SMALL BUSINESS CROWDFUNDING

Small business crowdfunding fundraisers are events in which lager numbers of people make small investments for the startup or expansion of a small business. 

Due to the increasing demand for crowdfunding investors, and the limited number of non-entrepreneurs who are investing into small business crowdfunding, it is crucial that entrepreneurs resorts to their creativity and work together to provide their own crowdfunding money to invest in their own small businesses.

The example for this type of crowdfunding fundraiser is as follows:

For a fixed term on one year, one hundred entrepreneurs join forces, work together as one crowdfunding entity. 

The group of entrepreneurs must set up a trust account in which they must deposit and keep the groups money.

Every 3 months each entrepreneur invest $1,000 into its crowdfunding fundraisers.

All of the money is deposited into the group's trust account, which must maintain a minimum balance of 6 months worth of deposits or $200,000.

After the first 9 months, one or more entrepreneur may draw up to $20,000 form the group's trust account. 

Over the five years period, each entrepreneur most invest into the group a minimum of $20,200.

At the expiration of the five years term, each entrepreneur may withdraws a maximum of $20,000 from the trust.

Any remaining balance of money in the trust account may be credited to the extension of the said group of entrepreneurs, if they extend the the term by another five years.

If the the group of intrapreneurs dissolves, any remaining balance of money that is in the trust account may be divided equally and be disbursed to each entrepreneur.


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