I have been share my thoughts about Crowdfunding platform. Today, I want to talk about couple of challenges for entrepreneurs or startups who pitch their ideas on crowdfunding sites.
- Choosing the right platform. Yes, there are so many crowdfunding websites all over the world. Finding right ones for the project is absolutely important homework for startups. Choosing websites that have the most traffic may be good way to go, however the startups need to pay the websites fees and stuff. Reward base websites, usually 4-5% is the fee. One of the main reasons to choose crowdfunding website is to raise money, so look for websites that you can save money on fees (less than 4%) or there are websites that even offer you grants.
- Winning plan. After choose the right platform, the startup need to plan about the contents of the pitch on the website. This will be a part of the business building process any ways. Idea has to be good, and plan has to be better. Plan a realistic goal, Plan attract rewards, and Plan a reasonable timeframe. It’s hard to stand out, so the goal, rewards, and timeframe have to be interesting and strategic enough to raise money.
- Crowdfunding competitions. Any startups may go though this process. It sounds like the winning plan will solve this problem, however aware of the competitions around the project is important as well. Even though the startups are not competing directly against to irrelevant projects in the website, but the startups still need to compete with all the projects in the website because they all are competing against to visitors who may fund the project. Idea is cheap, but the execution is expensive that requires tons of efforts. So, do the work to win.