How To Get Funding For Your Small Business Through Kickstarter?

Kickstarter is the premier ‘crowdfunding site’ that lets small businesses and entrepreneurs raise capital for their business ideas from members of the general public. The way this works is simple: you create a project page showcasing your idea, then you offer rewards that you’ll give to your backers if they provide X-amount towards you r cause. From there you then set a deadline then rush around like a mad thing trying to market your project and get people talking about it.

That’s the gist, but there are a lot of finer points to consider along the way. If you think that crowdfunding might be the right option for your business, then read on and we’ll look at how to use Kickstarter and similar sites in a little more detail.

The Project and the Site

First of all you need to come up with your business idea, and then decide whether or not you think it’s suited to crowdfunding and Kickstarter in particular. Your business idea should be something commercial, usually a product, and it should be something different and interesting that will get people talking and that will be exciting for people that come to the site.

So in other words, you can forget it if you want to create a new series of extension cables because that’s been done before, isn’t exciting and won’t capture the imagination of the audience. Likewise your consulting business is going to have to look elsewhere for capital.

On the other hand however, if you have an idea for an earring that also tells the time, then Kickstarter might be the right place for you.

The other main option for crowdfunding is ‘IndieGoGo’ which is a very similar site that has slightly more of an ‘indie’ vibe and focusses slightly more on artistic endeavours. This is more the place to get funding for your album.

Create Your Video

The most important part of any crowdfunding campaign is a good video that will quickly grab visitors’ attention and get them excited for your idea. This is what will showcase your project and will make it seem exciting, so make sure you invest in it and chase the highest production values and the most professional finish.

Note too that your video will likely be more successful if it is quicker to get to the point, and if it actually shows your project in action rather than just talking about it.

Create Your Project Page

The idea of the video is to get people excited and to introduce them to the idea you have. The purpose of the project page however is to go into more detail, to explain precisely what your business idea is, to outline potential problems before they emerge, and to show why you need the money and how you are going to spend it. This last point is particularly important, as otherwise it may seem as though you just want to get some free cash for nothing (which may or may not be the case…).

Choose Your Incentives

Now you need to choose your rewards and incentives. These will generally mean discounted or early copies of your product or access to your service – essentially like pre-orders which can take any risk away from your business idea.

Note though that people love exclusives, and they love feeling as though they are a part of something – so come up with a large variety of offers for different price points and try to make them exciting.

And Finally…

Lastly you have to set your deadline and target – make sure to keep this achievable, but also to make it enough of a push that it will motivate people to act quickly and try to support you. People love an underdog!

From there it then just becomes a matter of marketing like mad. Make sure that you send out plenty of press releases, and maybe even consider paid advertising to get the ball rolling. Don’t forget to take advantage as well of any existing communities online and in real life – that means posting on forums, asking friends and using social media. Good luck!

Kickstarter is the premier ‘crowdfunding site’ that lets small businesses and entrepreneurs raise capital for their business ideas from members of the general public. The way this works is simple: you create a project page showcasing your idea, then you offer rewards that you’ll give to your backers if they provide X-amount towards you r cause. From there you then set a deadline then rush around like a mad thing trying to market your project and get people talking about it.

 That’s the gist, but there are a lot of finer points to consider along the way. If you think that crowdfunding might be the right option for your business, then read on and we’ll look at how to use Kickstarter and similar sites in a little more detail.

The Project and the Site

First of all you need to come up with your business idea, and then decide whether or not you think it’s suited to crowdfunding and Kickstarter in particular. Your business idea should be something commercial, usually a product, and it should be something different and interesting that will get people talking and that will be exciting for people that come to the site.

So in other words, you can forget it if you want to create a new series of extension cables because that’s been done before, isn’t exciting and won’t capture the imagination of the audience. Likewise your consulting business is going to have to look elsewhere for capital.

On the other hand however, if you have an idea for an earring that also tells the time, then Kickstarter might be the right place for you.

The other main option for crowdfunding is ‘IndieGoGo’ which is a very similar site that has slightly more of an ‘indie’ vibe and focusses slightly more on artistic endeavours. This is more the place to get funding for your album.

Create Your Video

The most important part of any crowdfunding campaign is a good video that will quickly grab visitors’ attention and get them excited for your idea. This is what will showcase your project and will make it seem exciting, so make sure you invest in it and chase the highest production values and the most professional finish.

Note too that your video will likely be more successful if it is quicker to get to the point, and if it actually shows your project in action rather than just talking about it.

Create Your Project Page

The idea of the video is to get people excited and to introduce them to the idea you have. The purpose of the project page however is to go into more detail, to explain precisely what your business idea is, to outline potential problems before they emerge, and to show why you need the money and how you are going to spend it. This last point is particularly important, as otherwise it may seem as though you just want to get some free cash for nothing (which may or may not be the case…).

Choose Your Incentives

Now you need to choose your rewards and incentives. These will generally mean discounted or early copies of your product or access to your service – essentially like pre-orders which can take any risk away from your business idea.

Note though that people love exclusives, and they love feeling as though they are a part of something – so come up with a large variety of offers for different price points and try to make them exciting.

And Finally…

Lastly you have to set your deadline and target – make sure to keep this achievable, but also to make it enough of a push that it will motivate people to act quickly and try to support you. People love an underdog!

From there it then just becomes a matter of marketing like mad. Make sure that you send out plenty of press releases, and maybe even consider paid advertising to get the ball rolling. Don’t forget to take advantage as well of any existing communities online and in real life – that means posting on forums, asking friends and using social media. Good luck!

Featured images:

This article has been authored by Jenny Wadlow, a professional freelance blogger. She writes articles for Bentham IMF, a reputed litigation finance company. Jenny takes keen interest in oil painting and swimming.

Article written by

This article was submitted by a guest blogger.  Guest blogging provides an avenue to share a variety of different points of view with a broad audience.  It is a good way to share cumulative knowledge as well as introducing readers to a new author.  Learn more about how to become a contributor for Riches Corner.

Leave a Reply