Ten crowdfunding questions to ask
Crowdfunding may be an attractive option for startups, but there are questions to ask along the way.
Editor's note: The following is an excerpt from The Crowdfunding Bible: How to Raise Money for Any Startup, Video Game or Project. To get a copy, click here.
There are several factors to consider if you are thinking about using a crowdfunding model to finance a business, product, project, service, or event.
- What differentiates your project from existing competitors or alternatives that have come before? Are you utilizing an existing brand, IP, or personality that has a preexisting base of fans or consumers? (Using an existing, if perhaps older, brand or IP which consumers have fond memories of can be a very effective strategy.)
- Can you express your idea simply and at the same time get people excited about it? If not, it may be that the idea isn’t all that compelling or that you may not be the right person to communicate or present it.
- Do you have something tangible to show when presenting your venture—some visual aspect of your project that can help other people really understand it?
- How well do you know your target audience?
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