Crowdfunding campaign problems that startups often find when starting a campaign.
Crowd funding has proven to be a great way to get startup financing, but many new to the process run into issues once they begin. Most problems are prevented with prior planning and research but there are a few sticky common issues that can crop up later. Don’t let the following crowd funding problems ruin your startup financing!
- PR – Maintaining interest. So many campaigns start with a hiss and a roar attracting great interest and then the project managers slow down on the promotion thinking that all their work is done. It’s a huge rookie mistake but one that many make, you need to keep momentum going and getting your campaign out there via advertising, social media and word of mouth. Too many great crowd funding projects have been abandoned because donations stopped. Don’t forget that for every one of your donors there are potentially thousands more waiting to see your campaign.
- Security and privacy issues. Yes you are trying startup financing on a new platform full of generous like-minded individuals, but it’s still the internet and all the same privacy rules apply. As exciting as it is to put your individual personal stamp all over the campaign be sure you aren’t putting any information such as your address or phone number etc. Keep in mind this is a professional branch of your business and you need to carefully vet the details you provide.
- Non- fulfilment of rewards. Keep your promises to investors by being careful of what you offer. Your tier rewards should be practical and not impact on your startup financing. It’s no good offering rewards you cannot guarantee you will be able to fulfil in a timely manner, you may be surprised at how many people will invest a bit more to get a great reward – don’t let them down.
- Your offering has not been tested by investors in your first round of funding
- You are unlikely to have investors on-board who will help raise the next round of funding
Conclusion
Plan ahead!
Startup financing can be a breeze with crowd funding – plan it out , research thoroughly, use best judgement and create an achievable goal to get your project moving while avoiding common crowdfunding campaign problems pitfalls.
References
The Promises and Problems with Crowdfunding
The Problems and Promises of Crowdfunding
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