Impressions - Sports Fan Retailer - December 2015 - 26

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An alternative to
expensive marketing,
crowdfunding may
be ideal for the
tailgate market.
By John Burns,
Associate Editor

hen a startup is trying to launch a new
product, thorough
research and choosing the right business model are musts.
But sometimes, even after meticulous
planning, product launches still can go
awry or - even worse - not even get
off the ground.
Why? Many times, the problem involves funding, or lack thereof. Typically, money comes from investors who
want equity in exchange for fi nancial
backing. But during the last decade,
an alternative form of funding projects has emerged, and it doesn't involve
stuff y formal boardroom meetings or
gut-wrenching presentations.
Welcome to the world of crowdfunding.
Born primarily online, this alternative is a way to raise money for a
project by soliciting donations from
myriad "backers." Here's how the process works: An inventor or startup company typically posts its product on a
crowdfunding website - IndieGoGo.
com, GoFundMe.com and Kickstarter.
com are most popular - and sets a tar-

26 December 2015

Beer Tie, a hands-free
solution to carrying a beer while indulging
in other activities, received crowdfunding via the
website Kickstarter.

get monetary goal. When it's reached,
the onus is on the company to manufacture the product.
What motivates backers to fund a
project? Many people rally around
friends' projects. Others may be motivated by its rewards: a related custom
experience, or a copy or limited edition
of what's being produced, according to
crowdfunding website Kickstarter. In
fact, the latter is a great way for a company to get its first orders filled with the
promise of more to come.
Crowdfunding campaign goals and
deadlines are set by their creators. If a
project succeeds and the goal is met, backers must pay the amount they pledged.
If the monetary goal is not reached, no
transaction occurs.
The tailgate market may be ideal for the
crowdfunding model because it's laden
with startup entrepreneurs with smaller
marketing budgets looking for ways to
bring the next great idea to consumers.
Examples of successful tailgate crowdfunding campaigns include the GoBQ
portable grill, Beer Tie, Cooler Belt and
Instagate tailgate in a box.

FILL A VOID FIRST
The common factor in the aforementioned successful crowdfunding campaigns was a unique idea that filled a void
in the marketplace. Put simply, the products solved a problem or inconvenience.
"My partner Eric Goeken, who's the
inventor, thought of the idea back in college," says Todd Zaroban, CEO of GoBQ.
"He liked to tailgate but he didn't have a
car. He wanted to hop on his bike and
take his grill with him, but a clunky metal
grill is very cumbersome. What's unique
and exciting about [GoBQ] is not that
it's a portable grill - because obviously there are dozens of those out there
already - but that it's made from a
flexible, fireproof fabric. It's the only grill
on the market made from fireproof fabric,
which makes it ultra portable."
GoBQ's viability was subsequently confirmed when the company raised 300%
of its initial IndieGoGo monetary goal.
Similarly, Bryan Kendrick's inspiration
for the Cooler Belt and Matt MacLean's
idea for the Instagate both stemmed from
a lack of similar products on the market.
For example, the Cooler Belt is a way to
SportsFan Retailer

http://indiegogo.com http://www.GoFundMe.com http://indiegogo.com

Impressions - Sports Fan Retailer - December 2015

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