Getting a business off the ground is one of the most challenging aspects for many entrepreneurs. Your attempts to court venture capitalists and other investors may not always lead to positive results. Many times you will be turned down, especially if you are new to entrepreneurship. If your family and friends are able and willing to support your idea financially, you will be good to go. However, when all these options are not available to you, do not give up; think crowdfunding, one of the best options available to budding entrepreneurs. Today we will focus on how and where to get crowdfunding for your Business.
In order to clearly show people why they should fund your business, you need to clearly demonstrate what your business is all about, why they should put their money into it, how long it’s likely to take to pick once you have met your funding goals and the rewards that they will get for funding it. To demonstrate these, proper planning is essential.
Setting the Goal
One of the first things that you will need to do before launching your crowdfunding campaign is to set the goals. This will help you manage expectations and enable your supporters to track your progress. Among the goals that you must set clearly are; the amount of funding you are seeking; how long you expect your campaign to take and the length of time that your business will take to start generating revenue. Setting the goals is such an important aspect in successful crowdfunding that some sites will not allow you to launch your campaign unless you have set your funding goal and timeframe.
Post your Campaign on an Appropriate Site
There are a number of crowdfunding sites where you can post your business proposal to attract funding linke Kickstarter, GoFundMe, Indiegogo, Crowdfunder. However, you need to know that not every site funds every other business. Some sites have investors focusing on specific areas of the economy. Different sites have different conditions as well. Some may charge you a fee after a successful campaign and some will help to promote your idea to attract funding. You will therefore need to do some research to determine the site that best suits your needs. In all cases, make sure that your campaign stands out. To achieve this, you must present your campaign in a unique way. You can draw inspiration from campaigns that have been previously funded successfully.
Interact with your Audience
Interacting with your audience on channels such as social media increases the reach and relevance of your campaign. Keep your backers informed about your progress; they may be instrumental in marketing your products to other people.
Be sure to act within the law
Depending on the type of business, the proposed reward for your backers and the jurisdiction in which you are operating, you may be required to obtain certain licences or comply with some legal terms and conditions. This is especially so when your business is within the financial sector or the reward that you are offering your backers is monetary.