Crowdfunding projects is the new method to source funds for businesses and budding entrepreneurs – here’s how you can stand out with your idea!
Many of us self-starters have grand ideas that we believe hold value. Whether it’s a film, a hobby-turned-potential-business, or a social cause, what really stops us from moving forward is the lack of funding. Starting a venture requires capital, and not many of us have the time or resources to build it. But luckily for us, there’s a solution for that – crowdfunding!
Wondering how to crowdfund for your project and make your dreams come true? Watch Kool Kanya’s live event with Varun Sheth, co-founder and CEO of Ketto. Watch here.
How To Raise Money Online For A Project
1. Have A Solid Crowdfunding Business Plan
It’s simple: You cannot convince someone to donate if they don’t understand what your project is about.
You must be clear about your project idea or business plan before asking for donations. To have a solid plan, you should have a clear idea about:
- Why you’re doing the project
- Whom the project will benefit
- What the impact of the project will be
It’s best to add tangible elements to the project to give the donor a clear idea. Click here to find out if you have a solid business plan worth investing in.
2. Make A List Of Potential Donors
Your project plan should help you define your list of potential donors. Your donors are your audience – your project must cater to them in some way.
Your audience is a group of people who either believe in the idea or will get something out of it. To make it easier for yourself, personify your audience as a single person and draw an outline of their personality. This should help you get a basic idea!
3. Set An Achievable Goal
If your goal is massive from the beginning, you’re probably in for some disappointment. This holds true especially if your audience is interested, not invested.
To reach your goal, you must start out small. It’s easier to achieve smaller goals than one huge goal. This will also take some pressure off you.
4. Pick The Right Platform
There are several online crowdfunding platforms to choose from to help raise money online for a project.
Every platform has its own niche, purpose, and policy; do your research and pick the platform that makes more sense to you. You can set your monetary goals according to their commission policies as well.
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5. Pick A Good Time To Launch Your Campaign
If you’re looking to fund your documentary, for example, and the theme revolves around women’s rights, you can launch your campaign around International Women’s Day so it can gain more traction. The key is to find a moment where people are paying attention and are more likely to feel generous and connected to the topic.
6. Build Credibility And Make It Personal
To get people to pay attention – especially online – it’s important to add a personal element. The audience should know where their money is going, so you must have a compelling story and a strong call-to-action that eventually leads them to help you raise money online for your project.
Your story should make the audience feel something – rage, happiness, sadness – for them to want to contribute.
It helps to be open and vulnerable about your idea and what it aims to achieve. You can even add your credentials to make your case stronger. For example, there’s a high chance that you’ll be able to raise money for your documentary if you’ve worked under a known film director.
7. Offer Incentives To Your Donors
Whether it is tangible or intangible, your audience is more likely to donate if they can associate with it.
They might really resonate with your cause and feel deeply about it; your project might be something ‘cool’, which would give the donor social clout; or it could be a product your audience is most likely to buy.
Offering incentives works wonders;in fact, it is one of the advantages of crowdfunding for small businesses. A more tangible incentive would be a small gift or goodie bag that you can give for a certain (sizeable) donation.
8. Raise Money Privately Before You Do It Publicly
Crowdfunding is also a time to reach out to your community.
To make a better impression, you must first reach out to your immediate contacts – family, friends, peers – and ask them for a donation.
That way, you will have gotten the ball rolling and will have something to show on your crowdfunding page. Psychologically, it will convince your audience to donate as well. And, of course, it will boost your confidence!
Crowdfunding requires being honest and transparent about your goals.Now that you have a clearer picture of how to raise money online for a project, if you believe in your idea and know it has potential, make sure it reflects in your crowdfunding campaign. And remember that any amount you make is good – it means someone believes in your idea as much as you do!
Updated 19 August 2021
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