7 Crucial Steps for cent percent success on crowd funding platforms
Crowd Funding has provided the perfect platform for entrepreneurs to show case their idea to the world to gain traction and support. The most vital component of the success of running a crowd funded campaign is the idea itself and the confidence of its successful execution to follow.
An idea is no one’s monopoly. The person who successfully proposes the idea to the audience in the most convincing way gets the desired backing.
This article aims at highlighting all the crucial stages of crowd funding to the reader and brings forward strategies for a successful crowdsourcing campaign execution
The purpose of this article is to explain the concept of crowd funding using a case study based approach. This article will follow Golchi — Smart Bottle and O2i ( oxygen to innovation ) quest in achieving their target of a successful crowd funding launch on Kickstarter.
Oxygen to Innovation (O2i) is a product development firm that brings Innovative Ideas to reality for Startups, established Companies and Passionate People. They have worked with Baubax & Golchi and have played a crucial role in their Internationally successful Kickstarter Campaigns.
Concept and Benefits of Crowd Funding
Crowdfunding platforms gives entrepreneurs a single platform to build, showcase, and share their product among interested individuals.
Crowd funding is a boon for entrepreneurs as there is no need for equity dilution and many interested individuals are willing to pitch small amounts of backing amounts to fund the idea/concept if they believe in the idea/concept.
Crowd funding has positioned itself as a neutral platform giving anybody’s ideas a market test. It fully embraces the efforts of entrepreneurs and doesn’t impose restrictions on the category of projects that can be launched on it.
Indiegogo and Kickstarter have the Major share of the market mostly because they have all the necessary features needed to kick start the campaigns.
They are better platforms from their competitors due to several reasons: lower failure rates, more active communities, greater familiarity, and more straight forward payment options.
Entrepreneurs have been able to successfully raise over 2.5 billion dollars in funding over 1,00,000 projects through Kickstarter. Some of the successful projects include: the Pebble Watch, which raised $10 million; Baubax raised $9 million ; Veronica Mars raised $5.7 million and Oculus Rift, which raised $2.4 million, and was later acquired by Facebook for $2 billion.
Pursue an idea which is innovative yet adds value to the consumer
Addressing a fundamental human need or solving a real world problem that others haven’t been able to solve as successfully as you is in the heart of innovation.
Innovation that tackles a problem, in particular one that is complex or really difficult to crack, is what is truly innovative.
It is about doing it in a clever way; something that really tackles a problem from a completely different perspective demonstrating it does it in a way that’s simple and straight forward, then that’s an absolute winner on crowd funding platforms.
The case of Golchi’s Reinvented Bottle.
Golchi embarked on the journey to re-invent the everyday bottle to meet the diverse needs of travelers, mothers, gym goers and office goers.
With over 15 additional features and a slick marketing campaign they successfully got funded on Kickstarter and are moving to the second phase of delivering the product to their backers.
A detailed think through of its execution
Every successful campaign relies on the fact that the idea has been thoroughly screened for its business viability and successful implementation.
That is the very basis of a successful product launch. This is how Golchi approached their idea.
Understand these following steps :
- What is the problem being solved?
Golchi Everyday bottle re imagined
“Say yes to Golchi and no to multiple containers, unwanted spills, and burns in mouth!”
Golchi is the world’s first vacuum insulated bottle that can carry two drinks simultaneously in any combination of hot and cold. With modular design, Golchi is customizable to four different configurations. Additional storage space lets you conveniently carry other everyday essentials.
Patent pending “Controlled Flow Mechanism” allows you to adjust size of drinking spout based on beverage. Fifteen cool features make this bottle the most versatile on the market.
- Whose pain area does it address ?
3. How does it plan to address these areas ?
Two Beverages in One Bottle :
Perfect Choice for a Mother Baby Duo: Carry cold water along with hot water and baby formula in one Golchi.
One Bottle, Four Personalities :
Golchi’s first of a kind modular design breakthrough innovation in bottle world. Depending on your need and purpose, your Golchi can be beautifully customized to four different configurations.
