Funding a business in today’s world is hard. You might think, “Well, I could always ask for a loan,” and you wouldn’t be wrong in thinking so. In fact, there are many loans aimed at helping women or veterans break the small business glass ceiling, and these could be viable options depending on the nature of the business you are trying to fund. However, loans do require a level of commitment and good standing — not to mention the burden of having to pay the loan back will constantly hang over your head.
Amongst other options there is one that is gaining a lot of popularity today – crowdfunding. A crowdfunding campaign can be difficult and time consuming, but the results are worth the initial effort. Studies show that having a sound marketing strategy in place could either make or break your campaign. Here, we will discuss some marketing strategies to get people excited to crowdfund your business, focusing on whom you should try to reach, and how to target various audiences.
In general, an audience can be divided into three broad groups that should be targeted within your marketing strategy: personal relations, similar stakeholders, and social media followings.
Personal Relations
Personal relations consist of family, friends, and other people you might have some sort of close relationship with. You would need to approach these people differently as opposed to how you approach a stranger. Chances are some of your closest relations will already know about your campaign, whereas others may simply know the general idea but not the nitty gritty.
When outreaching anyone in this group, it is important to stay genuine and honest. No one likes to be approached, after years of no contact, with a request to part with their money. It would be unrealistic to expect someone you’ve barely kept in touch with to get excited and immediately agree to fund your business. That’s why it is critical to maintain good connections or rekindle any relationships you may have prior to introducing your campaign. While outreaching personal relations is relatively straightforward, you need to remember to give yourself enough time to do so and start planning your outreach in advance.
Similar Stakeholders
Similar stakeholders are those people, organizations, and/or communities that would relate to your project. This group will be integral to the success of your campaign since they are already invested in your idea. For example, if you are creating an app to research sea conditions, your similar stakeholders would include boat tour companies, recreational activity organizations, scuba diving clubs and online forums, fishermen communities and more.
When proposing your idea to this group, it is key to highlight how your campaign will particularly benefit them. Even if they can’t afford to contribute towards funding your business (especially in the case of smaller companies or individuals), these stakeholders might be willing to publicize your campaign on their social media pages or put up flyers on their bulletin board to spread word to their clients, thus generating more excitement and widening your target reach. Eventually, the hope is that these similar stakeholders will invest in your idea or even form some sort of business partnership if they are indeed benefiting from your project.
Social Media Followers
Your “social media following” is just that: all your contacts through various connections, aggregated into one group. Though statistics show that not many social media followers will convert into concrete funding, it still acts as a wonderful method to spread word of your campaign. Having a bigger, more relevant following will increase your chances of success. If you don’t already have a social media base, you need to build one. Then you will have to make sure your following is constantly engaged and remains loyal.
Engaging your social media following can be done in a variety of different ways. For one, video is a powerful visual tool, and it can help viewers perfectly visualize your campaign. Creating and sharing topical videos is a great way to publicize your ideas. Secondly, Twitter conversations allow you to reach people from all parts of the world. By engaging audiences with well-thought-out tweets and timely responses, you can become a respected voice in your field, in turn increasing the chances that they will be amenable to funding your business.
A group often overlooked within social media are bloggers. Today, bloggers and influencers are a surefire way to spread word of your campaign. Even if social media doesn’t yield high revenues in terms of actual donations, your efforts will allow for major publicity gain through various avenues.
When planning your crowdfunding strategy, it is vital to cover these three bases. Always remember to be informative and available to answer follow-up questions whenever they pop up. Being organized, informative and approachable, paired with the above tips, should help your marketing efforts result in increased conversions. Having a detailed and thorough plan is the best way to motivate people to fund your business.
