Published By Nikeya Williams at September 3rd, 2017
There are thousands of businesses using crowdfunding to raise money to fund their next business venture. For some entrepreneurs, crowdfunding gives them the ability to grow financially independent. Moreover, having the ability to start a new business without acquiring debt or taking out equity, can be unheard of when you’re a new business owner. But with a little planning and creative marketing approaches, starting a new business can be more enjoyable than disappointing.
Crowdfunding gives today’s business owner a new way to build a successful business. Don’t be fooled, not everyone who puts up a campaign/project on a crowdfunding site will become automatic millionaires. As you’ve probably have heard that success earned on crowdfunding doesn’t happen overnight. Matter of fact, being an instant success on a crowdfunding site doesn’t usually happen. In order to truly succeed at crowdfunding, you as a business owner must do your due diligence to find out if you would be successful at crowdfunding.
You’ll need to find what crowdfunding platform is best to use for your business. Kickstarter, Indiegogo, or RocketHub are some of the popular crowdfunding platforms to use. If you’re like most new business owners, you’re probably looking for investors. Before you start putting your campaign out there, you’ll want to make sure that you have everything prepared and perfect, so that you can get the investors that you want to fund your campaign.
Trying to get the investors that you want will take time, brainstorming, creating, and perfecting that perfect pitch that gets investors pouring money into your campaign. To help you get your campaign started in the right direction, use this quick guide.
Pick a Crowdfunding Platform: Before you get started with making your campaign, it’s vital that you pick a crowdfunding platform that’s the right fit for you. There are several crowdfunding platforms to choose from, Kickstarter,Indiegogo, or RocketHub are a few that you can start looking into. Moreover, you need to be aware of what you are doing when you’re developing your campaign. If you’re raising rewards and not investments, then Kickstarter and Indiegogo should be on your list. Kickstarter is great to use for creative projects, and they operate as an all-or-none which means that if you don’t raise 100 percent of your initial funding goal, then you don’t keep the money that was pledged. Indiegogo is a little different than Kickstarter, if you choose to pay up to 9 percent of your funds raised, then you can keep the funds pledged to your campaign. The only drawback is that your project will need some minimum funding to work.
Prepare and Get your Pitch Perfect: It’s important that you remember that the content in your campaign is vying for the attention of your potential investor and client. Remember that they are so many other distractions that pull for the attention of your viewers, and it’s that reason your pitch and its messaging has to grab their attention immediately. Once you get their attention, you can’t stop there. You’ll want to keep your viewers engaged, which means that you need to have a great story to tell about yourself or your project.
Focus On What Your Giving to Your Investors: One of your goals in crowdfunding is to raise funding, but you have to remember that you have to focus on your investors. You want to create rewards or terms that will help you raise the money that you want. When you’re developing the rewards for your investors and backers, you want to keep in mind to have your rewards tie back into your story. One way that you can come up with a great reward for your campaign is to take a look at the successful campaigns that have multi-hundred thousand or multi-million dollar campaigns.
Get Supporter Engagement: Don’t make the common mistake to not adequately engage the people in your network of friends, family, and supporters. When creating a campaign it’s important that you have your campaign set and ready to start funding once everything is launched. It’s especially important if you are using equity crowdfunding, having supporter engagement is vital because you’re getting support from stakeholders, advisors, board members, partners, and existing investors. Go to crowdfunder.com to get a display of your team of investors.
Get to know Notable Investors: This might not sound like the coolest thing to do, but making sure that you get people’sattention who have never heard of your project before. One of your main goals should be to get people, organizations, and businesses that people are familiar with involved with your campaign.
Plan your Marketing & Outreach Strategy: You will need to put hours into creatively marketing your campaign before it launches. Successful campaign owners spend hours developing a plan that will market their campaign, and they have a defined goal that raises funding efforts both online and offline.
Starting your new business venture doesn’t have to be restrictive or stressful, especially when you know how to use crowdfunding and all of its various platforms. Crowdfunding may not seem ideal to generate funding, but it does provide another way to fund your business or a new campaign/project without having to pay for upfront marketing cost. As a business owner, you should always look for ways to grow your business, and by using crowdfunding you can provide your business with new avenues to fund your business.