How to run a successful crowdfunding campaign » SMEInsider

How to run a successful crowdfunding campaign

You’ve come up with an incredible idea, you’ve developed and tested it enough to be sure it will work, and now you need the funds to make it happen. If this sounds like you, crowdfunding can be an extremely savvy way to get off the ground.

The reason crowdfunding is so attractive is because it isn’t just about raising money. If you’re lucky enough to secure seed funding from a VC or other form of investment, you still have to start from scratch when it comes to marketing, building your brand and making your first sales.Crowdfunding, on the other hand, might be slower and tougher, but it acts as a testing ground from day one: you can gauge the level of enthusiasm for your product before you take any serious risks.

That’s because, typically, crowdfunding a product, service or project is a way of securing pre-sales and generating a buzz around what you do. If you don’t meet your target, that sucks, but you can make the next step about finding out why people were reluctant to buy and then fixing that problem. You don’t find out after you’ve sunk all your money into a first run that there’s a fundamental flaw in the design that is putting people off.

If, on the other hand, your first campaign is successful, not only have you made your first sales and taken the first steps in bringing your brand to life, you’ve also proved your concept. That will make it immeasurably easier to take your idea to an investor and ask for more money to fast track your growth.

That said, a successful crowdfunding campaign isn’t just about coming up with a brilliant idea and sticking it on Kickstarter or Indiegogo and waiting for the orders to run in. As in any sales scenario, you need to be creative in the way you tell an engaging story and win over your audience. Here are some top tips and tricks to help you along.