Startup Law 101 Series – Where Should I Incorporate My Startup Business?

The Issue for Founders

Founders of startup businesses need to decide whether to incorporate in Delaware or in the state in which they will be conducting business. In spite of the commonly held lawyer view to the contrary, I believe founders should think long and hard before choosing Delaware since it often is not the best choice for a typical early-stage startup company.

Many Startup Business Lawyers Routinely Recommend Delaware

During the high-tech bubble in the late 1990s and early 2000s, the idea of ​​a quick path to an initial public offering became so entrenched that startups began skipping the step of incorporating in their own states and moved directly to a delaware incorporation to speed up the process of going public. The bubble burst but this practice did not.

So what do we have? The impetus that drove lawyers to use Delaware routinely for startups was to shorten the path to IPO. After Sarbanes-Oxley and certain public accounting rules changes, very few startups any longer go the IPO route. Yet the Delaware filing pattern persists.

Let us consider the advantages of a Delaware incorporation versus the disadvantages to see if it makes sense for startups to file routinely in Delaware as many lawyers urge them to do.

Why VCs Favor Delaware

Delaware law affords substantial advantages and is an ideal state of domicile for public companies and late-stage startups that are about to go public . Delaware has a well-developed and reasonably consistent body of corporate law with which most business lawyers are familiar. It offers various advantages that help shield an entrenched management – such as the ability to dispense with cumulative voting for directors and the ability to stagger the election of directors. Owing to these advantages, Delaware is favored by venture capital investors who typically do control their portfolio companies and who prefer to make that control as complete as possible. Public company managements like Delaware for this reason as well.

Delaware law also typically gives preferred stock investors with voting control of a corporation the unilateral power to merge that entity into another, or otherwise have it get acquired, without need for approval of the founders or other early-stage participants who typically own most of the common stock. This type of transaction can "wipe out" the value of the common stock because it can be structured so that only those who hold a liquidation preference (ie, the preferred stockholders) get any economic value out of it while the remaining shareholders may get little or nothing. In Delaware, unlike other states such as California, those who stand to get nothing out of such deals often have no voice in stopping them. Thus, there is good reason why preferred stock investors (ie, VCs) will tend to favor Delaware corporations. It gives them enormous leverage over the remaining shareholders in the event the VCs decide to "take out" the company.

Here is a real-world illustration of how this can work. A few years back, when the tech bubble burst, I was working side by side with lawyers from a prestigious Silicon Valley startup venture firm on some joint client matters. During a lengthy phase, I could never get hold of the senior associate from the big firm who was working with me – he was doing an endless stream of "mergers" for weeks on end. Why, as everything around us was coming crashing down, would there be a rash of mergers? Not because these were success cases. They were not. What was happening was a systematic shedding of portfolio companies by the VC firms with quickie mergers as the vehicle. The dreams of many founders fell fast and fell hard in those short weeks.

Thus, the startup world as dominated by VCs had evolved. Before the high-tech bubble, the typical approach was for startups to incorporate in their home states and only reincorporate in Delaware when they reached a mature stage at which the advantages of Delaware law made a substantive difference to them – that is, on the eve of IPO. In the post-bubble era, the VC preference is universally for Delaware, even from inception.

Founder Concerns About VC Expectations

So where does this leave founders who need to decide where to incorporate their startup?

Founders need to understand how all this works and then make the decision that is best for them without regard to what they believe VCs will think.

Sometimes founders want to incorporate in Delaware precisely because they believe that the venture capitalists who will be funding the company later will insist on it. A few venture capitalists do, but most do not, and many startups will never seek venture capital funding in any event.

In over two decades of representing tech startups, at no point have I seen a VC firm refuse to fund a quality startup in which it was otherwise interested simply because it was not incorporated in Delaware. In other words, during the early funding stages of a startup, most VCs are no more consciously focused on the downstream factors of what happens during a merger than are the founders. They may be told by their lawyers of the key factors but they then need to decide whether to invest in a company that is incorporated somewhere besides Delaware. In all the cases I have seen, they have chosen to invest without regard to the Delaware factor and, indeed, have further chosen to keep the company incorporated in its home state thereafter unless and until it reached a stage where it would want to go IPO . Based on this experience, I would say that the fear factor among founders about VC expectations on this point is almost universally either misplaced or at least much overstated.

