Crowdfund Investing For Dummies
Book image
Explore Book Buy On Amazon

Even if you’re experiencing problems, your crowdfund investors can handle the turbulence as long as you’re honest and forthright. Whereas a typical stockholder may pull out of a company at the first sign of trouble, a crowdfund investor is much more likely to stay on your side and help push you forward — as long as you give her the chance to understand what’s happening.

Therefore, if you’re experiencing problems, you should let your crowd know. But don’t just whine about the problems and throw your hands up in the air. Communicate with a purpose. Here’s how:

  1. Make sure you fully understand the problem and consider some potential solutions.

  2. Present the problem to your crowd, offer your ideas, and ask for their feedback.

    Chances are, most of your investors will appreciate the request and will do their best to brainstorm potential solutions.

Keep a journal (whether online or offline) that tracks what happens each day in the early life of your business. If you receive useful feedback from an investor, make note of it in your journal. Later, you can indicate whether you used that feedback, including how and why. Keeping this record is important because when you report to your investors, you can acknowledge and thank the source(s) of the feedback you used.

About This Article

This article is from the book:

About the book authors:

Sherwood Neiss, Jason W. Best, and Zak Cassady-Dorion are the founders of Startup Exemption (developers of the crowdfund investing framework used in the 2012 JOBS Act). They deeply understand the process, rules, disclosures, and risks of capital formation from both the entrepreneur's and the investor's points of view.

This article can be found in the category: