Crowdfunding is a form of crowdsourcing and alternative finance that
basically involves funding a project or venture by raising monetary
contributions from a large number of people. It allows entrepreneurs raise
capital without giving up too much equity. It has over the years become an
effective alternative for raising funds for business ideas. Jumia Travel present things entrepreneurs should know about crowdfunding to take full advantage
of it.
*Plan*
It is difficult to plan a crowdfunding campaign because you don’t know what
to expect and can hardly predict the kind of reaction your campaign might
get. Your campaign may or may not go viral but either way, you should be
prepared to handle possible press attention and to respond to your growing
community. You should be able to manage things immediately as they come up.
*Choose the Right Platform*
Spend time researching on the different internet-mediated registries or
online platforms for crowdfunding, and choose the one that is right for
you. Choose a site that fits your project and the industry you are in.
*Pay Attention to the Deal*
You should pay attention to the details of the terms of the platform, the
percentage the platform takes and when you get the money. This is to avoid
nasty surprises down the road. Pay attention to the deal of your
crowdfunding platform and find the one you are comfortable with.
*Think About Your Messaging*
It is easier to raise money for an idea that touches a lot of people
whether or not the venture is for-profit or not-for-profit. Consider the
message of your campaign and think of how you can make it relevant to as
many people in your target group as possible.
*Learn from Others*
Check out and analyze other successful crowdfunding campaigns to see and
understand what worked for them and how you can apply it to your campaign.
However, you should be realistic about how much of what you learn from
these campaigns you can apply to yours, considering your resources. Adapt
ideas in a way that fit your budget, target group and brand.
*Be Prepared to Tell Your Story (Be Transparent)*
You need to be authentic with your campaign and be as transparent as
possible. Without these, people are less likely to respond positively to
your campaign, they’ll remain skeptical and unbelieving. Be as
communicative, engaging and as open with your community as possible, let
them know as much as they want to know and have as much evidence as they
need to believe your campaign.
*Get Early Adopters*
Get friends, family and people you know to invest right away. This is
because people are more likely to invest when they see others investing and
people tend to trust a campaign when it seems to be doing well. Investors
are also likely to develop an interest to invest when they see your
campaign is something the public/community are interested in and responding
positively to.
*Have a Strategy for Marketing*
You need a consistent and persistent marketing plan that will help you
reach far beyond your circles – asking two or three friends to help you
repost or share your campaign isn’t enough. Research and figure out where
to find the people in your target community and create eye-grabbing,
heart-grabbing and convincing social media posts and ads to grab their
attention, generate interest and incite a positive response to your
campaign.
You can also create genuine relationships with influencers and reach out to
as many of them as you can to support your cause and help you get the word
out.
*Crowdfunding Can Fail Very Easily*
You should be prepared for this reality. You need to know when to crowdfund
and when to approach other resources. Not all businesses are suited for
crowdfunding. However, once you have considered these and work towards the
proper execution of your crowdfunding campaign, its chances of failure are
reduced.
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