Startup Crowdfunding for Business: How to get your big business break
In this world where we can’t afford to have ideas without money, crowdfunding ends up being our first and last resort for fundraising. Such prominent has become its consequence, the first thing that comes into our mind while planning to kickstart a business is crowdfunding. Traditional fundraising through banks is no longer an active option in our minds, particularly if you don’t belong to the family of huge corporates or large-scale businesses.
One best thing about modern digital fundraising concept is that it serves equal opportunities for all. Whether you created a campaign to raise funds to publish a book or to build a mobile application, there will always be people who are ready to invest on the same. Crowdfunding enables you to connect with those like minds. However, to successfully running a crowdfunding campaign in today’s highly competitive market isn’t easy, and this is why we decided to share some valuable insights, some effective approaches to optimize your crowdfunding efforts. Enjoy the read.
Choose the Right Crowdfunding Platform which Fits Your Present & Future Objectives
The soon you decide to go with a crowdfunding campaign, there is one major thing you must be clear of., what type of crowdfunding suits your idea. Here we talk around two familiar crowdfunding ideas.
As the name suggests, here as the ideator, you need to have some reward for your backers. And definitely, this isn’t something to try if you are trying to attract investments. Moreover, if you trying to find the best platform to kickstart your campaign, Kickstarter and Indiegogo should be your prior options. Remember, for ideas related to music, art, books etc have specific crowdfunding platforms.
Unlike rewards crowdfunding, equity allows the backers to be the shareholders for a potential future return. Crowdfunder or Circle Up should be your prominent choices if you are ready to try equity type of fundraising.
Frame Your Pitch and Story to Grab Investors’ Attention
According to Forbes, the key to attracting investors is engaging their “two brains”. It means that your pitch, story and the video narration should be interesting and elegant enough to engage their rational brain as well the emotional brain. Anyhow, the crucial fact is you can’t afford to lose the first impression when it comes to millennial crowdfunding. You can narrate the story or pitch your idea in a way it connects with people, You can either talk about the inception of a particular concept or how it affects any of your customer’s life. Also, don’ t forget to have an alluring “ask” of your funders that links to your larger story and project.
Make Clear How Backers are Going to be Benefitted from Your Idea
While being focused on what you really want is a positive thing in diverse aspects, success in crowdfunding demands you to constantly think about the ways you can reward your backers. In fact, one must ask themselves whether I will be ready to go through all these troubles to buy this reward. However, if you are having a hard time setting up rewards, browse through multi-million dollar campaigns and see what kind of rewards they offered. Anyway, equity is a different game; here you need to be careful about what terms you’re going to offer your investors. For instance, Social Rewards is a business who allows users to earn by supporting their favourite brands’ social media marketing campaigns. They managed to raise $1 million from Crowdfunder and angel investor Barbara Corcoran of Shark Tank.
Supporter Engagement- A Big Necessity
The crowdfunding scenarios today are very well explored by many millennial businesses. The success of a crowdfunding platform is clearly related to its acceleration rate at the initial stages. This is why support engagement is considered a must. The first level network of friends, family and supporters are the best way to make sure your campaign is getting the initial push.
In rewards crowdfunding, you need supporters set and ready to fund the campaign from the beginning. Campaigns that do well initially have a better possibility of attaining a significant percentage of their funding goal. Equity’s game is a bit more different. Supporter engagement in its aspect is having notable stakeholders around the company since the inception of the campaign.
Realistic Marketing and Promotional Strategies
We know its a bit disrespectful to include marketing as a tip to improve your campaign’s success rate. In fact, it’s a must-do standard, isn’t it? Million-dollar campaign owners spend hundreds of hours planning and creating successful marketing strategies. Since the number of social media users are mushrooming day by day, the possibilities of marketing are reaching social networking limits. Offer rewards to share your campaign, ask friends and family to share it among their close circles. The success of a crowdfunding campaign is proportional to how much effort they put on its promotional and outreach scenarios.
Crowdfunding Tip 6: Make Sense of the Data
People lie, but factual data never. This is why it is important to observe and make sense of the data and market patterns. For instance, the total worth of the global crowdfunding market was $1.2 billion, it reached $10 billion by the year 2014. Now that was quick, isn’t it? This sure tells us that the opportunities in crowdfunding are huge. Another example is, according to Kickstarter the most common contribution amount is $25. With this information, you can understand what the success entails.
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