Given the health crisis the world is into, is it a good idea to launch a crowdfunding campaign in these times?
The answer, like with so many other situations, is, "It depends."
If you have a product that is going to meet a real need, you've tested your marketing strategy, you know that you can deliver, and there are people eager to get your thing, then maybe.
If you don't have to rely on just the people you know to join your campaign, that's a plus.
If your thing is a tangible object directed at consumers, and you're essentially taking pre-orders, then maybe.
If you have not carefully studied the CF campaigns of dozens of other people who are in the same space your thing is in, then no.
If you can't dedicate a full time effort for a month preparing your campaign and full-time managing your campaign for a month, then no.
If you think crowdfunding is just an easy alternative to a personal loan, then no.
"These times" doesn't mean anything all by itself. People still bought houses in the middle of the 2008 housing crisis, just differently. People still operated all kinds of businesses (with more careful thought) in many times of crisis. And there are always ghoulish opportunists that follow any crisis with some flash-in-the-pan success.
So again, it depends. Are you lined up to use CF as a good method regardless of the economic environment? Are you practiced at what it takes to run a successful campaign? Is your product going to be a magnet regardless of who you know? Remember that if you run a campaign that fails to fund raise or fails to meet expectations, you hurt every other business who wants to do one in your space. I have never seen CF campaigns be easy for anyone, and I participate in many.
Absolutely this is the worst time for most crowdfunding projects. People are broke as hell. A good 1/4th of the population will be facing not being able to pay their loans, their rent, their debts. That will trickle upwards. There are a few ideas that will catch the interest of the public, like a snake oil cure for the current virus, but otherwise it will fall on deaf ears.
We could turn crisis into opportunity, so if there is idea of new startup which could help people go through this crisis and makes their life easier and help them to make money, crowdfunding worth.
Actually, I am working on idea to help shopping malls , small shop and those who have been doing business offline go online , it is hard and a lot need to be done. So let say when my idea reached to maturity , every shop owner who have to sit around and their sales are minimum, they will invest and help your idea, and invest on it.
So let say today if they sale 10 items per day and your online shop help them to sale 50 , won't it worth to invest in your business and after coronavirus incident we could continue on this business and expand it. Then crowdfunding would work in these times.
if you are doing a good deed or have a great solution, especially in uncertain times... this is the time to do it. Absolutely get funding for a really good product that will help people. Remember there is a virus out there killing people, the money is still in the bank and people do want new ideas if they are moved by your work. Best of luck!
"crisis into opportunity" these are the keywords. I disagree with some of the answers. However, undoubtedly, there is some truth that some type of markets/businesses and business models may not be suitable during a crisis situation. But there are opportunities. Why do i say so? I will get to that. Someone said it "depends". That is also true. It is highly unlikely that anyone could profit greatly or substantially during such health crisis where policies, gov. regulations, emergency bills, the foundations of economics changes very rapidly and unattractive it may seem due to the uncertainty and risks involved (locally and globally).
The bottom line is that people still has the "needs and wants" without a shadow of a doubt. Its more focused on essential and basic needs and less luxury. To catre that need, existing business setup/models most probably are not optimized. Lastly, on this context there are people who are willing to help with money and resources. (jack ma, gates, elon - famous, but there are many more rich people whose actions/contributions were not publicized or simply goes unnoticed.
The only magic here is that, even though things looks very tuff and grim, with careful analysis, suitable strategies, trial and error, tweaking of the business model/way ur addressing the problem, (even out of the box models) would work for regular businesses as well as crowdfunding platforms. If something is not working well or failing miserably, you need to go down to the grass root level and change it. Change may cost, but adaptation is the only way out or the loss can spiral out of control.
A regular business and their execution differs greatly to businesses that are specifically designed to tackle the crisis at hand. This is usually short-lived, but has the potential for high demands spikes. Its up to you to choose wisely which one works for you the best thinking of short term and long term goals.
No doubt coronavirus has got all kinds of businesses to think about worst-case scenarios, disaster recovery plans, which are usually found in many policies and best practises but are given less attention. Take our word, just like 9/11 change the world with policies, regulations, security covid-19 has come and we will do the same.
Remember it's not the apocalypse where all hell broken is broken loose and saving the humanity is the priority. Its just a very tuff time with controlled regulations and restrictions with an economic downturn and uncertainty.
- Stay safe everyone!