An important and vital piece to your equity crowdfunding raise is knowing your "crowd"! You may have the best product or service idea in the world, but without investors to support your small business, you will have a hard time getting your ideas out into the marketplace. Gaining investors can be tricky... Here we put together four tips for increasing the size your 'crowd' and achieving a crowdfunding raise that will help drive your business!
1. Establish and maintain a strong social media presence:
In this day and age, social media rules the business world. Reaching crowdfunding success as a start-up or small business without any online presence is extremely challenging. Companies that can stay in contact and engage with potential investors through different social media platforms show the investors that they are motivated and want to make an impact in the marketplace.
2. Know your "crowd":
If you are a small business, start small in your search for investors. It's key to leverage your existing contacts, including family and friends when launching your crowdfunding raise. The people closest to you, that know your business and your story, are a great place to start in your funding search. As your business grows, your search for investors can grow as well.
3. Create a strong pitch and practice!:
Know your pitch and who are you pitching to like the back of your own hand. The last thing potential investors want to invest in is a small-business that appears as if it is unorganized or not taking itself seriously. A strong pitch backed up by research can be highly enticing for investors. Think of any comments, questions, and concerns potential investors could have about your pitch before you even pitch it to them. Practice makes perfect, and investors will be more apt to invest in a business that is classy and professional rather than one that is not.
4. Do your research:
Doing research about investors can significantly increase your chances of success. By understanding their interests (for example: veteran-owned, minority-owned, or women-owned businesses), ideas, and expectations, you can choose which investors are the best match for your business. If investors and owners are on different pages about the investing process, problems can arise. Doing research to find the perfect investors for your business is important for reaching your equity crowdfunding goals.
Check out INVESTinNC's latest equity crowdfunding programs here.