Crowdfunding has been the hub for innovative ideas and at times, products that seem to be ahead of its time. There were digital clocks that measured a lot of vital information on your body, a bike that was made of bamboo that was surprisingly sturdy and even a cooler that packed in amazing features such as speakers and even a blender.
The platform has been the incubation stage for some of the greatest ideas that have changed the landscape of product innovation in the modern-day marketplace. As such, it has also inspired others to follow suit and encourage up and coming entrepreneurs and business-minded individuals to pursue their own unique path.
As exciting and revolutionary crowdfunding is for projects that propose never before seen products, they also have to go through a unique set of challenges which they have to overcome to reach their funding goal. These challenges might be different from those trying to put up mainstream ideas but these are meant to strengthen them as they move forward.
Crowdfunding challenges for innovative ideas
If you are planning to launch a social funding campaign that is considered avant-garde, here are a few of the roadblocks ahead that you might encounter as you try to get your funding goal.
- Product development. It is a little easier when you take out a franchise of an already existing business model because there are already guidelines or a blueprint to help you move forward. Trying something new is a little more challenging because you do not have any format to follow. There will be a lot of trial and error process involved and you need to understand that this is one of the best ways to learn about the business. When developing a new product, you need to know that mistakes will happen.
- Selling a new one in the market. As hard as product development would be for a new product, selling the same would also pose its own set of challenges for any crowdfunding campaign. The idea of going out and convincing other people to see the value of your new idea can be a daunting task. It is easy for you to understand the importance, benefits and even all the advantages it brings to other people’s lives but conveying that idea to other people and making them understand it can be a tough job.
- Convince people to fund something new. Crowdfunding has a lot to do with trying to convince other people to put in money into your idea. There are a lot of new and innovative products that were funded right out the bat but this is not always the case. People tend to be more cautious in funding projects especially the ones that are new in the market. This poses the biggest risk but they also understand that it can bring in the biggest returns. The challenge for project initiators is to highlight the benefits of the campaign especially the financial return and explain the long-term goals and objectives of the business.
This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]