15 Tips to Get Online Crowdfunding Business in Nigeria

Get Online Crowdfunding Business: Got a lucrative business idea but need some funding to kick-start it?

Then crowdfunding might be your next available option.

Crowdfunding is becoming an increasingly popular way for entrepreneurs to fund their business ideas.

Not all ideas require a grant, bank loan or VC funds to get started.

Crowdfunding essentially relies on the idea of democratizing the flow of money into a project or business.

Today, millions of projects in the United States of America have seen the light of the day thanks to strong backing from the community in exchange for simple yet fun and exclusive rewards.

Whether you’re funding the next hottest startup, a creative endeavor.

Or a caused-based organization, you’ll find a crowdfunding site below that might just be perfect.

See also: Top 13 Entrepreneurial Resources for Young Entrepreneurs in Nigeria

Get Online Crowdfunding Business

1. Pick a website to use.

There are now a number of websites devoted to online fundraising.

You will want to choose one which is reputable and associated with the kind of project you’d like to do.

For example, Kickstarter and Indiegogo are the two most popular platforms for arts projects and creating physical products for sale.

Where GoFundMe, Fundly, and Crowdrise are for charities and individuals raising money.

  • You can even start a fundraiser on Facebook if you are social media savvy.

Read on: 38 Tips to Start Office Garment Supply Business in Nigeria

Get Online Crowdfunding Business

2. Have a solid plan and share that with your backers.

You will need to have a solid plan for the money you get.

Carefully laying out exactly how you’ll use it and when you’ll meet deadlines.

Share these plans with your backers so that they know you’ve planned ahead.

3. Have great rewards.

In order to encourage people to donate.

It is important to have great rewards or incentives, if the platform you are using allows this.

Make sure these rewards are something you can provide and that they will not set you back financially.

Get as many donated rewards as you can.

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4. Update often.

You will want to frequently let people know what’s going on as your donation period progresses.

This will keep people interested and engaged.

As well as encourage them to share the project with their friends.

Get Online Crowdfunding Business

5. Interact with people.

Interact with donors as well as potential donors.

This will draw more people into your project.

As well as keeping current donors engaged and interested in what you are doing.

Message back everyone who sends you questions or feedback.

Post videos talking about your plans.

And go out on to forums which relate to your project to find more interested parties.

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6. Advertise.

See if local papers or new programs are interested in reporting on your project.

Find online blogs that may be interested in what you are doing.

Post on forums and take advantage of social media.

To make sure as many people as possible know about what you are doing and why they’d love to help you out.

Get Online Crowdfunding Business

7. Be thankful.

Be extremely gracious with everyone who donates.

Let people know how much you appreciate their money.

This will make them want to support you more in the future.

Or maybe even donate more money than they did at first.

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8. Search for grants.

Grants are, essentially, free money.

You don’t have to pay them back like you do a loan.

However, they are often competitive and difficult to get.

So be ready to put some work into it.

Search for grants which apply to you.

Where the money is intended to fund people like you or the sorts of things you want to do.

  • You can find grants through a number of websites.
  • Through your local library, or using university or college resources.
  • Just be sure that whatever you’re applying for is from a reputable organization.
  • You should never have to pay money in order to get a grant.

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9. Apply for grants.

Filling out the applications can be time consuming and complex, so prepare for that.

There is often a large associated writing element.

Generally in the form of an essay or letter describing what you are doing and why (and how!).

It may be helpful to hire or find a grant writer or at least someone who writes well.

As this will increase your chances of getting the grant.

Get Online Crowdfunding Business

10. Follow through.

Grants will often have a long list of requirements that they want met.

Rise to meet those requirements and be sure to use the money for what you said you would.

You can find yourself in a lot of trouble if you don’t.

See also: 27 Tips to Start Business Selling Women’s Ethnic Wears in Nigeria

11. Investigate loans.

If you are raising money to start a business.

Or other activity which will have returns, consider getting a loan.

There are many different types of loans, all with different benefits and downsides.

Investigate these to see which type is best for you.

See also: Top 16 Training Manuals for Interns Workers in Nigeria

Get Online Crowdfunding Business

12. Apply for a loan.

Apply for the loan. You will probably need to go in to whichever bank is offering you the loan.

Be sure to choose a reputable bank, preferably that you have a history or account with.

And talk to them about your options and what is expected of you.

The paperwork will probably be long and complex, so pay attention to what you are signing up for.

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13. Pay it back.

If you get a loan, it will be very important to pay it back.

Don’t get lazy and take the money for granted or you will find yourself with a bad credit score or even in trouble with the law.

Plan ahead so you know exactly how much money needs to be set aside and when it needs to be paid by.

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14. Get Online Crowdfunding Business

  • Understand your cause very well and be good at explaining why you need the money.

    People will be more willing to give money to someone who seems like they know what they’re doing.

  • Have a plan not to use too much money so you can save up for what you really want.

  • Try not to get mad at people who don’t accept your grants. It’s not worth it.

  • If you play an instrument, you can go into town and play.

  • Instead of a yard sale, try having an indirect sale for the wintertime!

  • You could also set up a stall somewhere and sell things that you don’t want anymore and that would help you raise a lot of money too! Good luck!!

15. Kickstarter.

Kickstarter is a funding platform for creative projects. It is a great platform for artists, filmmakers, musicians, designers, writers, illustrators, explorers, curators, promoters, performers, and others to bring their projects and ambitions to life. Project creators inspire people to open their wallets by offering products, benefits, and fun experiences.

On Kickstarter, funding is all or nothing, so you must meet the goal you set within the allotted time or everyone gets their money back. It’s free to create a project on Kickstarter, but if it’s successfully funded, Kickstarter applies a 5% fee to collected funds. There will also be processing fees between 3-5%.

Conclusion

  • Watch out for quick fixes such as fast credit repair clinics and high-interest, short-term loans.

    Remember, your goal is to raise money, not sell your soul.

  • Don’t overestimate the amount of people coming to your event. You may turn out to be spending more money than receiving.

  • Don’t forget to focus on the positive–first; your attitude can make all the difference.


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