Donations and rewards-based crowdfunding is great way to raise money for your business – whether you are just starting up or have been in business for a while.
Whilst you do need to put a fair bit of work in, it can be a brilliant way to help quickly turn your dreams into reality by getting the money you need and building a supportive community of backers at the same time.
However, it’s a different way of raising money – quite different to going to a bank and asking for a loan or raising equity funding (selling shares in your business). So, to be successful at it, you need to get into a “Crowdfunder Mindset”.
What do we mean by “Mindset”? This means your way of thinking and your opinions, a collection of beliefs and attitudes that shape how you uniquely respond to all the challenges and opportunities that life throws at all of us every day. There are lots of different types of mindsets, such as growth mindset (great for entrepreneurs!) or a fixed mindset. Have a look here for more insights on these two types of mindsets.
But what do we mean by “Crowdfunder Mindset”? At its heart, donations and rewards-based crowdfunding is about tapping into the power of a supportive community and developing a shared sense of purpose. Think of it as the entrepreneurial community of Scotland putting their arms around you and helping you when you need it most! People – family, friends, customers, suppliers and even people you don’t know – want to support you and help you and your business succeed.
That can sometimes be a bit hard to get your head around – why would people want to support me, especially if they don’t know me? There are lots of reasons for this – people like to help other people as it makes them feel good and valued – we all know how good it feels to help someone else! But mainly it comes down to them liking your product or service and most importantly that they like you – they emotionally connect with your passion and vision.
And that’s why the most important part of crowdfunding is passion and purpose, making sure your belief in what you are doing shines through with every interaction during your campaign.
Tell a great story, be totally authentic and unashamedly YOU. You are not expected to be perfect at this early stage – things won’t work, some things will be late or not happen at all. That’s all to be expected and part of the journey – crowdfunding backers know this and as long as you communicate with them regularly and honestly they will want to support you.
So, a “Crowdfunder Mindset” really means:
- Letting your passion and purpose shine through in all that you do
- Understanding this won’t always be perfect – and that’s ok!
- Believing that people want to help and see you succeed
- Being authentic and transparent – warts and all!
- Prioritising emotional connection and a shared journey with your backers
- Showing gratitude and appreciation for their support
Be yourself – step into your power, purpose and passion and you will have a great crowdfunding campaign!
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