Crowdfunding has become the latest buzz word with many social entrepreneurs but how far are people successful in being able to tap this kind of an internet resource to finance their businesses, ideas or social causes? Generally, anything related to money poses challenges. Yes, the World Wide Web has become a great platform through which people can work towards generating money for their ventures but success is definitely not guaranteed at all times. Therefore, it becomes extremely essential that you land yourself in the positive side of this crowdfunding campaign, more so if it is a startup business.
You could probably take a leaf or two from those people who have been able to successfully crowdfund for their startup business. This method has definitely been able to show the path to success for more than a million startups. At the same time, there are also a few campaigns that have failed to see the light of the day. So, it becomes imperative that you ascertain if this option is the perfect choice for you. Therefore, before you directly embark onto the campaign, have a thorough evaluation that can give you an insight into how you could carry out the entire process.
- Chalk out a plan: You will have to align with a crowdfunding platform. So, the platform will definitely want to see the kind of campaign you have in mind before it actually approves it. They would definitely want to know what kind of growth plans you have lined up too. The kind of financial forecasts you have for your startup, in the sense that, how you wish to make use of the funds that you have raised through this platform. Having a lucid idea would definitely help in getting the approval right.
- Do adequate ground work: Before you actually embark on the campaign, it definitely pays off to do some ground work initially. Establishing a network and preparing the minds of your prospective investors through social media platform have proved to deliver decent results. When you introduce your concept to people before it is actually launched, you may find that you will get the funds even before the campaign is actually launched. Clarity in the thought and actions will definitely help in making your campaign for the startup extremely successful.
- Choose the right platform: There are indeed many crowdfunding platforms. The kind of startup business you have on mind and the crowdfunding strategy will definitely help in choosing the right platform. Some people may be interested in raising equity whereas a few others may be interested in raising money. So, what you wish to raise will largely impact your decision in platform selection. There are platforms that are designed specifically for startups which offer scope to raise equity or money.
- Have a predetermined goal: Generally, when you are on raising funds through crowdfunding, you will have to set a goal and work towards reaching it. Otherwise you are bound to lose all that you have received. So, ideate, plan and execute carefully. Exceeding simple goals is easy as you can keep the funds that have received in excess. But, if the reverse happens, you will probably have to give away a certain amount of the funding. So, have a realistic and achievable goal. Ascertain how much is actually necessary and then start off on your campaign.
- Win through a well developed story: People who are backing you will fund a project only if they are convinced and believe that it is a good story that you are selling. Give them the facts in terms of the value of the entire project. It is the psyche of the people that they go very much by the impressions they have formed about people rather than the project, in a few cases. So, it will definitely pay off if you are able to give them as to why and how you have got this specific project idea. How important it is for you to succeed in this. When you are able to genuinely put across all of this, and give them an engaging end result, you have a winner campaign on hand. However, understand that people are not interested in long winding stories. So, keep it lucid and succinct.
- Offer appropriate rewards: One good thing about a crowdfunding campaign could be the offers or rewards that you could give your investors or supporters. You are giving them something in return for the kind of trust they are showing in your ability, your idea or your cause. Ensure that you do not spend too much on the rewards as they may hamper your target amount. These incentives will keep their interest levels high. The rewards that you may offer should be related to the kind of venture you are planning out. You could choose something like giving out pre-orders or giving out branded retail items like t-shirts or buttons that would spread the word about your business venture. You could also think of offering them a free massage or reward the highest contributors.
- Concentrate on promotions and marketing: You may have spread the word about your business but you will have to ensure that you will keep the word coming at regular intervals. Ensure that the same efforts are going on even in the social media. Your promotional activities should not stop and they should still be able to generate interest in the minds of prospective investors too. Find ways in which you can expand your market into wider circles.
You should remember one thing…crowdfunding is easy but it can be easy only when there is enough amount of spade work that has gone into it. We all know how important it is to get your startup business right. So, get the campaign right, the pitch right and you will get your funding easily. You can kick start your new venture and also get adequate publicity even before you have actually got into the depth of it.
