Strategic Communications for Crowdfunding Campaigns(Contribution from freelance writer Jenny Holt)
The following post comes to us from Jenny Holt, who left her HR career behind to pursue freelance writing and to spend more time with her young daughters at home. This article is based upon her own entrepreneurial journey and communication expertise.
Few things are more disappointing in the life of an entrepreneur, than having a brilliant idea that never makes it off the ground. Research shows that 82% of businesses can fail to bring in enough funding to sustain themselves, forcing them to close down because they simply didn’t have the investment they needed for take-off. Crowdfunding, via websites like Kickstarter and GoFundMe, have made it far easier to raise money for a startup, yet with the plethora of startups and new businesses competing for the attention of investors, strategic communication strategies are key.
Does a Jack of All Trades Truly Exist?
You may have a brilliant tech idea or invention, yet struggle to find the right way to share your passion for your product or service with others. Telling your story is one of the most important considerations when starting a business or commencing a crowdfunding campaign. You need to let potential investors know the market need you are fulfilling, why you believe your idea is unique or better than what rival businesses are offering, and why you need a specific amount of funds. You will need professional looking imagery, a catchy video, scripts that succinctly cover all the important points and set you apart as a forward-thinking brand. For all these reasons, you should consider investing in a strategic communication specialist.
One of the biggest mistakes companies make is cutting back on marketing costs when their budget is low. It is precisely at this point in time (when you have yet to build brand awareness and a client base) that you need to get word out to your target audience – slick, professional communication is vital if you want to stand out from the rest of crowdfunding campaigns, many of which will also offer interesting ideas and offer to fill existing gaps in the market.
Learning Skills vs Outsourcing
Strategic communications will help you once your crowdfunding business attracts investors and you take your first steps towards bringing your idea to life. To make it in business, notes Forbes, you need these top seven marketing skills: SEO, HTML, WordPress, video, design, and SQL. If you are a sole proprietor or part of a very small team, how many of these can you realistically master? Outsourcing time-consuming jobs such as SEO, content writing or design, will give you time to leave a personal mark on your website, for instance, by contributing regularly to your blog. A large percentage of crowdfunded campaigns flop because teams lack specialized skills. When calculating the investment amount you need, make sure to include a budget for marketing, design, and other specialized areas you don’t master yourself.
Because the success of a crowdfunding campaign depends on its ability to attract interest and inspire potential investors, strategic communications – with the right content, visuals and style – needs to be a priority. Startup and small business founders should avoid taking on more key roles than they are prepared for, opting to rely on professional communications providers so they can concentrate on their area of expertise: ideas.
Do you agree that strategic communications is critical to the success of a crowdfunding campaign? Do you have a personal experience to share that demonstrates this? Join in the conversation by leaving a comment!