Kickstarter is growing in popularity because it gives small businesses and entrepreneurs opportunities to find funding they could not efficiently access otherwise. The crowdfunding platform is an innovative approach to raising money for business startups. Some entrepreneurs also use Kickstarter to test the market waters for new products to see if it is feasible to pursue venture capital in the future.
For the greatest chance of success, the products or services need to be innovative and interesting, which means the Kickstarter presentation should have the same qualities. There are millions of people with good ideas that need a small amount of money but would have a difficult time getting traditional loans or funding from institutionalized private investors. Entrepreneurs can post their projects on the Kickstarter portal, and the public can choose which businesses they want to fund. Most investments involve a very small amount of money in exchange for a “reward”. The reward is something produced by the startup.
Purposes of the Kickstarter business plan
Like any business, there must be a business plan. In fact, the strength of the Kickstarter business plan is a major factor in attracting investors. Many of the entrepreneurs turning to crowdfunding have never operated a business in the past. This puts the onus on the business plan to present the business idea and operating plan in a way that is creative, attractive, and enticing to investors. The idea and presentation must be so outstanding that it overcomes lack of entrepreneurial experience. The business plan needs the following characteristics:
• Presents the business in a professional and understandable manner
• Presents the innovative products and services with creativity
• Describes the targeted niche market and backs up the assessment with market research
• Designs the offer in a manner designed to attract the kind of funders who would be most interested in the project
• Addresses potential business risks and how they will be mitigated
• Outlines the steps already taken to build Kickstarter “tribes” which greatly increases chances for success
• Explains pricing structure methodology and why it will attract the right kind of funders for this project
• Includes all the traditional business plan sections, giving it business and marketplace relevance and authenticity
Kickstarter is not intended to drive traffic to the entrepreneur’s website. Therefore, the business plan will also showcase the promotional campaign designed to draw attention to the website or social media site associated with the entrepreneur, and business startup and/or project. The Kickstarter platform is unique and makes it quite clear that funders are accepting a high risk of never seeing a reward or of receiving the reward after the promised target date. A common mistake people make is not putting enough effort into developing a quality Kickstarter business plan and presentation since the funding is coming from the general public, as opposed to a bank or equity partner. However, the Kickstarter campaign is presented in a competitive forum, meaning the entrepreneur’s ability to get and keep the attention of potential funders depends on presenting a rock solid case with innovative style.
Consultants at OGS Capital (https://www.ogscapital.com/) are experts in business plan development and presentation. Entrepreneurs looking for assistance with developing a Kickstarter business plan can rely on OGS Capital’s experience to produce an end product that will get results.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.