How to become a fundraising success

Hence crowdfunding stage has historically become the most difficult part of any startup’s life, Tozex team has collected a mouthful of tips for your fundraising campaign to succeed.

Study the experience of competitors

Pay attention to both successes and flops in order surpass those first and not to join the second. Why collecting your own business bruises from the start?

Define your target audience

To do this, become one yourself. Enter forums, ask questions and encourage conversations about the problem you’re going to solve with your business. Those most active ones are your TA! Make polls and researches, and when your time comes, you will be totally aware of what to offer your potential clients. You’ll benefit greatly, as you receive the ready-made loyal community.

Choose people carefully

We mean the team. You can start with those whom you trust, and motivate them to struggle for the success of your common deal. Six handshakes rule will do the rest: your friends will encourage and motivate their friends, your friends’ friends will do the same to their friends. You got the idea.

Estimate costs

Platforms such as Kickstarter, Gofundme and Indiegogo require a 5% fee. Plus you will be charged about 3% for payment processor fees. Plus consider your calculation about 5–8% dropped backers (for Kickstarter), meaning backers whose credit cards are denied when the campaign ends. Before promising something to backers, calculate how much it costs to ship that somewhere. Plus remember our beloved… taxes. Your money is considered a taxable income for the calendar year in which your project is funded, so contact a tax adviser.

Crowdfunding canvas

It’s high time to create a visual metrics of all the key elements needed for your success:

• What are the key problems your customers face?
• How will you solve them?
• What is your unique value proposition?
• Who else delivers similar products?
• What channels will you use to deliver products to customers?
• What benefits will the backers have?
• What is the cost structure?

Use the tips wisely and visit https://tozex.io/ to explore the new possibilities of financing for your company!

ITOs, for example, offer a greater freedom of actions and more possibilities to gain expertise than traditional venture capitals!