Have your crowdfunding documents prepared
When crowdfunding there are three vital documents that you will need prepared, in order to present them to investors so that they have a better insight into your business when considering to invest into your crowdfunding campaign and to ensure that they will be getting a return on their investment. The documents that you will require are the following:
- Crowdfunding Pitch Deck
- Crowdfunding Financial Forecast
- Crowdfunding Business Plan
Have your crowdfunding documents prepared – crowdfunding pitch deck
An investment pitch deck is a brief presentation which is used to provide an overview of your business and the product that you are going to be crowdfunding for. Pitch decks are often created using presentation software such as Powerpoint. In crowdfunding, pitch decks are used to draw in investors, so that you can run a successful campaign. When creating your crowdfunding documents and pitch deck, you must ensure that it is clear and concise and that potential investors reading on it can act upon the information that you have provided.
There are a number of slides that you want to include within your pitch deck in order to appeal to your investors:
- Introduction – Who you are?
- Team – Who is a part of your team? What makes them unique to your business or what they special quality they bring to the table. List a few achievements for each member of your team.
- Problem – What is the problem you are looking to solve? How are you filling the gap within your market?
- Solution – How are you going to solve the problem? What does your product bring to the gap in the market
- Product – What does your product do? Is it ready for sale in the market? What makes your product better than anyone else’s in the current market? Share some examples of your product within the pitch deck.
- Traction – Show off month over month growth of your business, to show investors that there is potential within your idea.
- Market – What market are you going to be operating in? This slide provides potential investors with information on how much return they might receive. You could also look at the size of the market and see if there is a demand for your product.
- Competition – You should show how your current competitors have been operating in the market, and how you compare to them. You want to show how you differ from your competitors and what makes you unique.
- Investing – What is your planned budget? What kind of money are you looking for? What do you plan to do with the money that you raise? When talking about how much money you are raising, do not go with a specific amount, go with ranges such as £125,000 – £250,000. This is so that you can be as attractive to as many investors as possible.
- Contact Information – Include contact information within your pitch deck so that investors will be able to reach you if they have any more questions. Add social media to the contact information so that potential backer
Have your crowdfunding documents prepared – crowdfunding financial forecast
Your financial forecast enables you to help your investors understand the future of the business you are crowdfunding for, and help them make judgements about the overall potential of your business. Although creating a financial forecast may seem difficult, especially for start-ups, it is very important as it helps you earn the confidence of your investors, and give them that final push to invest in you.
Your financial forecast should include the following:
- Start-up Costs
- Sales
- Expenses
- Costs of goods sold
- Cashflow
Have your crowdfunding documents prepared – crowdfunding business plan
Another crucial crowdfunding documents that you will need is a crowdfunding business plan. The reason that you will need a business plan is for when you pitch to the crowdfunding platform that you are looking to run your campaign on, and for the investors on the platform. It helps the platforms identify how ready your business is for investment. When writing your plan you should remember to have evidence to back up your points, so that investors know that your information is reliable.
Your business plan should have an executive summary, which is a summary of the key content and the message you are looking to send out. You should use plain English so that casual investors can understand the points you are sending across.
The next part you should include is information about your product. You should include what your business is aiming to do and the product you are looking to release. In a business plan, you should assume that the reader has no prior knowledge of the market you are going to be working in, your business, the product or service you are providing. List out any unique selling points that your product may have. Not all investors will understand what your product does, so the best way to make sure your crowdfunding documents get across your points and provide examples of your product.
In the business plan, you should list out the information about the market you are going to be operating in. As an investor may not know about the segment within the market or the size, you will need to outline this within this section of the business plan. You should be clear on your target customers, and how you are going to reach them so that you can create an interest in your product. Within the plan, you should also include a SWOT analysis and also what they key aim and objectives of your business are.
Do you need advice on how to create your crowdfunding campaign?
We can help. Drop The Crowdfunding Studio are proud partners of Crowdcube and Indiegogo. We assist ambitious businesses in communicating their ideas, products and services with outstanding crowdfunding video production, campaign design and crowdfunding marketing.
To learn more about us and our services, visit our website: drop.studio
Or book a free phone workshop today and ask us anything, like how to create a successful crowdfunding campaign or how to accelerate your business from zero to fully funded.