January 4, 2017

Should I Start A GoFundMe For My Chiropractic Practice?

By chirosushi In Cause, Chiropractic Pop Culture, Chiropractic Success, Marketing, Practice Management

The case FOR and AGAINST using CrowdFunding for your practice startup

*Kudos and credit goes to Dr. Ed Osborne from the Chiropractic Philanthropist for the inspiration 

There has been a recent trend of future or young Chiropractor’s utilizing the crowdfunding site GoFundMe to raise capital for their Chiropractic practice. We go down the rabbit hole to find out if this is a wise option.

What is crowdfunding?

Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.

Why this is the smartest thing ever…Donald Trump thinks so!

Yikes…we went right with Trump to start this argument.

But it’s true. And these were principles used in the 40’s thru the 60’s by our parents and grandparents.

If you can get other people’s money to use, why not?

Why go through a bank if you don’t have to?

Business loans and other financing can be expensive and difficult to obtain. Turn to your community and supporters to give your business the boost it needs.

Marketing

The last great effect of running this is the PR effect you could generate and the networking built through the sharing.

But here is why it’s not such a good idea…

Before you think about launching a crowdfunding project think about these factors:

The Success Rate

According to Kickstarter, for example, only 38 percent of launched projects on the site are successful at reaching their fundraising goal. Before you begin a crowdfunding campaign, honestly evaluate its chance of success. Ask yourself:

  • How much time and resources can I commit to the campaign?
  • How have campaigns of companies with similar products fared?
  • What’s a realistic fundraising goal? Is my time best spent working for on a campaign that, if successful, would yield this amount?

Stigma

Many Chiropractor’s who have seen young DC’s or have been asked by young DC’s to support their project have had such a negative visceral reaction to the very thought of this concept.

Some feel that this is a handout and the lazy way of building a practice.

Others feel that it teaches you the wrong way to “hustle.”

Be aware that your community might raise eyebrows before launching.

Am I asking for charity or real crowdfunding?

This is where it gets real interesting.

You see, crowdfunding really became acceptable and legal for businesses a few years ago because of the tech boom in Silicon Valley.

Everybody had an idea. And everybody wanted money.

From 2012:

President Obama called the Jumpstart Our Business Startups (JOBS) Act a “game-changing” bill moments before singing it into law Thursday afternoon.The JOBS Act is a bipartisan bill which aims to make it easier for startups to grow, hire employees and contribute to the United States’ sluggish economic recovery.The bill classifies startups as “emerging growth companies” that can turn to online investors to raise much-sought-after startup capital — similar to how websites such as Kickstarter let users raise money for films, books or other projects.Those companies would also be able to sell up to $50 million in shares before having to register with the Securities and Exchange Commission and have up to 1,000 shareholders — double the current limitation.

But here is where initiative and charity are different.

If you are crowdfunding capital for your startup you should be able to offer incentives and rewards, like shares or equity.

But most of the GoFundMe campaigns are basically just asking for money with no reward.

Here are some examples:

“Don’t Let Doctor Lose His Practice”

vs

Gonstead Guardians

The first one doesn’t offer any rewards for basically donations.

The second one offers incentives at different tier levels.

The ChiroSushi Take:

Do what you think and feel is wise.

If you do decide this is your approach to fundraising, we suggest running a campaign on KickStarter with incentives and rewards and because of it’s “All or nothing approach” to fundraising –

Meaning you set a goal and if you don’t reach that goal you don’t get any of the money.

This type of crowdfunding utilizes the original intent and purpose when it comes to building a business and sets clear defined goals and boundaries while not feeling like straight up charity

Want to grow your practice? Come join us in Las Vegas!

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