Are you looking to start a crowdfunding business? here is an example of a complete feasibility study of a crowdfunding business plan template that you can use for FREE .
Ok, so we’ve covered all the requirements for starting a crowdfunding business. We also took it a step further by analyzing and writing a sample crowdfunding platform marketing plan template backed by actionable guerrilla marketing ideas for crowdfunding businesses. So let’s move on to the business planning section .
Why open a site for crowdfunding?
For people who understand what crowdfunding is, they can attest to the fact that crowdfunding is an exciting prospect. It simply means connecting potential entrepreneurs with millions of micro-investors. This business perspective has helped fund and launch countless new businesses and provided a realistic platform for countless bright young business owners who would otherwise have nowhere to go.
But it’s important to note that crowdfunding is not a magic bullet, money tree, or processes that can be fully exploited by any business that embraces it. Just like I contact angel investors or venture capitalists, anyone trying to get help should have a solid foundation in their idea before going into a crowdfunding platform to seek help. If you want to launch a website like this, you need to take a minute and write a business plan.
Business plans are a great way to chart a course for your business and one way to do it is to write a business plan like the one below;
Sample Crowdfunding Business Plan Template
- Overview of activities
It is common knowledge that the crowdfunding industry is very large and the total funding of the crowdfunding industry has more than doubled since 2012 compared to 2012 and is not expected to change. By the end of 2016, the global crowdfunding industry is expected to reach approximately $ 34.4 billion.
Donation-based crowdfunding is the second largest segment in the industry with approximately $ 5.5 billion (roughly 16% of total industry expected funding) in third-place equity-based crowdfunding with an expected amount of $ 2.5 billion. (around 7% of total projected sector funding). the percentage breakdown by category remained substantially unchanged between 2013 and 2014 and is expected to remain constant after the smoke disappeared from 2015 to 2016.
It is very important to note that when categorizing industry growth by region, the United States continues to represent the largest segment of the industry, with just under 50% of the total industry expected. . funding. The United States also appears to have a very high annual industrial growth rate (82%).
But the European and African markets are expected to grow by almost 100% compared to 2015 and Asian markets. has started to show phenomenal growth rates of 210% (representing the second region in terms of volume of around $ 10.5 billion).
We all know that in 2016, the SEC adopted the long awaited final rule of Title IV (“A + Regulation”). Since its inception, crowdfunding has been touted as a method of democratizing private investment.
It was not until mid-2015, when the final Reg A + rules came into effect, that investment-based crowdfunding (i.e. debt and equity) came into effect. almost exclusively limited to “accredited investors” with high net worth, in accordance with the proposals in Section II. (i.e. Rule 506 (c)).
With the entry into force of the new Reg A + rules, the involvement of uncredited investors is finally a reality. The industry is huge, but not saturated, but the key to success in the industry is specialization and choosing a successful niche.
Summary of the crowdfunding platform business plan
123Entertainment.com – Crowdfunding website It will provide a platform for entertainment businesses ranging from budding musicians to burgeoning entertainment businesses to raise capital for unique projects. We believe that we will be able to receive a substantial payment when the project is successfully funded in combination with an advance payment.
We are very serious and ready to succeed, so this business plan has been delayed. This business plan will also demonstrate the financial results and operations expected over the next three years. 123Entertainment.com is a New York-based branded company that will function as a crowdfunding platform for entertainment companies and entrepreneurs looking to raise funds through their online user platform.
At 123Entertainment.com, we also look forward to serving as an online booking engine designed to help Americans find and rent live entertainment for weddings, corporate events, private parties, nightclubs, events Fellowship, Bar Mitzvahs, Grand Openings and more. Activities.
At 123Entertainment.com, we have successfully created a database of over 15,000 musicians. We have also incorporated new ideas and concepts into our unique offerings which include other entertainment services such as comedians, dancers, pharmacists, photographers, etc.
Our online reservation system at 123Entertainment.com is committed to harnessing the power of the Internet. organize and integrate the fragmented market of musicians and artists into a searchable, consumer-centric and easy-to-use database.
It is also worth saying and mentioning that 123Entertainment.com is a unique company with unique services to offer. The two people who run the site are its co-founders, Daniel Paris and Michael King. They recently brought Seth Williams to their board.
