We created this crowdfunding primer for anyone considering a crowdfunding campaign. Before you embark on your journey you should have a basic understanding of how crowdfunding works.
We know that going to a lending institution like a bank to secure a business loan is an unlikely option for most businesses. Moreover attracting a bunch of investors other than family members to invest in your business is also a stretch. However, conducting a crowdfunding campaign to raise seed money and prove that the market will embrace and pay money for your idea may sound appealing but crowdfunding requires work if you what to have a successful campaign.
Before you begin any crowdfunding journey you need to define just how much funding you will need to raise. Tools like our Startup worksheet and Cash Flow Template on our Free Downloads page can give you a good start at understanding your financing requirements. However, most successful businesses begin with some kind of funding plan.
If crowdfunding is the right way for you to raise money, it is not as simple as creating a campaign page and waiting for the money to roll in. A successful campaign takes work. There are eleven distinctly different steps required to conduct a successful crowdfunding campaign.
We have created a crowdfunding primer in a series of posts that will teach the small business owner considering crowdfunding everything they need to know to run a successful campaign.
The Platform Research Step Involves Finding What Projects Worked Best on Each Platform to Determine the Best Platform to Launch Your Campaign. Post Includes Link to a Free Form
The Campaign Research Step Involves Talking to Several Campaign Owners and Asking Them If They Would Be Willing to Discuss Their Campaign Experience Post Includes Link to a Free Form
The Design Rewards Step Pertains to Reward-Based Crowdfunding Campaigns Only and Are a Series of Rewards to Incentivize Backers to Support Your Campaign
The Campaign Follow-Up Step Involves Making Good on Your Campaign Promises. If You Fail to Meet Your Goal You Still Need to Thank Backers
On average it will take 16 weeks of effort before launching your campaign (T-) and four to six more weeks to run the campaign. Therefore it takes approximately 20-22 weeks to run a full campaign. Concerning how much effort timewise is involved with each step is and when you should start we created the following table.
Practical Crowdfunding How-To-Guide: What You Need To Know To Run An Effective Campaign
The Practical Crowdfunding How-To-Guide is a wisdom-packed book that was written for the entrepreneur considering raising money via a crowdfunding campaign. Crowdfunding is not a simple matter of just putting your campaign on one of the crowdfunding platforms and waiting for the money to roll in. Crowdfunding is much more personal, relies heavily on social media and making network connections before you launch your campaign. In fact crowdfunding shares very little with other forms of raising money.
For most, crowdfunding success can run the gambit, but it does not have to be a game of chance. The author breaks down the process of crowdfunding into 11 distinct steps to locate and attract potential pledges and build momentum and buzz for the campaign. By following the 11 step process the reader will have the best chance of success in reaching your funding goal. The book Practical Crowdfunding How-To-Guide is a concise and easy-to-read guide packed with solid advice and examples that will help the entrepreneur achieve the best possible crowdfunding success.
Practical Crowdfunding How-To-Guide: What You Need To Know To Run An Effective Campaign
