Entrepreneurship is tough. And funding a startup is not an easy task unless you have deep connections with even deeper pockets.
But for the average person, finding the funding for a business venture takes a lot of hard work and killed already countless startups. Luckily you can speed up this process with a simple kick-ass method: Your own crowdfunding campaign!
Unfortunately, the preparation for such a funding campaign gets massively underestimated by ordinary startups. And that`s the main reason why their campaigns fail. Obviously your product has to be suitable for the mass and your video material should be outstanding. But besides the evident factors you have to follow these 5 steps to skyrocket your startup crowdfunding campaign.
1. Get ready for heavy research
People are not going to just blindly throw their money at the first crowdfunding campaign with a cool video. The more serious potential backers are, the more they want to know what they are getting into. They are going to want to know that they are investing in a product or idea that is worth it. These supporters are also more likely to invest a larger amount of money. But irrespective of the intended amount, you need to have information that backs up your ideas and makes everything come together and smooth.
Besides the research on your actual startup, it is crucial to have a detailed budget of what you need and where the funds are going to be allocated. People are going to be more impressed with your idea if they know and agree with where their money is going to be spent. You need to be straightforward about your plans and intentions!
2. Offer unique incentives
The idea of having a decent reward system is to keep the pledgers happy with their decision to invest. You are also opening up the door for new backers to get excited for the rewards, making them more willing to invest in you and your brand. Obviously, you only want to set reward that you can actually deliver on. But, you also want to have the best rewards for the people that spend the largest amount of money. The better the investment, the better the rewards. Rewards are not the most important aspect; however, they make a huge impact on the incentive to invest and the incentive to tell others to invest.
An excellent option to boost incentives and your funding is to do referrals. This process kills two birds with one stone because you have a happy investor and they want the rewards. So they are going to tell their friends if it means they get something in return for it. But once again, it must be worth it! Someone is not going to put their friends in a position that they would not want to be in.
3. Network, network, network!
The networking stage of a startup crowdfunding campaign starts before the campaign and never ends. Always be on the lookout for interesting people to connect with – online AND offline. Basically, all you need is to create relationships with people that fit within the target audience of your startup. You should begin networking before the campaign starts so that people become aware of it beforehand and you can hit the ground when the campaign officially launches. When the campaign starts, this does not mean to slow down with getting your name out there.
Keep the momentum going so that you will even exceed your goals!
4. Get personal
You should not go on and on about yourself or tell some drawn out dramatic story for sympathy. That is not what this is about. You need to be professional. However, you should not be robotic. Give them a taste of you as a person and your goals and ambitions in relation to your startup. If you are going to talk about yourself, it needs to be at least somewhat related to the crowdfunding campaign. Let investors know who’s hands they are putting their money in. Show them that you are the type of person they would enjoy a business relationship with.
It`s essential to mention your goals and beliefs in your startup. Show your vision!
5. Promote your campaign
Pretty self-explanatory, but necessary: Get your name out there and in people’s minds. This is how you build up investors and customers too, when the campaign finally takes off. The possibilities to market your brand are nowadays tremendous. But you have to be willing to put in the work and time to make this happen. Luckily, the internet is an endless place. So a lot of things can be done without leaving the comfort of your home. Here are some of the best ways to market your startup crowdfunding campaign:
• Social media
• Bloggers & Influencers
• Crowdfunding forums
• Paid ads on Google, Facebook, Twitter, etc.
After choosing your crowdfunding platform (Kickstarter, Indiegogo etc.), create a page on different social media (the more, the merrier!). The best site to use for this is obviously Facebook, because of its extensive global reach. But if your startup is in a niche, focus on particular media as well.
A cutting edge video is crucial. Otherwise, your campaign will never get viral. What most of us don`t know is that the majority of crowdfunding campaigns gets initially boosted with paid ads or influencers.
Yes, you might have to invest now a bit more in your startup crowdfunding campaign – not only timewise but also financially. But you are going to get rewarded in form of multiplied funding!
Don`t miss the first shot. It might be the only one…
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