For many startups, running a crowdfunding campaign makes perfect sense as it’s a great way to raise growth capital that can take an idea and turn it into a viable business. Setting up a crowdfunding campaign on one of the many reputable platforms is very efficient and effective in getting your message out to the right people. You can tell the story of your business, produce a quick video and set up some attractive rewards right from one central location where potential backers can easily find you. While there’s much to be said for crowdfunding, it is definitely not right for everyone. Many people who give it a go in their quest for the proverbial golden egg end up with nothing more than a goose egg – in other words the number of pledges they receive equals a big fat zero.
Here are some of the most important characteristics of successful crowdfunding campaigns to help you decide if this method of raising capital is something for you.
Their Founders Tell a Compelling Story that Prompts Action
Without a doubt, one of the most powerful things about crowdfunding is that it allows you to tell the story of your business. Crowdfunding may be right for you if you have a great story to tell that describes why you created your product or service, what your background consists of, how you found your team and how you envision your business will make a positive impact on the world. On the other hand, if you don’t have a compelling story to tell and only plan on asking for money, crowdfunding is not a good way for you to raise capital as no one will feel compelled to be a part of your story.
Their Founders Know How to Pitch
The most successful crowdfunding campaigns are run by founders who know how to make the perfect pitch. This is so important as potential investors hear pitches from people every day which means they don’t have time nor the desire to independently research your business idea. Wise founders who run the most successful campaigns know this and therefore make sure they touch on all the important points investors want to know. These founders keep their pitches on the simple side so that the information is easy to digest and understand. The perfect pitch will entice potential investors to look more closely at your business as they’re able to connect with the story you’re telling them.
Their Founders Make the Campaign Their Top Priority
Managing an active crowdfunding campaign is exhausting, time-consuming and intense. The most successful campaigns are run by founders who make their campaigns the number one priority in their lives. These people do things like send out multiple surveys to their backers, personally answer scores of emails and keep very active on social media so that they can generate interest and spread the word about their campaigns. The successful founder understands the value of sharing their campaign via email and social media. He or she also knows that any good social media or email campaign should be personalized with some humility mixed in which states how important their project is to them and their lives. These people understand how important it is that their campaigns are very easily shared which means all someone has to do is click a button.
Founders who feel they cannot “give it their all” when running their crowdfunding campaign are people who may be better off seeking more traditional financing as crowdfunding is not for slackers as it requires a ton of your time and effort. However, if a campaign is run correctly, all those long and exhaustive days and sleepless nights will be nothing more than a distant memory as you’re new business will be up and running because you were able to raise the capital you needed.