Secrets of Fashion Business Crowdfunding
How do you really make money from crowdfunding? It seems like you go on Indiegogo or Kickstarter, and you have people who are making a ton of money, but how does it actually get off the ground, and how do you execute that? I’m going to give you advice that is hopefully going to help you with that process.
1. Identify Your Core Value Proposition.
There are many fashion businesses that are launching online and that want donations, but exactly what it is your business is doing that’s going to set itself apart from everyone else is your unique selling proposition. You must know what it is, and it has to really stand out and be branded.
2. Develop a Crowdfunding Timeline and Strategy.
You can’t think like, hey, I’m going to produce this video, post it on Kickstarter, and hope that all these people come to find my product. In fact, it takes a considerable amount of preparation, when it comes to timelines and strategy, to get this off the ground. That means you need to be coordinating with friends and family who you’re going to be tapping into. The campaigns that do the best are not the ones that get funded over night, they’re actually the ones that start to see some growth. If you’re planning on sending out an e-mail campaign to every single person you know, think about staging that every single day. That way, you increase the opportunity for your project to be considerably more visible on a regular basis.
3. Choose Your Incentives.
What is it that someone’s going to be buying into? A lot of great crowdfunding campaigns offer a little product, or a tote bag, or something that’s of value and something that’s tangible. However, any type of incentive that’s some kind of discount towards the product is not going to go very far. The things that are the most effective, are the products that are going to be giving out some kind of brand asset or brand value. What are the different kinds of products that would make sense in terms of an extension? If you’re selling women’s ready-to-wear, what are the other product lines that you could actually be selling as part of your incentives? Maybe it’s a collaboration with jewelry, maybe it’s a collaboration with some other type of accessory platform.
4. Calculate Your Finances.
It’s critical to understand how much money you need and how you’re going to be using this money. That means you may be taking money and using it for manufacturing products, marketing or helping with some research and development costs. You want to be able to articulate and tell your audience exactly what you’re doing with the money because, otherwise, if you’re just fundraising to fundraise, people are going to say, does this person really need my money?
5. Invest into the Venture.
Put some skin into the game. What are some of the results that you’ve seen from investing your own money? You must share your time and energy with people you hope will invest in your business; it’s critical to getting them to jump on board. Being authentic, being open, sharing your story, sharing your struggles, even, are going to help people empathize and want to help to create a much better campaign for you. Sometimes, we like to think that having a shiny, polished image is really what people are looking for, but it’s transparency, authenticity, showing your value and really showing what it is your brand stands for. Please remember this when you’re doing your crowdfunding for fashion. Remember, the secret to success is not simply moving forward with a bunch of different actions, it’s having a strategy.