Consider your financials and cost of production
Not being able to deliver your product or rewards, or losing money doing it, is a nightmare scenario no creator ever wants to find themselves in. So you have to be on it when it comes to budgeting. When you sit down to assess your costs, here are some things to consider.
Make a budget spreadsheet:
Do this early on and continue to update it as you plan. It’s crucial to account for every item or service required to prepare, execute, and complete your campaign, especially the post-campaign costs of rewards fulfilment.
Calculate all production costs:
This includes the production of your product, campaign, and production and shopping costs for rewards. Whichever platform you use costs and fees are usually transparent and upfront, so make sure to add these in, too. (For Kickstarter and Indiegogo, this will be about 8.5%).
Add a 20% buffer:
Extra production costs and unexpected expenses invariably come up. It’s bound to happen. But, if you do end up with funds spare, you should consider using the money towards building your brand, and business, or improving your product. Add these costs up, and you’ll arrive at the amount you should set as your goal.
Be vigilant of shipping costs:
It’s one of the easiest ways to lose money on a crowdfunding campaign. I’d recommend working with a fulfilment partner who will handle the delivery of our rewards. A quick google of ‘fulfilment houses’ or ‘Kickstarter fulfilment’ will lead you to companies that specialise in this field.