When it comes to setting your target, there are some things you need to consider. After all, the correct target is vital to running a successful Crowdfunder!
Though it’s not just about how much money you need to make your project happen, it’s also about what is realistic and achievable.
1. How much do you need to make your project happen?
First things first, what is the minimum amount of money you need to raise in order to make your project happen? This is what you will base your target on! We say minimum because having a more achievable target is a convincing factor in getting your crowd to pledge on your project! Remember you can always stretch your target and raise more after you hit 100%.
It’s also important to let your audience know exactly what their money is going towards. To do this, you can have a rough cost breakdown on your project page!
2. How big and engaged is your crowd?
To hit your target and make your project a success you’ll need to reach as many potential donors as possible. Though it’s not just about how big your crowd is, they also need to be engaged. This is why it’s best to start your crowdfunding journey with an existing network of people you know will support you.
Before you get started, don’t be afraid to reach out to people, groups, and organisations to ask if they would support you and, if so, how much would they be willing to pledge.
If you don’t have a wide and varied network then your target needs to reflect this.
3. Have you accounted for rewards and delivery?
If you’re running a rewards based crowdfunding project, you need to account for your rewards and their delivery in your target. If you have options for discounted goods and services or physical products that need to be sent by post, you need to work out how much it will cost you and add it to your final target.
It’s good to be organised and keep all of your budgeting data in one place. After all, you don’t want to be caught out at the end!
4. Are you aware of Crowdfunder’s fees?
In order to continue running our site and helping dreams become a reality, we charge fees which vary depending on what type of project you’re running. Make sure to look at the fee model your project will fall into and take them into account when setting your target.
5. Have you done a final sense check?
Before you go live with your project, it’s best to give your target a final sense check. Is this target achievable in the timeframe of your crowdfunding project? Is there anything you’ve missed? Has anything changed since you first calculated how much money you need? Is it looking like you’ll get more or less support than you anticipated?
By asking yourself these questions and making sure your budgeting is up to date, you can be safe in the knowledge that you won’t get caught out by any expected costs!
Looking for more guidance on your crowdfunding project? Head over to our Knowledge Hub.