Among the numerous ways to fund you first project, Kickstarter and other crowdfunding websites have set themselves apart in recent years.
If you are looking for financial support for your first project, then this might be the perfect place for you. If you’re feeling confused, don’t be, I am here to explain the ins and outs of crowdfunding for business.
So, what is crowdfunding and how does it work?
Crowdfunding means that people online chip in and support someone’s idea. Everyone is free to contribute the amount they want, but for certain amounts, there can be rewards in return. For example, you want to start selling t-shirts and you put it on Kickstarter, everyone can donate 5$ and get a thank you note, 10$ and get 50% off the full price of the t-shirt, 20$ and get the t-shirt, 35$ and get two of them, etc. You understand how it works. You support someone, he might give you something in return (if it’s specified on the campaign’s page). You have to set a minimal amount you need, for example 2000$, and then if you get enough money or you surpass the initial amount, your project gets funded.
If you don’t receive enough, you won’t get the money and backers won’t be able to give you the amount they wanted. It’s pretty easy, right? Yes, it is, but you need to learn a few things first in order to have a successful campaign.
Here are some of Casper Ravn-Sørensen‘s tips for creating your own Kickstarter campaign:
Understand what crowdfunding is for
You need to know if your project is eligible for this sort of financing. Crowdfunding is designed for particular ideas and projects, it does not fit the same situations as loans do. According to Kickstarter’s co-founder, “The thing about the projects is that they are finite. You are telling people if you support me with these funds, you are going to get this thing”. This means that you need to pitch original ideas, you shouldn’t use crowdfunding for covering your debt for example.
Make a thorough plan
Your idea needs to be well developed into an entire plan before you go live on Kickstarter. Why do you need this? There are two reasons:
- First of all, Kickstarter needs to approve your campaign, so you should have a well-developed project to do this well
- Secondly, you need to be able to deliver your promises once you receive the funds. If you promised some rewards, you need to be able to produce them on time. This is why it’s good to have a small team around even before you launch.
Create great content for your campaign
Campaigns that contain great visuals are more likely to be financed. Create great videos, photos, even sketches and present your future product in the best way possible. If your potential backers can see and discover your product in detail, they will be less unsure and they will possibly fund your campaign. A bonus tip? Find a niche and create a campaign that caters to a specific kind of customer that can’t find similar products on the market right now.
Promote your campaign on social media
Social media platforms are your best friend. Once your campaign goes live, you need to do endless promoting on every media outlet possible in order to build momentum. Numerous campaign got funded thanks to a strong online presence!
Deliver on your promises
You got funded? Congratulations. Now the real work begins. You must absolutely deliver the rewards and products on time. First impression is everything, this is why you need to have a serious company from the beginning.
Have a strong business plan
Don’t just ride the success wave, work hard! If you got funded, then it means you have an interesting idea. With your team, you need to have a plan, you need to work hard and you absolutely need to develop from there. Your campaign is just the start, don’t forget it!
Never forget your backers
The people who helped you and believed in you before you started should be appreciated even after the campaign ended. Communicate with all your customers, but keep your first backers on a pedestal, without them, your launch couldn’t have happened!
Starting a campaign on Kickstarter is no joke, so you should work hard, believe in yourself and your idea and promote it. With your hard work, you will surely reach success at some point, just don’t give up! And remember, after the initial success, don’t stop, keep adjusting and learning, the best is yet to come!
Want more news on the world of business? Check out http://casperravnsorensen.com/.