What Are The Keys To Success In Crowd Funding

Crowdfunding is a new method to raise funds for your business start-up.  How it works is that many people contribute small amounts of money to your business either as an investment or as a donation.  The donation option is obviously a lot more attractive, because a small business owner does not have to pay the money back.   With that in mind, there are many keys to successful crowd funding.  Here are several: 

1. Make an early determination regarding how much money you need.  Ensure that you already have at least thirty percent of that money from your own funds.  Investors are more likely to invest if they see that you are driven and focussed on making your business a reality.

2. Offer a wide variety of levels at which people can invest.  Sometimes people are interested in your company or product, but do not have a lot of money to donate or invest.  If you offer small donation/investment amounts, people are more likely to give you the money.

3. Use video on your pitch page.  People can visit your pitch page and read about your idea, product development and other items, but video is more personalized and is an effective tool for connecting to people on a more personal level.

4. Use social media to promote your crowdfunding links.  Let everyone in your social network know about your quest to raise money and where they can see your business pitch page.  Being active through social media is a good way to reach out to a wide variety of people.  Encourage all of your contacts to share your links too.

Source: Entrepreneur