When you are starting a business, chances are excellent that you do not have the money that you need in order to get all of your necessary equipment, pay employees, or even rent a location. In order to truly get your business going, you are going to need to somehow generate money from investors. This can be difficult if your business plan is less than solid or if you need to raise money quickly. One way to get around the need for investors is to crowdfund your startup money, which allows you to essentially get a ton of mini investors on your side when building your startup. Here are some ways to make sure that your crowdfunding campaign is successful.
1. Choose the Right Site
You can't use a basic crowdfunding platform in order to get investment for your startup because you won't be able to pay back all of your mini-investors unless you organize everything yourself. In order to get enough money for your startup, you are going to need to choose a website that specializes in building equity for small companies by crowdfunding it.
2. Get All of the Information on the Page
Don't just describe your startup in words. Make sure that you add photos of everyone that worked on the project, a short video explaining what your startup is all about and how it affects the viewer personally, and make a tagline for your company that is under 140 characters so that it can be tweeted. Doing this will allow potential investors to fully grasp your company's sensibilities, as well as your business plan, and make them relate to you, increasing the chances that they will actually donate.
3. Stay Connected With Your Investors
Finally, most sites are going to have a multi-stage process that investors need to go through in order to invest in your site. This is going to involve some work on your part, from approving the person to actually putting the money that they have invested in your startup in the bank. Every step of the way, you are going to need to keep your investor informed in order to keep him or her interested. For example, when you approve your investor's request to invest, consider sending them a thank you email or a sticker with your company logo on it and a thank you note. When you bank their money, send them a small token of appreciation. Doing this will make your investors more likely to give you more money.
For more information, talk to a company that specializes in building equity crowdfunding opportunities.