Factors Affecting a Founder's Decision Whether to Choose Delaware

For the typical California-based early-stage startup, Delaware normally does not offer any practical advantages over a California incorporation (to pick as an example the local jurisdiction of Silicon Valley). Perhaps the only near-term advantages are (1) that Delaware allows for a single-member board of directors, regardless of the number of shareholders in the company, where a state like California requires that the number of directors match the number of shareholders up to three, and (2) quicker and more reliable filing of documents in connection with funding events.

The first of these can facilitate easier corporate governance in an early-stage startup, especially a startup controlled by one predominant founder.

The second can avoid sometimes embarrassing delays when fundings are set to close.

Apart from these areas, however, a Delaware domicile normally just adds administrative burdens for an early-stage startup based in a state like California. These burdens include the difference in the way franchise taxes are handled and the need to qualify as a foreign corporation in the local state. There are also downstream risks to founders in connection with losing the value of their interests in mergers without having a voice in the process (discussed above). In general, then, a Delaware domicile imposes more administrative hassle upon an early-stage company than would a local domicile and may create substantive risks down the road for the founding team. The burdens can be dealt with, but the question is whether they are worth the meager advantages, if any, afforded by a Delaware domicile in the early stage.

The major advantage to incorporating in your local state is simplicity. In an early-stage startup, keeping matters simple is important. It saves expenses and does not divert company resources toward issues that can be avoided.

Use Caution in Choosing Delaware

The point is not to avoid Delaware but rather to consider the issues in light of your company's goals and not simply choose Delaware reflexively. At that point, check with a good lawyer and make your best call, whether it be Delaware or not. Just remember: if you choose to go simple and stay at home, and this proves in retrospect not to be your best choice, you can always reincorporate in Delaware later.



Source by George Grellas

Private Equity vs. Venture Capital

What is the difference between Venture Capital and Private Equity?

The text book answer that would be given by most B-School professors is that venture capital is a subset of a larger private equity asset class which includes venture capital, LBO's, MBO's, MBI's, bridge and mezzanine investments. Historically venture capital investors have provided high risk equity capital to start-up and early stage companies whereas private equity firms have provided secondary traunches of equity and mezzanine investments to companies that are more mature in their corporate lifecycle. Again, traditionally speaking, venture capital firms have higher hurdle rate expectations, will be more mercenary with their valuations and will be more onerous in their constraints on management than will private equity firms.

While the above descriptions are technically correct and have largely held true to form from a historical perspective, the lines between venture capital and private equity investments have been blurred by increased competition in the capital markets over the last 18 – 24 months. With the robust, if not frothy state of the capital markets today there is far too much capital chasing too few quality deals. The increased pressure on the part of money managers, investment advisors, fund managers and capital providers to place funds is at an all time high. This excess money supply has created more competition between investors, driving valuations up for entrepreneurs and yields down for investors.

This increased competition among investors has forced both venture capital and private equity firms to expand their respective horizons in order to continue to capture new opportunities. Over the last 12 months I have seen an increase in private equity firms willing to consider earlier stage companies and venture capital firms lowering yield requirements to be more competitive in securing later stage opportunities.

The moral of this story is that if you are an entrepreneur seeking investment capital your timing is good. While the traditional rules of thumb first explained above can be used as a basic guideline for determining investor suitability, don't let traditional guidelines keep you from exploring all types of capital providers. While some of the ground rules may be changing your capital formation goals should remain the same: entertain proposals from venture capital investors, private equity firms, hedge funds, and angel investors while attempting to work throughout the entire capital structure to seek the highest possible valuation at the lowest blended cost of capital while maintaining the most control possible.



Source by Mike Myatt

Rugby Unique Fundraising Ideas

For the past 9 years my son has played rugby for our local team. I always remember taking him alone the year England won the 2003 World Cup. In fact England had won just view weeks after we joined. Almost from the start the team was always looking for unique fundraising ideas to help pay for equipment and social events for the players and their families.

To be honest not much was done by the existing guys who ran the squad. You have to remember that they all gave up their own time for free, so asking them to also set up and arrange fundraising would be asking too much.

