Appleton entrepreneur finds success with Kickstarter

When entrepreneurs are looking at launching or expanding a business, funding is a major concern. Revolving loan funds and microloans were recent topics in this column. But one type of funding that is much talked about but surrounded with uncertainty is crowdfunding.

Brian Davis of Appleton, founder of Fix It Sticks, a bicycle repair tool company, has had not one, but three successful campaigns on Kickstarter. Davis says that as one of the top crowdfunding platforms in the world, Kickstarter should not be confused with traditional financing that must be paid back.

"There is not an equity exchange or a loan," Davis said. "The easiest way to think about it is that it is preselling your product or service to the consumer. I don't have to pay anyone back, and if I don't deliver as promised, there is no recourse."

But, Davis did deliver. In his first campaign in 2013, his goal was to raise $18,000 in 30 days by giving people who paid $25 one of the original sets of Fix It Sticks once produced. The product, designed to bridge the gap between traditional bicycle tools such as a Y-wrench and other multitools for bicycles, generated the attention of consumers. The campaign far exceeded the goal and raised $42,000.

A second Kickstarter campaign in 2014 featuring version two of Fix It Sticks with replaceable bits and a new T-wrench product, had a goal of $14,000 and raised $82,000 in 30 days.

A few months ago, a new product, the back bottle, exceeded its goal by $8,000.

Davis has had success, not only because he had great products, but also because he did the necessary research.

He noted, "I went to Kickstarter and read everything they had to say and got familiar with the rules and regulations. I researched articles and read blogs on how to have a successful campaign. If you read enough and research enough, you can do it. Put in the work, and it will work."

Of course, there are caveats. The product or service must be worthy of funding; it needs to be something consumers will want. Kickstarter also features feel-good projects where the reward is helping someone out. Supporters, who contribute $25 on average, might receive a product, service, experience or feeling in exchange for their donation.

Davis attributes his success to great products and the number of cyclists making up his target market. He also says he was professional and spent money on video, public relations, a virtual assistant and marketing lists.

"There are people unwilling to spend money, but I say that sometimes, you have to spend to be successful. The video is important, and you should hire a video person to help. You can't have a video of a person standing in front of a white wall," he commented.

As his business and experience grow, Davis can save money on some of the production and promotion because he knows what to do and has developed good lists to promote the campaigns. He credits the support of the bicycling community, magazines and blogs with getting the word out.

Within six months of product launch, business was booming. Davis, who has had a number of businesses, now has a great business and the flexibility to practice his favorite activity — biking. That flexibility is one of the things that compels him as an entrepreneur. There is that one other thing, as well.

"For me, it's just I absolutely can't stand it when people tell me what to do. I'm not ornery about it. I'd just rather do my own thing," he said.

Tina Dettman-Bielefeldt is co-owner of DB Commercial Real Estate in Green Bay and district director for SCORE, Wisconsin.