How to stand out from the crowdfunding crowd
As we watch crowdfunding grow and grow in popularity, ever more entrepreneurs and businesses are looking to get involved, and rightly so. Crowdfunding is a fantastic way to raise money and get your foot in the door, away from the traditional routes of bank loans and venture capital investment.
However, the rise in popularity inevitably results in increased competition and is forcing businesses to look carefully at their crowdfunding propositions. It is essential that your campaign can grab the attention of potential investors and be strong enough to turn this initial interest in to investment.
With a large proportions of campaigns failing to hit their crowdfunding targets, it’s important to make sure you give your business the best opportunity to fund. We believe focussing on preparation, communication and presentation are 3 of the top ways to position your campaign for success.
Preparation: Have a solid plan
We cannot stress this enough. Without a clear, well-structured plan, investors are unlikely to give your campaign the time of day. Gone are the days that a ‘good idea’ is all you need. With a high level of competition in the crowdfunding world, you need to be able to have a thorough and viable strategy for what you plan to do and how you are going to make it happen.
Potential investors will want you to show them exactly how much your business is worth and how you plan to use the funds raised to move your company forward. Not only does this demonstrate how strong your campaign is, but it also gives donors security in your skills as a business person. Remember they are often investing in ‘you’ as much as in your vision.
Communication: Tell your story
Whilst your business plan does an essential functional job, it is your story that hooks in investors emotionally.
All crowdfunding campaigns have a story.
Where did the idea start? What is your passion behind it? Why is it so important that it succeeds? Sharing your story with potential investors shows them how much it means to you and explains the efforts that have got you to where you are today.
For those investors who tend to make impulse decisions, a compelling and heartfelt story can often be enough to win them over and certainly ensure you stand out from the crowd. Working with a strong PR company can help you understand how to position yourself and how to tell your story.
Presentation: Showcase your brand
At the early stages of crowdfunding, branding is often left behind, and this we feel is a big mistake.
Your brand showcases who you are and importantly can influence the way potential investors ‘feel’ about your campaign. Branding can enhance emotions and deliver the cues that relate to your business idea be it an independent and knowledgeable service, a fun and creative project or an innovation technical product.
By taking time to focus on your brand before you launch your crowdfunding campaign, you can show, as well as tell, potential investors what your company is all about. A strong branding can help investors feel both confident in the idea and drawn in to your vision and that can be what it takes to ensure an investor is swayed towards your campaign over another.
If you need help getting started, give us a call.