Crowdfunding can be an incredibly powerful way to fund your business idea, but it’s not the right approach for every entrepreneur and every project. If you do plan to go this route, make sure you know what you’re getting into before you dive in with both feet! Here are three things you need to know before starting your crowdfunding campaign.
1) Build a Strategy
If you’re starting a new business, chances are you need funding. That means that crowdfunding is worth considering—but before you dive in, consider some important steps to take beforehand. Here are three things you should do before launching your campaign. By planning ahead, you can make sure your campaign takes off from day one.
2) Know your Audience
The first thing you should know is who your audience is. Who are they? What do they like? How old are they? Are they tech-savvy or not so much? When you have a clear idea of your audience, then you’ll be able to write more content that resonates with them.
Since most crowdfunding campaigns fail to reach their goals, it’s important that you know who your audience is and what makes them tick so you can create a meaningful connection.
3) Choose the Right Platform
The very first thing you need to do before you start raising money for your project is to determine which crowdfunding platform will give you access to your target audience.
A well-established, high-traffic platform like Kickstarter will naturally have an easier time raising funds than a lesser-known one like GoFundMe or Ulule. While many platforms charge fees and take a cut of your profits, there are also not-for-profit options that don’t charge fees and keep every dollar you raise.