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What is CrowdFunding?
Being an entrepreneur is like being your own boss. You don’t have to work under a boss who can fire you anytime. So entrepreneurship is like a free business where the success is yours and the liability of failure is also yours. I think you very well know what entrepreneurship is. But to be an entrepreneur, you need investment. An amount of money with what you may start your own business. People take loans from banks or take money from their own family etc. These are traditional funding for a business. What if there is an alternative funding that is more effective and popular? That alternative funding is called crowdfunding.
Before talking about crowdfunding let’s talk about an advertisement. In the year 2011, 6 matches of the cricket world cup was held in our country and four of them was in Mirpur Stadium. I live in Mirpur. On a match day the area around the stadium became so much crowded. Every time there was a match in Mirpur Stadium I saw many boys were standing in a queue at the two sides of the road to the stadium. They were wearing a yellow t-shirt with the logo of ‘Pran’ and a ‘Pran Mango Juice’ in their hand. It was an activation of Pran to get the attention of mass crowd. There were not only Bangladeshi people but also foreign people. So it was a huge advertisement of ‘Pran Group’. Every business needs the attention of people and for that they should have plans and well execution of those plans. They need to convince people that they are going to get provide better products that are worth the money people will spend to get those products. That’s exactly what happens in crowdfunding. You need to have a plan, good execution and get the attention of people. But before that let’s tell you what crowdfunding is and why that is a better alternative funding.
Crowdfunding means raising money for funding a project by asking a lot of people. This includes one or more steps to make backers who would invest for that project. Crowdfunding has become so popular nowadays that is has been more than tripled in the last three years. It is a process to let people contribute to fundraising and it is effecting the financial system a lot. Nowadays almost 67% of the small businesses are trying to look for an alternative funding ant that is crowdfunding.
Now first of all you need money for your business and you want to take that from people. That’s never easy to convince somebody to spend money for you. So you need to convince them that they are getting something better in return. And of course you have some ideas about your business. Bring your thoughts and ideas in front of them and make them believe that you are going to provide something that is useful to them. Then you may get the fund you require. It’s not an easy task and you need to keep some certain things in mind and do some certain things for crowdfundig. Some ‘to do’ things for you that might help.
Prepare And Present Yourself
At first think about your ideas and make a good plan to launch your project. The planning should be so good that people will want to support you. Find out the problem in the society for which your project is needed and try to make them understand what your thoughts are. If you can make a good execution of your plans you’d get a very good funding. You need money but you should ask money in the first place. Just show the potential and usefulness of your project, try to attract them and they will naturally support you.
Social Media And Website
A press conference may be very helpful to get the attention. Because the more you can get to people the greater chance will be created to succeed. You may also choose a social media through which you may reach huge number of people. You will see that nowadays almost every boutique or fashion house or any kind of business institution has a facebook page. Because it’s the most popular social media. If you can be known in facebook then you may reach a lot of people. But if you just depend on facebook page you may not get the full attention. You should have a website or at least a blog with which you may keep people updated about your project.
Keep The Interest
After launching your project you will get some backers who will fund for you. Keep them interested in your project. Keep doing things, like sharing your ideas, giving newer thoughts etc. In this way you will not lose those backers. And of course keep trying to attract new people, try something new. Such as you may offer little bit free access to your project in order to gain further funding. Crowdfunding always works on making people interested. If you can do that, you don’t have to worry about funds.
Set Your Limit
At first you must determine how much money you need then try to gain that fund. If you try to gain more than you need you will be disappointed. And also it will affect your campaign. Try to keep your goal simple, and then you will not be disappointed. If you can get the desired money first time then you may go for your second phase of the campaign. In this way by going step by step you may gain your desired fund.
Last of all crowdfunding is not a guaranteed way to be successful but if you try hard, make good plans, think from the people’s point of view, and make a good campaign you will be successful. Canadian musician Neil Young gained his crowdfunding goal in just one day. And the amount was $2.4 million. On the contrary, your campaign may not go well. Then you have to find out what were the lacking and mistakes. Then that will help you to do better the next time. If you are successful then try to keep your promises and keep good relation with those who funded for you. You never know how much they are prepared to invest if you become successful. And also look for cooperation with those entrepreneurs who are also looking for crowdfunding. You will get help if you help others. Crowdfunding is a process that starts a lot before the launching and lasts long even after the campaign. Do what you need to do.