A sobering 2012 study from the Harvard Business School revealed that 3 out of 4 venture-backed startups end in failure. This is due to a number of factors: management inexperience, insufficient capital, irrational exuberance without enough market research. But the uber-reason for new business failure is insufficient real time planning for long term success and the ability to execute on that plan. Planning allows the entrepreneur to consider and answer the basic and strategic questions and to stay organized and remain on track. Businesses without a plan can easily get off-target because they have no clearly defined goals. Creating a defensible plan with realistic marketing and sales strategies, numerical summaries, revenue forecasts, helps entrepreneurs convince investors and remain committed to their company’s long-term goals.
Equity crowdfunding increases everyone’s odds of success by requiring applicants to answer these questions for themselves before they present their proposal to would-be investors. When entrepreneurs turn solely to their family and friends, it can be easy to gloss over a lack of rigor and strategy with pure enthusiasm, imperiling the funds of the people closest to them. Entrepreneurs owe it to their friends to be more transparent but in the past have not always done so; but now they’ll be required by the laws outlined in the crowdfunding provisions in the JOBS Act of 2012 to be fully prepared before seeking investment from the wider audience. And this changes everything, including the use of what we have traditionally used and thought of as business plan. The virtual nature of funding portals and the need to share information with hundreds or thousands of investors in real time 24/7 makes PDF documents completely obsolete for crowdfund investing. Putting all of these issues together, it’s clear that if the crowdfunding industry wants to succeed along with the businesses it funds, the business plan product must be transformed. The general consensus of crowdfunding industry leaders is that the state-of-the-art planning tool for crowdfunding is the Funding Roadmap, http://www.fundingroadmap.com/ -a virtual platform that makes business planning faster, easier and more systematic, and helps entrepreneurs to create viable long term vision and strategy.
The speed, efficiency and standardization built into the Fundingroadmap reporting system provides the kind of transparency necessary in a constantly expanding global digital world. “…we are very excited to be able to provide this kind of advanced technology to our customers worldwide” said Vincent Molinari, CEO of GATE, a crowdfunding transaction facilitator. The fully compliant, shareable Funding Roadmap places your idea or business on a proper trajectory to raise capital now and succeed in the long run.
Fundingroadmap helps entrepreneurs prepare a compliant document and disclosure package for the coming SEC crowdfunding rules. It’s designed for compatibility with crowdfunding portals. It facilitates collaboration at a distance in real time. Items with finite answers are formatted in multiple choice. Navigation is easy. Funding Roadmap streams video presentations and indexes downloads of required supporting documents in its repository, as well as providing a Crowdfund Disclosure Report to greatly facilitate the required due diligence process.
If you’re funding your new business with friends and family, Angels or Venture Capitalists, Funding Roadmap will increase your odds of getting funded by helping you to consider and solve the essential puzzles of your enterprise, and to share your polished presentation with your invited investors fully, securely and instantaneously anytime from anywhere on the cloud.
Funding Roadmap will also: – Help you stay organized and remain on track with its unique benchmarking functions which also serve as a guide to track your progress and hold yourself accountable in the future. – It forces you to consider and decide on things you might not have otherwise, like business interruption insurance and cash burn rate. – It saves you a lot of time and frustration thinking through the numbers, and making sure it’s possible to hit your revenue and profit goals. – It will force you to prove the validity of your ideas, the product/service target markets and sales strategy. – Its virtual collaboration features helps keep everyone on your team aligned with the current and future plans for your business in real time and as changes occur.
Equity crowdfunding is changing forever the way new businesses are conceived, evaluated and funded. We have seen that even Venture Capitalists are not getting the information they need to make good investment decisions. Funding Roadmap is the technology that makes compliant and comprehensive planning documents easy to generate and share. Whether or not you’re crowdfunding, Funding Roadmap helps entrepreneurs and investors to increase the odds of success.