Social media is changing the way we talk, share, buy and now – how businesses can raise money. Crowdfunding helps entrepreneurs finance their business by raising money from a large number of people. It typically happens over the Internet, the process itself benefitting through various platforms. These websites connect entrepreneurs with potential investors, donors and other contributors.
Crowdfunding brings people together to invest in a particular cause, project or business idea. Several entrepreneurs see it as the financing equivalent of self-publishing i.e. a way to bypass traditional means.
A successful crowdfunding campaign will not just raise funds for the business but will also serve as a marketing tool. Once the business is out there in the public eye, it is easier to secure funding from investors in the future.
So how can you ensure you’re reaching to the right people? Here is how you can sail through:
Create a Compelling Campaign
Pitching your business is just the proccess of a long journey. The idea is to drive attention to your campaign and highlight it the right way to the right people. A strong campaign can help you to the end. Your campaign alone is extremely instrumental in securing capital. Ensure you have an infographic, strong visuals, and possibly a short video that explains the project.
Have a Plan
Without a concrete business plan, even the greatest of ideas cannot take off. People interested in your project will also be interested in the future projections and success of the business. You must include your goals, and a strategy on how to implement them. Your investors would love nothing more than a detailed explanation of what you mean to do with their money and the processes you want to build to deliver the results.
Know Your Audience
It is of utmost importance to identify your target audience while raising capital. If you take a look at most successful projects, you will see they target relevant audiences well. It could be based on a particular demographic, geography, niche market, interest, or just the extended business integrations that your project can entail. How you are pitching becomes significantly success driven once you know the potential investors you will be addressing.
Choose The Right Platform
Currently, the internet has plenty of crowdfunding websites. Some cater to creative projects, some offer more traditional financing while some have a social inclination. The idea is to pick a platform that can provide you with expertise and technology that can facilitate the fund raising process significantly for you.
Leverage Your Networks
It can be quite possible that you pitch on a website only to realize your audience might not be aware of it at all. So the best practice could be to leverage your network to reach the potential investors. Utilizing your social media channels and using communication channels to get in touch with them can be the best way to go about successful fundraising. Additionally, you could use your personal and professional contacts to send across your fund raising objectives to their networks.