While not suitable for all circumstances, crowdfunding can be an easy, quick, low cost, and effective way of getting the funds your business needs.
If you choose to use the crowdfunding approach, here are 12 tips that will help you make a success of your campaign:
1. Create a business plan
This is important even if you will not use the business plan in your crowdfunding campaign pitch. This is because you should treat seeking a crowdfunding investment like you would when seeking any other form of finance.
Remember, if your business plan tells you this is not the right time for investment, review your strategy and wait. The same applies if you get other advice that this is not the right time.
After all, crowdfunding is simply an alternative form of finance. It doesn’t radically alter business norms and rational thinking.
2. Choose the right crowdfunding platform
Some crowdfunding platforms specialise in certain industries or type of idea. Others, meanwhile, will be suitable because of the audience they have.
3. Check the costs involved
Crowdfunding platforms exist to make money which means you will have to pay fees. Make sure you understand these fees upfront and factor them into your costings.
4. Check out your competition
Are they experiencing crowdfunding success? What are they doing well in their crowdfunding campaigns? What could be improved? How does your offering stack up against there’s?
5. Make the pitch appealing to investors
Find out what will spark their interest. While it often is, this doesn’t always have to be a financial return. For example, the project could appeal to investors for artistic or social reasons.
Also, it’s important to make an emotional connection with investors. Creativity, authenticity, and personality are essential too.
6. Make the pitch appealing
The pitch for your crowdfunding campaign should be fun, enthusiastic, interesting, and engaging. Use video as much as possible and, remember, ideas are often judged on the pitch as much as they are on the merits of the idea itself.
7. Set a realistic target
Make sure the investment goal/target you set is high enough so you can deliver on your promises, but don’t get greedy and go too high either.
8. Develop a marketing strategy before you launch
Like anything on the internet, you are unlikely to see success by simply launching a crowdfunding campaign and then sitting back to wait for the money to come in.
Instead, you need to be proactive to ensure as many people as possible see your campaign.
9. Focus on the first 48 hours
This is the most important period of time for any crowdfunding campaign.
10. Share shamelessly and get others to share too
Social media can be a massive help when running a crowdfunding campaign, so use it as much as possible.
11. Deliver on your promises
If your crowdfunding campaign is successful, make sure you deliver what you have promised. This is the best way to maintain the reputation of your business.
If there are problems with delivering as promised, be open, communicate effectively, and work through the issues as much as you can.
12. Keep in touch with investors after the campaign has finished
After all, they could become a future customer, or they could invest in you again.
For more help and advice with your business, please contact a member of the Gilroy Gannon team today.