Crowdfunding is a way of raising funding for your business that’s gained hugely in popularity over the last years – and for good reason. Not only does it help you raise capital but it also helps validate your business, and build an audience for your product or service. However, there are some common slip-ups that those new to the process can make. We asked crowdfunding expert Jess Ratty of Crowdfunder about how to avoid these.

Crowdfunding is an incredible way to raise funds for your great idea. It’s not all about the money though - a great crowdfunding campaign can deliver a raft of ambassadors that will support you long into the future of your business. 

But what makes a great crowdfunding campaign? Sometimes the biggest lessons we learn come from finding out how not to do something  - so we thought we’d share three top tips to get you off to a great start. 

Be realistic with your target.

It’s great to have a bold plan when you are crowdfunding but you’ll need to understand how much you can raise from your crowd. Think carefully about what funds you need for your idea and how you can create a network of people who’ll be interested in supporting your idea. 

Know your network

People have great ideas all the time, but if nobody hears about them, they don’t become a reality. When you are crowdfunding you need to know if you have access to email databases – and don’t forget social media. Do you have a strong Facebook network, have you got some great connections on LinkedIn and Twitter? If not, don’t panic! You’ll want to do some research into how you can get other people to share your great idea. For example, before you go “live” with your crowdfunding project - have ten people lined up ready to pledge and share your idea via their social channels. You’ll soon see new people taking up the opportunity to get involved. 

Fail to plan, plan to fail

Ok, so that’s the biggest cliché out there, but it’s very true. Some of the best crowdfunding campaigns in the world have had a solid timeline and plan behind them. This means you know exactly what is going to happen at each of the stages of your crowdfunding campaign. Break it up into segments, give yourself targets and milestones, set reminders to update your backers, know when you’ll be emailing your database, sharing great social media updates and images. 

That’s just three of our top tips, but we’ve got plenty more to make sure that you don’t make the same mistakes as others. Remember, we have the opportunity to be incredibly creative and the world is your oyster. Get your idea out there, in front of the right people, and you’ll be making your mark on the world before you know it.

Get the Virgin StartUp Business plan

The information contained in this website is provided for information purposes only and is not intended to constitute legal advice on any matter.  Use of this website is at users own risk and is not intended to create a lawyer-client relationship between Virgin StartUp and any user. Information displayed on this website is provided “as is” and Virgin StartUp does not provide any express or implied warranty or representation concerning the information, including but not limited to the accuracy or appropriateness of the information. Virgin StartUp recommend that users seek their own legal advice before taking (or refraining from) taking any action and do not accept any liability in respect of any actions taken or not taken based on any or all of the information displayed on this website to the fullest extent permitted by law.