Whether you are an individual entrepreneur, a small business or a large company, what they all have in common are projects that seek to leverage their business through solutions that bring benefits to the enterprise; satisfying the needs of a target audience and its customers.
However, in many cases, having the financial resources to get these projects off the ground is the phase that makes it difficult or even impossible to carry them out. And that's where crowdfunding comes in: a solution that comes from a need .
But do you know what this means?
Do you know the best practices that this method includes? With this in mind, we have prepared this article that contains excellent tips to help you attract investment through crowdfunding.
What is crowdfunding?
Before we discuss crowdfunding best practices, it is very important that you understand how this method works.
Crowdfunding (which, translated into Portuguese, means “collaborative financing”) is a solution for entrepreneurs and companies, who have found ways to put their projects into practice with the help of supporters .
In other words, people who believe in the business and the project and, therefore, make contributions to help make the project a reality.
Some people think that this started with the advancement of technology, but it didn't. Crowdfunding is a method that has been used for a long time.
It turns out that with the internet, crowdfunding has germany business fax list become increasingly popular. After all, the easy connection between those who sell the idea and those who decide to invest in it has made this method take on very large proportions.
How does crowdfunding work?
As we mentioned earlier, the internet and its connections have expanded the reach of crowdfunding campaigns.
To have an online campaign, you simply need to choose the platform you will use. It is important to pay attention to the terms of use of each one.
To help you with this choice, we have selected some for you:
Catharsis
It is considered the first crowdfunding platform here in Brazil. It has been online since January 2011.
According to the platform , the founding manifesto says that the site was born out of pain: seeing brilliant people with shelved projects.
The platform is so successful that it has already helped more than 14 thousand projects get off the ground, totaling more than 140 million reais in favor of various projects across the country.
Catharsis
Kickante
Another crowdfunding platform that also supports campaigns with a wide range of goals and also has a more social focus.
At kickante, contribution payments can be diversified, including the possibility of installments. The administrative cost is already lower and the fees are lower.
Kickante, crowdfunding platform
Vakinha
The platform was born from one of these real stories. In order to save money to buy wedding gifts in another country, they realized that there were no practical solutions for this other than to raise funds in person.
From this, in 2009 the website came up with the idea of doing the famous real-life fundraiser using the ease of the internet.
Vakinha, crowdfunding platform
Improvement
This financing platform has a very positive difference: No commission is charged for the campaign to be managed by Benfeitoria .
There are already more than 6 thousand projects and more than 79 million reais raised to strengthen the projects.
Another interesting point is the partnership with Matchfunding BNDES +, allowing projects that focus on Brazilian Cultural Heritage to be selected, receiving two more reais for each real received.
Benfeitoria, crowdfunding platform
Now that you know some platforms, it's time to start thinking about your project.
The first step is to provide more information about the project, stipulate values and execution time. A good option to attract more investors is to simultaneously tell people how they can help and what they gain from it.
After your campaign is approved, it will go live and then it's time to raise the money.
Now that you understand what a crowdfunding campaign is and how it works, let's look at 5 tips on how to attract investment for your business and/or project.
1 – Define clear and objective goals for your crowdfunding
This is the first point and stage of a crowdfunding campaign, because without defining goals and objectives, there is no reason for its implementation.
Furthermore, no one will want to invest in something without a purpose or tangible objectives. First of all, define clear and objective goals, that is, what results the crowdfunding campaign will generate.
Another point to pay attention to is asking for only the amount necessary to idealize the project, without there being excess or surplus financing.
This will convey greater security to your investors and demonstrate the seriousness of your project.
2 – Define contribution levels and rewards
A good crowdfunding campaign should be structured around contribution levels . This way, it can allow groups from different income brackets to contribute to your project.
Crowdfunding is based on equality, everyone can be a collaborator, regardless of the amount they contribute to the completion of their project.
Also be careful about establishing rewards according to contribution levels. Adopting the idea of distributing gifts, holding raffles, and other measures that can motivate people to collaborate with your project.
Establishing rewards according to contribution levels will generate interest and encouragement in your employees to move to the next level to receive better rewards.
3 – Use digital marketing to promote your campaign
Digital marketing is a powerful tool to help your business in the process of promoting and engaging in your crowdfunding campaign, since this tool has an entire methodology in the online environment for generating and winning over a specific audience.
The correct use of social media is an excellent ally in establishing your campaign with your target audience.
This means of interaction has become increasingly popular in the daily lives of internet users, which shows that the time spent on digital media platforms has increased considerably in recent years.
Another powerful digital marketing tool is Content Marketing , where your company can generate engagement with its investors through aggregating content that is relevant to your target audience, supporters, customers and future customers.
4 – Share your crowdfunding progress
A key factor in building loyalty with your employees is to periodically disclose the progress of the funding campaign, which creates an environment of transparency between your business and your supporters.
This will ensure the success of the campaign and, if the fundraising is below expectations, you can invest in other projects to reinforce the request for financial collaboration.
Regardless of the situation, disclose the results of the financing and what the financial amount provided in the progress of the project.
5 – Be resilient
Your first few campaigns will probably have some issues. Small errors may appear that delay the achievement of your intended goals.
However, every manager must develop the skill of resilience and generate learning through mistakes.
You should not give up on your goals . It is a fact that we learn much more from our mistakes than from our successes, as they require commitment and case study. This way, we can understand what caused the failure.
By understanding errors and developing resilience, it will be possible to carry out increasingly consistent and better developed crowdfunding campaigns.
By following these 5 tips, you will certainly be able to secure investment for your business and/or corporate projects through crowdfunding.
