Around 10% of startups fail within the first year, and even if they make it, a total of 90% of them fail.
Most close up shop before five years, which can be devastating, both financially and mentally.
Having a fantastic idea is only one way to get your foot through the door. But you need to have business smarts to keep things going on a long-term basis.
One way to do so is through crowdfunding. Lots of small business owners choose Kickstarter for this, and you should too. Here’s why.
It’s Easy To Find People Who Are Interested
You won’t have to worry about pitching your ideas to people who won’t be interested. Users sign up to Kickstarter because they want to support businesses they believe in.
Considering that your audience is already perked up and ready to invest, many of your major obstacles are gone.
You just have to convince them that your startup is worth their money and time.
You Can Get Early Support
You might have a great startup idea, but chances are, it’s not completely refined yet.
There are small details that can make all the difference in your startup taking off or failing at the beginning. And the backers on Kickstarter can help you with this.
On the platform, you can chat with backers to see what they think. You can also send out surveys and conduct interviews.
These are the people who will use your products or services, so the feedback they give you is invaluable.
Having fresh perspectives on your startup can open your eyes to weaknesses you never would’ve seen yourself.
You might even realize that you need to scrap your original thoughts and come back with something better.
As a result, you’ll avoid wasting time and money on a concept that wouldn’t have succeeded.
You’ll Get Funding Fast
Again, Kickstarter is full of users who have money and want to spend it.
While it can be difficult to secure funding from just one or two investors, it’ll be easy when spread out across multiple people.
Considering that 208,596 Kickstarter projects have been successfully funded, there’s a very good chance that yours will be too.
All you need to do is market your startup smartly, and these crowdfunders will come to you.
Using Kickstarter will eliminate the excruciatingly long period of finding and gathering capital. You’ll be off to a running start!
It’s Cost-Effective
Not only can you get funding quickly on Kickstarter, but you can also keep costs down. Considering that startups usually don’t have much money to work with, this can be a huge relief.
When compared to traditional marketing, this platform is extremely cost-effective. Kickstarter’s fees are low and competitive.
It’s Low-Risk
You never know if someone’s going to love or hate your business plans when you pitch to random investors.
You can get lucky on the first try, or you might waste your time going from person to person.
As we’ve said before, Kickstarter’s users are ready to invest in intriguing concepts.
Plus, you won’t have to go to the potential investors; they’re already all there on Kickstarter, so this will save you both time and effort.
You Can Reach A Wide Audience
Marketing a startup can be difficult. You need to utilize every penny you have, and paid ads can be expensive.
Of course, you can do social media marketing on your own to generate some interest. However, that won’t be enough.
The Kickstarter platform itself is an excellent way to market your business. This campaign will generate interest and build awareness.
You can share it on your social media accounts, and so will early adopters. Before you know it, everyone will be talking about your brand!
You’ll Have More Control Over Your Startup
When you get traditional investors for a business, you often have to give up some control to these people. This might be in the form of decision-making and/or equity.
You won’t have to do this on Kickstarter. No matter where you are in your business plans, you’ll always remain fully in control of your products, services, and startup.
In addition, you can set specific rewards for backers. Having tiered rewards gives both you and your backers control over how big of an investment they make and exactly what they get from it. It’s a win-win situation for everyone.
It Can Assist With Business Connections
To bring a concept to life, you’ll need multiple experts to do this. For example, if you want to create children’s books, you’ll require:
- Writers
- Editors
- Illustrators
- Publishers
It’s tough to find suitable professionals on your own. Plus, the vetting process can take a while, and if it doesn’t work out, you’re back at square one.
Kickstarter’s already flourishing with creative people who are experienced and passionate. You just might be able to find collaborators who can help your startup on a long-term basis.
There’s A Fantastic Sense of Community
If disinterested consumers have you down, then Kickstarter is perfect for you.
The people on this platform want to see good ideas succeed, and they’re willing to put in effort to see that happen.
You’ll receive words of encouragement, and they’ll also spread the word about your startup since they’ll want others to give it a try.
The backers themselves will become loyal customers, especially if you put their feedback into place. This can then create a continuous loop of repeat purchases and referrals.
Ensure Your Startup Has The Capital It Needs
Creating and keeping a business running can be challenging, especially if you’re starting from scratch on your own.
But if you use the right channels, you can create a financially stable future for your brand.
There have been numerous successful projects on Kickstarter, so why not add your name to the roster? It’s a great way to secure funding fast, and you’ll have a built-in audience that’s already interested in what you have to say and sell.
Find more business tips by checking out the rest of our blog page.
