Choosing a funding goal is one of the first things that every entrepreneur does when setting up a crowdfunding campaign. It is also often an area that most entrepreneurs want feedback on. Below, we have put together a few simple steps for you to follow to create realistic funding goals.
Set your goal based on an achievable milestone
Pick your most important milestone as a focus for your crowdfund. Whether you're looking to develop your prototype, increase your distribution, or fund a new version of your product, it's important to share what you're hoping to accomplish with potential backers. Having a specific objective in mind will also help you select a dollar amount to raise in order to successfully accomplish your goal.
Research startup-friendly solutions and set a more attainable goal
Chances are that your crowdfunding goal is directly related to the costs that you plan to incur from vendors, contractors, manufacturers, etc. However, you shouldn’t assume that your crowdfunding goal should be set on whatever arbitrary number you were first quoted.
Instead, do some price shopping and negotiating. You may be able to cut your costs (and goal) in half - increasing your odds of success and of surpassing your goal.
Calculate accurate timing
Rewards raises are typically about 9 weeks long, but can be as short as a month or a long as several months. When choosing a timeframe for your crowdfunding campaign, think about:
- How soon you need funding
- How long it will take to ship the rewards that you are offering
- What time during the year important industry events or trade shows occur (attending can help you showcase your product and fundraise)
- Holidays or events that will occur during your campaign that may hinder or help your cause