We held a couple of old fashioned quiz nights. My god I never realized how much effort goes into running one of those evenings. Arranging all the questions (yes the internet does help) but let me tell you now. If you intend to copy this idea and hold a quiz night, ENSURE you have proof of the correct answers because you will always get one or two people who want to argue with the answers given.

The quiz nights where not a bad ideas actually and helped raise over £ 500 on each occasion. However as I said they did take some organizing and the simple fact was that the players and parents did not seem to grasp the idea that they really needed to bring family and friends alone to help contribute to the pot!

We also held a couple of discos over the course of a couple of years. Once again these fundraising events proved very successful, but time consuming; arranging hall hire, DJ's etc.

Then over time I took over coaching the side and then finally becoming Head Coach of the section. I know this sounds bad, but as soon as I took over I wanted to increase the fundraising to allow the boys to get track suits, hoodies etc.

So I sat down and tried to think of new and unique fundraising ideas to obtain the new equipment. Don't get me wrong we continued with the quiz nights etc. However people do become bored of quiz nights.

It was my wife in fact who came up with a new fundraising idea. We were sitting down one Saturday night, we had just watched a movie when the lottery results came up. Once again I had won some money (£ 15,000) but that is another story.

So we both sat there having a nice glass of wine, celebrating yet another lottery win, when she came up with the idea that she could sell 49 numbers each Sunday (UK Lotto – uses 49 numbers). Basically 1 – 49. The wining number would be which ever the BONUS BALL! Was. The Winner would win half the pot.

So the maximum anyone could win, would be £ 24.50, with £ 24.50 going into the squad's fund. On weeks no-one selected the winning number, ALL the money would be added to the ever increasing fund.

You won't believe how keen parents were to join. Let's be honest, being asked for just £ 1 a week is nothing compared with continually being asked to attend a quiz night. Plus they had the chance to win some money as well.

So over the next couple of seasons, we raised quite a bit on money. It allowed us buy kit as well as take the players away on tour etc.

Then once again my wife came up with an even better fundraising idea. She said that I should combine my knowledge Lottery Systems together with fundraising. Which truly enabled us to develop this unique fundraising idea?

We set up a Lottery Syndicate with the parents. Using my Lottery Winning System (20 years proven) and waited to see what happened. Now obviously a lot of people will tell you that no system will work. I love people who say that.

3 weeks after starting the syndicate we won £ 18,000. Since then we have won quite a bit more. In fact this year we are all flying out to South Africa to play in a tournament out there. ALL paid for by the Lottery System. Obviously if you would like more details, simply click the lottery play link below.



Source by James Ken Young

Why Digital Marketing Is Important For A Startup Business

A startup business lacks big budgets for advertising purposes. On the other hand, they don't have the resources as well. Hence, these businesses find it difficult to compete against the big boys in the industry. In fact, a startup has only big ideas and hard work to compete with the big businesses in the niche. A small business needs to compete for space in a sector where new companies are launched almost on a daily basis – which means a startup business has to undergo so many obstacles to carve out a niche of their own. In fact, they need to tackle all these challenges to succeed in the market.

The constantly changing behavior of the customer also needs to be taken into consideration when operating a startup. If not, it is difficult to deliver what the target audience is expecting from your business. In fact, a startup business needs to survive in a market where some players spend millions of dollars on marketing their products and services. Being a startup among millions of other startups is not a pleasing situation at all. That is where digital marketing comes in handy. It helps a startup business make its presence felt in a highly competitive marketing environment. With the presence of the internet, a shoestring budget won't prevent a startup business from realizing its goals and objectives in the long run.

Since startups don't have the budget to implement traditional marketing campaigns, they have no other option but to leverage digital marketing to their advantage. In fact, digital marketing comprises of four major techniques such as SEO, PPC, Reputation Management, and Ad Display. The most important benefit of digital marketing is the traffic increase and online exposure that a startup business gets. It helps a startup build a strong relationship with its customer base and improve the brand in the process – which means a startup brand is spread across the internet at an extremely affordable cost.

Digital marketing helps a new business set up a two-way communication with its customer base. The marketing campaign is planned so that the branding message reaches a wide sector of users on the internet. You can use both paid and organic marketing methods to meet the short and long-term goals of your startup business effortlessly. Digital marketing differs from single-channel traditional marketing due to its impacts reaching multiple channels in quick time. This is achieved by capitalizing on the latest technology of automation. All actions taken in this regard is well-coordinated and personalized compared to the traditional marketing methods.

