7 Key Success factors for Crowdfunding Project
Crowdfunding It is gradually increasing in popularity. For both entrepreneurs SME business owners or those who want to raise funds for a company or project and with the readiness of technology and Social Media, resulting in investors and international donors Can reach those who want to raise funds Can go through the Crowdfunding process.
However, making a Crowdfunding project successful is not easy. Many projects fail to raise funds as intended. Therefore, today I would like to present 7 Key Success Factors that affect success. It may be useful to those interested in fundraising with Crowdfunding to consider.
- interesting story
Project or company story It is a matter that cannot be ignored. Because it has a significant effect on investors. Tell the story clearly. In an interesting angle and tell the reason Why is the project or company should receive financial support and develop it into reality Where the project or company has received various awards, these good things should be included in the story told to investors.
- Appropriate fundraising target
Set realistic fundraising goals. and accessible, not too little, not too much, but must be at a level that has some challenges Suitable for the purpose of using the money will get attention And there's good momentum. Be sure to calculate complete operating costs. and is actually included. This will be a factor in the intended fundraising target. It should be as close to the actual amount as possible.
- Strong team
Having a strong team with diverse abilities It is a factor that greatly affects the success of a Crowdfunding project. The team must do a lot of work, both planning and execution, which will make the project run efficiently.
- Clear and attractive compensation structure
Design a clear and attractive compensation structure that is proportionate. With the support of investors is an important matter. The project must clearly state how, how much, and when compensation will be provided. To provide details for investors' consideration. This will give investors more confidence that the company has looked at all aspects. Not only fundraising
- A well-planned marketing and outreach strategy
Crowdfunding projects that successfully raised funds It is often well planned. Don't rely on fate. But it focuses on strategies that must cover both marketing. Reaching the target group Social media and channels are selected appropriately. to promote the project and win the hearts of target investors.
- A clear business plan and spending plan
in order to attract investors The business plan must be clear about how the revenue will be generated, the product and market, and how the products and services we want to produce will have an advantage over the competition. In addition, the plan for using the money raised must be clearly specified: what it will be used for, how much, and when it will occur.
- Realistic valuation
Company valuation must be realistic. and according to the financial projection (Financial projection) according to the assumptions set. Moreover, it must be consistent with similar companies. or other companies in the same industry Inflated valuations will keep investors away. If the value is lower than the real value It would be like throwing away money that the company should have earned. Therefore, both assumptions must be reviewed. and update the situation to be as current as possible
It can be seen that if you can proceed according to the 7 Key Success Factors mentioned above. It can be done easily. And will be able to increase the chance of success in fundraising with Crowdfunding.
