Crowdfunding might seem to be a fairy tale for some people but there are startups that would stand by it and attest to how useful it has been in their pursuit of financial support. There are those that choose to tap in the goodness of the hearts of individual people rather than walk up to banks and venture capitalists and make a case for a business loan.
Social funding can help startups with business formation by pitching projects to a big number of people hoping to get them to pledge any amount. The platform pools in small amount from a lot of people helping lower down the financial load for each investor that is coming into the business. It also spreads the potential to earn from the business over to a lot more people.
And there are great stories that came out of the social funding scene like how Forbes.com shared that a project reached $100 million in raised money. There are also a lot of other projects that has succeeded with their funding goals. But the holiday season and this Christmas is a challenging one because people are oftentimes too busy to look into social funding.
But that does not mean that you have to give up the chance to raise some funds over the holidays. It might be difficult but not impossible. In fact for some people, it is with these struggles that they learn to become better at what they do. They pick up lessons from the challenges in their life and use it and turn it into a positive experience.
Social funding this holidays
If you are managing a social funding project this Christmas season, here are a few things you might need to know to help you manage expectations a little better. There will be hurdles along the way but that should not stop you from reaching your goal.
- People might be too busy this holiday. Christmas is a season for get togethers with family and friends and the last thing they would do is to fire up their computers or smartphones just to look for a crowdfunding project to support. This is not to say that projects are doomed during the holidays but it will certainly be a lot more challenging this holiday season. The idea is to find ways to stand out and be noticed by potential investors and donors so you have a better chance of getting some funding this season. It can be reaching out to potential investors long before the Christmas season or asking people you know to introduce you personally to some angel investors.
- Donation based platform could thrive. Investopedia.com shares that one of the platforms social funding has is the donation type. This is where people rally behind a project and put in money to help without expecting anything in return. This can be for a family that lost their house to fire just before the holidays. It can even be a veteran that needs his roof repaired but he does not have the talent or money to do so. These are some of the projects that would most likely pick up during the holiday season where giving is the norm.
- Business ventures might not be a priority. Christmas is a time to be spent with family and friends and looking for ways to start a business might not come across as top priority. This makes crowdfunding a little more challenging this Christmas day. Though there might be some investors who can make time, majority would prefer to just sit back and enjoy quality time with people they love. Project initiators who are looking to manage a campaign around the holidays need to understand this and find ways to still get funding either through active communication or pushing the project long after the holidays are done and over with.
- Build up your list and ask people for support in lieu of gifts. This is one sure way to get investments rolling into your project – ask those you know will give you a gift to just put in some funds into your crowdfunding project. That is if you do not mind not getting anything today. This can be family and friends and even officemates who are having a hard time deciding what to give you.
Looking for extra funds
Your social funding project will take time to pull in all the resources you need to realize your financial goal. Here are some things you can do to help you bring in as much funds as possible into your campaign. These can complement your hard work in trying to get more and more people to notice you project online. As you reach out to potential investors, look at these things and see if they can help you get to your financial target.
- Start with your family and close friends. Some of the first few people you need to approach with your crowdfunding project are family and friends. This is because you have a bigger chance of getting some believers in your camp with those you already knows you to begin with. The further along you go, the lower the chances people will back you up and would rely on how effective your project is. This of course takes into consideration your character and how you have manifested your ability to use money wisely in past. The better your track record is, the better and bigger funds you will get from them.
- Improve your presentation. It will also help if you try to have a great project presentation. People especially those you do not know will rely heavily on this campaign material to have an understanding of your business idea. The better they understand it, the better your chances are that they fund your project. Crowdfunding relies on the support of a lot of people putting in small amounts so it is actually a mass approach system much like a shotgun method.
- Regroup after the holidays. After the holiday shopping, reunions and get togethers and parties, you might want to calendar a post-holiday regroup with your crowdfunding team just to get everyone back on track. You can ask how everyone’s holiday was and maybe take off from there to remind everyone of the project’s progress over the holidays. It could be a refreshing break and everyone gets to look at the project in a whole new light. It also gives team members their key result area to focus on.
- Build up your network. This is oftentimes a neglected part of any social funding project. Your initial request and business correspondence would go out to this list. It is true that family and friends play a big role but beyond them, you need to have a network you can work with.
Crowdfunding has changed the financial landscape altogether and have given both those in need a new sense of hope and ordinary people the chance to invest. It is similar to a bridge that facilitates the meeting of the two proponents. But just like with anything in life, hurdles will rear it head in social funding, The holiday season would prove to be a challenging time for crowdfunding but being proactive about it and looking for ways to get funds coming in could help the project succeed.