Are you interested in crowdfunding for business? Ever wondered how to crowdfund? Discover tips and tricks for successful crowdfunding.
How Does Successful Crowdfunding Work?
Since I wrote my first blog on Crowdfunding (CF) I’ve received a lot of calls from business owners asking if I can help them get crowdfunding. The article was then published in COBiz magazine which drew even more attention.
So I decided to do more research on the subject, including interviewing a few business owners who’ve used crowdfunding to grow their businesses. I learned so much that I decided to write a series of blogs and articles on the subject to help business owners better understand this fascinating concept. These blogs have been incorporated into an article that was also published by COBiz magazine.
The focus of this blog is: Crowdfunding is not for every business. So how do you tell if your company is a candidate to take money from strangers to fund your business?
If you can answer “yes” to the statements below, I believe you have a strong possibility of raising funds through Crowdfunding:
- I can tell a compelling story about my product or service that will excite and capture the interest/admiration of contributors and entice them to send me money.
- My funding goal is realistic and tied to something limited in scope and understandable e.g. “We need $X dollars for the minimum manufacturing order for ____.” People have to agree that this is a neat product; something they might want.
- I can show that there is strong interest in my product/service. That it will be purchased and/or there is pent-up demand for it.
- I am ready to spend hours preparing company information for the CF form. This includes a well-written, concise but thorough project description including a compelling 1-2 minute video and some good photos. (Get all this right because very few, if any, changes are allowed once your project goes live).
- I am able to devote 10-20/hrs/wk on CF activities during the funding period (30-120 days). For example, you need to send immediate email thank-you notes to your contributors, mail any rewards, update info on your website, and constantly update contributors via email on your progress. This takes a lot of time.
Are You Wondering How to Crowdfund?
Give this some thought and contact me with questions. My next blog in this series on crowdfunding is on the decisions you need to make to prepare for crowdfunding. It is such an interesting topic I love to write about it.