Ugly Dog Media Advises Crowdfunding Startups to Build a Crowd Early

June 12, 2012 - PRLog -- The key to taking full advantage of the new crowd funding capability in the JOBS Act is going to be in being prepared to get in at the beginning, advises Dan Blacharski, owner and CEO of crowdfunding PR company Ugly Dog Media. “Crowd funding is opening up huge new opportunities for small businesses that were not available before. The ability to raise capital without going through the traditional banking system, offers small businesses freedom to raise funds for their individual business on their own terms.”

In the past, the capital market has been closed to small businesses. Banks typically have no interest in start-up companies unless the founder has a significant amount of capital already and a solid track record of success, and even then, the requirements can be daunting. A baker or carpenter that needs to raise $25,000 for equipment to officially begin their business may not have the previous year’s financial records, collateral, track record or full-fledged long term business plan that a bank typically would require.  "Most small businesses and start-ups simply won't meet a lender's requirements for a business loan," added Blacharski. "It doesn't mean the concept is not worthwhile, it just means the entrepreneur has to look to non-traditional sources. Now that crowd funding is in the picture, those small businesses will have a viable source of capital."

Crowd funding changes the way small businesses can raise capital. Soon that same baker or carpenter can approach fifty friends for five hundred dollars each or any other combination they need. There are crowd funding platforms available that will be able to help the individual businessperson track the amounts of each investor and provide a data base for follow up after the capital is raised. This enables individuals to support a small business they endorse and the business owner to raise funds without having to satisfy a bank’s risk-averse officers.

Crowd funding has its parameters. Businesses are limited to five hundred investors, the amount of capital to be raised is capped at one million dollars, and financial statements, disclosure of expected return on investment, and filing with the SEC are all required.  But compared to past requirements for IPO offerings to raise capital, the new initial crowd offerings (ICO) parameters are very do-able. This opens up opportunity for people that need much smaller amounts to get their businesses going.

Crowd funding isn’t legal yet, it will be finalized December 2012, or January 2013, but the savvy entrepreneur wants to be ready to get in at the beginning. Preplanning on your own or discussion with a public relations or marketing firm ahead of time to determine goals, target specific investors and develop a presentation or website can ensure they’re ready. "Getting the message out is the most important part of crowdfunding," said Blacharski. "You can't raise a crowd unless you stand up and shout your message. We're here to help you do that."

Ugly Dog Media is itself using a two pronged approach to crowd fund its new Bizipede website, http://www.Bizipede.com.  They are currently using the Indiegogo platform, a non-equity crowdfunding site, to gather their initial crowd at http://www.indiegogo.com/bizipede. Supporters are offered something in return for their small investment, ranging from a custom "Ugly Dog coffee mug to a comprehensive early business listing on the Bizipede beta site. This technique offers a small business a way to gather investors, raise a small amount of money and develop their Beta website before the actual larger investments are sought when crowd funding (selling equity) becomes legal later this year or early next.

The idea behind this is that even investors only buying small amounts of a company aren’t going to throw money at a business with no plan in place and no message. The people that are going to gain the most from crowd funding are those that will have their ducks lined up and standing by, ready to jump in the pond.

For more information visit our crowd funding website at http://www.crowdfundingjumpstart.com or http://www.indiegogo.com/bizipede.

About Ugly Dog Media:
Ugly Dog Media is a marketing and public relations firm in South Bend, Indiana. Visit our website at www.UglyDogMedia.com or contact us at:
Ugly Dog Media
701 S. Main St., Suite 200
South Bend, IN  46601
574-344-2056