A reliable digital marketing team will help promote your brand across multiple digital platforms to take your brand to the next level in a short period. Digital marketing methods such as social, mobile, content marketing, and email marketing help a business understands their customers better. With measurable results to easily gauge the success or failure of a campaign, a startup can easily amend the strategies they use to improve the chances of success and reduce the chances of failure. That is why digital marketing is considered one of the best marketing strategies for a startups.



Source by Camillo Nanyah

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called « angel » investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term « cost » of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

  • It’s easy to determine the exact cost of financing and obtain an increase.
  • Professional collateral management can be included depending on the facility type and the lender.
  • Real-time, online interactive reporting is often available.
  • It may provide the business with access to more capital.
  • It’s flexible – financing ebbs and flows with the business’ needs.

It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?



Source by Tracy Eden

School Fundraising Ideas -There's Lot's Of Them

In today's world school fundraising is a necessity, but to come up with new school fundraising ideas can be a task for anyone. If you go on the Internet you will find many neat school fundraising ideas that will be more than suitable for your needs. These school fundraisers usually are left up to the parents and the teachers. It can become a monumental undertaking to get this fundraiser together and make it a successful one.

There are many school fundraising ideas that you can choose from, such as a car wash. You will have to choose a safe area to conduct this type of fund raiser, but it is better held near a main street where traffic is fairly heavy to have a good outcome. You can organize a bake sale and have a wide variety of cakes, cookies and breads. This too depends on having a fundraising plan, but is one of the tried and true school fundraiser ideas.

Have a pizza school fundraiser. This will be a popular sale as many people enjoy pizza. You can sell coupons for discounts at pizza places. There are companies where you can order chocolate bars for one of your school fundraising ideas. This is always a popular way to make money. Candles are a sure way to make your fundraising plan a success. There are so many kinds and different scents that everyone will enjoy and prove to be a sure fire hit in any community.

Make sure you have a good fundraising plan before you start. Get your support group together and make sure each one knows the part they will be playing in this school fundraiser. You will need someone to be in charge of handling the money, as well as someone to set up and clean up after your school fundraising is over. So a good fundraising plan is essential for a successful outcome no matter what school fundraising ideas you go with.

If you are really stuck with looking for school fundraising ideas that will not cost you a small fortune up front, try putting off a rummage sale. All you will need is a few volunteers to give a helping hand such as collecting goods donated by the community or things that some of the students have outgrown. When you collect enough and have it sorted, then pick a day for the fundraiser and do your advertising. Everyone loves a rummage sale – it is like the old adage that someone's trash is another's treasure.

There's lots of school fundraising ideas, but not all will work for you.



Source by Peter Leigh

Kabali Rajinikanth: The New Startup Phenomena

Kabali, a rage among startups! After all, it’s not every day that we hear so many startups either booking the entire cinema halls for their employees or giving them a day off on the release date of the movie. FreshDesk, Oyethere.com, Fyndus, GoBumpr, TheSocialPeople and many other startups are big on the Kabali sentiment and are going out of the way to catch up on the frenzy. The massive euphoria exhibited by the startup community around the movie release has led to a new star-fan dynamic not heard or witnessed before.

The fascination with the movie Kabali and thus the superstar has established Rajinikanth’s status as a symbol among a burgeoning breed of entrepreneurs – a symbol of hope, undying spirit and inspiration. As famous as he is for his movie roles, with the upcoming release of his latest outing, startups are also now drawing from his larger than life persona, a tale of talent, ambition and drive to infuse fresh energy into the otherwise grim startup ecosystem.

If funding and scaling were the key talking points of early 2015, exits, acquisitions, layoffs, and shutdowns quickly replaced the above in 2016. According to ‘yourstory’, this year, the startup ecosystem has seen a 40% decline in funding as compared to last year.

In such a scenario, comes Kabali, a 65 year old invincible superstar bringing with him a positivity which in the recent past can only be compared to the massive hope that one felt with Barack Obama becoming the US President. A person, who started his career as a bus conductor, over the years, with the transformative nature of his star persona has today become a unique part of the startup ecosystem, more so in the southern state of Chennai.

