Do you have an idea that just screams to be realized but you cannot fund it? Believe it or not, that lack of funding is the death of many a dream. What you need is a way to finance that dream through crowdfunding or crowdsourcing. The way to do this is simple and straightforward, as follows.
Come up with an idea that is worth the effort of seeking funds. Your idea has to have merit, be original and something that your potential investors can be excited about and believe in. A good idea is worth more than its weight in gold to investors.
NEVER just ask for money. Instead, make it into a finance opportunity for potential investors. Offer something back to them in the long term. Be confident, build the value of your service/product/business venture and make them see the potential it really has to be great. Your confidence and passion will rub off on them.
Plan who you will ask to invest ahead of publishing the crowdsourcing project. Make them aware of the idea and that you are putting it together. Inform them of the date you plan to start and finish crowdsourcing. This gives them ample time to do their own due diligence and research. Provide resources if you have them.
If you have crowdsourcing partners, get them involved in the funding process as well. Their contacts may include someone that immediately sees the merit and prospective success of the idea. Plus the idea of multiple networks striving toward the same finance goal speaks for itself. The more, the merrier, as they say.
Set a minimum amount for your crowdsourcing project and press towards that goal. This finance goal should be set approximately 15% to 20% below the actual target and make it possible to start up at that point. This may take a little creative arranging on your part.
Also, do NOT get discouraged if you don’t hit your exact goal. You will inexorably get a few “no” answers. This is natural, especially in the present economic status in which we find ourselves. Take it in and keep moving forward. Momentum will propel you to the finish line!
To avoid getting those negative responses, you could make it worth their while to invest with you. Offer a payback of some sort. You do not technically have to, but its good business to return finances to your investors before you pay yourself AND it builds confidence on you as the point person.
I have saved the most obvious point for last and that is to locate a true, real and genuine source of crowdsourcing finance contacts. This could be a social media account or any of a number of sources. Wherever you make contact with people is a good crowdsourcing arena.
It is true that you do not need to use a crowdsourcing service to manage inbound funds, but you may want to find a reputable one for a few reasons. Chief among these is the awareness and publicity they generate for your project. The promotional features alone make this choice a good one.
As funds arrive, they will be available in one place. You have no worries about having funds spread out over several banks or depositories. Easy access; easy promoting; easy accounting. This also increases the accountability for the funds, which is an important factor for your investors.