for growth and would consider crowdfunding as a source.

The Jumpstart Our Business Startups Act (called the JOBS Act) was passed with support from
Republicans and Democrats alike and signed by President Obama in April, 2012.

The JOBS Act makes equity-based crowdfunding much easier

What the JOBS Act does is make it possible to raise funds from investors and donors through
certain crowdfunding sites in exchange for equity in your company, starting January 1st, 2013.
This opens up more possibilities in equity funding without the tedious requirements to register
your funding as a public offering with the SEC.

If you have tried to raise funds in the past by going the public offering route, you'll know that it's
expensive. Being able to bypass all that is huge, especially if you are raising smaller amounts of
funding that don't justify such expenses.

The passing of the JOBS Act also means you won't have to seek out accredited investors
specifically (people with incomes of $200,000 or more, or a net worth of $1,000,000 or more-not
including their residence). You can receive funds from people of all income ranges, which makes
the pool of potential investors MUCH bigger.

Imagine how many regular folks are out there, who might want to reallocate some of the funds
they already have invested in savings, stocks, mutual funds, or other investments that aren't
paying so well at present. In the future, funding other businesses might be a much more common
way to diversify your capital-that anyone can do and not just accredited investors. Even you!

But there are going to be conditions set by the SEC which they will also make clear by January
1st. As of now, we know that there will be some kind of yearly maximum dollar amount that one
person can invest in this kind of opportunity. It will depend on their income and net worth. Stay
tuned to see the other conditions as they are announced.

How can you prepare for this?

If you want to raise equity capital in 2013 and would consider announcing it through crowdfunding
sites, here's a quick list of things you can do in the meantime to be ready when the time comes:

Broaden your network

One advantage crowdfunding sites offer you is having access to more investors and donors than
there already are in your personal network. The sites generate their own traffic, and a percentage
will come across your project online by searching or stumbling across it.

As it turns out, enough projects have been successfully funded (using the donation-based
Crowdfunding model, not the equity-based Crowdfunding model that will go live on January 1st
2013) for experts to be able to look back and say that your project is much more likely to be
successful if the first quarter to third of the funding comes from your existing network first. Reason
being, they are the ones most likely to believe in and trust you already, and strangers want to see
some social proof and credibility in advance before they jump on board.

Deepen your relationships

Do this for the same reason I mentioned above-to get the ball rolling on your funding from your
existing contacts. So in the months between now and 2013, you should be out seeking new
relationships and strengthening the ones you have-specifically with those who are more likely
candidates for funding you, or those who are in a position to spread the word for you.

You don't even have to mention funding during this time. Just spend the time necessary to
confirm that they have the means and would be interested in your project, while at the same time
showing your willingness to serve them and build trust and experience together.

If you're already in business, keep growing it

As with any kind of funding, you will be in a much stronger position to ask for funds if you can
demonstrate success in the past. You will have more data available to work into your plan and
forecast. And, people want prefer to invest in something that looks like a sure thing-with the least
uncertainty. So keep doing what you're doing and you'll be able to show prospective investors
2012's financial statement and smile.

Work on your business plan

Also, as always, have a solid plan for how much funding you need, how you will spend it, and
what effects it will have on your operations and revenues. People want to lend to someone who
has thought things through and looks less likely to run into unforeseen problems-especially
strangers online! Remember that.

It will also take some time to craft your presentation and pitch. If you plan on using a slideshow or
video of some kind (or even just writing it out on your project's page), it will take some time to put
that together in advance. But, it's something you can be doing now.

So there it is...equity-based crowdfunding is one more way to get the funds you need to launch or
grow your business. Stay tuned to the developments (you'll hear them from me) and prepare for
funding like you normally would. This might just be the key to your company's growth!

                                    Help You Grow!
                             Want Crowdfunding for Your Business?

I recently developed a simple-to-follow program called "Crowdfunding Formula."

The program is a series of videos I recorded that walk you through each of the 14 steps to raising
rewards-based Crowdfunding.

Many of you have already joined the program and raised money.

If you haven't, click below to learn more:
Get Crowdfunding for your business now! <------- Click here

Raising money from Crowdfunding is so much easier and faster than traditional sources of
funding like venture capital and angel financing.

Get Crowdfunding for your business now! <------- Click here

				
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