Ready to crowdfund using social media? Read this first
Crowdfunding is no longer the buzzword it was in 2006. Social media has undeniably taken over and changed the way we interact and connect online. Gone are the days when discussion forums were the go to tool for getting numerous opinions. Crowdfunding by definition is, “the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.” This is basically asking strangers around the world to help you get your project or campaign off the ground by financing it as a collective. Not only does this mean you’ll have the necessary capital to get going, but you will also have peace of mind. Through the indirect market research crowdfunding provides, you’ll know that a community of backers believe in your service or product. The average person has 5 social media accounts, this means you have a few options on how to get your message across. Sometimes, all you need is a quick update on any platform and you will be flooded with an array of responses from your followers, catapulting your crowdfunding plans into the stratosphere. The next step is knowing how to harness the power of those platforms to bolster your crowd funding efforts. However, there are dos and don’ts when it comes to crowdfunding. You’ll need to ensure that people don’t view your suspiciously while ensuring long term success beyond the initial campaign. Build a good foundation before the launch 30% of your donations will come from people you know. With this in mind, you need a solid network of people you have already been connecting and engaging with online before launching your campaign. This could take months so make sure you are ready to put in the work. There is no shortcut to a strong social following of engaged users. Even more important is to ensure that you have the ‘right’ kind of followers. Through a great social media strategy, you can discover people who have shared interests. These are those will be more likely to support your cause. Don’t rely on one platform It’s very easily to rely on one platform. You may think your Facebook friends know you well and will support you but avoid putting all your eggs in one basket. Pick the right platform based on where your audience is, where you receive the most engagement and where you will be able to monitor things easily. Rather than using your personal profile (which could get spam-like towards your friends and family), start a separate page for your campaign and get people to like and follow it for updates. You can also have a separate page for yourself. This way people can see the woman behind the campaign, you never know, it will probably be one of many projects you undertake. Content is king You need consistent and engaging content in order to stay current and pull in the crowds. Your copy should be punchy, to the point and shareable in order for the word to spread. Use rich imagery where you can, as well as other content types such as infographics, videos, podcasts etc. Share updates and milestones in order to keep the excitement going among your backers. Keeping content consistent and frequently updating will ensure you stay on top of people’s minds. Don’t jump the gun Asking for money right away makes you seem greedy and desperate. These two words can taint your campaign. How you frame your requests also matters, no one wants to feel like you are begging them to send money your way. Refrain from, “Please give 30 dollars to my campaign.” Instead go for subtle ways of encouraging support such as, “Could you be my next backer?” Listing the amount of money you require in your update might seem daunting to someone who only has a little to give. Rather, post a link to your landing page where people can decide for themselves how much to give. At the end of the day, even if you don’t reach your required amount through crowdfunding, you will still have a great community of people who believe in your ideas. Don’t ditch them. Instead, thank everyone for their efforts and keep doing what hooked them in the first place (consistency, remember?). You never know when your next bright idea might come and you need them again. Have you run a successful crowd funding campaign? Let us know in the comments section below.
10 things I learned about pitching to an investor
She Leads Africa recently had a free webinar session with Andrea Barrica on the fundamentals of pitching your business – The Do’s and Oh No She Didn’t of Investor Pitching. Andrea Barrica is a Venture Partner at 500 Startups, a global seed fund and accelerator for early stage startups based in Silicon Valley. She was previously co-founder at inDinero, an accounting and taxes software solution where she led the team to the first $1M in sales in 10 months. Here are ten things we learned from her. 1. Don’t try to pitch to all investors Most of the interactions that you have with investors are not investor pitches. Most of the interactions that you have with investors are about how you can get the right type of investor who wants to hear about your company and is willing to hear about your pitch. When you have an investor who is interested, it is then time to have the investor pitch. 2. Differentiate yourself, be clear, and don’t overly pitch Create a level of personal connection. People invest in people they like. Make it a conversation (never corner someone in a party). Keep it brief, and tell your story in 60 seconds or less. Understanding the market and asking questions and advice versus pitching the business is a great way to get investors interested. Be natural, authentic, and humble. 3. If you do not have an idea, investors will not be willing to invest Support your idea, prove it out Wait until you have traction and a great team Wait until you really need the money. However, when you really need the money the most, the investor has all of the leverage versus having a great team and traction without the desperation. 4. Use your resources, networks, and community to find investors Meet people — It’s better to meet investors when you’re not fundraising Standard networking — get introductions from other investors Go where investors hang out and then find the ones that you respect Write — start writing your own blog and content The key is running your business—it is important to build, go out there and get some traction. The first investors will be family and those you are close to. 5. When meeting investors, know who is going to be there, and how many people—know your audience! The important thing to know about a meeting is that, no one is as interested in you as you think they are. You must be brief. Think about how to you make your presentation interesting. How will you make it unique? 6. If you want to stand out, work the room, run the meeting, tell a story Make a personal connection, research the people in your room. Don’t make it to feel robotic; not too many slides. If people ask questions at the end and if what you presented was clear, that means that they are interested. Don’t leave asking: are you interested? Rather leave with: will you be willing in investing; how much will you be willing to invest? 7. The don’ts Pitching is a conflict between what we say, what we mean to say, and what the person actually hears. What we say and what we mean to say is not what the investors hear. Don’t: Create slides first This is a bad way to start a presentation. So don’t rely too much on your decks and your slides. Don’t: Be A 1 pitch pony. Don’t only have one pitch prepared Have more than one prepared. Prepare for the different types of investors and what they may care about most. Don’t: Forget the 20:1 rule For every one minute of a presentation, practice out loud. Make sure the delivery and confidence is there. 8. The do’s Do: Tell a strategic story Tell a story that will help the listener understand something about your story that they didn’t before. How does my story help me to achieve my goal? It is important to ground out the things that you want people to know about you in short stories. Do: Know your secret sauce How will you win when everyone else fails? It is your differentiation. Do: Know what is the most compelling thing about your business Use this cheat sheet: Traction Team- past experience and your background Product Vision Do: Pass the 60 seconds test You need to get someone interested about your company in 60 seconds, no matter what industry you are in. 9. If you want to get in touch with foreign investors, build a great business They will reach out to you. Make sure people know you. How so? Support local organizations. What are you doing? What problem are you solving? How do you understand the market? 10. You close deals A great pitch deck and a horrible pitch won’t do anything for you. So how can you improve? Get together a small group of other young entrepreneurs and force yourself to practice consistently. Go out to new events and networking opportunities and keep pitching. You won’t get good unless you do it. Take improv classes or acting classes. Have a few friends video tape you pitching and talk about ways to improve with your friends. The only way that you will improve is by giving and getting brutal advice—patting each other on the back, will not help. Want to watch the full webinar? Check out the video below: