Thursday, April 29, 2021

StartupNation

StartupNation

WJR Business Beat with Jeff Sloan: Goldman Sachs 10,000 Small Businesses Program Supports Detroit Businesses (Episode 217)

Posted: 29 Apr 2021 05:00 AM PDT

On this morning’s WJR Business Beat, Jeff chats with Jerome Brown, co-owner of Detroit Soul, and Goldman Sachs 10,000 Small Businesses Detroit program alumnus.

Goldman Sachs and the Goldman Sachs Foundation launched the 10,000 Small Businesses initiative to help entrepreneurs create jobs and economic growth by providing them with greater access to business education, financial capital and business support services. In 2013, Goldman Sachs 10,000 Small Businesses committed $20 million to support the Detroit area's small businesses.

Tune in to the Business Beat, below, to learn more about Jerome’s story and the Goldman Sachs 10,000 Small Businesses program:

“The 10,000 Small Business program provided an ecosystem of like-minded individuals who went through business courses necessary to scale or grow your business. We were able to identify gaps in our business, provided consulting support, and (were helped) to scale.”

– Jerome Brown, co-owner of Detroit Soul

Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.

Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!

WJR Business Beat Transcript

Good morning, Paul.

We’ve got a feel-good story about a Detroit entrepreneur who opened his soul food restaurant right here in Detroit in 2015. It’s known as Detroit Soul and it has enough loyal and loving customers to pack the place every weekend.

Detroit Soul is probably owned and operated by Jerome Brown, and now that things are opening up again, Jerome, once again is serving up some love. And one thing that has helped him as an entrepreneur, well, it’s being part of the Goldman Sachs 10,000 Small Businesses Detroit program, in which Goldman Sachs has pledged $20 million to support Detroit area small businesses.

Let’s hear from Jerome:

Hello, Jeff. Detroit Soul is a family owned restaurant in the city of Detroit. We provide jobs for those that live in the neighborhood, as well as are part of the community. We’re known for our macaroni and cheese, we use four different types of cheese, and on Saturday, we cook outside, barbecue. Oh my God, we sell out every Saturday.

During the pandemic, we closed our dining room, but we pivoted to 100% call-in and delivery services.

Now, Jerome, you’re a Goldman Sachs program alumnus, what did the program mean to you?

The 10,000 Small Business program provided an ecosystem of like-minded individuals who went through business courses necessary to scale or grow your business. We were able to identify gaps in our business, provided consulting support, and to help us to scale. I’ll tell you, without this program, I’m sure we would have paid an excess of $50,000 to receive the information that we received.

Jerome, it’s got to feel amazing to be open again and serving your great customers.

We’re a family style restaurant and we missed our customers. We’re glad to see them returning.

We’re thrilled for you, Jerome, and thank you to Goldman Sachs for your invaluable support of Detroit businesses like Jerome’s, Detroit Soul. I’ll see you there, Paul! Just know, I don’t share my mac and cheese. Check them out detroitsoul.net.

I’m Jeff Sloan, founder and CEO of StartupNation.com, and that's today's Business Beat on the Great Voice of the Great Lakes, WJR.

The post WJR Business Beat with Jeff Sloan: Goldman Sachs 10,000 Small Businesses Program Supports Detroit Businesses (Episode 217) appeared first on StartupNation.

Rewards-Based or Equity Crowdfunding: Which is Best for My Business?

Posted: 29 Apr 2021 02:00 AM PDT

One of the most popular methods of fundraising for a startup is the use of crowdfunding platforms. With crowdfunding, people choose to make a donation through an approved funding platform to help raise money for a specific venture or project. If you’re considering crowdfunding, it’s important to have an understanding of the various models available to you.

Here are two of the most popular funding models:

  • Rewards-based crowdfunding (including both all-or-nothing and flexible funding)
  • Equity crowdfunding
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Which model should you choose for your business? Let's dig a little deeper into the following crowdfunding options:

Rewards-based crowdfunding

Rewards-based crowdfunding allows for crowdfunders to give donors rewards that are personalized and associated with a particular pledge amount. A pledge of $25, for example, may come with an e-book or similar gift that is easy to distribute to a wide audience. Larger pledges that go into the hundreds of dollars may include increasingly upgraded rewards and incentives.

Rewards-based crowdfunding is a win-win for both donors and users, because donors receive a unique gift or experience for their investment, while entrepreneurs receive the necessary funds that they can quickly apply to their business or initiative.

