Tips for Creating a Successful Crowdfunding Campaign

Crowdfunding has become a major consideration for entrepreneurs and start-ups looking for project funding. Kickstarter, IndieGoGo, and Patreon are just some of the big names available to those looking to fund rather than bootstrap a new product, service or project. Many people believe that asking for funding is as simple as filling out a few pre-defined fields, and when they find out it isn’t, they either slap together just enough information to get their project online or abandon the idea completely.

If you approach crowdfunding without a plan in place, you will be impeding your ability to raise money. Just like any marketing tactic, crowdfunding campaigns require logical, creative strategies to ensure their success.

14 Ways to Get Funded Using Crowdfunding

  1. Consider your timing.
    If you want to sell a product that is seasonal, then wait until the appropriate season. Backers will be more likely to support something that solves an immediate need.
  2. Set up a quick campaign.
    More days don’t equal more money. The highest-earning campaigns have been 30 days or less, according to our experience as well as published statistics.
  3. Create an attainable goal.
    Your goal should be realistic, not hopeful. Set it for the minimum amount you need to carry out your project. People like to support projects that surpass their goals – not those that can’t seem to meet them.
  4. Give them something to believe in.
    Many backers don’t care about the reward at the end of the line. They want to support a good, compelling cause. Make sure that your story gives them a reason to root for you.
  5. Be honest and upfront.
    Outline why you need funds and where you are going to use them. The more you lay out your budget, the more truthful you’ll seem. Additionally, tell backers how long it will take for them to receive their rewards – and make sure you know the proper turnaround time frames.
  6. Make the “founders” the face of the project.
    You may be fascinating, but if you aren’t the creative force behind the project, you should stay in the background. People want to see that the founders are involved and that they are committed to seeing their project through until the very end.
  7. Produce a stellar video.
    Videos are extremely important in Kickstarter, IndieGoGo, and Patreon. A professional, well-edited video will show your audience that you’ve invested in this process, and you are serious about it. Do not skimp on this part of your campaign!
  8. Look professional.
    Your video isn’t the only thing that should look professional. The copy in your campaign should flow well and be free of grammatical errors. If no one in your company writes well, hire a professional copywriter to help you out.
  9. Have well thought-out rewards.
    The most common donation is $25, according to our experience as well as published statistics. Make sure that your reward amount is appealing. Have different, well-planned reward levels. Think of backers as buying your product – and not just donating to your bank account.
  10. Use the inbound marketing you already have in place.
    If you have existing marketing systems in place, utilize them! Reach out to people via emails, newsletters, and social media. If you have a website, advertise the campaign on there, too.
  11. Involve your friends and family.
    Don’t forget about the power of your personal network – this is where the bulk of your funding will come from. Even if your friends and family members lack deep wallets, they can share the news about your campaign to people you don’t know. If you know any bloggers, ask them to spread the news for you, too.
  12. Thank your backers personally.
    Expect to spend some time engaging with your backers. They can give you valuable feedback and can help spread the word even further. Send them personal emails; it will be worth it.
  13. Ensure your product is awesome.
    Whatever you are producing needs to be high-quality. Don’t start the crowdfunding process until you’ve already created prototypes, met with manufacturers, and tested out shipping options.
  14. Have another funding source.
    Crowdfunding should not be your primary source of funding; it should be your last. If your project does not meet the monetary goal you’ve set, you will get nothing. It’s essential to have a backup plan in case this happens.

Planning is Key

If you plan well, strategize your written and video content, and then promote the campaign via email and social media while it’s running, you could be on your way to receiving the funding you need to follow your dreams. A crowdfunding campaign should feel like a full-time job while it’s running if you’re doing it right.

Conveyance knows how to fundraise using Kickstarter, IndieGoGo, and Patreon. If you need any help, just give us a call. We’d love to help you convey your message and turn your ideas into reality.

Raising Money for Your Business

We can guide you through the fundraising process and supply you with the marketing support that you need to sell your idea.

Raising money to get an idea off the ground can be both exhilarating and frustrating. Whether you are a tech startup looking to launch a new app or an entrepreneur seeking to expand your geographic footprint, finding enough funding can seem like an impossible task. There are more options today than ever before. There are popular crowdfunding websites, government-backed business loans, and even television shows like Shark Tank that try to match innovators with investors. If you are looking to raise capital for your business, you need to determine which avenue – or avenues – will be right for you.

Capital Strategies: Raising Money

We’ve compiled a list of seven major ways to fund a new business venture. Every option has different requirements in regards to business experience and eligibility, so make sure that you consult an expert before deciding on the path that is right for you.

