January 13, 2019
How to Make Your Business Idea Fit for Crowdfunding
Launching a business is a daunting prospect. Many budding entrepreneurs often fail to succeed either because of lack of funding or because they don’t have the right business strategy. Getting the exposure and funds, you need to get the ball rolling can be done through several sources. People in business typically apply for a loan in a bank as starting capital. But what if a bank loan is not the most suitable option for your business idea? The possibility exists to use crowdfunding as an alternative method of getting investors to launch your business.
Crowdfunding is quite popular these days, and there are many crowdfunding for business websites that have been instrumental in the success of start-up companies. One famous example is the Oculus Virtual Reality Headset which began as a crowdfunding campaign and later on was bought by Facebook. If you have a unique and exciting concept, product, or invention, how do you transform your idea into a viable crowdfunding campaign?
Determine if crowdfunding is suitable for your business plan
It is essential to understand that crowdfunding is not a “one size fits all” solution. There are specific ideas and business plans that aren’t compatible with this method of receiving financial support to launch a business. The rule of thumb in identifying whether your campaign is fit for a crowdfunding platform is whether it provides value for a specific population and there is a possible reward you can offer the investors or backers.
Many ideas fit well with crowdfunding sites. Typical examples include tech gadgets and home inventions. But there are times when backers offer their support to ideas that don’t have tangible rewards. Overall, it depends on how you package your campaign and attract the interest of potential supporters.
Be ambitious with your goals
You need to begin your campaign with success in mind. While crowdfunding helps you gather funds, you don’t need to stop at this point. Aside from raising money for your campaign, you also need to set other goals for your business that you wish to achieve with the help of crowdfunding. For example, think about how to increase traction and exposure for your product so that when you launch, you already have a steady following and loyal customers.
Have a good incentive plan
Your incentive plan will help bring supporters to your campaign; therefore, it needs to be of value. You can either offer rewards to your backers or offer them shares in your business. In devising the right incentive plan for your campaign, consider how it helps motivate backers and encourage them to participate and invest in your campaign.
Have a strong marketing strategy
Your project page presents the campaign to users of a crowdfunding site. You need to create a page with high-quality graphics and videos. Aside from your project page, you also need to invest in marketing strategies such as Facebook and social media advertising. If you lack the confidence to market your campaign, you may also enlist the help of a marketing expert.