Planning a Crowd Funding Campaign

Crowdfunding is defined by Wikipedia as the “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet”. A fruitful crowdfunding campaign has the power to provide your business the requisite fiscal stimulus, if implemented correctly. But in order to do that, one needs to devote effort and time in drawing up a strategy and looking for the right platform.

What are the key aspects in executing a successful crowdfunding campaign?

A solid goal is required

Your crowdfunding campaign will need to begin with a clear objective that people (potential investors, partners and staff) can resonate with. This goal necessarily needs to be articulate, detailed and as mentioned before, very solid. A clear strategy will give your investors a sense of confidence and ownership – they should be able to visualise the entire project from start to finish. When starting out, there will be many expenses that will need to be covered, but remember to highlight your main objective and pursue financial options for that. Once you have this clearly laid out, your corwdfunding project will seem more manageable.

Determine your funding

It is crucial to raise the right amount of money for your project. Therefore, estimate all your expenses by outlining plan explaining your specific financial needs. A clear financial strategy will allow you to determine which type of crowdfunding will suit you best. And remember, each type listed below has its own rules and funding limit :

– Rewards based
– Equity
– Debt-based
– Litigation
– Charity

The target crowd

Once you’ve determined your avenues of funding, you now need to shift your focus to the crowd – you target group. Your objective is to lure a particular demographic or community, who will be interested enough to share your campaign with their peers.