Essential Insights on Financing Your Small Business through Kickstarter

By now, you’ve probably heard about Zack Brown, the guy who raised thousands of dollars on Kickstarter for his potato salad project. It caused quite a stir and got a lot of small business owners and aspiring entrepreneurs thinking about how they could use platforms like Kickstarter to fund their ideas.

If you’re considering launching a Kickstarter campaign, here’s what you should know:

Anyone can create an account and submit a campaign, but your project needs approval before you can start adding photos and asking for donations. Take the time to plan your project. There are also three main rules you need to follow, according to the site.

Remember, Kickstarter isn’t specifically for funding small businesses. It’s great for launching projects that can turn into marketable products. For example, you could use it to develop a cool new prototype or raise money to self-publish a book.

There’s always a risk that donors might sue if you don’t meet your stated goals or deliver promised rewards. Kickstarter isn’t liable for this; you are. So, if things go wrong, it’s all on you.

Once your project is approved, you’ll need a clear plan with a goal amount and a deadline. If you don’t reach your funding goal, you won’t get any of the pledged money. It’s an all-or-nothing deal, meaning donors won’t contribute unless you meet your goal.

Kickstarter can help you set up a campaign and collect donations, but it doesn’t guarantee success. Campaigns like Zack Brown’s are rare. You’ll need to market your campaign actively. Use your online and offline networks to spread the word. Ask your followers to donate and share your project. Be ready to tweet, share, like, and even ask for help in getting the word out.