Crowd funding is a form of raising business finance but far removed from traditional methods. What would you generally do if you were starting up a business of your own or launching a new product? You would draw up a business plan, conduct market research and then approach banks and financial institutions, investors or friends and family to fund your project. However, crowd funding is a totally different concept. Here a large pool of willing investors is tapped through various crowd funding platforms and online social media. The collective effort of a large number of individuals who believe in the project and would like to take an active part in building it up is what lies at the core of the concept.
The first point here is that you need a crowd to fund your campaign and your core activity should be to get people together to meet your goals. Here are a few tips on how you can do so.
Tap into your personal network – You will be having a lot of Facebook friends, email contacts and others on different social media communities. However, when you approach them, you have to devise different strategies. An approach to a businessman will be far removed from what you would adopt for an old school friend. Hence, first categorise all your contacts into groups such as friends, family, business associates and casual acquaintances. Then structure messages for each group. For example your mail to friends introducing your crowd funding initiative will have bare details only since they would have already heard of your project. For business associates mails will be a lot more detailed giving every aspect of your forthcoming campaign.
Within these groups too, you will also have to identify people who have very strong connections. They are the ones who will help spread your message. You can especially appeal to them to play a larger role in your efforts. Involve them closely in your campaign and ask them for inputs and opinion about the campaign. They should feel that they are an integral part of your campaign and will therefore be a part of your success story. Their involvement will be crucial for you in the long run.
Contact same interest groups – People or groups that have similar interests to your project will often go out of their way to promote your campaign. For example, if you are creating a recruitment app, think who your stakeholders will be. Office and business owners, freshers out of college or those wanting to switch jobs for greater career opportunities, public and private sector organisations and agencies involved in labour hire in Melbourne or wherever your app is related to should form the core group for your project. The chances are that they will offer to post your campaign on their Facebook page or in their email newsletter or put up your posters on the bulletin boards in their premises. If a leading recruitment agency like First Personnel joins your campaign, it will surely get a big boost.
These same interest people may also try to bond a close business relationship with you in the long term and even donate to your project. Always tap into specific niche groups and communities before starting your business campaign.
Social network – Having a 5000 strong social media base does not mean that your crowd funding efforts will be a success. Only a small percentage will actually donate and take an active part. Hence, the more people you can assemble the better for you. Further, it is always advisable that from these followers you build up a core group that will strongly support and share your project amongst their followers. Your reach then on social media platforms will double in no time.
Follow these simple tips and your crowd funding efforts will definitely be a grand success.