Book-of-the-Month February 2016 | The Crowdfunding Handbook

Crowdfunding Handbook: Kickstarter campaigns are no longer just one-time projects like art installations and geek gadgets. This funding method can now help you raise capital for your small business.

A new book due out soon explains the process. The Crowdfunding Handbook: Raise Money for Your Small Business or Start-Up with Equity Funding Portals, by Cliff Ennico, will be published by AMACOM in May.

JOBS: the Game Changer

The book explains how small businesses can take advantage of a new, groundbreaking funding source. Jumpstart Our Business Startups, JOBS, is a law signed by President Obama in April, 2012, and now in 2016 going live. It lets small businesses raise up to $1 million without going through the IPO process.

Companies that are privately owned can now go directly to investors. They no longer need to work their way through the stringent IPO processes regulated by the Securities and Exchange Commission. Instead, they can compete for crowdsourcing to fund their startup.

The new Act takes crowdfunding to the next level, letting startups offer stock, bonds and other securities to non-accredited investors. It’s like talking your friends and family into investing in your business, but using the power of the internet and the global village. JOBS has been called a “game changer for the way private companies get capital.”

Small Business Expert

The author, Cliff Ennico, has a long background with small businesses and has followed the crowdfunding phenomenon from its inception. As a Wall Street lawyer, syndicated columnist and television host, he is considered an expert in the field of getting new small businesses from idea into actual operation.

He was the host of MoneyHunt on PBS in the 1990s, the precursor to SharkTank. On the show, he critiqued and offered advice to a host of entrepreneurs. Currently he is part of the eBay small business education team and a guest on eBay Radio.

He writes “Succeeding in Your Business,” a legal questions and answers column for Entrepreneur and is the author of a number of other books, including The eBay Seller’s Tax and Legal Answer Book.

Make the Most of JOBS

The Act becomes effective this year and many entrepreneurs are anxious to get in early and make the most of the new regulations. If that’s you, then you will benefit from The Crowdfunding Handbook. In it, Ennico takes readers step-by-step through JOBS. He converts the complicated process into a clear course of action.

Some of the topics covered include:
  • How to price your securities
  • How to pitch your business so it resonates with the public
  • How to choose the most suitable crowdfunding platform
  • How to figure out, and fill out, disclosure and reporting documentation
  • How to decide if crowdfunding the best financing option for your business
  • How to reach your targeted investor

The fact is, IPOs are expensive, rigorously regulated and complex. For startups, JOBS has opened up an exciting new source of financing that makes reaching investor easier. It puts the process within the reach of small business.

But it is still complicated. The Crowdfunding Handbook spells out what the ACT is, who it is for and how to make the best use of it. The book is a reliable guide to a revolutionary way for funding startups.

Crowdfunding Handbook spells out what the ACT is, who it is for and how to make the best use of it. The book is a reliable guide to a revolutionary way for funding startups.

Crowdfunding Ideas: –