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Question

My nephew is starting a business in the fitness. He’s 24 years old just graduated recently with a bachelor of business administration degree and he is shirking the idea of getting a day job and his parents made him a deal he has 18 months to build a business that at the very least breaks even he asked me for some advice and I recommended crowdfunding as I think this provides an opportunity to ramp up his business and break even much sooner.

He is very familiar with this building, very familiar with social media reach, growing a social following and I am reaching out to some experts in a crowdfunding arena to see if it’s even worth going for funding.

Answer

Sean Mulkeen answered

Crowdfunding for startups is a difficult task if there isn't a tangible product at hand currently. If he kept the funding on a personal level and only involved family and friends, then it could work, but that opens pandora's box of "borrowing" money from people you have a non-business connection to.