Kickstarter has this month rolled out a new feature for its creators to help build an informed budget, and in the process hopefully avoid unforeseen costs, and ultimately set a funding goal that accounts for everything needed to bring a Kickstarter project to life.
Understanding the Project Budget Tool
“The Project Budget is a tool to help creators which helps us better understand how creators like you prepare for your campaign and project – but we will never share it without your explicit permission. For the time being this feature is only available for projects in the Design and Technology categories, however, we hope to implement a similar feature for projects in other categories in the future.”
This new tool is designed to streamline the budgeting process for creators, ensuring that they consider all potential expenses before launching their campaigns. By providing a structured format for listing costs, Kickstarter aims to reduce the number of projects that run into financial trouble due to underestimating expenses. This is particularly important for first-time creators who may not have a clear understanding of all the costs involved in bringing a project to fruition.
How the Project Budget Tool Works
“Once you’ve filled out your Project Budget and accounted for all anticipated costs for completing your project, we’ll use the data from the first tab of the spreadsheet to generate a custom visualization of your top-level budgeting information, available as either a percentage or currency view.”
The Project Budget tool is essentially a detailed spreadsheet that creators fill out with all their anticipated costs. This includes everything from production and shipping to marketing and contingency funds. Once the spreadsheet is completed, Kickstarter uses the data to create a visual representation of the budget. This visualization can be viewed as a percentage breakdown or in currency terms, making it easier for creators to understand where their money will be going.
For example, if a creator is developing a new tech gadget, they would list costs such as prototype development, manufacturing, packaging, shipping, and marketing. The tool would then generate a pie chart or bar graph showing what percentage of the total budget each category represents. This helps creators see at a glance if they are allocating their funds appropriately or if adjustments need to be made.
Benefits of the Project Budget Tool
One of the key benefits of this tool is that it encourages transparency and thorough planning. By requiring creators to think through all potential costs, it reduces the likelihood of unexpected expenses derailing a project. This is crucial for maintaining backer trust and ensuring that projects are completed on time and within budget.
Additionally, the visual representation of the budget can be a powerful tool for communicating with backers. It shows that the creator has done their homework and has a clear plan for how the funds will be used. This can increase backer confidence and potentially lead to higher funding levels.
Future Expansion of the Tool
Currently, the Project Budget tool is only available for projects in the Design and Technology categories. However, Kickstarter has plans to expand this feature to other categories in the future. This expansion will allow more creators to benefit from the structured budgeting process and the insights it provides.
The new Project Budget tool is a valuable addition to Kickstarter’s suite of resources for creators. By helping them build informed budgets and avoid unforeseen costs, it increases the likelihood of project success and backer satisfaction. To learn more about the new Kickstarter Project Budget to calculate your crowdfunding project’s funding goal, jump over to the official Kickstarter support site by following the link below.
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