Do you have a great business idea and need creative ways to fund it? If so, crowdfunding may be an option to help to obtain capital to meet certain business milestones. What is crowdfunding?  It is the act of obtaining financial “backing†from the general public. This usually occurs on specific online platforms such as Kickstarter, Indiegogo, and GoFundMe to name a few. These platforms allow individuals or businesses to ask for funding in exchange for “perks.†Here are six tips to launch a successful crowdfunding campaign.
Set a Realistic Goal
When using the above-mentioned platforms, be sure to set a realistic funding goal. Some online funding platforms will only award money if the funding goal is met, or they may take a penalty when goals are not met. This is done to encourage active solicitation of donors. If you only need $5000, don’t raise $25,000. The more money you ask for, the harder it is to obtain your goal. Most platforms will not allow you to change your initial funding goal, so make sure you ask for the correct amount of money in the beginning.
Pre-Planning is VERY Important
Pre-planning is very important, and it can determine if your campaign will be successful or not. Think of your campaign like it’s a political campaign, every vote counts = every dollar counts. Calculate how many people need to give at a specific amount to achieve your goal. For example, a goal of $10,000, would need 200 people to give $50. Ask EVERYONE to donate! Your second cousin’s cousin, your preschool teacher, EVERYONE! You never know who just might say yes!
Create a spreadsheet with everyone that you will contact, and reach out to him or her before you launch the campaign. Try to get verbal commitments on the amount they will donate and note that amount on the spreadsheet. Be sure to identify early champions, people who will rally their
network to donate too – this can be your parents and people really close to you. Have some media outlets and blogs committed to running your story for the launch and duration of the campaign. The more people that know about your campaign, the more people will donate!Shoot a Really Cool Video
Have a distinct call to action in your video; let people know why they should donate to your campaign! Create a storyboard that would resonate with the audience you’re targeting. Pull on the donor’s heartstrings and compel others to support your cause, product, business, etc. When shooting your video, have a professional take the video shots and handle editing to create clean video clips. Make sure to share the video on different networks like YouTube, Vimeo, etc. and link back to the campaign page.
Prepare to Hustle Every Day
Personal networks fund crowdfunding campaigns, but it takes a lot of work and dedication. Each member of your
team will need to share the campaign daily with his or her personal and social media networks. Send out email blasts to all of your contacts with updates on milestones throughout the campaign. If they haven’t donated yet, this may encourage them to donate after seeing your campaign multiple times. Cool shareable graphics about the campaign are great for social media posts and encourage giving. If your budget permits, host a mixer or event (low cost of course) to either launch your campaign, or invite people out to donate and help spread the word.Have Really Cool “Low Cost†or Donated Perks
The “perks” can get donors who don’t know you excited about funding your campaign. Â Perks are items given to donors in exchange for their contribution. Make sure your perks are related to your campaign. For example, if you are raising money to help you launch a new type of cookware, the perks can include a set of cookware, a
cookbook, etc. Try to sell whatever item you are raising money for if possible. Perks help drive donations, but make sure awarding the perks doesn’t cost more than the amount of money you are raising.Send Out Thank You Messages
Send out thank you messages to every single contributor. People like to feel appreciated. Shout them out on social media and make them feel special for their contributions. Your network will see that other people have donated, and it may inspire them to contribute money. Check out a few of these successful campaigns to get a few ideas: Madame You (now Myavana), Monsieur, and C-Hill Business.
Author Chanel Martin (@ChanelEbone) is a co-founder and chief science officer of Techturized (@Techturized) Inc. She is also a wife, new mom, and lover of all things hair! She works full-time on her company Techturized. Techturized’s first product, Myavana (@Myavanahair) providing hair care personalization for female consumers around the world.