Crowdfunding is an inventive, exciting, and transparent process for collecting money to help make dreams become reality. In today’s business world, many startups are turning to crowdfunding in order to finance projects and raise capital. A recent article featured on VentureBeat looked at what happens to campaigns trying to build a brand name after the initial crowdfunding experience is complete. This often unexplored aspect of crowdfunding is tremendously important. The article provides a number of useful tips, and we here at Launcht have added a few extras for those serious about taking the next step.
Crowdfunding campaigns have a wide variety of both success and failure stories. An unfortunate fact about crowdfunding campaigns in general is that many do not even raise enough money to get off the ground. Even those startups that are able to meet their fundraising goals often run into challenges that stop growth. Sometimes these roadblocks force a startup that has a great idea to shut down due to poor preparation. This is one of the main reasons why companies should be planning for life after crowdfunding even before the crowdfunding process begins!
In order to ensure that a business remains effective after a crowdfunding campaign, keep in mind the following:
- Have a business plan, and be transparent about it
- Hire employees with strong related experience
- Have a strong marketing strategy from the start
If you are clear with the business plan, backers of your startup will be more willing to give funds, knowing that the money is being used for specific, important purposes. The next tip for success is driven by the fact that with a startup each individual must take on many different roles within the company. It is vital to hire people who have a wide variety of business experiences. This helps the business grow by bringing together many different perspectives and ensures your employees will feel comfortable with their ever-changing and dynamic role within the company. The final tip that the Launcht team can offer is have a well-thought out marketing plan. There is an absolute necessity in business to spread the word about your crowdfunding campaign and also the overall direction of your company for the future. Don’t let your marketing strategy end when your campaign does. It is essential in today’s digital world to have a strong marketing presence to differentiate your startup from other companies.
After the initial surge crowdfunding provides, companies must remain proactive in order to grow further. Crowdfunding success stories such as Pebble and the Gotta Grove Records campaign did not happen overnight or by chance. A startup should not rest upon its initial success but should aim to climb upwards to new heights. We at Launcht strive to make sure that companies does not lose sight of the future and have strong marketing and legal plans in place to prepare for any situation. To learn more about our white-label crowdfunding software, please click here.