Is crowdfunding right for your business?

So - crowdfunding. You upload your pitch to a website. And then ask the public to back it. Either so you can become a startup. Or grow an existing business.

If successful, you get the cash. And you don’t even have to repay it. The people who funded you get to see an idea they love come to fruition. Everyone wins.

But it’s not just about the money.  In the words of our good friends at Crowdfunder: ‘Crowdfunding is a way to raise money. But, perhaps even more importantly, it also raises awareness and longer-term support for a business.”

The longer-term support comes from the fact that dozens, perhaps hundreds, of people feel they’re ‘vested’ in your business. They’ve backed you. And they want you to succeed. So they’re more likely to support you along your way.

But people have seen campaigns come and go, and they’re savvy to the projects that are worth getting behind. If you want to win the internet over, you’ll need to treat your crowdfunding campaign every bit as seriously as if you were approaching someone big and intimidating for a loan.

Here are a few tips for your planning.

Every pitch needs a narrative. It’s the key way you’ll deliver a compelling message and motivate action. People respond better when there’s a beginning, a middle and an end.

But there are key things you need to weave into that story. Potential backers need to understand your idea, why it means so much to you, and why they should support it. What will your idea achieve and why should anyone care? People will also want to know what the money is for, so they can understand the thinking behind your target. 

Use your video, description and images carefully – be compelling and concise. Make sure your videos are sub-two minutes in length and break any text down using lots of subheadings. It’s challenging. But achievable.