Running low on funds? Tired of banks rejecting your loan applications? Skeptical of investors’ offers? Perhaps, it is high time you tried an alternative means of funding, crowdfunding.
In many ways different from securing loans or bootstrapping, crowdfunding allows you to convince a large group of people that your business is worth the investment of ‘their small amounts of money’.
With basically two models to choose from – rewards/non-equity crowdfunding or equity crowdfunding – choosing this option comes with many perks which include low-capital cost; improved business profile and reputation; valuable feedback on the relevance of your product and services to target customers; and the opportunity trade promote your business across geographical boundaries.
So, to ensure that your crowdfunding campaign is successful, here are 3 tips to always follow:
Review and understudy past and ongoing campaigns
With an estimate of $34 billion raised in 2015, there is definitely a good number of successful crowdfunding campaigns that you can learn one or two tricks from. From the best-selling narratives, to the right images and appealing videos, you can tweak yours to perform even better.
Engage in aggressive advertising
If there is ever a time to make the best use of your social capital and resources, it is at the point of launching a crowdfunding campaign for your business. To ensure that your target audience catch a feel of your campaign’s buzz, you can employ winning strategies like targeted email marketing, post on niche-relevant Facebook groups, offering free product samples, sending text messages, making press release, creating pre-launch ads, and teaming up with social media influencers.
At no point of the campaign should you relax your advertising efforts because it is the only way achieve your crowdfunding goals.
Choosing the right crowdfunding websites
Often times, the popularity of a crowdfunding website is not reason enough to choose it as your platform. You also need to consider the business-type it approves of, the time frame for running campaigns, service charges, and most importantly, the support you will receive by campaigning on their website. Thankfully, there is a wide range of crowdfunding websites to choose from.
So, consider your options carefully and if it seems that no crowdfunding model suits your products or services, don’t hesitate to try other funding options. Your business is always worth the shot.
Have a successful crowdfunding campaign.