Take for instance, the Chennai Geeks Hackathon where a group of youngsters developed a Rajini language software compiler followed by the recent ‘App for Chennai Challenge’ where the jurists were addressed as the Rajinikanth and Kamal Hassan of Chennai startups. And then there is Girish Mathrubootham, founder Freshdesk. In his own words – « From nothing, FreshDesk grew and I was greatly motivated by Rajini sir in our entrepreneurial journey. Every day morning before leaving for office I used to listen to the song « Vetri Kodi Kattu » (hoist the flag of victory) from Rajini sir’s blockbuster Padaiyappa (The film is the typical rags to riches story and in the beginning of the song, Rajinikanth has lost everything but song ends with him becoming a millionaire). It made me work hard against all odds. »

Like Girish, there are many others in the startup community who with pride admit to continue drawing inspiration from Rajinikanth in their entrepreneurial pursuits. According to Viral Thaker, CEO, TheSocialPeople, a digital marketing startup, which has declared an off-day on July 22, « People are excited. This has brought a lot of positive energy. »

Meanwhile, the startups are also leveraging Rajinikanth starrer Kabali to push sales and engage with customers. GoBumpr, a vehicle service startup is running a social media campaign, ‘Kabali-fy your car or vehicle’, Others like FullyFilmy and CoverItUp are also witnessing surge in Kabali inspired merchandise.

Amidst all the hysteria, the startups have found their bright spot in the Rajinikanth starrer Kabali. An icon – simple yet powerful, an index – social, cultural, economic and a symbol – of hope, inspiration and good tidings. Magizhchi! Indeed.



Source by Atul Raja

Venture Capital – And Other Funding Options For Your Business

When is the right time to consider VC or Private Equity for your enterprise? Initially every entrepreneur needs to first see if they have exhausted all other options first. Typically, a company would be low on equity when considering private investors. There are however multiple sources of equity capital, including, Friends & Family, Business Angels, VC’s, Corporate/Strategic Investors, Private Equity companies or The Entrepreneur’s own capital.

For those seeking capital of $500k+ look for VC. For smaller investments, entrepreneurs should seek a Business Angel or Debt Capital. An understanding of the different types of funding stages is therefore useful so see below.

Pre-seed funding is funding that is needed prior to physically construct the enterprise. Usually this funding goes to putting together a good business plan that can impress potential investors.

Seed funding is funding that is required to start building the company. It is possible that some companies could if appropriate skip this funding phase, but seed capital is usually the capital that is required to get the basics for a start-up. Usually at seed stage, a company is not yet ready to open for business, and this funding is usually used to rent office space, real estate, equipment needed to produce the company’s product or service

Seed funding is less commonly invested by VC’s and is not necessarily a large amount of funding. Seed funding can range from $100k-$500k. Rarely does it exceed $1m. Seed capital can also be raised from a Business Angel, Friends and Family or the Entrepreneur’s own funds. Only 15% to 25% of VC’s invest in seed funding.

Early stage funding is usually where VC is sought. A company is usually ready to trade but requires additional capital for salaries.

Later stage funding is also known as expansion/growth stage funding is for companies who are doing well and are seeking to expand.

There are numerous ways that entrepreneurs raise seed capital to get started. These conventional ways include raising debt capital from a business lender, merchant bank or angel investor who are willing to invest seed capital into the business. Other more ingenious entrepreneurs raise seed capital through raising debt capital, sweat equity and funding from friends and family. VC is usually raised with early stage funding, i.e. as above, series A or series B funding. In most cases, VC’s will not invest less than $1 million in a company.

Understand these and you will be off to a good start and be taken seriously.



Source by Marc Bandemer

6 Fundraising Ideas for Charity

Fundraising is the way by which a person or an organization can help others who are in need both financially and physically. But this is not practically possible for one individual. Fortunately or unfortunately the charity fundraisers the traditional way is lengthy and boring. In this article we are providing some ideas that we think will be exciting for the participants.

1. The event should include people of every age, from the young ones to the old. If you are taking the children then that will be particularly good for them as they will learn the value of caring for others.

2. Slow paced events should be avoided. Exciting things will also encourage the young ones and they will be more interested in organizing events.

