CrowdFunding project and campaign psychology and why not to have a CrowdFunding business plan

posted May 4, 2013, 12:08 PM by David Khorram   [ updated Oct 26, 2015, 1:24 PM by David Khorram ]

I  love being a startup but,    that was 25 years ago. I manage eight divisions of  Innova (  http://www.innovaglobal.com/divisions ) . We incubate and hatch one or two new businesses internally every three years . Then,  I know about business plan and being a P&L responsible manager .


We have been working, learning and experimenting with CrowdFunding since early 2011 and We claim business plan does not work  well for Crowd Funding project  and campaign and a Crowd Funding business model is the solution.


Under our CrowdFunding project and campaign  model, a startup's product, service or event is built iteratively through a series of small experiments with validation designed to quickly inform and guide Entrepreneurs on the validity of his or her assumption assumptions. This process also builds the early crowd. We call it the flint stone of crowd building )


CrowdFundingis hard work and it takes time . ( Know it coming in: Success in a startup and CrowdFunding  takes a lot of hard work and it comes slowly ).


We have had many success managing CrowdFunding projects ( pre launch preparations and development )  and Crowdfunding campaigns . Actually,  what needs to be

established  before and after Campaign success is more detail work and more difficult than Crowd Funding Campaign roller coaster by itself. ( I was told a bad 

CrowdFunding

 campaign is like riding a roller coaster backward ..... ).

In 2011, we noticed that all our Crowd Funding clients needed a solid business foundation that is  low cost , efficient but at the same time powerful and scalable.  After all , there is a reason it is called Startup .


For example how a company of five people  can scale up  their office technology  within less than a week and hire and manage their business process outsourcing and business process crowdsourcing resources  in less than a month when,  they just received their CrowdFunding funds ( i.e 1 Million ) ?


Yes, they have to scale of very , very fast and if they do not then CrowdFunding would not be a pleasant experience and goods will not be shipped  and promise would not be delivered . .


We found the solution in 2007 and Joined Google  ( The engine of innovations and fabric of success)  . We applied it to our operations, sales, marketing, Human resources,.... Departments  and  as its  byproduct we learned and gained Internet marketing .


It took 4 years to master it . Try Crowd Funding word plus   Consulting, consulting , planning, conference, seminar, coach, mentors.....  Etc. You find us on 1st page  and many times on  1st position on the Google natural search ... It just requires hard work and right practices.


We have learned  1st hand for CrowdFunding project development , " business plan" does not work.   


The business plan is written with lots of assumptions and also with reasons and logics for readers ( i.e VCs )  that use their brain frontal lobe .


Crowd Funding reward ( pre order , donation) affects people that they use their brain's temporal lobe ( inner brain ) or believes. Buying a pre order  product , service or events with a promise of delivery in the future . Logically this is risky and does not make sense however Crowd Funding will be at 17 billion in 2014 and was 2.8 billion in 2012 .. Something else is working above logic .


Surprisingly, this is not a new event or subject Crowd Funding at church. Temples  Synagogue  and mosques are more than six thousand years old . The concept is simple but powerful . If you believe me, you will invest ( time, material …. Etc.. )  In me .


Martin Luther King didn't say “ I have a Plan “, he said ”I have a dream and a belief that one day “ .We know now, he had a plan but had to communicate to the temporal lobes ( inner brain )


We claim VCs also do not read the whole business plan . VCs  care about  traction  / analytic information and how much they can make in the future using the startup launchpad.


Just watch an episode of the” shark tank”, they listen and watch to the idea and watch samples but ask two questions 1st . 1) How many and many you sold?,  2) is it profitable and how much  … then they ask for more than half of everything . Logic in action .


What do you think if we go in front of them and say we are planning to build in the future.  :):):)


Our CrowdFunding business model  that has  replaced business plan  is on one page and has all the elements that Entrepreneur is needed to manage and build his or her  CrowdFunding project and campaign and its foundation is on :


  1. Building trust in to project and the campaign

  2. Get feedback from the crowd for validation (Crowd validation) of business model  segments . Realizing we are not our customers

  3. Recognizing making idea is cheap but building is not.  

  4. Committing yourself fully to a product, service or event  idea or vision can easily consume months and more realistically years of your life. Life is too short to build products, services or events  nobody wants.


We have tested the model with a handful of our Crowd Funding clients and have completed a cloud based portal which will be launched in June of 2013. We welcome your input and advice. Please send your comments a contactus crowdFundingplanning.com



Reasonably smart people can rationalize anything but the entrepreneurs are especially gifted at seeing the real benefits of CrowdFunding and its business model 
  • There is no resource more valuable than time. Time is more valuable than money. While money can fluctuate up or down, time only moves in one direction.
  • The Business Plan is a document investors making you write that they don’t read
  • The CrowdFunding Business model is based on documenting your business model assumptions and get validity from the crowd. 
  • There is no substitute to just write this stuff down . Too many entrepreneurs carry these assumptions in their heads. 
  • The there are clearly two choices:
    • Complete the one page business model which may be painful at the start but rewarding all the way through the journey , or
    • Iterate, creates a self-fulfilling ‚ reality distortion field and come up with a new features, products or event, " again" that no one will buy .

    SIMON Says;

    “People don’t follow what you do; they follow why you do what you do.” If they find your core belief (emotion) to resonate with their own they will follow your reasoning and use their own energy to help. You now have collaborators and everybody is useful to all, this win-win situation gives power, credibility and resources to the idea. It might have been your idea but it is now everybody involved own the process and goal together




    Posted By : www.crowdfundingplanning.com

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