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
