Hone Your Fundraising Skills

From the brand new startup to the veteran entrepreneur, an injection of cash into an organization always comes in handy. The problem? Most people don’t know where to start, often leading to wasted time and disastrous fundraising failures.

The following guide will take you through the steps necessary to take your fundraising efforts to the next level. I won’t just tell you how to get there, but also the pitfalls that you need to avoid so that your hard work doesn’t end in failure.

Small Business Grants

Even if you’ve been in business for some time, there’s every possibility that you’re eligible for a small business grant. The reason many people miss out on these grants is that they’re not staring you in the face - in other words, you need to go looking for them. For example, the Australian government recently released an advanced Grant Finder database on its website, which can help speed up the process in finding something that’s suitable for your business type.

If you’re an entrepreneur, the aptly named Entrepreneur’s Programme is a potential game changer for your business. Not only is it possible to obtain a financial injection, but you also get help from industry experts in finance, law, and other sectors. Work in the exporting business? You may be eligible for the little-known EMDG scheme. And these are just two of hundreds of grants out there.

Raise Money Through an Event

Raising money through organized events can be incredibly successful. The beauty of this method is that you’re not just asking for money and giving nothing in return. You’re giving people a great evening or day out and putting your contributors in the spotlight. The following are some of the most effective fundraising events:

Charity Auctions: You can often get free goods and services in exchange for a little advertising in return. Invest a little money yourself into unique items you know will be in demand – people are often looking for an excuse to buy something!

Quiz Nights: Quizzes are relatively low-cost but always plenty of fun! Companies such as QuizzaMe offer tailored fundraising packages that are purpose-built for this type of event.

Gala Dinner: The trick in the perfect gala dinner is to actually inject a little ‘gala’ into proceedings. There’s nothing worse than a cheesy event that fails to hit the bar. Tailor the dinner to your audience and make sure you add something unique that will draw the crowds (such as a guest speaker).

Private Investors

There are quite a few places where finding an investor is not an insurmountable task. For instance, Australia is a hotbed for investors looking to put their money into up and coming businesses. There are dozens of options of which the following is just a small selection:

Slingshot: Provides seed funding, co-working space, and guidance in exchange for 5-10% equity.

Angelcube: If you operate in the web or mobile sector, Angelcube is something you should be looking at. They offer $20k and 6 months office space in exchange for 10% of your business.

Capital Angels: This venture puts high net worth Australians together with entrepreneurs. Get as much as $25k for your business.

Crowdfunding

Perhaps the trendiest fundraising concept out there is crowdfunding. It’s very easy to set up – you can have your campaign up and running in a matter of minutes. These are just some of the names in the crowdfunding space: 

Kickstarter: A popular option for startups, Kickstarter allows you to raise money for your venture as long as you have something to offer investors in return. For example, if you sell physical goods you could give a sample of your newest product.

MicroVentures: If you’re a tech startup, this option may be the perfect fit. It focuses on helping venture investors find quality tech companies to work with.

Fundable: Helps small business with physical locations find suitable investors.  

Pitfalls to Avoid

Honing your fundraising skills isn’t just about the do’s – if you want your efforts to pay off, it’s just as important to avoid some common pitfalls. 

Relying on Your Cause

There are thousands of good causes out there. No matter how unique or powerful you think your message is you’re always going to be one of the many options. Don’t rely on the validity of your cause to do the talking for you, no matter how good or unique your business proposition is.

Not Setting a Realistic Goal

Novice fundraisers often make the mistake of saying they’re just out to raise ‘as much as possible’. The problem with this attitude is that it gives the idea that you’re not really sure what you’re doing.

Telling your potential contributors that you’re looking for an exact amount lets them know that you mean business. It gives the reflection of an organization that’s done the number crunching and knows what’s necessary for success. In other words, it tells them you have a company worth investing in.

Forgetting to Cultivate Donors

The most successful fundraising efforts are about relationships. The most generous donors usually feel both passionate but also very much involved. Ensure both potential and existing donors are given plenty of materials, are given a personal touch, and are cultivated over time.

No matter whether you’re trying to launch a startup, a nonprofit or money for a one-off project, you’ve got to run things like a real business. This will give potential investors and contributors the confidence that they’re getting involved with something that will put their hard-earned money into good use.

Not Thanking Your Donors

Should your project take off and become a success, remember that it’s not all down to you. Your achievements are only possible due to the money invested by your donors so it’s only fair that you thank them! The exercise is not fully selfless – making sure you make your contributors feel special will make them more willing to help you out in the future as well.