As an entrepreneur myself, I understand the frustration most entrepreneurs have when they feel as if a great idea will not move forward because of a lack of funding. Without access to capital, it’s very challenging to turn your dream into reality.
Crowdfunding is a radical new form of fundraising that happens online and helps you leverage crowds of people who might be interested in your product. Sites such as Indiegogo.com and Kickstarter.com give you a platform to reach interested supporters. A law that recently passed with wide bipartisan support will allow future investors to give crowdfunded projects as little as $5 or as much as $10,000, depending on their income. In exchange they can receive rewards that you set and/or equity in your business. A small business can sell up to $1 million in equity online.
While you might not need that much, a lot can be learned by studying crowdfunded projects and by trying to replicate their success. I’ve already done some of that work for you—here are my top three tech tips to make sure you get noticed and raise the funds you need:
1. Make a great video of your pitch. Use a smartphone, a Web camera, whatever it takes. If you have any kind of budget for your crowdfunding campaign, investing it in a good video is your best bet. It will be the way you communicate your idea or vision to the crowds. Your video should be authentically and passionately you, because funders will want to get to know exactly who they’re funding.
2. Use social media and be proactive. Crowdfunding campaigns typically last for a set period of time, and you’ll need to promote your campaign to your friends, colleagues, local media, and social media channels every day while your campaign is active. But don’t just hit them up for funds; ask them to help you share your message via e-mail, Twitter, Facebook, and YouTube to get the word out for you. You can’t afford to miss a single day of fundraising opportunities.
3. Be transparent. Whether your crowdfunded project raises thousands or millions, your backers will want to know that you’re not simply going to squander their money. Frequent updates on progress help, but any info you can provide on how the money is actually being spent will reassure your backers that they made the right decision to support your idea.
What are you waiting for? Let’s GO! Visit BlackEnterprise.com/MarioArmstrong for more of my tips and the steps you should take to get started right now.