What are some best practices for crowdfunding in startup development?

2 Set realistic goals

One of the most important aspects of crowdfunding is setting a realistic and achievable funding goal. This is the amount of money you need to complete your project, deliver your rewards, and cover the platform fees and taxes. You should not set your goal too high or too low, as both can discourage potential backers. A high goal can make your project seem too risky or ambitious, while a low goal can make it seem too easy or unprofessional. To set a realistic goal, you should estimate your costs, revenues, and margins, and use tools like crowdfunding calculators and analytics to test different scenarios and projections.

3 Create a compelling pitch

Your pitch is the core of your crowdfunding campaign. It is the way you communicate your vision, value proposition, and story to your potential backers. Your pitch should include a clear and catchy title, a short and engaging video, a detailed and attractive description, and a variety of rewards and perks. Your pitch should also answer the following questions: What is your project? Why are you doing it? How are you doing it? Who are you and your team? What are the benefits and risks? How will you use the funds? How can backers get involved? Your pitch should be honest, authentic, and persuasive, and show your passion, credibility, and uniqueness.

4 Engage with backers

Your backers are not just customers, they are also partners, supporters, and advocates. They are the ones who believe in your project and help you make it happen. Therefore, you should engage with them throughout your campaign, and even after it ends. You should update them regularly on your progress, challenges, and achievements, and ask for their feedback, input, and suggestions. You should also respond to their questions, comments, and concerns, and thank them for their contributions. You should also create a sense of community and belonging among your backers, and encourage them to share your campaign with their networks.

5 Deliver on your promises

The final and most crucial step of crowdfunding is delivering on your promises. This means fulfilling your rewards, completing your project, and satisfying your backers. You should keep your backers informed of your delivery schedule, and notify them of any delays, changes, or issues. You should also handle any complaints, refunds, or disputes professionally and respectfully. You should also collect and analyze your backers' feedback, and use it to improve your product, service, or process. You should also maintain a long-term relationship with your backers, and keep them updated on your future plans, milestones, and opportunities.