For crowdfunding success, first gather your crowd

By December 7, 2015September 10th, 2018Funding


Crowdfunding is increasingly popular as a way of gaining the necessary capital to launch a creative project. But there’s many a slip twixt cup and lip. Here’s a useful list of some of the questions to consider before you jump into crowdfunding.

I’ve got a couple more questions to consider:

  • How likely is it that you’re going to reach your target? Crowdfunding platforms charge different amounts depending on whether your campaign results in you hitting the mark or not. It’s a calculated risk you need to be comfortable with, so it pays to do your homework.
  • How far will your own marketing efforts reach? Because you’ll be mainly seeking donations from friends, family and various hangers on of your social media accounts. Here’s a quick exercise: estimate the total number of people in your extended network. Then assume that 10% of people donate an average of $20. Is that enough to reach your goal? What do those numbers have to change to in order to get the dough you’ll need?
  • What’s your plan B? In fact, why is crowdfunding your plan A? What other ways might there be to raise the funds that you need? What are you going to do if the campaign fails? Is that the end of the line for your project or might you be able to pursue it in some other way.

I think the important word in the phrase ‘crowdfunding campaign’ is ‘campaign’. The success of your crowdfunding will rest on how well you can market yourself and your project.

You need to be great at making a lot of noise about your project and convincing people to back you, in a short space of time. If you don’t have those skills, think about who else in your network does and how you can engage their help.

Got your own crowdfunding success/failure stories? I’d love to hear them. Hit me up on Twitter @sharped and tell me all about it.

If you’ve got issues in your business you don’t seem to be able to get on top of, why not get in touch? Not only do we provide a full suite of bookkeeping and tax services here at Generate, but we’re also able to help with business coaching, strategy workshops, business plans and much more. You name the problem and I’m sure we can help.