Often, entrepreneurs are interested in launching a startup company or new product idea, but lack the financial backing necessary for the initial launch. Running a rewards-based crowdfunding campaign may be the perfect solution, offering a way to raise the capital necessary for manufacturing and other expenses before the product or business has been created. Essentially, crowdfunding uses the financial backing of many, usually in the form of pre-orders, in exchange for receiving that product for free or at a significant discount after completion. A more traditional loan or investor may demand ownership of a large percentage of your company, or extend loan terms that include large initial payback terms and high interest rates, in exchange for their financial backing.
The first step after the typical product crowdfunding campaign has ended is to get the product manufactured in a timely manner. It is important to have a manufacturer in place and ready to start on your project, as well as a backup plan. In the event that your product goes viral, the demands placed on your manufacturer may be more than they are equipped to handle, so have a contingency plan ready for that possibility. Delays on delivering the product to your financial backers may create anger and damage the reputation of your company, destroying relationships with crowdfunding platforms, investors and the media. One strategy is to limit the number of options you offer. For example, too many choices of color, size, or type of product may increase the costs of manufacturing, especially if you don't meet their minimum quantity requirements for every category. In this case, profits may suffer due to higher manufacturing costs, or the investors may not receive their products at all, damaging your company's reputation. Keeping your product offering as simple and streamlined as possible is imperative to a successful crowdfunding campaign.
Another element critical to the success of your campaign includes accurate calculation of the expenses involved in packaging and shipping. Failure to correctly estimate not only shipping costs, but international shipping costs, is imperative to your overall profits, and could single-handedly sink your campaign. Decide prior to launching your campaign whether you want your product to only ship domestically, or whether you want to include international shipping.
Most Kickstarter campaigns do and should include an international option, so accurate cost estimation is crucial. Unexpectedly high demand for your product not only affects manufacturing costs, but also packaging expenses. This portion of your campaign would best be served by a shipping fulfillment company. They can give you accurate estimates prior to launching your offering, as well as handle the entire packing and shipping process. As with manufacturing, research companies that offer fulfillment services to find the one most capable of handling your anticipated volume, as well as any that can assist you in the event you encounter unexpectedly high demand.
If your Kickstarter project needs order fulfillment services contact Ship My Orders at http://www.shipmyorders.com
Article Source: https://EzineArticles.com/expert/Raymond_Santopietro/371042
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