"Got an innovative business idea you just can't get out of your head? Only who is going to pay for it? I know it's not easy, especially in the early stages of a startup. Here are the my tips for your crowdfunding campaign."
Dream big. And believe in your idea. (pic: pixabay.com)
Great idea, but no money: Your first crowdfunding campaign
From the initial great project idea up to the conversion, you need something crucial: An important moment is the financing of your project. A good alternative to traditional financing is crowdfunding.
There are 4 different Crowdfunding categories:
Crowddonating: A classical donation without consideration.
Crowdsupporting: Your project or a startup is supported and
according to the amount you provide a service in return.
Crowdlending: You receive a loan from the sponsor and pay
back the money with interest.
Crowdinvesting: You receive money from the sponsor and they
take part in the success of your project or startup.
The category "crowdsupporting" is most popular, because you still get a lot of marketing for your project together with your capital in request – free of charge. Great thing, but note: no pain, no gain. Here, I show you the most important aspects of a successful campaign.
What about crowdsurfing? (pic: pixabay.com)
1. My Crowd - How do I attract a big one?
Without a network – whether online or offline – it is really difficult. So, you must build up a good network – a crowd – before you begin a crowdfunding campaign. Duh, right? ;-)
Collect mail addresses, expose yourself in social media groups and platforms for your project and speak about your idea, also at the end after work beer and at the family party. You will quickly recognize whether your project piques some interest or not. Use this feedback and people as multipliers during your campaign. Step-by-step, your crowd gets bigger and with it rises your chance of a successful crowdfunding.
A tweet a day keeps the failure away. (pic: pixabay.com)
2. What do I need for a successful campaign?
Get in touch with your crowd. A successful crowdfunding campaign relies on emotions as well as your own strong network: Try to explain your project idea quickly and simply aiming for a gut reaction. What do you want to accomplish and why? Why should people support your idea? And what do these people get from you they can't get elsewhere? You must be able to answer these questions before you start your campaign.
What makes your idea, your business unique? This is very important. After all, you do not want to accept donations but sell your project, your product or your service. Here, you can become quite creative and offer unique considerations
which one would not get as easily otherwise.
My tip: Get inspired by successful crowdfunding campaigns.
Most established crowdfunding platforms offer you support with the communication of your project as well – some of them even absolutely free of charge.
3. Nothing better than good preparation!
Your project idea has matured. You are passionately convinced by your idea. Your network is set up. Now, it's time to prepare the crowdfunding campaign. Good planning is half the battle. Do not underestimate preparation time. The better the preparation, the greater are the chances for your success.
Step 1 - Which platform?
Evaluate the appropriate crowdfunding platforms. There are some good
platforms in Switzerland that support you professionally with a lot of marketing
and communication know-how. There are differences in the platform fees
(normally 5% to approx. 12%) as well as in project support. Get smart and
check out the platforms.
Step 2 - Video and images:
They say "a picture is worth a thousand words" so create a pitch video where you
explain your project concisely and precisely. It can even be funny and entertaining.
The best way to spread your pitch video is to make it go viral. Also, take pictures,
flyers and use the current marketing tools bto make your project known.
Step 3 - Do you have a plan B, C and D?
In principle, the "all-or-nothing" principle applies to all platforms. That means:
You get the money only if your funding goal was reached. In order to secure
your finances as much as possible, it is therefore advisable to find campaign
partners who can support you and your idea - also financially.
Let's say that you are missing CHF 10,000 from your desired CHF 80,000, shortly before
the end of the project. In this case, can you invest your own money to make your project
a success? This question should be answered before the start of the project.
Write a short marketing plan with all the measure you can employ during the maximum
90 days of the project runtime. Btw, the ideal project duration is 40 to 50 days.
4. Hot tips at the end: Keep up the momentum and say "thank you"
Wow! Your project is well received and the start is successful. During the first few days, 20% is already financed - a magnificent start. The great art, however, is now to keep up the momentum. Communicate regularly to your interim, add new counterparts, post testimonials from supporters to social media and most importantly: Say "thank you"
personally to your supporters and motivate them to also advertise your project in their environment.
Do this and nothing will stand in the way of your dream and your project. And best of all, you already have a customer base and sympathizers who can continue to support you.
Booya! Now you can get started with your first crowdfunding campaign. I've got my fingers crossed for you. And if there is something else on your mind: Chat with me.
A warm THANK YOU makes your crowdfunders become happy future clients.