Do you have a great business idea and need creative ways to fund it? If so, crowdfunding may be an option to help to obtain capital to meet certain business milestones. What is crowdfunding? Â It is the act of obtaining financial â€śbackingâ€ť from the general public. This usually occurs on specific online platforms such as Kickstarter, Indiegogo, and GoFundMe to name a few. These platforms allow individuals or businesses to ask for funding in exchange for â€śperks.â€ť Here are six tips to launch a successful crowdfunding campaign.
Set a Realistic Goal
When using the above-mentioned platforms, be sure to set a realistic funding goal. Some online funding platforms will only award money if the funding goal is met, or they may take a penalty when goals are not met. This is done to encourage active solicitation of donors. If you only need $5000, donâ€™t raise $25,000. The more money you ask for, the harder it is to obtain your goal. Most platforms will not allow you to change your initial funding goal, so make sure you ask for the correct amount of money in the beginning.
Pre-Planning is VERY Important
Pre-planning is very important, and it can determine if your campaign will be successful or not. Think of your campaign like it’s a political campaign, every vote counts = every dollar counts. Calculate how many people need to give at a specific amount to achieve your goal. For example, a goal of $10,000, would need 200 people to give $50. Ask EVERYONE to donate! Your second cousin’s cousin, your preschool teacher, EVERYONE! You never know who just might say yes!
Create a spreadsheet with everyone that you will contact, and reach out to him or her before you launch the campaign. Try to get verbal commitments on the amount they will donate and note that amount on the spreadsheet. Be sure to identify early champions, people who will rally their network to donate too – this can be your parents and people really close to you. Have some media outlets and blogs committed to running your story for the launch and duration of the campaign. The more people that know about your campaign, the more people will donate!