How Do I Crowdfund?

Do you have an invention? Maybe you and your friends have been dreaming up a product. Could you make it a reality with support from a community of people eager to invest in great ideas? Have you considered crowdfunding?

Take a look at these top crowdfunding websites: gofundme.com, kickster.com and indiegogo.com. A simple web search reveals numerous other crowdfunding platforms, some tailored to niche products or finance requirements. Whatever you are planning to fund, there is a platform for you.

Choose a site that is a good fit for your needs, your product and your target audience. The site should offer a clean interface, clear guidance, tools and user support. Review the costs. Most sites charge a percentage for funded campaigns. If they are not charging you, they might be charging your supporters. Whichever site you choose, make sure it is trustworthy and respected.

Set up an account once you’ve chosen a platform. Even if you’re not ready to launch, start a campaign so you can browse the options. Read success stories, research campaign failures (there are some monumental cautionary fails) and explore campaigns in progress. Each platform will require you to showcase your product idea to prospective supporters, set your funding goals, and offer rewards in return for levels of support. Work through these carefully.

You will be asking a group of people for support, each with an individual connection to you and your product, each with a voice and a sphere of influence. Your supporters will feel a stronger attachment than the average consumer. Be authentic and present your product through sketches, pictures, even prototypes — the more alive, the better. Don’t project a false image or narrative of your product or your business as it will hamper your efforts or come back to haunt you.

When it comes of funding, don’t short-change your venture. Many businesses fail for lack of funding. You will have unforeseen expenses. Account for them as a miscellaneous line item. Most likely, you’ll want to remain in business after a successful campaign. Consider your overall business expenses following your campaign, including, but not limited to, wages, additional product and marketing.

Next to funding, it is important to deliver as promised, both quality and timeliness. Give yourself plenty of time to produce a good your product. Consider your level of experience, logistics, and the complexity of your product as factors impacting your timeline. Forecast late and work to deliver early.

Be prepared, conducting a campaign is a full time job during which you may experience dramatic emotional responses. Stay in touch with your supporters through it all. Highlight the achievement of goals and milestones. Be honest about struggles and set-backs. This transparency will encourage a gathering of individuals and stay the fickleness of the crowd. You’ll find a gathering of supporters can be a wonderful asset, offering expertise and assistance beyond financing. Make use of the benefits.

I’d love to hear about your crowdfunding experiences. Let me know your perspectives on successes and failures. I’ll highlight some local campaigns in an upcoming article.

#homeessentials