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Crowdfunding – It Means More than Money

 

crowdfunding-v5b-2016When entrepreneurs turn to crowdfunding to help them jumpstart their next venture, it’s usually because the need the capital to get their product, service or business off the ground. But by asking for people to support the development of your business, you’re also inadvertently asking them for feedback on your product or project. It’s a bit like market testing before actually hitting the market.

Back in 2016, Smith & Bradley, Ltd., used Kickstarter campaigns to decide which of their seven watch designs to take to market. Two of the campaigns didn’t make the cut. Now Smith & Bradley uses crowdfunding to validate the market for many of their products before going into product, Forbes reported in December of 2016.

Although it’s not a business, you can also look at the success of the crowdfunding efforts to create a Veronica Mars movie. While many in the industry thought Veronica Mars had more of a cult following, the crowdfunding campaign almost tripled its $2 million fundraising goal with a final total of $5.7 million from more than 90,000 backers, according to the campaign page.

Of course not every project is a Veronica Mars movie or watch from a reputable company. According to Kickstarter’s Stats on August 7, 2017, for the 129,375 projects that were successfully funded, another 231,714 were not successfully funded. The report also shows that most successfully funded projects raise less than $10,000 and that many campaigns struggle to get the promotional support they need to find success.

So what does this mean for your business venture? If you’re on the fence about what you’re doing and you want to try to a new way of market testing, crowdfunding might be a unique solution. It won’t be right for every product, service or business, but it’s a trend that’s getting stronger every year and, last year, was projected to surpass Venture Capital investing for the first time, so it’s definitely something to consider if you can support the promotional element of building a campaign.

If you’re thinking about taking the crowdfunding route, this guide might help: http://crowdfundinghacks.com/is-your-idea-right-for-crowdfunding/.

Filed under: Business Coaching Tagged: blog, business, communication, crowdfunding, education, entrepreneurship, finance, innovation, inspiration, marketing, new product, promotion, research, reviews, startup, technology, training
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I’m Aundre Pace, owner of The Growth Coach of Plainfield and Naperville, and I’m here to help you find success in business and balance in life. As a Growth Coach, I work with business owners, company leaders, management teams, sales people and self-employed professionals through quarterly workshops, one-on-one coaching, special project coaching and more.

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I started working with Aundre on August of 2015. The main reason I wanted to work with him was to have assistance in growing the income from my direct marketing jewelry business. I specifically told him I was looking for an accountability partner to whom I had no emotional attachment. Having worked with him for four months, I am very pleased with the results. Though I have not achieved all of my desired goals as of yet, I have been able to identify many of the obstacles to that and have eliminated some of them. He has helped me to see more clearly that some of my original goals were not realistic and has helped me reformulate them. In addition, by helping me set goals that I was able to achieve, he has helped me develop more of a can do attitude. I would highly recommend him to anyone who is trying to get their business (and/or their life) on the right track.

Plainfield & Naperville, IL

815-436-6481


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