All-or-nothing funding

Even if you aren't particularly familiar with the different forms of crowdfunding, you probably know a little bit about Kickstarter, which is easily one of the most popular crowdfunding platforms out there. Entrepreneurs must first be approved before they can launch a campaign on Kickstarter, and must set a goal and a timeline for the campaign’s completion. Once approved, he or she can start accepting donations to fund his or her business. Pledges are meant to be within a reasonable price range, and Kickstarter notes that the most popular pledge on the platform is $25.

Kickstarter's operates on an all-or-nothing funding model, which means you will not receive the funds raised until the end of the campaign, and only if the campaign meets its goal. 

However, if you do not meet the established goal, then all donors receive their money back. The all-or-nothing model has plenty of risks and rewards associated with it, so if you'd prefer more guarantees that the money will go toward your initiative, you may wish to explore rewards-based crowdfunding with flexible funding options.

Flexible funding

Rewards-based crowdfunding with flexible funding options, especially through platforms like Indiegogo, makes it possible to create a campaign in which donors receive a small reward for their donation. And unlike Kickstarter, which is an all-or-nothing platform, Indiegogo may be a better choice for you if you’d like the option of choosing flexible funding — which means that you get to keep the funds your campaign receives, regardless of whether or not you reach your goal.

While platforms like Indiegogo allow you to choose your funding structure (all-or-nothing or flexible), keep in mind that you cannot change your mind once a campaign has officially launched.

Equity crowdfunding

Donors that contribute to a crowdfunding campaign on an equity platform, like CircleUp, receive shares within the company they are helping to financially back. Equity crowdfunding platforms are selective in picking out eligible businesses, and it’s important for entrepreneurs to understand the role that donors play. Donors who receive shares are now investors in the business, and as such, the business will need to show its new investors a steady return on investment within the company.

Read more about new equity crowdfunding legislation here, and why these recent changes could make equity crowdfunding the go-to source for startup funding.

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Which crowdfunding option is best for your business?

Choosing the right crowdfunding option for your business means factoring in what exactly your business needs, how quickly it needs the funding, and analyzing different types of platforms to see which will best address these needs.

If you are uncertain about which funding model to pick, or whether crowdfunding is best for your business in general, consider speaking with an accountant or CPA. They can provide you with answers to your questions and share any other funding methods or options that may be a fit for your startup.

The post Rewards-Based or Equity Crowdfunding: Which is Best for My Business? appeared first on StartupNation.

WJR Business Beat with Jeff Sloan: Study Shows Small Businesses Put Employees First (Episode 216)

Posted: 28 Apr 2021 05:00 AM PDT

On this morning’s WJR Business Beat, Jeff discusses the recently released Small Business Recovery Report conducted by Kabbage, an American Express Company. When asked which milestone would best indicate their business has recovered from the pandemic, the number one response of those surveyed was paying their employees their full wages.

Tune in to the Business Beat, below, to learn more about the Small Business Recovery Report’s findings:

“It certainly is telling that small businesses hold the well-being of their employees higher than acquiring new business and even higher than their own personal income.”

– Jeff Sloan

Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.

Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!

WJR Business Beat Transcript

Good morning, Paul.

You know, there’s something really special about the character and nature of an entrepreneur. I mean, sure, they're gutsy and tough and tenacious and resilient, but there’s more to the story than just that. You see, I find that small businesses always put their employees first, even above themselves.

In fact, a recent study of small businesses known as the Small Business Recovery Report conducted by Kabbage, an American Express Company, provided data that once again shows the importance of small business operators to take care of their employees. When asked which milestones would best indicate that their businesses have recovered from the pandemic, the number one response was paying their employees their full wages.

Now, this was closely followed by business leaders paying themselves their pre-pandemic salaries, reaching the same levels of gross revenue and total daily transactions as before the pandemic came in as the third highest concern and reaching greater levels of customer demand and new inbound business came in next.

Now, while all of these are intrinsically tied to revenue, it certainly is telling that small businesses hold the well-being of their employees higher than acquiring new business and even higher than their own personal income.

In many ways, I find this amazing Paul, but certainly not surprising. It’s reassuring to know how much small businesses care about their employees.

Now it’s critically important because small businesses provide the majority of jobs in America. And it’s heartening to see the results of this study with an emphasis on caring for the employees who work so hard to earn their wages and to help you grow your small businesses.

Let’s all appreciate the hard work that our employees do, and let’s recognize entrepreneurs for their great character and their desire to put their employees first.

I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today's Business Beat on the Great Voice of the Great Lakes, WJR.

The post WJR Business Beat with Jeff Sloan: Study Shows Small Businesses Put Employees First (Episode 216) appeared first on StartupNation.
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