Funding Friday: Top Crowdfunding Reads of the Week (4/17/2015)

Crowdfunding

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Recommended Read #1

After reviewing Matt Ward’s “9 Necessary Tips for Startup Manufacturing and Moving to China,” there are a few tips that we found to be imperative to an entrepreneur who is planning on outsourcing their manufacturing to other countries, including China.

The first tip we found to be extremely helpful, is “source ahead of time.” Matt explains the importance of finding a partner who is not only on the same level as your startup, but also has the same amount of experience. Once you’ve begun sourcing ahead of time, you will allow yourself the opportunity to find a manufacturing partner that will negotiate with you and potentially even start production before you’ve headed off to China.

The second tip that will help any startup who plans to outsource, is “the manufacturers want to take advantage of you.” Matt does explain in a previous tip of how a manufacturer wants you to succeed, but he also explains that they will do whatever it takes to succeed and are, in the end, looking out for themselves. He suggests having a backup plan in case something goes wrong.

Recommended Read #2

In “The $1.3 Million High-Flying HEXO+ Crowdfunding Case Study,” Matt discusses the ultimate Kickstarter Campaign by doing a case study of the campaign for HEXO+, a drone that follows you and films you. He explains the importance of a thumbnail because, like a captivating headline, the thumbnail is the first thing an investor is going to see. Second, of course, is a compelling headline.

Matt emphasizes the importance of utilizing social media, which can do more than just spread the word for many campaigns – it can be what sets the ball in motion to succeed. Then, he touches on how to grab the attention of not only your target audience, but others who may have had their interests piqued but feel as if a drone isn’t a necessity. It’s crucial to your campaign’s success to include the functions and specifics of the gadget, as well as offering a reasonable reward for the help of your Kickstarter followers.

To end the perfect campaign, the HEXO+ illustrates their history to their viewers, so they can get a glimpse as to how hard the company has been working, and offers some insight into the lives of the individuals behind the project.

Recommended Read #3

Small Crowdfunding Wins for Colossal Kickstarter Results” takes a deeper look into the crowdfunding campaigns such as Kickstarter and Indiegogo, and why it’s so important to look beyond the ‘funding‘ aspect of the website. Matt goes into detail about some of the bigger benefits of using a crowdfunding site, with five major benefits including money; customer exposure; potential press; outside interest; and backers.

Using a crowdfunding site offers a creator more benefits, according to Matt, because it allows the creator to build a long term strategy rather than just focus on getting the money for their product launch. For example, he explains customer exposure as a benefit because it allows you to gain more exposure and even provides creators with a ‘test platform’ for other new products.

Matt goes on to explain that once the individuals who have gained interest in your product or invested their own money, they are going to be more likely to buy from your company again after they have begun to trust you. In the end, it’s better to look at the bigger picture than focusing on immediate results.