Leveraging your personal networks can prove to be helpful in creating a winning strategy. Not only do your friends and family trust you, they are also more likely to extend wholehearted support than other investors. Read on to find out how.
Be as clear about your requirements as possible when you set out to email friends and family. Be it sharing your social media pages, backing you financially or spreading the word in their own networks, lay down what you specifically need.
Share Your Story
Your friends and family would want to know the story behind your business, why you’re crowdfunding and what your goals are. Share the link to your crowdfunding profile to let them know exactly what you are doing. It is important for you to communicate your commitment to the startup. Show your friends and family what you have done in terms of homework and convince them this is a serious project.
Ask For a Specific Amount
Ask your friends and family for a specific amount and let them know the milestones you hope to achieve with their help. Practice your pitch and ask for the amount you want. Hoping for them to read your mind or gift a donation is not a great strategy. However, don’t be greedy. Ask for only the amount you know they can afford, not more. Remember, your network will still be around even if your startup fails.
Your friends and family deserve to know the exact plan of action and risks involved in their investment. After all, they are the ones parting with their money. It is then your responsibility to communicate what you plan to do with their money and the risks facing the venture. Be honest about potential pitfalls.
Gather Your Network
Before your crowdfunding campaign launches, gather contact details of all friends and family in Excel. Now devise a plan to reach out to each of them, using customized messages to ask for support.
Leverage Well-Connected Friends
While your personal network can be huge, for a successful crowdfunding campaign you need to focus on the well-connected people in the relevant industry. Someone with connections and experience in your field can add immense value in terms of advisory and mentoring support.