With the vast growth of the Internet, there are numerous opportunities to conduct business that never existed before. One of these includes the ability to obtain the funds that are needed for a start-up company. Unlike in the past – where new business owners would be required to personally visit a bank or other lender (and essentially make their case for a new loan), websites like Kickstarter now provide the opportunity to reach out to “everyday” people to acquire the funding you need for your company.
In doing so, however, it is important to consider all angles of these opportunities, as well as the amount of time and effort it could take to run a successful campaign. Likewise, you should also consider what your next step will be once you acquire such funds – or alternatively, if you are unable to meet your funding goal.
First, you should be cognizant of the fact that Kickstarter (or any crowdfunding platform) will receive a percentage of the funds that are raised, in return for allowing you to use their site for your funding needs.
Also, Kickstarter (as well a any other crowdfunding platform) campaigns don’t simply sell themselves. In other words, there will still be a fair amount of work for you to do in terms of marketing your funding needs and getting the word out to your target market. This means that you should still post regular content online, as well as participate in various other marketing activities, as if you were advertising your business – because essentially, you are.
Also keep in mind that there can be certain contractual obligations that you must fulfill once a successful campaign has ended. For instance, typically, business owners will offer incentives to those who help with their funding, such as sending them a tangible item and / or giving the funders credit by way of putting their names on their website, or some other type of thank you technique.
If you’ve considered all of the angles, though, and you have decided that crowdfunding your company’s financial needs by way of source like Kickstarter is the right way to go, it can be extremely beneficial – and it could allow you to move forward much more quickly than going the route of the traditional lender.