Crowdfunding is quickly becoming a great way for entrepreneurs to raise start-up capital for a business. Crowdfunding is a type of capital raising involves asking a large number of people to invest a small amount of money to develop or promote a product. With a great idea and potentially great product, it can be a good way to start a business for some people. Before starting a campaign, a lot of planning and work needs to be done. Much of this work can be done through social media.
Before the campaign:
Before starting a crowdfunding campaign, check out the major social media networks. Several have proven to be good platforms for promoting a business. Currently, the major platforms are:
- Linked In
Social media platform popularity can change quickly, and new platforms are started all the time. For example, social networks like Vine, Vimeo, Storify, and Snapchat are all currently up-and-coming social media platforms that might be useful for crowdfunding. Examine each platform carefully and make sure the audience you want to connect to is on that site.
Setting up a social media account:
Once you have found platforms you like, set up a page or account directly related to your potential business. Do this several months before starting your campaign. Even if you already have a personal account, set up another account specifically for what you want to crowdfund for. Many social media sites have special spaces or pages available specifically for promoting a business.
After you set up your page, post unique posts frequently, but not so frequently that people get annoyed. Posting too much or posting the same thing repeatedly will drive people away. The general recommendation is no more than a couple times a day or less. Post updates about the product and its development, have give-aways and contests, show videos, and get people interested and excited about the business. Be sure to cross-post on other social media sites as needed.
The goal of all this work is to get followers, which can be harder than it sounds. Start with people you actually know, such as friends and family members. Make your presence known throughout the internet and offline. Being consistent with your social media activity will help draw in more followers. Be sure to be professional at all times even if people post negative responses to your posts.
Once a satisfactory amount of followers are following your social media accounts and you are ready to start your business, try setting up the crowdfunding campaign. By this time, you should be sure whether or not your idea is feasible and people might give money to it. If you are unable to obtain enough interest or followers, then it would be good to rethink your business idea and shape it into something else.