Crowdfunding has become one of the most preferred options for startups looking to raise capital for their business ventures. With several crowd funding platforms available to them, they can pick and choose the platform that best suits their business needs. But that’s not all, choosing a crowd funding platform is just the beginning. Entrepreneurs need to do a lot before they can get their campaign in front of potential backers. Here are a few things startups should keep in mind while raising capital through crowdfunding.
Choose Your advisors
The right platform can make all the difference in the success or failure of your funding campaign. Remember, platforms like Kickstarter are more geared towards artistic and creative crowdfunding campaigns. While Indiegogo, YouCaring, and GoFundMe offer better prospects to personal crowdfunding campaigns. You need to do your research to determine which crowdfunding platform is suitable for your business requirements. You could also try funding by reaching out to your own network. To estimate your fund raising potential click here.
Prepare Your Marketing Plan
There is no shortcut around this. You need to do your research and you need to put in the hours to devise a marketing plan. A well-researched marketing plan should be in place before the crowdfunding campaign launch. Use social media and personal connections to create awareness about your brand. And if you cannot go viral, at least have a buzz about your business in the online media spheres.
Understand Your Campaign Financing Goals
Startup expenses can often pile up without the knowledge of founders. Understand your business and figure out the kind of expenses you will have to deal with in future. Base your crowdfunding financing goals on those numbers after doing thorough research. Choose a reasonable business financing goal that’s realistic as well as achievable. It’s better to choose a lower goal and get funded than to choose a higher goal and not get any traction.
Launch and Market Your Campaign
So, you’ve launched your crowdfunding campaign, now you need to market it. Use social media channels like Twitter, Facebook, LinkedIn, Instagram and more to market your crowdfunding campaign. You can also use personal and business contacts to get the word out about your campaign. Get in touch with crowdfunding marketing professionals so you can capitalize on any attention on social media.
Learn from Your Experience
Crowd-funding is not a success in 100% of the cases. But, when a crowdfunding campaign fails, it can teach you a lot. You can learn from your mistakes and improve your product, services or methods. Then you can try again with a new business plan. Analyze your data from the campaign to understand the areas that need work and how you can add to those areas.
Crowd funding is not an easy task. You need to pay a great attention to details and data to make any sense of it all. But, with preparation and determination, you can find success in raising funds for your startup business. If your first crowdfunding campaign doesn’t work, make sure you try again till you find success.