Companies and start-ups aren’t the only ones that require money to be carried out. Activities such as events, charities, art and other initiatives that don’t seek to market on a large scale also need it. Do you want to finance a small project successfully? We’ll tell you how to do it in less than 5 months.

Finance a small project (with crowdfunding)

When talking about financing, there are many things that must be taken into account. The costs, the guarantees, loans, possible debts… Things that one way or another could end up causing a headache to anybody. Especially to those people who only want to carry out a small project either by necessity or by pleasure.

If you’re a beginner and want to avoid making a mistake, don’t worry. You can get the financing you need without having to borrow, legally commit, or get into bigger problems. The only thing you need is patience, effort and knowing how to set a goal to fulfill it. Since your project is small and may not interest investors or banking entities that give you a loan, your best option is crowdfunding (collective financing).

Get financing in 5 months

Collective financing (Crowdfunding) consists of using monetary contributions from a large number of people at the same time to obtain money. Since it doesn’t include intermediaries (with the exception of web platforms that charge 5% commissions) and doesn’t represent a loan, it’s perfect for simple projects. The only disadvantage that it has is the risk of not collecting all the money.

But that doesn’t mean that you don’t have an opportunity. You can increase the probabilities by carrying out certain actions, which can undoubtedly allow you to obtain the money. First, we’ll tell you what you need: you must build a community of people who know your idea, like it and are interested in supporting you. How can you do this…?

how to plan a crowdfunding campaign
Of course, you must have defined your idea to the smallest detail. This includes how you’ll work and with whom you plan to partner to do so. The more defined and prepared your idea is, the better. Source: Thinking Business

Use two months to build a community

Now, why should you take two months to build a community? Becausae if you launch your crowdfunding campaign just like that and immediately seek support, you risk that you receive little or no contributions. Having a group of people who know your project in advance to ensure that you’ll get donations once your campaign is launched.

Related: 5 Methods To Introduce Your Crowdfunding Campaign

That’s why you must take two months to create a community. To do this you must use the social networks that you consider necessary. And even if you’re not going to sell a product, you must “sell” your idea and present it with digital marketing tactics. But dont just use social networks: make phone calls, talk with your family and friends, look for people in real life who can help you, etc.

Take advantage of the momentum and launch a campaign

An important aspect that we omitted in the previous step, is that you must choose a crowdfunding platform in advance. As it’s for example SOLIDARIDAD LATINA. And after finding potential contributors in two months, it’s time to start your campaign. This requires four (4) important aspects: a goal (how much money you need to make your project), a pitch video, a description and a reward/perk system (or donations).

The pitch video should be short (maximum 1 minute and a half approx.) Where you should appear explaining who you are, what your idea is and why you need the money. In the most creative way possible. In the description of the campaign, you must explain this as well but in a more detailed way and including aspects that you’ve omitted. And the reward system, you must create a list of rewards/perks that you’ll give to the contributors for a certain amount of money received.

create marketing plan of a crowdfunding campaign
Your campaign will last 2 to 3 months. You must have designed a marketing plan with activities to be carried out during its course so as not to lose momentum. And keep the audience informed and interested. Source: eCommerce

What should you do to guarantee receiving the money?

Although there’s no 100% guaranteed way to reach the goal, there are ways to increase the chances of doing so in a big way. Before turning to the audience you created, try to collect 40% of your goal in the first two or three days. How? Through your friends and family, or people you can ask for contributions with confidence. Achieving this increases the probability of success by more than 50%.

Related: Do You Have What It Takes To Succeed In Crowdfunding?

The purpose is to encourage donations, so that when someone see your campaign they’ll see that you’ve managed to collect almost half of the total. People are more encouraged to contribute to a campaign that has already raised some money than one that has raised little or nothing. If you were smart and managed to promote your campaign to people, the contributions will come easier. After all, you already have people who are excited and interested in your campaign.

Remember that it’s up to you to partner with the right people to advise you and help you achieve success. Not only must you strive to create a community of potential contributors, you must also approach people or entities with influence that can promote your campaign and encourage many more people to contribute to your project. Prepare yourself with effort, and you’ll achieve it!

Thank you for reading this entry, if you liked reading it, we invite you to share it on your social networks. This way you share interesting content and help us get further!

Related: See How Artists Benefit From Crowdfunding

Cheer up! Plan your campaign and finance your project!