The Right Tips And Strategy to Crowdfund Your Business – Bill Huston
Recently on the Obehi Podcast, I had the pleasure of engaging in a valuable discussion with Bill Huston, the Co-Founder & Chief Crowdfunding Officer of Raiseway and CrowdMax. Our conversation was about crowdfunding for businesses, and we explored the nuances of implementing the right strategies for the best result.
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During the episode, Bill shared a lot of valuable insights tailored to various business scenarios, and he offered practical tips for effectively navigating the crowdfunding landscape.
From understanding the fundamentals to devising tailored approaches, Bill clarified the path toward successful crowdfunding endeavors, empowering businesses with actionable advice to achieve their funding goals. If that is what you are interested in, then keep reading as we start by understanding the role of funding for businesses. Read more at:
The Importance of Funding for Business
Funding your business is crucial for its growth and sustainability. It provides the financial resources necessary to develop products or services, expand operations, hire talented employees, invest in marketing efforts, and weather unforeseen challenges.
Adequate funding not only enables you to execute your business plan effectively but also enhances your ability to adapt to market changes and seize opportunities for innovation and expansion.
There is another fundamental to understand about funding for your business and its “validation”. Securing funding can validate your business idea in the eyes of investors, and this lends more credibility and opens doors to additional partnerships and resources.
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What that can translate to is that strategic funding plays a pivotal role in fueling the trajectory of your business toward long-term success. And as for the “how”, here are three effective ways to fund your business. Make sure to pay attention to every single one of them:
Business Funding Through Bootstrapping
Bootstrapping involves funding your business by using personal savings, revenue generated by the business, or resources obtained through family and friends. This method allows you to maintain complete control over your business and its direction.
Bootstrapping is advantageous as it avoids the need for external debt or equity financing, and it reduces the pressure to meet investor demands.
However, it may limit the scale and pace of growth, as resources are often limited, and the burden of financial risk falls solely on the founder(s).
Consider Seeking Funding From Angel Investors
Angel investors are affluent individuals who provide capital to startups in exchange for equity ownership or convertible debt. They typically invest in early-stage businesses with high growth potential.
Angel investors not only offer financial support but also bring valuable expertise, industry connections, and mentorship to the table. Building relationships with angel investors requires a compelling business idea, a well-crafted pitch, and a solid business plan.
While angel investment can provide the necessary funding and support to propel your business forward, it often involves relinquishing a portion of ownership and decision-making control. Remember to think about that if you want to go the route of angel investment.
Fund Your Business Through Venture Capital
Venture capital firms invest in high-potential startups in exchange for equity ownership. VC funding is suitable for businesses with scalable business models and the potential for rapid growth and market expansion.
Venture capitalists not only provide substantial capital but also offer strategic guidance, industry connections, and access to additional resources. However, securing VC funding can be highly competitive and requires a compelling business proposition, a strong management team, and a clear path to profitability and exit.
Additionally, VC funding often entails giving up a significant portion of ownership and adhering to strict performance targets and milestones.
Each of these funding methods has its advantages and considerations, and the most suitable approach depends on your business’s specific needs, growth trajectory, and risk tolerance.
So, think carefully about what is most appropriate for you, and remember to consult experts like Bill Huston who is ready to leverage his years of experience in the industry to help you make the right decision.
More about Bill Huston in his own words
Hello! I’m Bill Huston, your go-to expert and advocate in the investment crowdfunding world. I’m deeply committed to empowering Latino and Black business owners and founders, championing inclusivity and economic empowerment in every step I take.
Who I Am:
At the helm of Crowd-Max Consulting, I’ve pioneered the “CrowdFit” investment crowdfunding strategy. This isn’t just a strategy; it’s a movement that has successfully raised over $1.5 million into the hands of underserved founders since 2020. My work has caught the eye of major institutions like Rutgers University and earned me a spot among INC Magazine’s Top 19 Global Crowdfunding Experts.
My Impact:
I’m not just about ideas; I’m about action. As a board member of the National Coalition for Community Capital (NC3), the Crowdfunding Professional Association, and Super Crowd Inc., I’m at the forefront of shaping the future of crowdfunding. My role as a strategy consultant for Fund Black Founders and as an accelerator developer for the Asseco Capital Fund, focusing on Latina founders, is a testament to my dedication to diversity and success in this dynamic field.
Sharing Knowledge:
I’m a firm believer in the power of knowledge. Through my eBooks like “Introduction To Investment Crowdfunding For Black Founders” and courses such as “Road to Crowdfunding,” co-created with the 10K Project, I aim to unravel the complexities of crowdfunding. My goal? To make this powerful tool accessible and understandable for everyone.
Let’s Make Connections:
I thrive on collaboration and am always eager to connect with fellow professionals, budding entrepreneurs, and anyone intrigued by the transformative potential of crowdfunding. Whether you’re looking for a collaborator, a speaker for your next event, or just a conversation about the future of this exciting industry, I’m here. Let’s explore how we can make a meaningful impact together in the world of crowdfunding!
Or, we platform-specific services in lead generation, brand strategy, marketing communications, and integrated digital marketing.
SPECIALITIES: Crowdfunding Strategy consultants, Diversity & Inclusion Advocacy, Public Speaking
Digital Course Creation, Digital Marketing Consulting.
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