In the Globe and Mail, Harvey Schachter wrote an article reviewed James Stegmaier’s book A Crowdfunding Strategy Guide: Build a Better Business by Building Community. Mr. Stegmaier has used the Kickstarter website to raise money for new business ideas because new ideas need to find financing and a market of buyers and Kickstarter helps do both. Mr. Stegmaier believes you has tips for you to succeed. The basics are simple – start a project page with an explanation of your project with enough detail to attract support. You name an amount of money you are trying to raise and if you do the project gets funding, otherwise you owe Kickstarter a fee and no money is exchanged.

To ensure success there is work involved. You need to build a community that will not only welcome your idea but willing to put up some of their money. This means not only talking to friends and family but people who should be easy adapters of the idea. Before you launch you need to build momentum because reality generally means if you are 15 days into your campaign and only raised 10% of your target money, you success is generally going to be limited, but there are exceptions. Kickstarter longest campaigns last 60 days, but Mr. Stegmaier recommends a month 28 to 35 days.

The two biggest mistakes people make is although it is possible for anyone to create a webpage – the difference between a good one and medicore one is easily seen (either gain experience or hire a top flight designer). The other mistake is underestimating the costs involved. Those in the know (and there are many of them out there) will quickly see while it may be a good idea, the chances of implementation with your costs are very low and will pass.

The nice thing about Kickstarter is a wonderful method to determine if your idea is a good idea but will people pay for it? if the natural users will not, why would the public? Use it, learn from it and try your ideas.

Linking to dividend paying stocks, unlike new ideas, these companies have products and services that are well tested by the market place and the market place decides everyday. There are always things to learn about the processes, but do not invest in a Kickstarter project for dividends, you are after capital gains. All companies go through the process, even dividend companies are constantly in search of good ideas to implement which the public will pay for.

There are more questions than answers, till the next time – to raising questions.