By Matt Cooke, Founder/CEO of Crowd Fund Buzz
1. Don’t set a monetary goal higher than you actually need
People who are new to crowdfunding often make the mistake of setting a monetary goal higher than what they actually need. Frequent scenario: Crowdfunder needs $50,000, but figures an extra $25,000 would be nice, too.
Don’t do this. Having a high goal can cause your project to get off to a slow start. It can also cause potential backers to feel you have an unrealistic goal.
This mistake is made more often on sites like Indiegogo where the crowdfunder receives all of the funds raised versus sites like Kickstarter, which are “all of nothing” funding models.
Solution: Set realistic goals and only ask for what you need.
2. Don’t rely only on friends and family for funding
Most crowdfunders are surprised by how little financial backing they get from friends and family. They may get plenty of support on social media and verbal commitments but no real funding. Common refrain seen on Facebook: “Great idea, man, but I’m broke right now!” This leaves the crowdfunder in a terrible position because they frequently don’t realize that they are behind in their goals until it’s too late and the campaign is nearly over.
Solution: Before you launch, have a dedicated and realistic way to extend your circle outside of your family and friends to attract new people to your project. There are many sites online to help you achieve a broader reach.
3. Don’t launch your campaign without a plan
As a rule, crowdfunding campaigns do not usually go to plan. You might hit your goal on the first day or you might be twenty days in and have only raised ten percent of your goal. You have to have a plan for both scenarios. Having a realistic plan ahead of time will help you stay on top of your campaign, no matter which way it goes.
Solution: Take the time to create a business plan specifically for crowdfunding and stick to it. Again, there are many sites online to help shape a sensible crowdfunding platform.
[Matt Cooke CEO/Founder of CrowdFundBuzz]