crowdfunding

Preparing Your Business For Successful Crowdfunding

Congratulations! You’ve now been accepted for launching your project on a crowdfunding platform. However, this is just the beginning so be sure to follow these additional tips for ongoing success.

  1. Prepare a Social Broadcasting Plan 
    Entrepreneurs begin to gain acceptance for their projects by reaching out directly to family and friends and “friends of friends” to build a funding base that validates the project. In many ways, this can be a golden token of approval for your project’s success. If your project is funded early by family, friends, and “friends of friends”, then the greater audience of strangers will more likely be attracted to your project. In addition, as funding gains momentum, plan to target bloggers and influencers who have audiences of their own who may also further broadcast your project, potentially leading to more funders.
  2. Communicate with Stakeholders 
    A regular and timely program of updates will engage your audience, convert viewers to funders and funders to stakeholders who promote and fund further. Video, narrative and pictures are an opportunity to keep the conversation going with progress reports on successes and challenges with the project. Regular and timely updates promote transparency, accountability and build credibility for the business plan. Furthermore, enhance communications for your project by building social andbusiness network profiles for yourself, your team and your company. Connect and integrate all of your available online media and content to your project page to increase credibility for your project and broaden the audience of people who will view, fund and re-broadcast your project.
  3. Recognize Backers 
    People fund social and business projects because they feel a personal connection and want to participate in something bigger than themselves. There is a sense of pride and involvement that goes along with funding something that could make a difference or is being discovered for the first time. Recognize every backer with a regular and timely program of personal and public recognition.
  4. Deliver Transparently 
    With funding secured, entrepreneurs must follow through and execute the project as planned. Whether you have successes or failures, tell your stakeholders in a timely fashion. Communicate delays to delivering rewards and reset expectations. Communicate when your plan is on course and when there are hurdles or impasses. Delivering transparently will create a following that trusts you so you can go back to them again for crowdfunding future projects.
  5. Make a Positive Impact 
    Our mission at ProHatch is to channel overlapping relationships between business, philanthropy and personal projects, and the funders that support these projects, so that responsible crowdfunding is facilitated that will positively impact society and the economy. With this in mind, always ask yourself – “will this project or business positively impact someone’s life, create jobs, or contribute to social improvement and economic development?”

[via Business News Daily]

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