Every startup knows what an MVP is by now. According to Eric Ries, a Minimum Viable Product (MVP) is: “[the] version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort”. It’s the best way you can analyze your product’s validation in the industry without needing too much of a capital. Now, when it comes to a crowdfunding project, you need to think of a similar strategy as well. Only in this case, you have to consider a Minimum Viable Goal!
Since the time I have been marketing crowdfunding campaigns, I have come across tons of crowdfunding campaigns which fail in spite of having promising ideas. There might be a number of causes leading to this failure but according to me, one of the most vital cause would be setting the right goal. You see, most people go wrong here. They think that the goal should be the amount you would expect to raise for your campaign when the real scenario is something totally different.
Choosing a Minimum Viable Goal
Let’s explain the whole point with an example. You have a series of summer jackets to sell and your total budget for the first batch of production is somewhere close to $20,000. You already have $5000 as capital with you. So, logically, what should be the amount you would want to raise through crowdfunding? $15000 (simple mathematics). That should be your crowdfunding goal. But if I ask you what the real goal of the project would be, your answer might be different. You might set that up to $35000 or more depending on the kind of planning you’ve set for your project. However, setting your real goal as your crowdfunding goal is a big no!
Real Goal Vs. Minimum Viable Goal
Real goals are your long term targets and in a crowdfunding platform, what you expect to raise in the first place is a minimum goal to launch your product. Skyrocketing it with your real goal isn’t the right choice at all! Now, just to make sure your backers know about your real goal, you need to make a wise and noteworthy Stretch Goal chart. Tell them what you are going to do with the extra money raised. That way, you’ll be able to create a project which will raise its minimum goal as well as target for your real goal at the same time.
People Do Not Prefer Losers Over Winners
From a more personal point of view, I think I would back a project which has already surpassed its goal rather than a project which is not even close to reaching its goal. It’s natural human tendency to support something which is already popular. Now, if you look at it from the “goal” point of view, having a project with your Minimum Viable Goal will be easy to crowd fund rather than a project which is way high in its goal.
Don’t confuse the “Goal” with the amount here. A high-tech smart home product might have a Minimum Viable Goal of $100,000 whereas a Fashion Wristwatch can target a goal of $5000. Both ways, they are achievable because they are your Minimum Viable Goal and not your Real Goal. That’s where lies the difference. Projects like Coolest Cooler and BAUBAX Jacket didn’t become popular just for the product. These guys made sure they chose their goal after a lot of analysis. You must do the same too! What are your thoughts on setting up the correct goal for your crowdfunding campaign?