6 Useful Tips for a Successful Crowd-Financing Campaign
Peer-to-Peer (P2P) Lending, despite being relatively new in the financial landscape, is increasingly becoming a viable source of alternative and unconventional financing for local small businesses in the Lion City.
‘Crowd financing’, ‘crowd lending’, ‘debt crowdfunding’ are all-synonymous terms to P2P Lending, which is a subset of crowdfunding that was first originated in the UK and the US.
MoolahSense is a crowd-financing platform that connects businesses, mainly growth SMEs, who are seeking short-term loan financing to prospective investors. The system works by allowing a large number of people to invest directly in local businesses for a fixed return. It is an online platform that aims to empower individuals to stimulate economic growth by providing finance directly to growth businesses, in exchange for “an attractive rate of interest”.
But having all these information in mind, as an entrepreneur, how can you effectively pitch your business in P2P lending? Here are 6 useful tips for a successful crowd-financing campaign:
Tell a compelling story
Every business has its unique and similar stories. How can you make you own story more convincing and believable? How can you make your prospective investors to understand or relate to your business?
Communicate a clear and direct purpose. Remember to keep your story short and simple.
Tap on your social network
You definitely have your “inner circles” (just like Google+). In reality, your friends, family, colleagues and countless people whom you find connected to you.
Make the most out of your existing networks and connections. Some of them may even support your new endeavours. With the power of word-of-mouth, the rest of the magic will work on its own.
Outreach through social media
The world of today is highly influenced by social networks. Almost gone are those days that we can only interact with someone in person, by mail or through phone.
SMEs today have endless potentials of communication and outreach over the Net. Facebook, LinkedIn and YouTube are only few of the multiple platforms which you can fully utilise and take advantage of.
Host an info session
Investors of today are wiser. They choose to conduct their own research before finally making sound investment decisions; some even with the help of their financial advisors.
Another way to better communicate your stand and your purpose to the crowd is by hosting an event – an information session that’s educational in content. Your prospective investors would have a better grasp of your campaign with the advantage of instantly answering their questions.
Communicate your campaign updates
Just like other crowd funding campaigns, be it equity-, donation-, or reward-based, peer-to-peer lending values transparency.
Make your campaign speak for itself by communicating updated information to your prospective investors or even the existing ones especially when the campaign is on going. The aim is to build trust by being open and transparent.
Define the perks
Incentivise your followers. Make them feel that you value their time and support. Gift vouchers, discounts, rebates and other promotional items can be useful in your own ways.
Even a simple thank you matters.
With your ultimate business goals, you can make your enterprise grow through crowd financing today. At MoolahSense, the first P2P lending platform in South East Asia, we can help you realise your full potential.
In the short video clip below, Co-Founder & CEO of MoolahSense, Lawrence Yong, shares his expertise on Crowd Financing and presented how we can help growth SMEs and individual investors in this new type of asset class. Watch this video to gain more insights on the 6 Useful Tips mentioned above.
Upon successful sign up, the team over at MoolahSense will help you design and plan your first crowd-financing campaign. For enquiries and free consultation, click here. You can also email firstname.lastname@example.org or call 6871 8780.