Crowdfunding is an excellent resource for hopeful entrepreneurs, with the potential for providing start-up capital for new businesses. It is a highly visible way to market your company and your ideas. However, there is a downside as well: a failed campaign can also mean bad press for your company. In order to avoid these downsides, have a look at our Crowdfunding Advice in this Blog. A vital step before jumping into the crowdfunding waters is to do your research first. The most common mistakes that cause new ventures to fail include:
- Lack of research and planning
- Financial mismanagement
- Poor hiring and leadership practices
Research and Planning
You need a solid business plan and a good working understanding of what your target market wants. You need to understand the value of your own product and how to communicate that value to your potential investors and client base. To garner the initial start-up funding you need with a crowd-funding campaign, you can’t just assume you have supporters out there—you need to identify and target your supporters. A professional investor pitch story is critical – why do you need funding, why should investors fund you, what separates you from your competition, what makes you unique and special? Will your product contribute to economic growth?
Know your team and make sure they share your commitment; then trust them to do their part. Before the money comes in have a plan and a budget for allocation; once the money is coming in, keep to your budget. Do the research—understand your market thoroughly. Gain momentum and follow through.
Find your Resources
Once you start doing your homework, the first question you need to ask is what Crowdfunding platform should you use? If you have a new product that will contribute to economic growth then Stratecta Crowdfunding is the platform for you. Stratecta’s mission is to support innovation and brings investors and entrepreneurs together. Their service is simple, supportive and secure. Getting and managing your initial funding does not happen automatically, it does not always lead to a successful business launch, and it does not happen all online–these steps take research and work. Commit to success, read our Crowdfunding Advice and let Stratecta Exchange help.