Tuesday, February 12, 2013

Build Your Empire With Crowdfunding

Build Your Empire With Crowdfunding

2009 marked the launch of Kickstarter. The media company that brings together artists, filmmakers, musicians, and all sorts of other "creatives" using crowdfunding to collaborate on a massive, global scale. Although it seems like the ultimate rags to riches platform to launch your wildest dreams, crowdfunding has its pros and cons; and you need to be fully informed with a plan for addressing each of them.

Does It Support Your Business Prestige?

Your business may not be right for a crowdfunding site if you're looking to build a certain type of professional prestige. For example, if you're a doctor or lawyer looking to start a practice; it's not advised you go seek start-up costs through crowdfunding, the transparency can work against you. Options like a small business loan from your bank or credit union, or use a service tailored to your needs like the American Express Plum Card. Services like these can give you more flexible payment options.
Crowdfunding is more suited to creative endeavors, inventions, or those looking to launch their product. For those looking to start a more traditional business or service, traditional routes of funding are recommended. After all, a doctor wouldn't want a patient to be part owner of his practice.


Test Your Idea On Your Network

Before you release your idea on the masses, it's important to lay the framework on social media and with people you know. Early feedback and critique by those opinions you trust can be an invaluable tool for fine-tuning your approach- most people don't get the perfect pitch on the first try.
Test the waters with Twitter, Facebook, and other applicable social media outlets and analyze responses and suggestions, building a web presence for yourself is key to establishing your brand and identity.


 Show, Don't Tell

As people, we are visual creatures who like to be shown stories better than told. The same goes for potential investors, which is why an alluring video is such an important part of your crowdfunding presentation. A concise, visually stimulating presentation is worth more than a novel filled with the details of your endeavor, people really respond to the “WOW” factor. It's important to remember that you're selling yourself as a brand, just as much as you're selling your project.


Give Your All To Donor Relations

Being in good standing with those who backed you is crucial for success, and it's just in good taste to do so. Make sure your rewards are realistic and pay extra attention to those who invested a decent sum in your endeavor. These people are the ones who got you where you are today, and you should never forget that! Even if you don't believe in Karma, it feels good to give back, and helping one another out is what business networking is all about!

1 comment:

  1. Thnx for this post. Crowd funding is certainly a traditional for museums to watch. There's an interesting case study here . Ascenergy