If you have an idea for a product or service, you often need a kick start to get it off the ground.  Crowd funding is the newest entry-level pathway to finance a finite project, be it a tasty new salsa, unusual fashion jewelry or clothing, a book, game, mobile app, device or film.  Eduardo Millet, vice president for business development at the McAllen Chamber of Commerce, is championing the use of crowd funding to help individuals across the Valley move their creative idea along the path to success.

“Most of crowd funding is online. You need a short video to post online,” Millet explained. “It’s very simple.  It’s not about the product or project. It’s about the inventor.” The McAllen Chamber has invested in the video equipment to help local entrepreneurs create their video with Millet on hand to guide them through the crowd funding process and their video debut. The Chamber’s goal is to boost local businesses and local innovators.

Mini-entrepreneurs have to do their homework, create a campaign and identify their target market, all of which may take 30 to 60 days, Millet said. They must determine how much money is needed to accomplish the goal.  Even more important, they must develop a network of contacts, who will be their initial audience.

“You need strategies; you need to show others that you are doing your part. Crowd funding is about storytelling and that’s changing the game.  It’s not all about the product.  It’s about the inventor showing potential backers who they would be giving their money to.”

Similar to an elevator pitch, the short (two to three minute) crowd funding video should have a sense of fun, Millet said.

“It should convey that you are happy and proud of what you are doing.” That means during fund seekers’ prep time, they need to get familiar with cameras and press releases as well as the financial and production issues of their project.  A presence on Facebook, Twitter, LinkedIn and YouTube is essential for a strong starting platform.

Crowd funding is different from crowd investing for equity, which won’t be legal until 2013.  In crowd funding on a site like kickstarter.com, backers can fund a project whose video catches their interest.  Backers pledge amounts from $1 to $500 depending on the project, with small pledges, $20 and below, being the most common.

For more of this story by Eileen Mattei, pick up a copy of the September edition of Valley Business Report, on news stands now, or visit the “Current & Past Issues” tab on this Web site.