How To Create The Perfect Crowdfunding Strategy

by Alex Feldman

January 11, 2018

Crowdfunding can be the ideal way to source start-up funding for your new business. In order to make the money that you need, you will need to come up with a brilliant strategy so that the people who are tempted to invest can see exactly where their money will be going, and why it is needed. These tips will help you to create the perfect crowdfunding strategy.

 

Get Your Message Right

In order to get as much money invested from as many people as you can right at the start of your campaign, you need to have the right message about what you’re doing. Make sure that it details everything that you intend to achieve, and why what you are doing is so important. Don’t just focus on yourself and your needs – ensure that the product or service you are planning to create and sell solves a problem too. If you can tell a story that lets people understand exactly why their money will make a difference to the lives of those who need help, they will be more likely to invest. If your crowdfunding message is all about you, they may not see the benefits.

 

Don’t Ask For Too Much Money

When you’re trying to build funds to start a business, it may seem as though the more money you ask for the better. When it comes to crowdfunding, however, that’s not how it works. If you ask for too much, you might find that you don’t hit your target, and therefore don’t get any of the money anyway. It’s always better to ask for exactly what you need (which is why research and a good business plan are essential), and if you get more than that, it’s a bonus. Focus on specific requests for different phases of your development, such as setting up the initial website and ensuring that you can take secure payments, sourcing your products and making sure the quality is good, and marketing your company to its target audience. Not only does this make achieving your crowdfunding goal much more realistic, but it also shows that you are careful, professional, and business minded.

 

Start Before The Launch

Sometimes you may find that investors are wary of pledging money if no one else has. They might want to hold back and see what other people are intending to do. If everyone does that, then you might find that no one invests anything at all, which is clearly a problem. In order to combat this potential problem, secure some investment before you go live with your crowdfunding campaign. This will boost your confidence, and it will entice more people to put their money into your ideas if they see that other people are happy to. To find this initial investment, you may need to speak to family or friends and explain to them why you would be looking for capital, and what they would get in return. Would this be an investment that receives money back, or will they get something else?