Skip to main content

Do you believe that Kickstarter is a way to a successful start-up? (By Othmane Bennani)

Kickstarter provides the ability for companies to begin and build a successful start-up by developing an alternative that is based on people’s contributions to the business. Every entrepreneur and business developer understands the hardships of financial issues that arise in creating a business which can hinder progress in several fields. Financing companies view start-up companies as an advantage as it allows them to raise their prices on loans and provide other overpriced services. Kickstarter tries to eliminate that step by giving the donator the ability to determine which company should be helped based on future revenue and growth predictions. It allows for add-ons between companies therefore pushing the drive to seek new ideas while creating new markets, developing certain domains and preventing the saturation of others. Within the hospitality industry, the development of new ideas that can push the industry forward need financing. Therefore Kickstarter can be a good start. 

Contrary to the popular belief, Kickstarter does not limit its service to tech-savvy companies but also aims to involve a variety of companies, which includes those within the hospitality industry. While some would argue that the fund-raising process is fairly long, I would argue that depending on the company’s desired level of success and its developmental rates, many companies can predict the exact amount of funds needed. Like its name suggests, Kickstarter aims to help companies slowly develop until they become self-sufficient. Although it may take a company at a slower pace to reach its desired level of success, Kickstarter ensures the company’s ability to stay out of debt and keep the full ownership to the owner.  

Kickstarter’s success in helping other companies is derived mainly from its being a trustworthy source, providing transparency in its transactions, and conveying the company
s objectives clearly. It uses social media as a means to introduce new innovative ideas instead of through advertising. The company also encouraged family members and friends to aid in the development of an item, changed donations into a notion of pride with a provided service or product, and simultaneously encouraged competition among contributors and developers.  

Kickstarter is advertised through word-of-mouth. The company established a way of informing the donor of their contributions, and thus offered them a sense of satisfaction while showing new ideas to the world .  

A good example is the Purpose Hotel, a project beginning in Kickstarter that aims to connect the humanitarian world with the hospitality industry. Guests can stay in the Purpose Hotel where every product they use will support a specific cause. The hotel on Kickstarter doubled its initial pledge with investors, from the United States to Australia and Germany.

I believe that Kickstarter represented an example for every developing company or new project. The company not only introduces new ideas and innovations but also provides a revolutionizing approach to financing. Kickstarter helps people come together in a virtual community to develop new ideas and donate to their interest by using social means to advance its domains. The revolutionary website has not only transformed it into a trustworthy and successful company but also acts as a motivating driver for every entrepreneur.  

Do you believe that Kickstarter, as a crowdfunding platform, is a good way for start-ups to raise funds? What other successful crowdfunding platforms do you want to share with us?   

About the Author: 

Othmane Bennani is a senior at The Collins College of Hospitality Management at Cal Poly Pomona, with an emphasis in hotel management. He previously worked for an IT/mobile app company, whose products help managers communicate efficiently with their employees. He is an active member of Eta Sigma Delta Honors Society of Hospitality Management and the Entrepreneurship Club of Cal Poly Pomona. 


Edited by Linchi Kwok. 

* The picture of Kickstarter was downloaded from http://www.digitaltrends.com/cool-tech/amazon-kickstarter-site/

Comments

Popular posts from this blog

Social media engagement is immune to COVID-19 (by Steven Valenzuela)

In the unparalleled world of COVID-19, individuals are flooded with choices: whether it be what to eat or what church service to watch. While there are marketing strategies to get consumers to purchase products to immediately increase sales, it may be a more beneficial to engage with low spending consumers in the short term, so that businesses can keep them for the long term.   Social media game strong   During this time, it is crucial to keep social media posts constant and consistently more than ever before. A recent podcast by eMarketer reports that social media outlets such as Facebook have seen a significant rise in usage. The reality is that individuals have more time on their hands, which is why it is important for businesses to utilize their free time to create content for their social media channels. In a recent interview with the hospitality net, Leland Pillsbury stated  “Customers are going to come back...And if you allow your competitors to reengage with the guests before

The 7 Ps marketing mix of home-sharing services: Insights from over one million Airbnb reviews

The 7 Ps marketing mix framework is a widely used managerial tool that helps businesses identify the principal components of a service product. The 7 P elements include Product, Promotion, Price, Place, Participant, Physical Evidence, and Process.   The 7 Ps framework can assist marketers in making decisions regarding segmentation, positioning, and differentiation. Even for the same type of products with different brands, marketers can still drive higher sales through the improvement of a product’s marketing mix.     The empirical study about 7 Ps of home-sharing services   Building upon the 7 Ps marketing mix framework, I led a research team in a big-data, supervised machine learning analysis of over 1.14 million English reviews of 37,092 Airbnb listings in San Francisco (SFO) and New York City (NYC). We aimed to discover new meaningful business intelligence through the analysis of an immense quantity of online review information that is created by consumers in the cyber marketplace

Will Amazon’s new palm recognition become the next popular biometric technology?

Amazon recently introduced a  new biometric payment device , Amazon One, in two of its Go stores in Seattle. Shoppers can now enter and pay at cashier-free  Amazon Go  stores by scanning their palms. The company opened its first Amazon Go store in Seattle to the public in  January 2018 . Currently, Amazon operates  21 Go stores  in Chicago, New York, San Francisco, and Seattle, with five temporarily closed. Unlike a typical grocery store, Amazon Go offers grab-and-go, ready-to-eat snacks, breakfast, and lunch options for shoppers. Shopping at Amazon Go can be as easy as walking in and out of the store. After consumers download the Amazon Go app and link the account with a form of payment, they can: Walk into the store by scanning the Amazon Go app. Grab the items wanted. Walk out of the store. Be charged through the Amazon Go app. How Amazon One works Amazon One  works similarly to the Amazon Go app. To  sign up , shoppers will need a credit card, a mobile number, and of course, their