Crowd-Sourcing Your Job Freedom

Oftentimes, it’s the talented, motivated and grounded people who struggle the most getting to the work they should be doing. It’s like the burden of their gifts weighs them down, placing an unhealthy gravity on the decision to strike out and make a change for the better.

But beyond the over-complicated knots we tie ourselves in are the practical barriers that confound us. One of them is not having the financial freedom to do the kind of work that we need to be doing right now.

In this regard, there’s good news for everyone who has an entrepreneur inside of them, struggling to get out. Your pitifully small bank account is no longer a roadblock to your success as long as you have a good idea and an equally good story to tell. For the first time ever, millions of strangers are funding small business ideas that never had the chance to get off the ground before. All you have to do is sell them on your dream.

With crowd-funding, it’s the small amounts, quite literally “the seed funding,” that can not only get you off the proverbial dime, but also a cheering section of people who truly believe in you. Where once you needed a rich uncle or well-healed friend, the “kindness of strangers” now provides a way for you to get in the game. (I last wrote about crowd-funding in July.)

You always wanted to ____ (fill in the blank). You’ve never understood why somebody hadn’t figured out how to ___, so you’ve figured it out. Tell the crowd about your idea. Tell them how much cash you need to realize it. Tell them how they’ll get to share in your success. Convince them that you deserve their vote of confidence and they just might give it to you.

Historically, because tiny businesses rarely attracted outside financing, they just as rarely got off the ground. Today, a whole new class of entrepreneurs has a chance to strut their stuff. Spreading like some positive contagion, crowds are nurturing brave little start-ups everywhere there is access to a funding network. Years from now, when some of our leading companies can trace their origins to networks like Kickstarter, I think we’ll recognize that the true democratization of innovation began in our time.

What this gives you is an opportunity that simply wasn’t available five years ago. But you still have to believe in what you’re setting out to do, and get that cheering section to buy-in too. Indeed, it’s your ability to inspire (on the one hand) and the desire of total strangers to be inspired (on the other) that makes this bargain work.

In the world of crowd-funding, the desire to be part of an appealing stranger’s quest to succeed is nearly universal. She talks about how she’ll change the world. You learn about how he’ll make our lives better, easier, smarter. They share their stories with us, and we in turn see some of ourselves (and our hopes) in them. We like & admire them & look forward to sharing in their success. The ticket for the adventure is modest given the upsides, so we buy it.

For investors, it helps too that you’re not the only one who’s buying. It may be dozens or hundreds or even thousands of others who are similarly inspired. With crowd-funding, you find out early and often how many others are getting on-board with you. The infectious rush of fellow believers is essential to the dynamic.

But what’s really unique (and special) here is that the entrepreneur’s energy & inspiration and the investors’ psychic & financial support are joining together for the sake of economic productivity. We’re building a business here after all.

Maybe it’s your business.

We all want to do work that matters. But, as often as not, you won’t find that kind of work in the want ads. It’s rarely work that somebody else gives you to do. As often as not, you need to give yourself the kind of work that will change the world.

Early on in my forthcoming book WorkLifeReward: Following Your Values to Fulfilling Work is the line:

If you want the world to be a better place, you need to help it become that better place.

The main way to do so, of course, is through the work you do. So if you don’t think the work you’re doing—that is, your selling whatever it is that you’re selling today—is making the world into the kind of better place you want it to be, maybe it’s time to think about working at something that will make that kind of difference.

These posts are about encouraging you to think differently about your work. They aim to raise what I call “value awareness,” so you have a clearer view of the color and texture of the better world you’d like to encourage with your efforts. Sometimes they aim to help you become the most effective spokesperson you can be while striving to achieve your goals. And sometimes the discussion here is about ways to make the productive work you want to do easier.

This post is about one of those booster rockets. Something has gotten a lot easier.

Creating a business model for a better world, where you and your co-conspirators are doing work that matters, takes energy, creativity, vision, tenacity, luck. And it takes money that either you provide, or that people investing in your vision of a better world put in your hands.

In the good old days the money came almost exclusively from your own bank account or from friends and family. (It was the era when those who already had money were usually the ones making more of it.) On top of that, only a tiny percentage of new ideas—whether promising to change the world or not—managed to find venture capital. So if you or a rich uncle weren’t providing the cash, even your brilliance, best intentions and limitless energy were often not enough to overcome the funding constraints all new companies that produce work need in order to survive.

But there’s some good news. It’s a brand new day!

Today, crowdfunding websites give you the ability to make a direct appeal to individuals or groups who may be interested in supporting what you’re doing—because your kind of work is work that matters to them too.

You tell your story. You identify your goal. The crowd decides whether to invest in it. Usually harvested in small dollar amounts, it is hundreds, even thousands of small investments funneled through the crowdfunding site that can put the financial fuel in a new company’s tank.

As an entrepreneur, you promise to give your investors a tangible return on their investment. It could be a letter from a grateful child your company has helped, a picture of the tree planted “because you invested,” or, if you are producing a brave new product or service, periodic updates on solutions to problems no one had gotten around to tackling before.

You get the idea.

For providing the conduit between you and your new investors, crowdfunding websites like MicroVentures, peerbackers, and IndieGoGo are generally paid a small percentage of what you collect—sometimes as little as 5%, when you hit your fundraising target.

LINE UP YOUR INVESTORS photo/John Cooper

What’s news this week (according to the Wall Street Journal) is that crowdfunding has its first “poster child.”

The Cinderella story is about how a little company called Pebble Technology developed a “smart” wristwatch that can display apps and connect to your smart phone to notify you about incoming tweets and Facebook updates. But 26-year old Eric Migicovsky was almost out of money, living and working with his only employee in a rented condo, and ready to call it quits.

He took his case for financing the manufacture of his smart watch to crowdfunding site Kickstarter, looking for $100,000. The ROI: everyone investing $115 would get one of his watches.

In its first 28 hours on Kickstarter, Pebble raised more than a million dollars. By mid-May, it had taken in a total of $10.27 million from 68,929 people! Now Eric’s problems involve things like working with a manufacturing facility in China to produce all those watches. But it also looks a lot like his work dream has become a reality.

Everybody needs to make a living.

What sometimes seems like the impossibility of getting both a paycheck and fulfillment from your work makes many of us reluctant to leave our paychecks for work that gives us the opportunity to make a living and to truly live.

Crowdfunding is reducing that risk.

Crowd-Sourcing Your Job Freedom

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