Is Crowdfunding Right for your Business?
Crowdfunding is becoming a popular way for new businesses to raise money. However, before you decide to use crowdfunding for your start-up, you should consider the following:
Do you have a new idea?
Most crowdfund investors are looking for novel ideas that motivate them to spend their money. As a result, you should be prepared to provide details about your idea that will excite and interest others. Not sure where to start? Investigate crowdfunding websites to see what other successfully funded businesses used to gain investors. You may even want to get in touch with other business owners to ask for their advice.
What is your story?
It is important to remember that investors are investing in your idea, but they are also investing in you. They want to know how you got started and why you are doing what you are. If you have had to overcome obstacles, share them. Many investors like to feel that they are helping you achieve your dreams. The more you can achieve your goals, the more likely they are to invest in your venture.
What is your invention?
If you have created a tangible product, it is essential that you show it off. Investors enjoy being able to be the first to see, experience or share new merchandise. The more you can provide a form of instant gratification, the more likely you are to win over investors.
Can you get the word out?
Social networking plays a large part in crowdfunding. You will want to use every means possible to “advertise” your crowdfunding campaign. All of your contacts – family, friends, co-workers and social media followers – should be notified and asked to share your campaign with their contacts. Your campaign is more likely to be successful if it is highly promoted.
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