James Caan shares his experiences of setting up a business today via The Guardian, talking about the most common mistakes. With more and more people setting up new businesses in a declining economy is crowdfunding the way forward for start-ups?
Cann says: “One of the biggest mistakes an entrepreneur can make is getting caught up in the moment: running with your idea or opportunity and spending time and money on developing it rather than taking a step back and thinking to yourself: “Is my idea really a viable business?””
Crowdfunder is a great platform to run an idea without spending any money and testing it on the crowd first. Time and effort has to be put into a crowdfunding project but rather than thinking yourself whether your idea will make a viable business, you can let the crowd decide. No money means no idea.
Crowdfunder have funded many social enterprises and small businesses and think the crowd are a great audience for testing any idea out on. The Bicycle Academy funded their social enterprise via Peoplefund.it (part of the Crowdfunder network) and managed to raise £4k in just six days.
Cann goes on to say: “It is natural when you have an idea, or are presented with a business opportunity, to get excited. It is, however, absolutely vital for you to do your research. Know the market.”
Crowdfunding enables new business owners to set up their campaign and target the relevant market via Twitter, forums, Facebook and press. Showing possible investors that they have spent time and thought over their crowdfunding campaign, this will help validate their business idea. Pre-promotion is vital to any crowdfunding campaign, we encourage all project owners to do their research and know who and how they will contact before they launch their campaign.
He ends by offering some great advice: “Some mistakes can be easily rectified, others will result in certain ideas or businesses coming to an end; the important thing is to remember that a setback doesn’t equate to failure. Behind every successful entrepreneur there are numerous stories of big mistakes. Remember this: you are not judged by the mistakes you make, but by how you deal with and learn from them.”
Why not test your business idea out on the crowd first? http://www.crowdfunder.co.uk/