Crowdfunding has become a preferred fundraising alternative for many entrepreneurs around the world. The fascinating amount of quality projects that enter the crowdfunding scene through platforms like Arikovani raises the bar very high, making the competition extremely tough.
The entrepreneurs, who submit their projects, have to prepare well for the crowdfunding journey.
Along with answering the questions on why you want to run a crowdfunding campaign, what you want to achieve, and how you are going to achieve it, it is important to focus on the following three questions as well, the answers of which will give you clarity and a better direction.
The research: Are there other similar campaigns out there?
Most entrepreneurs tend to believe that their inventions are unique. The uniqueness of the project doesn’t mean that there aren’t other similar campaigns that have been run. It is important to conduct research and discover similar projects that have launched crowdfunding campaigns.
Find similar campaigns and study their project pages – were they successful? What best practices they have used? What were their weakest aspects? How can you do better? By conducting research, you are able to gain valuable information on what works and what doesn’t for similar projects and create your campaign in a better way.
The communication: Is my goal clearly explained to the audience?
Without having a clear strategy and action plan, it will be very difficult to achieve your goal. But you need to also feel comfortable to share it. The supporters will want to know how you are going to spend the money you raise.
When it comes to raising money through the collective power of the crowds, having a specific strategy and clear goal isn’t enough – you need to communicate this goal with your audience and give your potential supporters a well-outlined step-by-step plan of how you are going to proceed.
This will increase your chances of success as you will get the trust of the backers from the very beginning.
The reality check: Are my expectations reasonable?
Determining your funding goal is one of the most important parts of your campaign. It can make it or break it.
Some entrepreneurs set low goals just to be sure that they can reach it – but is the money enough to take you to the next stage? By setting a too low target, you may end up with not enough money to actually fulfill the pre-orders you’ve received.
Setting the target too high, however, may also lead to unpleasant results. People prefer to back projects that have real chances of delivering what they promise. This is why not many backers support projects that are far from reaching their goal.
Set a reasonable funding target for your project – aim to raise enough money to help you achieve your goal and to deliver what you’ve promised.
Once you answer to yourself these three important questions, you will have a much clearer view of your campaign, which accelerates your chances of success!