5 keys to kick butt on Kickstarter and jump-start your small business

Business, Money

Entrepreneurs need to think strategically in order to leverage the power of Kickstarter for their burgeoning businesses. Learn the basics and then follow these five strategies for start-up success.

Kickstarter success 101

All creators – people creating a project for funding on Kickstarter – should learn the basics of running a successful crowdfunding project.

These include demonstrating your passion, communicating with your backers, and shooting a great video. According to Kickstarter, the video is important: 50 percent of projects with a video are successful, compared to 30 percent of projects without a video. 

5 keys to funding your business on Kickstarter

  1. Do the research. Like any other business venture, this one starts with research and goal setting. Study past successful campaigns, see what they did and emulate them. What were their money goals, their timelines? How did they interact with backers? What do you think made their project appealing? Using this information as a guide, come up with goals of your own.
  2. Choose a project with some pizzazz. Maybe your new company needs safety rubber flooring installed, but most backers don’t want to contribute to something so mundane. Instead, come up with a project that’s fun for backers to invest in.
  3. Do something media-worthy. The more media-friendly your project is, the more likely it will generate coverage. Case in point: everyone including USA Today and the BBC covered the guy who has raised over $52,000 to make potato salad. Media coverage of your project is free PR for your business.
  4. Offer great rewards that are a reflection of your company. Creators offer rewards to backers based on the donation amount: anything from a “thank you” in the credits of a video game to a VIP day at a movie’s premiere. Your rewards should be tangible and should be the best of what your business has to offer. Ideally, you’ll turn a one-time donor into a lifelong customer.
  5. Use social media to make your case. Get the word out about your campaign via Twitter, Facebook and other social accounts, to both your personal connections and your business connections. Expand your reach by asking friends to contact their networks too. Always mention the name of your company. Running a project on Kickstarter, even if you don’t reach funding goals, is a great opportunity to let your extended network know about your new company and what you do.

Remember that all business ventures carry some amount of risk. Be sure to check out our upcoming coverage of the potential legal pitfalls and how to protect yourself.