These three men have extensive web development, business development and financial management experience that we know they will bring to our business and make it a center of success and financial power.
- Our products and services
Our primary revenue center at 123Entertainment.com, which is a super crowdfunding site and intermediary between live entertainment and the people who hire them, will receive an ongoing success fee associated with the project that receives funding (in whole or in party), and will provide a reservation service to help customers find quality entertainment for any event they may have.
At 123Entertainment.com, we plan to take a commission of 5% of the total aggregate capital raised on our site. We believe that funds collected through the website will be transferred by automatic transfer at the clearinghouse to a verified bank account specified by the entrepreneur / company.
At 123Entertainment.com, we also generate income whenever a new project starts. presented on the site. For each project profile we will earn approximately $ 20.95. We believe this is an important secondary source of income for a business, as it will help us generate income from projects left unfinished or unattended on our website.
- Our vision statement
Our vision for 123.com entertainment is to become a recognized leader in our target market as a platform for entertainment companies and aspiring entrepreneurs to raise capital for their projects, and where people can easily buy all of them. the entertainment incentives they need for their occasion.
- Our mission statement
Our mission at 123Entertainment.com is to create a suitable website that will help businesses and individuals in terms of fundraising for their business as well as reaching their entertainment managers. We hope to make life and survival easier for New Yorkers and the United States in general.
- Our corporate structure
We all know that the current state of the economic market in the United States is actually moderate. We also know that the unemployment rate has come down and asset prices have risen dramatically. This means that launching a crowdfunding website in this economic environment is appropriate given that people have additional capital to contribute to the development of unique and interesting products. At 123Entertainment.com we have a strong belief that we are on the path to success and strive to bring all of our perspectives to the fore.
123Entertainment.com is a New York-based company – an owner-managed business that will be duly managed by Daniel Paris, Michael King and Seth Williams. They have the experience and mindset to work together and be successful after joining a vision community. They also hope to diversify work in the industry and also hire employees with the same vision as the company.
The workforce includes:
- E-commerce manager
- Head of Marketing and Brands Department
- Business lawyer
- Technical director
- Application and content developer
- Technical and infrastructure manager
- Security guards
Roles and responsibilities
- He is responsible for the supervision of all other officers and employees of the organization.
- It is charged by the board of directors and other officers with determining whether the company is in line with objectives and policies. …
- Obliged to encourage business investment.
- It also promotes economic development within communities.
- He is responsible for managing the goals, objectives and financial budgets of the organization. …
- Implement organizational guidelines in daily life.
- Performs quality control.
- Responsible for hiring, training and firing employees.
- Responsible for developing and implementing strategies and determining general direction in a specific area of a business or organization.
- Provide visionary and strategic leadership to the organization.
- Work with the board of directors to develop policies and directions for the organization.
- He ensures that board members have the information they need to fulfill their fiduciary and other management responsibilities.
- It also provides the Board with adequate and timely information to enable it to effectively discharge its oversight role.
- Direct staff, including organizational structure, professional development, motivation, performance appraisal, discipline, compensation, staff policies and procedures.
chief technology officer
- Responsible for leadership and oversight of building management processes to ensure objectives are met.
- He directs and develops a security plan.
- It protects the confidentiality, integrity and availability of company data and servers.
- It identifies and implements technological trends and platforms.
- He also communicated the company’s technology strategy to investors, management, staff, partners, customers and stakeholders.
- Evaluate and recommend the technology.
- Select and register your company’s domain names.
- The task is to create a mail service.
- Introduce a web-based internal communication system.
- He oversees the efforts of graphic designers to create a corporate identity and website for businesses. …
- Supplier relationship management.
- Perform code review and specification conformance testing.
- Create a quality assurance process.
- Create an application deployment process.
- Follow web analytics mode to determine website traffic.
- Implementation of technical requirements for internet marketing and search engine optimization
- Integrate customer service and support into your software development process to support solving customer issues and improving applications. Ease of use.
Application and content developer
- Manage web traffic and analyze changes accordingly to increase your ROI.
- Project management and external advertising using advertising words and other tools, their implementation and optimization.