  1. Government-Backed Loans: Through the Small Business Administration (SBA), the Federal government offers loans through Small Business Investment Companies (SBICs) and via its 504 and 7(a) loan programs.
    • SBICs are private companies that provide long-term loans, equity capital, and even management support to small businesses. The SBA guarantees the loans that SBICs take out to invest in small businesses, increasing the funding that these private companies have to invest.
    • The 504 Program, otherwise known as Certified Development Company (CDC) Loans, offers fixed-rate, long-term financing for business improvements. This program is meant to help businesses get to the “next level” with funding for new equipment or office space.
    • The 7(a) Loan Program merely backs loans for entrepreneurs and small businesses from traditional lending institutions.
  2. Private Bank Loans: Bank loans or lines of credit can be extremely helpful if you have been in business for over a year. Ensure that your business plan is polished and up-to-date if you are going to approach a bank for capital, though, because they tend to have very tight lending standards. If your business needs funding before the one-year mark, you may have to settle for a business credit card.
  3. Angel Investors: Angel investors are affluent business owners or individuals who meet the Securities and Exchange Commission (SEC) definition of an accredited investor. These investors can give you money in exchange for equity in your business, and can be hands-on or hands-off as partners. Many angel investors like to mentor the entrepreneurs in whom they invest. When angel investors pool their resources, it is called an angel investor group or an angel capital group.
  4. Venture Capital: If you are looking for a substantial sum of money, you may need to look into a venture capital investment. Venture Capital (VC) can come from a corporate arm – like Google Ventures – or from a VC firm. VC firms give you money in exchange for equity, just like angel investors, but they are always hands-on and will often take an active role in your business. VC companies tend to look at businesses that have rapid growth potential; their goal is to eventually merge your business with another, have it acquired, or have an initial public offering (IPO).
  5. Non-Dilutive Capital: If you don’t wish to give up equity, you need to look for non-dilutive capital – or capital that doesn’t dilute your own stake in the business. The Federal government and many states offer grants that require no payback – depending on whether or not your business can qualify for them. On the private side, there is something called Royalty Financing in which investors offer money in return for a guaranteed percentage of revenue over a period of time. This allows you to pay back the loan with interest without sacrificing equity.
  6. Crowdfunding: You’ve probably heard of popular crowdfunding websites like Kickstarter and Indiegogo, but crowdfunding isn’t only done online. You can raise money from business partners, vendors, or even customers during a Direct Public Offering (DPO) with no financial underwriting. Regardless of how you obtain the funds, make sure you comply with all SEC regulations. Under Rule 504, there’s a good chance that you won’t have to file the financing with the SEC if it is under $1M.
  7. You: Now coined “bootstrapping,” you can fund your venture yourself with business revenue and your own personal cash – and credit. Many people pull money out of their retirement funds or ask friends and family for help with this method. Keep in mind, though, that this choice is very risky if the business does not succeed.

If you do decide to pursue outside funding, make sure that you have a professional, impeccable presentation ready to prove your case. And if you need a little help, give Conveyance a call. We can guide you through the fundraising process and supply you with the marketing support that you need to sell your idea. Businesses fail every day due to lack of funding. Don’t befall the same fate; contact us today!

Convey It – Raising Capital for Your Big Idea

Which Way is Your Way … Bank, Venture, Angel, Crowdfunding?

No matter if your a  small business, start up, non-profit, charitable cause, or social activist … YOU NEED MONEY!  Now the question is how to get it?  There are so many ways conventional and non-conventional to raise funds these days, which is why  we’ve put together a few great articles and blogs on this very topic.  Hopefully they will get you on your way to successfully financing your great idea.

How to get your business funded
Contrary to popular belief, business plans do not generate business financing. True, there are many kinds of financing options that require a business plan, but nobody invests in a business plan.  Investors need a business plan as a document that communicates ideas and information, but they invest in a company, in a product, and in people.http://articles.bplans.com/how-to-get-your-business-funded/

When should a start up raise capital
When a startup should raise capital is the subject of much debate, and rarely will two individuals give the same answer. Why? Because each company’s circumstances are different, and the “right” answer is a function of many different factors. In general, the answer is as simple, and as complicated, as “when you’re ready.” Are you ready, read on!

How to use Social Media for Crowd Funding campaign
Are you launching a crowdfunding campaign?  Want to use social media to promote it? To reach your goals, you’ll need to use social media before, during and after your campaign. In this article you’ll discover how to use social media to achieve crowdfunding success. Read More.

11 tips how to raise money from strangers
Social media is changing more than the way we market and communicate… It’s changing the way we raise capital. Crowdfunding websites are popping up that connect entrepreneurs with investors, producers with patrons, and causes with contributors. Here are some tips to help you master crowdfunding.

26 TOP Crowdfunding sites by niche:Crowdfunding for Non-Profits, Charitable Causes, and Social Activists
The crowdfunding landscape has gotten pretty, well, crowded. It’s not just Kickstarter anymore —when entrepreneurs and artists want to take their projects to the masses, they’ve got dozens of platforms to choose from. How can you tell which one suits your project best? We’ve broken down the best crowdfunding sites by industry and project type, and collected crucial details from the fine print to help you decide.  Read More.

Here is a short list of the most popular group funding platforms

  • Kickstarter – funding for creative projects; primary users: artists, filmmakers, musicians, designers, writers, explorers, curators, illustrators, game designers.
  • Indiegogo – the world’s largest global funding platform.
  • Rocket Hub – designed for social media based fundraising; primary users: creatives.
  • Givezooks! – geared toward non-profits and provides them with tools to manage fundraising efforts.
  • Just Give – help people find charities that they would want to support.
  • Causes – fundraiser site which is fully integrated into Facebook.
  • Crowdrise – for personal fundraising, such as: non-profits, event fundraising, special occasion fundraising, team projects.
  • Network for Good – one of the more established charitable donation sites.

We are happy to help you prepare for financing; we help entrepreneurs and start ups with business plan creation, pitch books and presentations, and crowdfunding campaign design and management.

Conveyance Marketing Group is a marketing and web development company with a passion for delivering strategic, sustainable and affordable marketing and web solutions to start-ups and small businesses. Our service offerings include video, Search Engine Optimization (SEO), inbound marketing, graphic design, logo design, advertising and web design. Our creativity is limitless, let us help accelerate the growth of your company! Contact us today for more information on how we can help you.