How To Crowdfund Your Million Dollar Idea - Part 2
The Key Principles (Continued)
Make your presentation as detailed as possible
. Describing your idea and your business plan in minute detail has two advantages.
First, it shows potential funders that you’ve done your homework and thought things through, which is likely to make them feel confident in your ability to pull it off. Second, it will give them an idea exactly where their money will be going if they invest in the project. This type of full disclosure will help establish your reputation as a reliable and trustworthy entrepreneur. You will need to address the essential elements: the nature of the goods or services you intend to provide, the unique value proposition your proposal delivers, the target market, and how you propose to reach that market.
Include a video presentation with your project proposal
. Well-produced and smartly scripted video presentations are highly effective when used in crowdfunding campaigns.
Give people a chance to get to know you personally, and to see your idea or product put into a more concrete form (through models, charts, graphs, illustrations, etc.), and you’ll have a much easier time making a positive impression.
Keep your funding campaign active and make sure the lines of communication are always open
. Listing your project is only the first step. Your attempts to find supporters should never slow down, and you should remain proactive in answering all questions and giving progress reports to pledged funders.
In general, you should be ready and willing to communicate with any and all interested parties. Don’t depend on the strength of your proposal to sell your idea. You must remain an active and engaged participant in your crowdfunding campaign until the day it finishes.
Offer enticing rewards and benefits
. If you choose to recruit investors as part owners (this is called equity crowdfunding) your primary task is to keep them informed of the progress of the project.
If you plan to retain ownership and are only seeking funding support (this is called reward-based crowdfunding and is probably your best approach if you’re a small businessperson), you must offer benefits that are interesting, unique and attractive. That may be free products, services, commemorative items, public acknowledgment for participation or a thousand other possibilities. It’s a good idea to check out other crowdfunding campaigns as a source of inspiration, but if you can think of something singular and different it will help your campaign stand out from the crowd.
The Cream Rises To The Top
Crowdfunding comes without any guarantees. But for budding entrepreneurs it is a true meritocracy: if your idea is as great as you think it is (as you know it is!), you should find plenty of financial support.
Billions of dollars of idle capital are just waiting to be invested in ideas like yours, and if your concept and your campaign are equally inspired the odds of success are very much in your favor.