- Validate the content and usability using support tools and ensure that it meets the objectives set by senior officials. …
- To find the right place to host your website content for business development and act as a traffic manager for online marketing providers.
Head of Marketing and Brands Department
- Responsible for achieving the organization’s sales goals through effective planning and budgeting.
- Responsible for deciding the strategies and methods necessary to achieve sales goals. It is he who decides on the future action plan for the members of his team.
- Responsible for lead mapping and lead generation for the organization. He must be eager to create new opportunities for the organization.
- Responsible for the promotion of the brand.
- The task of motivating team members is one of the most important responsibilities of a sales manager.
- The sales manager must ensure that his team achieves the desired results.
- Responsible not only for sales, but also for maintaining and improving the relationship with the customer.
- Responsible for storing data and records necessary for future use.
Technical and infrastructure manager
- Responsible for all of the company’s computer systems, including hardware and software, as well as security systems.
- Spend a lot of time meeting people from different departments to discuss how to make business data more accessible and secure, and how to make business operations smoother and more efficient.
- Other tasks assigned by the president
Electronic commerce office
- Develop an online business strategy in collaboration with product and marketing managers.
- Work with designers, website developers, and content providers like copywriters and photographers to create or improve your website.
- Work with payment providers to develop secure payment mechanisms that protect customers’ personal information when paying by debit or credit card.
- Regularly check site and system content to make sure they are functioning properly
- Monitor site metrics such as web page load times, total site visitors, and visitors by product or page.
- Analyze the information and recommend changes to improve performance.
- Make sure all stored customer data is protected against cybercrime threats
- Help design or recommend marketing programs to increase sales.
- Analyze metrics such as the number of visitors who are simply browsing rather than placing orders.
- Identify which products increased revenue after a promotion or which products decreased sales after a price increase.
- Ensures that our business operations comply with the law.
- Review the law associated with this transaction and advise on any negative impact it may create.
- Ensures that our legal decisions lead to solid results.
- Responsible for the protection of the agency and its surroundings
- Control traffic and organize parking
- Provide safety advice as needed
- Patrol the building 24 hours a day
- Submit security reports weekly
SWOT analysis of the crowdfunding platform business plan
We all know that the demand for crowdfunding websites has increased dramatically with the growth of the economy. This is why we believe that our low operating cost infrastructure, coupled with the high margins of 123Entertainment.com, will deliver continued business profitability and positive cash flow.
But we not only consider the optimistic aspect of starting a business, but we also try to avoid almost all startup mistakes. That’s why we hired an external agency to help us conduct our SWOT analysis.
This consulting company has been very thorough and straightforward in their research. They had to use our available workforce to really understand how ready and skilled they are for 123Entertainment.com to be successful. The results of their SWOT analysis for 123Entertainment.com are duly summarized below;
According to SWOT analysis, our strengths at 123Entertainment.com are supported by our dedication, advertising budget and people. crowdfunding. The SWOT analysis also noted that our workforce is made up of competent, results-oriented, energetic and well-educated people.
In the SWOT analysis it was very easy to see that the industry and niche we decide to invest in is very competitive. It was also noted that our weaknesses include the time it takes us to develop a consumer’s personality and brand acceptance, develop and implement effective marketing communications, identify and provide recurring revenue for them. partners, advertising and e-commerce revenue streams. We believe that we can resolve all of these issues properly and very quickly.
Crowdfunding sites are a relatively new industry in the United States. It is believed that, as more and more people seek to start their own businesses, the demand for and demand for capital has increased. So, and as these websites evolve, millions of people around the world are now using crowdfunding websites to start their business ventures. We believe this has made the opportunities for the industry endless.
A SWOT analysis performed for us on 123Entertainment.com also highlighted the threats we may face in the industry. He made it clear that we may face threats such as the acquisition of strategic investments and a constant flow of funding, securing technology and strategic sites and content planning, content development / generation of links, user functionality and program design and delivery, the broad nature of the industry and the level of competition in the crowdfunding industry.
BUSINESS PLAN MARKET ANALYSIS Crowdfunding
- Market trend
It is very important to note that there are around 200 websites that help small businesses and entrepreneurs raise funds for their businesses (in exchange for manufactured goods and services). These sites are estimated to generate around $ 300 million in revenue each year. The growth of this industry in annual terms is 81%.
