How to beat the odds when crowdfunding?
Crowdfunding is one of the largest and most popular funding routes for start-ups right now. But if you think that it is a risk free way of getting your idea to the market, you are in for a surprise.
We hear of wildly successful crowdfunding campaigns all the time, but the truth is that more than a half of all crowdfunding campaigns fail. Some of them fail not because the business isn’t viable, they fail because of lack of preparation and necessary know-how.
Today, we are sharing our top tips on how to beat the odds when crowdfunding:
Don’t launch without a marketing plan
You do not need to spend money on marketing to have a successful funding round if you put in the correct planning and preparation. The risk here is that people will think they can ‘buy’ investors. Investors come from real networking and conversations with people and a good PR and marketing plan, all of which can be achieved free of charge if you wish. You also do not need to spend money on a fancy video and in fact, investors often see this as a complete waste of money. You can make a good video with a borrowed camera or borrowed time and edit it yourself using i-movie and it won’t look amateur.
Make sure that people you work with are experienced
Make sure that you do your research before you work with any third party. Check references, view their portfolio, speak to their previous clients. Make sure that people you hire are not only creative but also able to support the specific type of campaign you are launching. You do not want to end up with a beautiful video that doesn’t send the right message to your audience.
Gather your crowd ahead of your campaign
Building your own network of contacts is crucial for your campaign to succeed. Start connecting with influencers online, reach out to your family and friends and look for introductions to potential investors. Go out and network in your local area, meet people in person, exchange business cards. Put everyone’s emails on your crowdfunding list and start building relationships so that once you launch, your crowd is ready to support you.
Have an engaging story to tell
The most successful campaigns are the ones with a powerful story that connects with the audience on an emotional level. Spend some time writing your brand story and share your why – why you decided to set up your business. Then create your campaign communications around this story. Your unique story will be your secret weapon that will differentiate you from other similar businesses and something that potential investors and future customers will know you for.
IdeaSquares is an ideal place for you to start planning your crowdfunding campaign. We’ve got a start to finish toolset to support your application success. We provide automated tools and support to help you:
Test your ‘crowdfunding readiness’
Understand the effort involved in crowdfunding
Create a strong video script
Prepare your crowd for your upcoming crowdfunding campaign
Pre-launch your equity-crowdfunding campaign
Track how engaged your ‘crowd’ really are
Perfect your crowdfunding pitch
Plan and prepare for a quick and successful crowdfunding campaign