How to Start a Crowdfunding Campaign for a Small Online Business and Attract Genuine Investors?

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How to Start a Crowdfunding Campaign for a Small Online Business and Attract Genuine Investors?

The popularity of crowdfunding has skyrocketed over the past decade. Right now it has become the hottest trend in the start-up ecosystem. Crowdfunding is basically a new marketing strategy to raise start-up money through dedicated websites. Entrepreneurs use the platform to showcase their venture idea to people around the world.

The concept is to offer perks, such as a sample, or an early access to the company service. The ulterior motive is to entice people into making small contributions that help fund the project. These small donations turn into a huge start-up capital if the business idea is convincing enough to rope in a large number of people.

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Few Basic Facts About Crowdfunding

The most popular and trusted places to start a crowdfunding campaign for a small online business are web platforms like Kickstarter, GoFundMe, Quirky, and IndieGoGo. Generally, every crowdfunding website caters to a particular niche. Thus it is vitally important for entrepreneurs to research the platforms to determine which website will provide the maximum exposure to their project.  Few other factors to consider before selecting a platform are the funding model, the fee structure, as well as the terms and conditions.   

The million dollar question is, how can you engage the masses to fund your project? Illustrated below are a set of powerful strategies that will help you successfully start a crowdfunding campaign for a small online business.

1 — Make A Stellar Pitch

The pitch should be concise, authentic, and carefully delivered to the target audience. It should detail the idea of the business with absolute clarity. The digital pitch also need to include the rewards that you are promising to  your investors and supporters. make a stellar pitchBe it an early access to a product or service, a sample, or an entitlement to vote for a product design, the benefits that you are offering should be clearly mentioned in the pitch. 

The better the rewards, more attractive gets the pitch- this is the thumb rule that you should follow while pitching to the audience. Please remember, the pitch can make or break your crowdfunding campaign. So take some time to draft it in a way that attracts more number of people.

2 — Shoot A Stunning Video

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A campaign video is the initial impression of your business that goes out to the outer world, and often, it is also a massive crowd puller. Releasing a video is a low-cost, high-yield strategy that has a wide-ranging impact.

A video is like a window that provides a sneak peek of the business idea to your would-be supporters, which allures them into making a contribution. Hence, a superior-quality video is a perfect way to start a crowdfunding campaign for a small online business.

3 — Use Your Networking Skills To Start A Crowdfunding Campaign For A Small Online Business

Use Your Networking Skills To Start A Crowdfunding Campaign For A Small Online BusinessNetworking is crucial for any business to succeed, more so, when it is a start-up. The networking process, in crowdfunding, begins before the start of the campaign, and it never ends.

Always look out for influential people you can connect with, both online and offline, to give your crowdfunding campaign a favorable outcome. 

The primary objective should be to make people aware of your crowdfunding campaign before it actually hits the ground.

4 — Approach Your Loved Ones

Reach out to your close friends and family with a blueprint of your business model, and tell them what you are up to. Explain them in details how the crowdfunding process works, and how they can make a donation. Tell them that their donation is important to you, no matter how small the amount is.

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Don’t feel ashamed to approach your loved ones.

Approach Your Loved Ones

You will be amazed to know that nearly thirty-percent of crowdfunding goals of major start-up firms have been funded by their close friends and family. Without the support of loved ones, it is almost impossible to start a crowdfunding campaign for a small online business.      

5 — Tap Into The Vast Digital World To Start A Crowdfunding Campaign For A Small Online Business

Numerous surveys and studies reveal that more than fifty percent of the global population, today, is obtaining information through digital channels. Social media is indispensable in this era. Thus it is needless to say, digital marketing can play a vital role in promoting your crowdfunding campaign.

Platforms like Twitter, Facebook, LinkedIn, Instagram, and others are a huge hit in business circles since these social media channels allow brands to directly connect to an exceptionally broad range of audience. A rock-solid social fan following can definitely help you to market your crowdfunding campaign across the length and breadth of the globe. 

Tap Into The Vast Digital World To Start A Crowdfunding Campaign For A Small Online BusinessThe best part is, your followers will literally act as the brand advocate for your start-up firm when they start sharing your posts. And, if your business idea is indeed unique, the posts will get viral in a matter of seconds. Yet digital marketing is not an easy game. It involves high-level strategies to hit the target audience.

Finding and amplifying the right niche is critical, as information about a crowdfunding campaign, in all likelihood, would not resonate with football or music fans. Moreover, you also have to consistently supply your audience with top-quality content to keep them engaged.

It has been observed that digital marketing endeavors of small businesses often do not succeed because they fail to produce engaging content on a regular basis. You are therefore recommended to avail the services of a professional digital marketing agency, in order to drive your crowdfunding campaign to the next level.    

6 — It Is Essential To Stay In Touch With Your Potential Investors

It is crucially important to establish a steady communication channel with your potential backers. Make them realize that you are extremely passionate about your startup business. Share stories with your potential supporters. Reveal details about why you want to launch the start-up, where the idea came from, your background, and crowdfunding goals.

If your story and vision exhibit passion and confidence, then, chances are, investors will feel an irresistible urge to finance your business. Again, high-class storytelling is an art. Trust a specialized content creator to tell your startup story in an engaging manner.

Here’s a recap of the killer strategies to effectively start a crowdfunding campaign for a small online business –

1 — Make A Stellar Pitch

2 — Shoot A Stunning Video

3 — Use Your Networking Skills To Start A Crowdfunding Campaign For A Small Online Business

4 — Approach Your Loved Ones

5 — Tap Into The Vast Digital World To Start A Crowdfunding Campaign For A Small Online Business

6 — It Is Essential To Stay In Touch With Your Potential Investors

It has now become quite easy to start a crowdfunding campaign for a small online business anytime you want. But it’s not so easy to build up a trustworthy relationship with your followers, and supports. Try doing that by delivering the perks as promised. Also, ask for reviews and feedback from your backers, after they receive the products or services.

While feedback will assist you to design better products, positive reviews will boost the credibility of your company. You can show this proof of credibility to the venture capitalists when you approach them for second phase funding of your internet business.

Find the article useful? Want to add something more? Do share your views about crowdfunding in the comments section.

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Anirban Mukherji

Anirban Mukherji has been in the content creation industry since 2013. His passion for helping small online businesses streams in the form of new ideas and strategies that translate into a formula for success. Besides writing content for small enterprises, Anirban also creates SEO-friendly pieces for institutions of all sizes. Connect with Anirban on Facebook.