A basic guide for your first crowdfunding campaign
So you want to start your very first crowdfunding campaign? Whether you’re a startup, an established company or even a listed company, you should always be prepared for what’s in store.
Just to make sure you haven’t missed anything critical, we at FundedHere have come up with a little checklist of all the important details that could make or break your campaign.
Step 1: Plan, plan, plan!
As the saying goes, failing to plan is planning to fail. A clear plan, grounded in research and an awareness of your milestones, is critical to achieving your goals.
The most successful campaigns on crowdfunding platforms are typically well thought out plans executed at crucial timing. It is important to understand your product, brand and market — and find the right moment to strike.
Step 2: Be a goal digger
Think in stages and understand your goals at every level. This may be the most difficult part of a campaign since there are often a plethora of strategies to evaluate and choose from.
Many successful campaigns raise their money in stages, starting with smaller, niche campaigns and eventually growing an audience from there. It is easier to rack up small successes than a huge million-dollar outing from the outset — this track record gives investors the impression that you can be trusted to give them good returns.
Step 3: Debt or equity?
A key element to understanding your business thoroughly is knowing what financing model is right for you (check out our website for a breakdown of the differences!). Do your homework, hire professionals and seek advice on the pros and cons of debt and equity financing. This may eventually play a huge role in the dynamics of your business, even if you don’t notice it at the start.
Step 4: 30 is the magic number
Insider tip: launch your campaign with 30% of your goals already set. Knowing that this 30% is guaranteed to be raised will allow campaigns to reach a significant amount in their first day.
By surging to 30% off the bat, your campaign gains traction and people notice the momentum. This gives potential backers more confidence that your campaign is on the fast track to success.
Step 5: Authenticity is key
Understanding your investors is an extremely important aspect of any business, and engaging with them on a personal level is one of the best ways to rally support. One effective method is email marketing, where the average conversion rate is 34% higher than other forms of outreach.
Emails allow you to quantify the number of potential backers reached and how many actually responded. Social media or public relations efforts are helpful, but remember to be personal and authentic if you want results!
Step 6: Teamwork makes the dream work
Crowdfunding takes a lot of continuous work, which makes singlehandedly manning a campaign almost impossible. Make sure you have the resources to maximise the potential of your campaign.
Recruit a highly committed and motivated team who shares your vision and can intuit the best forward strategy for your campaign. Work closely together and plan your time carefully; reserve at least 60 days for planning and 30 days to manage the campaign after launching.
A team that can promote and carry your message through is vital for a successful campaign.
Step 7: Marketing is Everything
Conveying your vision to your audience can be tricky, especially with the variety of online platforms to choose from these days.
Be sure that you understand your own products, industry trends and target audiences. Know your own business inside out — and then shout it to the world! Done right, a well-managed and disrupitive marketing campaign catapults your startup into the limelight and attracts both leads and potential backers.
Again, before you get going, do your research and find out which marketing platform is best for you. If you are unsure, you can always engage a consultancy to help you identify the right platform for your business.
This article was published by FundedHere. FundedHere began operation in March 2016 and is the first homegrown Singapore-based platform to offer equity and debt-based crowdfunding.
For more information, please go to www.fundedhere.com
