Financing a project Think of different ways to finance a project, business or innovation. Traditionally people would go to a bank, but there are other options as well. Read the headline of the article and guess what it is about. Then read the text and compare your findings. Complete the sentences with two to four words. The first one has been done for you. 1 The writer claims that nowadays it is difficult to launch a new project because everybody thinks it is easy to get 2 Crowdfunding platforms are often presented as an easy way to . 3 A clear product description is necessary, as people only invest in projects with a . 4 You need to do more than just fill out a form on the crowdfunding platform, so that donors can . 5 Your personal network can also be motivated to support your innovation with special incentives, like being the first ones . 18 Reading a b Launching your innovative projects What to do if you want things to change in your area or field of technology? Do you know how to become actively involved in improving society if you don’t have enough money to develop and launch your project? Crowdfunding has become a popular trend, as more and more creative people or organisations count on financing products and services this way. It seems that crowdfunding promises to solve any financial problems involved in launching new technology. But crowdfunding is more than just filling out a profile on a fundraising platform – you need to carefully think about the process and know how to strategically communicate digitally. We at InnovatorSupport spoke to experts in the field who have had to decide whether or not to launch a crowdfunding campaign themselves. So, here are five questions that you need to ask yourself before starting a crowdfunding campaign. 1. Is your project clearly defined? Successful crowdfunding campaigns clearly state what they want to achieve. Donors want to see their investment go into a project with a benefit and a story they can relate to. Crowdfunding shouldn’t simply make it easier for you to reach your fundraising target; it is a system that helps to make a specific project real. 2. Does it have mass-market appeal? If your innovation also has a mass-market appeal aspect – i.e. it aims to solve an issue that many people worry about – you will find more supporters. Investing time and energy into your campaign only to find out that it does not reach your target audience is useless; so do some market research first. 3. Do you have the ongoing resources? The “if you build it, they will come” approach doesn’t work with crowdfunding. You would like people to spend money on your idea, so blog about your work and its impact and create interesting stories around it on social media. If you only fill out a page on a crowdfunding platform and wait for the donations to come to you, you might as well watch your innovation die. You need to have a proactive and strategic approach, allowing donors to interact with you throughout the process. 4. Have you considered the ‘after’? Thinking about post-campaign activity is also important – make sure you plan how to cultivate donor relationships after the campaign ends. Involve your donors and keep posting about your successful project. Many crowdfunding experts have watched projects struggle because they stopped communicating once they had received the money for the start-up. 5. Do you have a network of donors you can count on? It is worrying to see that many people believe that crowdfunding is a way to raise funds from a new audience. Most of the time this isn’t the case and you need to make sure you get in touch with your existing supporter base before you go live with a campaign. So, do a soft launch before going public; reach out to friends, family and colleagues and offer them the chance to be the first ones to try your new invention! c money to finance it. 100 Language skills Extras Explore 8 Money Nur zu Prüfzwecken – Eigent m des Verlags öbv
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