12 Steps to Crowdfunding Success

In the process of putting together a crowdfunding campaign for your new venture? Great stuff! See our 12 top tips below for running a successful campaign and reaching your target!

Keep it short, sweet and simple!
When writing your campaign description, keep it  short and to the point to catch peoples attention. Create a short story with a hard sell in about 2-3 paragraphs.

Lights, camera, action
If the platform you have chosen lets you, consider creating a short video to sell your new product or service in a visual way!

Photo Credit: dsevilla via Compfight cc

Photo Credit: dsevilla via Compfight cc

Start with something
Before your campaign goes live, make sure you have a few people lined up ready to pledge their cash! No one likes committing to something which is brand new and therefore your campaign may look more appealing if it has already received support.

Compress the time scale
Although logic suggests the longer your campaign lasts, the more time you have to reach your target! This doesn’t always work. Once your campaign is live, you’ll have to work hard to promote it and gain investment and therefore if you set it up for a month or two rather than six, you’ll keep the momentum going!

Do something every day
We’ve already touched on this slightly but be proactive when promoting your campaign by doing something everyday! Tweet your campaign and post updates about how it’s going and how far off your target you are. Social media can be a powerful tool if used correctly!

Convert pledges into cash, and “Likes” into supporters. 
If someone has already pledged to your campaign, it means they like it and therefore may be willing to pledge again to hep you reach your target! It’s easier to get repeat business then new business.

Get publicity
If there’s an interesting story behind your crowdfunding campaign, generate some PR and get the local media involved to raise the awareness of what you’re doing!

Organise off-line events
This could interlink with generating PR but arranging off-line events will also help raise awareness of your campaign and give people the opportunity to see the product in a physical form.

Match funding
Investors like to invest in something that has support. If you’re looking to raise £5,000 for your venture, try and find someone who may be prepared to match your funding if you reach your target.

Challenge yourself each step of the way!
Set yourself challenges to meet time-bound milestones along the way, and enlist your supporters to help you achieve this, with a big push at the end. The start and the finish are two key periods.

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Crowdfunding: A quick guide!

Quite a new addition to the world of start-up funding, crowdfunding is a method which can be used by anyone with a new project or venture. It is the idea of the general public or investors pledging money to fund your venture in return for a benefit; this could be a limited edition product or equity of the business. Crowdfunding generally happens over the internet with lots of different crowdfunding websites such as Kickstarter, Crowdcube and Crowdfunder.

Crowdfunding

Crowdfunding is great when trying to launch a new business or a new product. The only downside is that it is all or nothing! If you don’t reach your funding target by the end of the campaign then you won’t receive a penny and your pledgers won’t be charged.

We’re going to provide you with some key steps in setting up a crowdfunding campaign!

Choose the right platform
Browse the internet and check out the different platforms for crowdfunding, there are plenty out there for you to choose from, it just depends what each one can offer and which one is going to work best for you and your venture. Give consideration to fees, social media integration and how much of the page you can brand and personalise.

Decide on your target and time frame
Work out how much the project is going to cost and use this figure to set the target amount you want to raise and choose a realistic time frame to raise the money in.

Set-up your rewards structure
Consider what benefits you will offer in return for funding pledges for your project. Make sure your benefits are something people will want, low in cost to deliver and seek engagement. Think about the structure of the rewards and what the minimum and maximum pledges will be. For example, if your project was a new book your rewards structure may look something like this:

Pledge Reward
£5 A digital version of the book
£10 A real + digital copy of the book
£20 A real + digital copy of the book + a thank you in the book
£30 A signed copy of the book + digital copy + a thank you in the book
£40 A limited edition signed copy of the book + digital copy + a thank you

Promote, promote, promote!
Once your campaign is live, it’s time for the hard work to start!  You need to make sure you reach your target by promoting your campaign out to potential future customers, friends and family. Start building a network of pledgers by asking people who have already pledged to share your campaign amongst their network of friends and family too!

DMU graduate, Illustrator and former Business Venture Competition winner Rachael Smith created a Kickstarter campaign in March 2014 to help her launch a new comic ‘House Party’. She smashed her original target and had to set up a number of stretch goals to keep encouraging people to pledge money. The campaign was really successful and you can see her Kickstarter page here.

If you need further advice about funding your business idea, book into our start-up surgery every Tuesday and Thursday between 2-4pm.