3. Another way of engaging the youth and the students is that you should make them participate by performing services for the winning bidders. These might include carrying backpacks and books, bringing lunch and several other things.

4. Some organizations have a habit of donating things for a good cause. Take their help like getting a vehicle from them and giving rides to people in exchange for the bucks. The proceeds can be utilized as funds.

5. Organize a dog bakery. Easy dog ​​foods should be made available. The bakery can also make special things for dogs on order. They can also make craft sales or organize sporting events. All in all the fundraising party can be allowed to spend a day in fun and amusement.

6. The fundraisers can offer service at different places like gas stations, restaurants, car parking. In return for the donation they make can get a service like washing the car, cleaning the windshield.

Thus, fundraising is an important event. Not only does it raise funds for the needy but also the members are able to understand the values ​​of teamwork. An ideal fundraiser would be the one who is able to generate big returns by working less. The event should be the one that gives out gifts to the donators. Even if the organization has donated, the best part is that they are given monthly checks. Even after the child financed gets graduated the returns continue to come to the organization.

We hope that this article has been helpful to you in providing all the necessary information about fundraising ideas. So, to conclude we can say that the thumb rule of fundraising fast, easy, and little work with huge revenue generated.



Source by Achal Mehrotra

Common Startup Mistakes You Must Avoid

Thousands of startups are launched every year and they do it with enthusiasm and flair, but there are also plenty that fail and not with so many reasons. Almost all of these startups have some common reasons that contribute to their failure even before they have picked up properly. Yes, there are a zillion things that could go wrong and it is vital for businesses to avoid falling into the same trap over and over again. So, what mistakes should a startup avoid? Some of the common ones are outlined below:

Not prepping for it

Would you participate in a competition without some preparation and practice? No, you wouldn’t. Then why start a business this way? You need some prelaunch training to get you all warmed up because you have to have skills and knowledge to get started. Bear in mind that any startup requires focus, hard work, concentration and dedication from its entrepreneurs and you have to be ready to provide all that instead of just deciding to jump in.

Mixing a business with products

One of the biggest mistakes that most startups make is not thinking beyond the product. They have a product that can solve a problem and that’s all they concentrate on. However, if a startup wishes to survive in the long term, it needs to offer its customers something that will have them coming back for it again and again. Therefore, you need to think of potential revenue streams after the product has been purchased by customers. Think about longevity, where the business will be in three to five years, and this will help determine if there is a business or not.

Not hiring experts

Another major blunder that startups end up making is taking on everything. It is not possible for an entrepreneur to be good at everything. But, it is a fact that every aspect of the business needs to be dealt with expertly, especially in tricky areas such as legal and tax issues. If anything is structured in the wrong way, it will eventually come back to haunt you. Therefore, it is better to hire experts for dealing with major issues. It will cost, but it will definitely pay off in the long run.

Not checking data

Just because you believe you will succeed doesn’t mean that you actually win. You actually have to crunch some numbers, look at the market and do an analysis to know if you can and will. There needs to be proper and reliable data that validates your idea as something that can be profitable and viable. When you have collected some data, you can use it for creating milestones or key performance indicators to check exactly how your business is progressing.

Moving too quickly

One of the top reasons that startups fail is because they simply move too fast. A number of them are able to raise money and when they have the cash, it is spent on the wrong things. By the time they figure out that it is a mistake, it is often too late for them. What do they usually spend on? The funds usually go towards hiring people or marketing, but the fact is that neither of these are necessary for expansion. It is not a good idea to start spending unless you have a way to generate more.

Following the wrong idea

A lot of entrepreneurs who enter an unfamiliar market or first-time entrepreneurs often make the mistake of following the wrong idea. They are so focused on their idea that they don’t realize it is failing. In this competitive market, you cannot simply make decisions based on gut; you have to have evidence to back it up. You need to see exactly how a product fits in the market and do an experiment on what features or changes attract customers to it.

Considering money the solution

Entrepreneurs who are struggling believe that raising more capital can solve their problems, but money is not the solution for everything. A fundamental issue cannot be solved with money because you have to fix the problem first and then get the money.

As long as these mistakes are avoided, chances of startups failing are minimized.



Source by Waqar Hasan

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