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Crowdfunding is an alternative funding technique that companies and business owners can use to acquire money. It is a practice that businesses can adopt to raise funds to run small projects or ventures by collecting money from various sources. The process involves strategically searching for individuals and companies willing to sponsor and hopefully raise money for your startup.
For most startups, owners offer attractive equity-based investment options through various crowdfunding platforms. That said, a crowdfunding platform allows entrepreneurs and business owners to introduce or market new products or services to a broad audience. And through marketing the concept smartly, they can generate significant interest and gather funds from people worldwide. Some popular crowdfunding platforms include Indiegogo, Kickstarter, GoFundMe, Patreon, and Crowdfunder.
If you love the idea of growing your business through crowdfunding, then you have come to the right place. Today, we will share a few tips on how you can crowdfund your business growth and increase interest in your brand.
Set a goal
Setting a particular goal for the required funding amount is a simple way to get funders on your side. However, ensure that your funding goal is as realistic as possible. People are usually more willing to get behind your product, service, or brand if they can see the finish line.
For instance, expecting thousands of dollars in crowdfunding for a product or service that improves an existing one is like chasing the stars. Your crowdfunding campaign will go bust before you even reach your funding goal. If you want to crowdfund for business growth, ensure that your funding goal is unique and achievable. If you’re not a business grad, consider enrolling in online masters in business to hone your entrepreneurial skills quickly. This way, not only will you be able to set better goals, but you’ll also be able to manage other business-related aspects with finesse.
Tell your brand’s story
Everyone wants to know why they should give their money to you and why they should care about your brand. A memorable and authentic anecdote accompanied by your crowdfunding campaign can do wonders for your efforts to raise money and grow your business. Hardships have and can hit any small business, and it is vital, to be honest, and express your reasons.
It would help if you told the masses the reasons behind your crowdfunding campaign. Be as detailed and to the point as possible. People will be willing to help. However, they will back out if your brand’s story is unclear. So, whether you decide to hire a PR expert or do it yourself, ensure that you are genuine and transparent with your story.
Utilize your emailing list to promote your crowdfunding campaign
An emailing list is a potent weapon in your marketing arsenal. It is excellent for marketing your services and products. Why not use it to market your crowdfunding campaign? Send out emails to your customers and prospects about your crowdfunding campaign, and ensure that the emails include everything they need to know about participating in it.
Take advantage of your network
When you are crowdfunding for business growth, you should do everything in your power to spread the word about it. This includes using the full power of your network. Ask your community, family, friends, and customer base to share your crowdfunding campaign with everyone they know. Utilizing your network will allow you to access other people’s networks and help build awareness and momentum.
Even if the people that come across your campaign don’t donate any funds, they might still share it with everyone in their network, which holds the same value. Something like this will make your campaign visible to people who aren’t familiar with your brand, allowing them to participate in your business’s growth actively.
Provide tiered incentives
Provide the backers of your crowdfunding campaign with incentives and rewards according to the size of their donations. An attractive incentive will entice more people to participate in your campaign and actively pitch in money.
You can also raffle off your products or services or offer discounted memberships to individuals who donate the most funds to your campaign.
Familiarize people with the crowdfunding platform you are utilizing
A crowdfunding platform with a confusing and difficult-to-navigate interface can result in lost donors. That said, it is not about giving a detailed breakdown of how to use Kickstarter or Indiegogo. In your fundraiser communication with potential participants, you must include details about the crowdfunding platform you are utilizing in the promotional stages of your campaign.
Discuss its security and how every potential participant or backer should navigate it. Such information will enable them to feel comfortable, knowing that their money is going into your business through the safest route possible.
If you are looking to use a crowdfunding site to fund your business’s growth, share your fundraising goal and your brand’s story with your target audience. Also, update them on your progress regularly. Doing so on a biweekly or monthly basis, depending on your campaign’s duration, will help you keep it at the forefront of your audience’s mind. After all, crowdfunding is all about making your audience feel like a vital part of the fundraising journey.