Crowdfunding is an extraordinary phenomenon that is shaping the fundraising scene in a way that gives more opportunities to entrepreneurs and inventors to bring their ideas to life. But the fact that mostly success stories are extensively covered by the media and the major publications makes it hard for inexperienced entrepreneurs to face the reality of crowdfunding. They tend to believe that crowdfuning doesn’t require much effort, which can lead to dreadful results.
Keeping this thought in mind, many of the project owners fail to prepare and overlook important details that can be crucial to their campaigns. There is no need to ignore the elephant in the room, which is why here we will focus on the pre-launch stage by highlighting 10 of the most important questions entrepreneurs must answer themselves before they click the button and publish their campaign on Arikovani.
- Is crowdfunding right for your project? Raising money is never easy. The entrepreneurs must evaluate the pros and cons of every funding option and make the decision based on the essence of their product. Crowdfunding is not for everyone, but knowing the perks will help you determine if you should go for it.
- What do you really want to achieve? Crowdfunding brings to the table much more than cash. It gives the opportunity to receive feedback, which is why Arikovani campaigns begin with the social thinking process, where the entrepreneurs wait for the ideas and suggestions of the crowd. Crowdfunding helps you determine the potential of the idea, to receive publicity, to establish the foundations of your brand and so on. Once you know what your main priority is, craft your campaign according to that. Setting clear and realistic goals will help you achieve better results and ultimate success.
- Are you ready to spend over 30 hours a week on your campaign? The development of high quality campaign requires a lot of effort. It should be done professionally – from the content through the visuals to the reply to all questions and comments.
- Are you able to make some noise during the pre-launch stage? Studies show that campaigns, which secure around 30% of their goal during the first days after their launch, have better chance to hit the final target. In order to achieve that, the campaigners need to get out there and ask for support before the campaign goes viral. Are you ready to approach your friends, family and colleagues and ask them to support you?
- Are your rewards attractive enough to your potential backers? This is a major one! Your backers aren’t going to just shovel their money in your face just because you have made a cool video. They need to get something in return, something that is cool, that they really need to get their hands on. If you need some help with determining your perks, check out these 4 features of effective crowdfunding rewards.
- Can you deliver what you promise? One common mistake that ruins successful campaigns is the struggle of the entrepreneurs to meet the expectations of the crowd and to deliver in time what they have promised. This issue occurs if they fail to find reliable manufacturer, fail to understand the product’s manufacturing and delivery costs. Do you know a reliable manufacturer? How much it will cost you to deliver your product?
- What will be your funding goal? Many crowdfunders confuse this question with how much money they actually need. Setting a crowdfunding goal that is too high may backfire. By aiming one idea lower you have the opportunity to achieve better results. The chances of overfunding are bigger when the goal is reasonable, but if you set the bar too high it is likely to miss the mark and your campaign to fail.
- Do you have clear marketing strategy and strong execution plan? Crowdfunding is all about marketing and action. Publishing your campaign on the platform and waiting the miracle to happen is not how it works. It is all about marketing. So, take the chance and craft exceptional strategy and don’t underestimate any level – focus on social media, content marketing, even email marketing counts here. Plan well, but don’t forget – ideas don’t work unless you do!
- Are you confident in your team? Crowdfunding campaigns require a lot of time and different expertise. By having on board people, who complement each other’s skills will help you manage the process smoothly. Don’t treat crowdfunding as a one-man-show, because clearly it is not. To help you determine if you are doing good in this matter, check out the five key team players every crowdfunding campaign needs.
- How do you stand out from the crowd? Just because somebody else has launched and run a similar to yours campaign doesn’t mean that you should give up. Take the time to study similar campaigns and figure out what they did right, what they did wrong and what was the outcome of their endeavor. This will help you to create unique approach and will give you the opportunity to stand out from the crowd.
Take your time to answer these questions honestly and realistically. Ask your team members to do the same and then evaluate all answers. It will help you to determine your campaign’s weak spots and will give you the opportunity to start strong. Happy crowdfunding with Arikovani!