The Ultimate Crowdfunding Checklist for Early Stage Startups
Crowdfunding has opened up a unique avenue for start-ups who want to raise business capital. This funding option should not be considered as a quick and easy solution since a successful campaign requires strategy, planning and substantial time commitment.
In today’s blog we have created an ultimate crowdfunding checklist which will help you start the preparation process for a brilliant crowdfunding campaign.
One of the most important things to consider is where you are heading after raising the required capital. A thorough business plan will help you to create a roadmap for the future of your business. Consider your financial needs and include projections for the next few years to make sure that you are raising enough money.
Get your documentation in order. Create official agreements with your business partners and open a bank account before launching your campaign.
There are many crowdfunding platforms out there so make sure the one that you pick is the most appropriate for your business. Platform fees and rules will vary, so study the T&C’s before making your mind up.
Research previous campaigns in your field. Take time to understand the strategy behind the successful campaigns and the mistakes behind the unsuccessful ones. Make sure you avoid any mistakes your competitors made to maximise your chances of success.
Consider how much equity you are willing to sell and for what price? Speak to people who have launched crowdfunding campaigns in the past and see if they have any insight that could help you make the right decisions.
Your story is what will engage your audience. Make sure that you clearly communicate the difference that your brand will make and the problem that it solves. You should also be able to tell your brand story in an engaging way. If you are not good at story telling, find someone who can help you to write it in a compelling and memorable way.
Video is a very important part of your campaign. It is your visual selling tool and a way to make your audience know, like and trust you. Put time and effort into creating your video and it will definitely make a difference to your campaign.
Once you have a great video and a great story you can get on with putting your great campaign together. Use visuals to make your page more engaging, avoid lengthy descriptions. Say what is needed, nothing more, nothing less.
Harness the power of visuals to tell your story and keep words to minimum.
Create a community
Build an online audience. This will help you keep in touch with and build more followers once your campaign is live and will provide social proof that there are people who are interested in buying your product or service.
Build an email list
Last but not least, start building your email list months before your campaign. Put all of your business contacts into a spread sheet (‘hit list’) and collect emails from everyone who ever heard and expressed interest in your brand. This list will come in handy once your campaign is live.
Here at IdeaSquares we are passionate about helping startups get funded through crowdfunding. We know how to persuade investors to believe in you, we’ve done it ourselves. We offer guidance to startup founders like you to support your success. Have a look at the other articles on our blog for useful tips.