While there typically lies no barrier with ideation, it often is the conceptualisation phase which entrepreneurs struggle most with. Entrepreneurs are stuck when it comes to crucial phases like fundraising given they aren’t aware of the path which they need to follow or the path which ultimately secures them a meeting with investors. To help such countless ideas flourish as well as to help people secure the funding we decided to answer the top 4 crowdfunding questions which often leaves entrepreneurs confused.
Question 1: How do I decide how much I need?
One of the main crowdfunding questions which often tends to leave the entrepreneurs confused is, ‘How much should I raise’?’. While the amount needs to be realistic, it should be able to cover the costs of launching the company while at the same time be able to cover the operational costs as well. Aside from the operational costs, an entrepreneur should keep in mind the costs of marketing, advertising as well as expenses related to upkeep and maintenance of place, the machinery or any kind of solution they are offering. Getting an advisor in such cases is one of the best practices as the industry as the industry veterans can help you correctly estimate the costs involved.
Question 2: Who exactly should be my target audience?
With a number of industries interdependent and working in close synergy with each other, it becomes difficult for an entrepreneur to filter out and focus his marketing strategies towards the audience which are actually concerned with the solution. In order to find your target audience look for companies who are building solutions on similar lines. Researching about your rivals is one of the best ways for you to find your target audience. Similarly, you can try narrowing down your demographics to find the potential customers you should be targetting.
Question 3: Which platforms to go for?
While some people often tend to accomplish their crowdfunding goals by securing partial investment from an institutional investor and the rest from masses, the ones who decide to chose the later only have several platforms they can try.
Kickstarter, for example, is one of the crowdfunding platforms you can choose to raise funds. The problem with the platform is that its ecosystem only allows the entrepreneurs to withdraw the full amount they ask. However, this prevents the investors from fraudulent projects and failures given a project might not be able to survive with a lack of funds.
There are other platforms like Indiegogo and GoFundMe which allow the entrepreneurs to collect whatever they are able to secure, however, the final decision rests on the project owners depending on their need.
Question 4: Which Social Channel Should I Market On?
Marketing a project often tends to take a lot out of companies budget and entrepreneurs during their initial years don’t have that kind of budget. Hence a sensible decision in such scenarios is to choose the platform which delivers maximum impact and helps create brand or company image.
Facebook and Instagram, for example, are the top priorities of most organisations, given they cater to a large audience. Facebook while on one hand is versatile for both written as well as display media, Instagram is more suitable for companies or startups who are involved in businesses of graphics and design.
Hence, choosing the right platform for the promotion is based on the kind of business you are launching along with the kind of audience you are catering too.
So, these were the top 4 crowdfunding questions which most entrepreneurs struggle with. Do you have any other question you need to be answered? Feel free to ask them in the comment section below.
