Crowdfunding can be a superb way to get funding and create buzz around your startup. Over the past decade, crowdfunding has revolutionized the way startups generate capital and secure investments.
The global crowdfunding market already reached a staggering 14 billion US dollars in 2019, and by 2026, it is expected to triple to 39 billion US dollars.
There is no shortage of enthusiastic supporters for this new alternative finance model, either online or offline, who are eager to fund amazing start-up concepts and goods. However, experienced business owners who have been around the business world for a while may find crowdfunding to be a difficult exercise with many factors to take into account.
Thus, young entrepreneurs should know that having a great idea is only the start of the journey, and the quality of your campaign can make or break the future of your startup. Crowdfunding campaigns are often the first time your customer base will encounter your product or service, so making a good impression is crucial. But what exactly makes a good crowdfunding campaign, and can you present your big idea to a global market?
Keep reading this article to find out 6 Tips For Running a Successful Crowdfunding Campaign for New Entrepreneurs
1. Focus and Target Your Message
A targeted message drives your campaign, engages the audience, and directly addresses their needs and wants. This is essential for any campaign to be successful. It is impossible to satisfy everyone’s needs, so if you try to please everyone, you have set yourself up for failure. It is best to identify who your product or service most commonly appeals to and begin there. How you write your copy and advertise your product should completely depend on your target audience.
2. Learn to Differentiate between a Good Campaign and a Bad Campaign
We live in a digital age, and everything is available to us at the tap of our fingers. There are a tonne of successful and unsuccessful campaign examples available, and you can typically get the data you require right from your preferred crowdfunding platform.
Spend some time examining various campaigns to identify recurring themes, including those you like or dislike. If possible, reach out to other entrepreneurs and discuss what went wrong with their campaigns. Learning from other people’s mistakes enables you to avoid making the same ones and gives you an edge over other startups.
3. Build an Unbreakable Team
A successful crowdfunding campaign requires careful planning, which essentially consists of two steps. Firstly, you must create a solid base of supporters ahead of launching your campaign. This should include family, friends, colleagues, and anyone who is interested in your startup business project. This step enables you to reach 30% of your goal within the first two days, which is sufficient to give your campaign positive momentum.
Building an all-around team is the second and most crucial step because it will help you be more effective. Build a team keeping in mind the skills needed to make a successful campaign, such as a person who is able to create amazing videography for pitch videos, and a photographer who can click amazing pictures of your brand or product, for marketing or social media. Studies show that campaigns managed by teams can be up to three times more effective than those managed by individuals.
4. Use Multimedia Cleverly
Videos and animations are a must-have for effective crowdfunding campaigns because they can give potential investors a tonne of information quickly. But that does not mean that you spend loads of time and money on your multimedia, as it can be self defeating.
For a campaign video, focus on making the first 20 seconds as eye-catching and engaging as possible. Additionally, to further connect with the audience and advertise your product, consider including a well-known influencer in the video.
5. Focus on Press
While social media is ruling the internet these days, media coverage is the best way to break out of that bubble. Good media coverage can help you create a positive image among the public. Learn how to create a targeted media list, send a well-written press release, and launch a strategic plan to reach as many media outlets as you can with your PR on a budget. Depending on your product, a local focus may help with an initial bump.
6. Pre-Plan Your Campaign
A successful crowdsourcing campaign will require at least three to six months of preparation, organization, and management. It is the same as working two full-time jobs for different businesses. The more effort and time you put into it, especially when it comes to using the aforementioned advice and developing your community, the more likely you are to succeed.
Closing Thoughts
Crowdfunding for startups is great when a startup does not have access to investors. They can simply launch a great campaign on a crowdfunding website and get funding from the public for their product.
While opting for the crowdfunding method of raising capital, a business should first investigate the platform on which it plans to set up a crowdfunding campaign and protect itself from scams. To conclude, crowdfunding is an unconventional but effective tool for raising funds.