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Funding Your Business Using Social Media

Funding Your Business Using Social Media

By Dave Lavinsky

In the United States, there are many laws that protect investors. One of them prohibits entrepreneurs from mass-marketing investments in their businesses. For example, you can’t solicit investors on your website nor via social media sites like Facebook.

However, if you set up a crowdfunding campaign, you can (and should) market that campaign and drive traffic to it using social media.

This article will help you do just that.

A Little Knowledge Will Strengthen Your Efforts

You can’t use social media websites without understanding how the different ones work. Here are four of the biggest:

  • Twitter. This platform offers short broadcasts or tweets, and members actively seek the latest news in real-time. The network has more than 500 million users.
  • Facebook. This forum reaches 995 million active users, making it the largest social network. Members have vested interests in making connections with family members, people with similar interests, high school or college classmates, or people committed to certain social or environmental issues.
  • Pinterest. This rapidly growing network features pinboards where members can organize recipes, tips, photographs and other materials such as blogs and how-to videos.
  • LinkedIn. This network concentrates on business and professional people, and businesses need to maintain active profiles on this network to demonstrate to investors and donors that you’re legitimate.

Benefits of Building Network Connections

You should try to build a group of supporters before starting your crowdfunding campaign. Support need not always be financial because favorably disposed members could recommend your project to their friends and associates. Fans love to take part, so you should listen to what they say and adopt suggestions to foster loyalty. Basically, you’re looking for your advocates and cheerleaders. Find them and connect with them on the social networks.
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