You’ve probably heard about some businesses and entrepreneurs that have raised a ton of capital from various crowdfunding platforms and you want to do that for your business too, right?
The truth is that choosing to raise much-needed funds for your small business through crowdfunding is an excellent idea. Especially today that raising funds through traditional channels is very difficult and expensive. But the task is to be able to do it successfully. There are factors you have to take note of when planning and executing that crowdfunding campaign so you meet your funding goals:
Here, I have highlighted a few of them:
1. Do Your Research – As they say look before you leap before you choose how much you want to raise, what platform to launch your campaign on, how to carry out your campaign; the first thing you have to do is research. This will give you answers to questions you have and help guide you through how the different platforms work and what has worked in the past.
2. Choose The Right Platform – while there are many crowdfunding platforms out there that look similar, they are all different in different ways. For instance, some have a more youthful audience as investors while others have more flexible with funding goals. You have to know the difference between these platforms and be able to consider all these factors when you choose the platform that best suits your business or idea.
3. Share Your Idea or Business – When you share your idea or business, it would be fatal to just list out features. You have to tell a compelling story about how your idea came to be, the impact it would have on potential users and more. The more compelling your story, the easier it is for backers to relate to it and feel as passionately about your business. You have to highlight the pain that your idea or business intends to solve passionately to communicate how passionate you are about solving that pain. Before you share your idea ln your chosen platform check out how other successful products in your category shared their ideas and take inspiration from them.
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4. Create An Irresistible Offer – A strong factor that can determine the success of your crowdfunding campaign is the rewards you give. Through offering rewards for investment is not mandatory, it is often critical. There are different types of rewards that can be offered, whatever you chose to give your investors in return for their investments, you have to make sure they are enough to encourage them to invest or increase the amount they’re investing.
5. Promote Your Campaign – This is one step that most people who skip while organising their crowdfunding campaigns. It is not enough to just post your idea or business on a crowdfunding site, you have to be able to generate sufficient traffic to help you reach your campaign goals. There are many ways you can do this, one of the most popular way today is through social media campaigns.
Choosing the right funding goal, following up with your investors, receiving feedback and fulfilling your campaign goals are more factors you have to take note of to ensure that your crowdfunding campaign is successful.