As soon as you become a venture capitalist you are signing up for a learning curve that will either make you or break you. Starting a new business is like going back to chemistry class except you are not learning the element table this time. You are forging all elements into a successful company that will not only benefit you, but hopefully change the world. This whole process requires one tool, money, and several tips of how to generate this tool and use it we will cover below.
When you have a dream and want to make it a reality you have to start from the ground up to leverage every resource around you in order to make that dream a possibility. Of course if you are reading this you are most likely already on successful Crowdfunding platforms like Kickstarter or Indiegogo, but did you know just Kickstarter alone has over one billion dollars at its command? The trick now is to get those dollars flowing into your ambitions. Let’s take a closer look at how to do this properly.
Build a cult of personality
Think about this for a minute. You are basically taking a dream or an idea of yours and submitting it for others to invest their hard earned money into it expecting a decent outcome. Stop thinking about your business model and start thinking about who you are. People are investing in you and you are a product to sell.
So be a product that people feel comfortable investing their money in. That means being congenial and building relationships with your potential investors. If you are only an electronic sentiment then they will only get a robotic personality from you. Break those barriers online and make sure you are a household name.
Growing too big too fast
Every startup would like to grow overnight and see monumental success. Unfortunately this is not only a fairy tale it’s an unhealthy way to start a new business model. You have to have a certain amount of liquidity in your coffers in order to manage a successful startup. When you think about it you have investors to pay back and hefty research and development cost in the beginning.
So slow down and make healthy gains in business. Focus on making your startup business solid where it can handle any problems that may emerge. If you do this you will be able to outlast other startups and make it past the developmental stage of starting a business.
Building a rapport with investors
Now that you have successfully designed your new Kickstarter or Indiegogo page and have your whole business model laid out and read previously about what to avoid and what you need to do with your new startup it’s time to build rapport and be that cult of personality as before. Let’s get started!
Comments are the key to success
One of the most critical aspects to maintaining rapport with current and future investors on platforms like Kickstarter and Indiegogo is by talking to people who leave comments on your startup page project. If you do not keep up with comments then people will assume you are not serious and move on to their next potential investment.
Matter of fact every platform has its own algorithm and ranks your project according to the level of activity your project receives. That being said you are either going to let your project rust away or have it be featured on the front page leading to a larger entourage of potential investors. You have to make sure you keep your project active.
Keep an open mind and be flexible
When commenting it is important to keep an open mind and be the guy who is listening more than speaking. From your fan base you are going to learn what they would like to see from your project, and if you are too busy thinking you know all of the answers then you are most likely not going to succeed.
Most people in the comments section of Kickstarter and Indiegogo will have some sort of an opinion and will ask you about your business model. It is your job as a leader to present how you feel about their opinion in a respectful and considerate manner. Remember these people are investing their money so give them the time they deserve.
The art of being a social butterfly
A social butterfly is a person who is not overly opinionated and can manage to get along with a variety of people. This should be your goal. You need to build community trust and relationships on every major Crowdfunding platform. People will get comfortable with you and want to do business with you.
Remember that reputation is everything, and the only way you are going to build it is by presenting yourself to the community and letting your personality shine. Constantly be active on the comments section answering every person’s question, concern or even appreciation towards your goal.
Yes, it can be difficult to show emotion across a computer, however you can utilize emoticons and the way you type to convey how you feel. Always show stellar uplifting character that reinforces how people feel about you as a person in the comments section. This is your portal to talking to new faces and an online version of breaking bread.
After your Kickstarter or Indiegogo launch is successful there are a few more business tips we are going to leave here for you today that will increase your chances that your startup will succeed beyond your wildest expectations.
Diversity is key
Many startup venture capitalist will make their first major mistake by not diversifying their client base. Having one large client seems great at first and it’s a nice way to show investors a positive outcome to your Kickstarter or Indiegogo project. Problem is one large client will take up to much of your resources and time.
If for any reason this one client decides to drift away you are looking at a total cash flow shutdown. Instead start small and diversify your resources into several clients. This creates a healthy business model that is strong. That way if one client cancels it’s not the end of the world for you or your pledgers on your Crowdfunding wagon.
Sink the put
Any Golfer would tell you that while they are golfing it is important to only concentrate on the big picture and sinking the put. Sure they may experience distractions like the wind or some noisy fan, however they have to stay focused on the big goal.
You need to do this much as the same way as a Golfer. You will find plenty of distractions when it comes to startups, however the most important thing is to build your fan base and pay great attention and detail to your comment section. Do not let the small distraction in business pull you away from this. Make it to the front page and beat the algorithms of Kickstarter and Indiegogo.
Keeping all of these tips and methods in your mind will enable you to forge your dream into a successful startup and make your investors confident in your ability. Remember that you as a person are a product and you need to be a great product by building a fan base and selling yourself.