Double Decker: Dual compartment bottle for two beverages and a built-in storage section
Jumbo: Single compartment bottle to carry one beverage in larger volume plus dry storage
Traditional: Traditional everyday bottle with no storage section
Golchi Mini: Split your Golchi into two standalone bottles and share the joy
Golchi Built-in Storage :
Aesthetic I Ergonomic I Functional. Now carry everyday essentials in your Golchi and be carefree for entire day. There’s no limit to what all you can carry.
Multipurpose Lower Compartment :
For your thirst and hunger. Use it as:
- Bottle for a cold or a hot drink
- Food Canister for cereals / snacks
- Vacuum Insulated Can Holder for chilled Cans on the go
4. Plan of Execution
Many people think their plan is set once they have properly documented their idea, but that’s not all. Planning is how you get your idea from conception to execution.
Developing your plan of attack and discussing it with your team is how to actually execute on these great ideas.
Who is going to do what, when and with what resources?
The goal is to get everyone aligned so that every team member knows what they are accountable for accomplishing, and how their role fits into the overall goal of bringing the project to life.
Time is of essence as Idea is no one’s monopoly
Time is of essence when it comes to crowd funding opportunities . Idea is the one thing that matters most on crowd funding platforms. A sound plan of its execution matters but the curiosity or excitement of a new idea pulls the backer towards the new idea.
“Speed to market” is a necessity especially from a crowd funding perspective, and apparently there are many valid reasons that cycle-time reduction should be a priority:
- Speed yields competitive advantage: First in will win!
- Speed yields higher profitability.
- Speed means fewer surprises.\
Tips to Consider
- Prioritize and focus : By concentrating resources on the truly deserving aspects of the business idea, not only will the work be done better, it will be done faster.
- Do it right the first time : Build in quality of execution at every stage of the project. The best way to save time is by avoiding having to recycle back and do it a second time. Quality of execution pays off not only in terms of better results but also by reducing delays.
- Do what you do best and collaborate with specialists : Multi-functional teams are essential for timely development. Collaborating with domain specialists let you focus on the task of bringing the idea to life. It enables parallel processing which ensures that activities are undertaken concurrently (rather than sequentially); thus, more activities are undertaken in an elapsed period of time.
Product Development — Step by Step
Product development and Prototyping is not expensive, if you do it right.
In case of crowd funding you should be able to present a final polished idea in front of the backers. That means the product development has been thought through along with fully functional prototype produced.
Product development is a 5 stage process —
- Understand the Design Requirements
2. Conceptual Design
3. Computer Aided Design Detailing
5. Small Batch Production
Marketing and Buzz Creation
The heart of every business success lies in its marketing. Most aspects of your business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions and sales. Marketing is a process by which a product or service is introduced and promoted to potential customers. Without marketing, your business may offer the best products or services in your industry, but none of your potential customers would know about it. Without marketing, sales may crash and companies may have to close.
Digital Marketing is becoming the preferred channel of marketing. Digital marketing is the promotion of products or brands via one or more forms of electronic media. It is being preferred compared to traditional marketing as it involves the use of channels and methods that enable an organization to analyze marketing campaigns and understand what is working and what isn’t — typically in real time. Digital marketers monitor things like what is being viewed, how often and for how long, sales conversions, what content works and doesn’t work, etc.
Choosing your right Partners
Finally choosing your partners will determine the chances of your overall success of your campaign. The right partnerships will enable you to focus on what you do best and what you would leave on other domain specialists to work on.
We at Oxygen to Innovation (O2i Technologies) are a product development firm. We bring Innovative Ideas to reality for Startups, established Companies and Passionate People. It is our pleasure to assist Baubax & Golchi and play a crucial role in their Internationally successful Kickstarter Campaigns.
Our services include:
- Design Development
- Prototype Development
- Small Batch Production
- Mass Manufacturing
In conclusion Kickstarter campaign execution is gaining attraction among entrepreneurs as their preferred source of funding. The chances of a product success is much higher once you pitch your product in front of potential backers.