October 8, 2010
Who else wants a surefire, step-by-step system for raising money FAST (in 90 days or less)?
1. Come up with a great product or service that people would like to get behind.
It doesn’t have to be the next Google. All you need is a business idea that people in your networks would love to see succeed.
2. Determine how much money you need to raise and for what purpose.
With crowdfunding, you only get your funding if the raise amount is met by a deadline you set. So decide what you would do with the funds, and make the amount achievable.
3. Determine how you will reward your backers.
Tangible and intangible rewards give donors additional reasons to donate to you. For example, you can give them gift certificates, product samples, sponsor status, or personally written postcards of thanks.
4. Set up a profile on a crowdfunding website.
The basics of crowdfunding platforms like KickStarter.com and RocketHub.com are the same. Upload your business profile photo. Fill in the name of your business, tagline, project description, and raise amount. Detail what you will do with the funds and how backers will be rewarded.
5. Add images and video to your profile.
Make your business profile photo fun, engaging, and personal. Create a one- to two-minute video telling the story of your product or service and describing what you will do with the funds. Be creative.
6. Reach out to your friends, family, and networks.
Those who know you may support you simply because you are you. Talk to friends, family, associates, and online social networks. Ask your networks to reach out to their networks.
7. Update your crowdfunding profile weekly.
Keep backers in the loop. Tell them what kind of progress you are making. Also, potential backers may need those extra few exposures to your message before something you say hits the right note.
8. Achieve your raise amount.
With diligence and just a little luck, you can raise the amount you seek.
9. Deliver rewards to backers.
Do not be remiss on this point. If you fail to deliver on the promised rewards for backers, you will lose good standing with them and face possible legal action. Chances are, however, that you will be excited to deliver on the goods when you achieve your funding goal.
10. Leverage backers for further support.
Keep backers in the loop. If you get any new ideas for growing your business, you may need additional funding. Existing backers are the most likely group of people to donate again, lend money, or buy shares in your company.
11. Leverage crowdfunding funds for further funds.
You may want to convert the money you raised into higher amounts. For example, if you raise $20,000, you can use it as a 10% down payment on a loan for $200,000.
Click here to watch this free presentation and start raising money for your business today!
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