This trend is expected to continue for at least five years. Crowdfunding Business is expected to develop extended operations as a crowdfunding platform (direct investment in businesses), as explained in the JOBS (Our Business Act), which was signed by President Obama in April 2012.
With or without argument, this new law provides quick and broader access to private capital for small businesses who want to campaign publicly to assess their business operations and why they are a good candidate for a small initial audience. phrasing.
Industry exposure was and is expected to increase dramatically (i.e. explode). While the larger Title II based platforms such as SeedInvest, Patch of Land, RealtyMogul, Fundrise, etc. continue to successfully deliver bigger and better value propositions, the investing public will continue to see and count.
Also with the release of the Final Reg A + rules, Title III rules, and various national rules (especially Illinois) that will allow daily investors to participate, it was also predicted that in 2016 we will see many other transactions that will hit the headlines. and 2021 – bring more attention and attention to the industry.
We believe that as awareness and education grows, the size of the market and the rest of the industry will increase. The growth rate and overall volume of the industry are also expected to increase significantly in 2021. It has also been predicted that the United States will continue to represent the largest part of the crowdfunding industry by volume. and will still experience strong growth (although probably lower than 2015).
- Our target market
Our average client for our 123Entertainment.com crowdfunding industry will be an entrepreneur or established business seeking funding for a new project or business venture. Common traits among these people will be:
- Searching for a $ 2,000 to $ 100,000 attraction
- Understand the idea of crowdfunding and understand how it works.
- Must be able to deliver the developed product / service within six months of receipt of capital.
- Legal license to do business in its jurisdiction.
- will actively promote their funding request on popular social media platforms.
Although online booking of 123Entertainment.com is only for people wishing to organize the following events:
- Corporate events / congresses
- Nightclubs / Bars / Restaurants
- Bar / Bat Mitzvah
- Resort entertainment
- Dance evenings for the holidays
- Graduation parties / dances for schoolchildren
- Country Club Entertainment
- Entertainment at the hotel.
Our competitive advantage
At 123Ent ertainment.com, we understand that the industry is very competitive and that all sites in the industry have buyers and sellers together, but it is important to note that only 123Entertainment.com is focused on music and entertainment.
We believe this brings us significant benefits. Additionally, we are the only ones at 123Entertainment.com to develop an online auction system that provides customers with competitive artist offers.
We understand that there are also approximately 13,239 traditional (offline) reservation agents in the United States of America. They earn $ 2.4 billion a year. Many have websites, but few, if any, offer the ability to book directly online. These sites are more like company brochures and only cover a few of their famous artists who have a slightly larger phone number for more information.
We also know that these agents have traditionally focused on high-end bookings, generally ignoring the huge market of people looking for groups for their weddings, private parties, fraternity dances, corporate Christmas parties and proms. high school. We have well-defined business propositions and experienced employees who can quickly take us to the top.
Business plan of the crowdfunding platform. SALES AND MARKETING STRATEGY
- Marketing and sales strategy
At 123Entertainment.com, we plan to use an effective marketing campaign that will help us get a lot of traffic. These strategies include the use of search engine optimization and click-through marketing. We believe Entertainment’s web development department. Com will display a lot of links on the company’s website.
For example, when a person does a Google search on crowdfunding submission websites, 123Entertainment.com will appear on the first page of the search. We believe this strategy is technically difficult and the Crowdfunding website will use a search engine optimization company to develop our line of sight without pay.
At 123Entertainment.com, we expect the SEO firm to place a large number of links to textual data and keywords on our site, which will allow us to appear more frequently in search engines. We believe that most web portal and search engine companies use very sophisticated algorithms to determine the importance of a website relative to a specific keyword.
SEO companies place text and tags on a site to improve the ranking of a particular website. At 123Entertainment.com, we will actively use social media sites such as Twitter, Instagram and Facebook to promote the launch of the services we provide on 123Entertainment.com. We are also hiring a dedicated social media consultant who will appropriately advertise any services we provide to the general public.
Crowdfunding platform business plan Advertising and advertising strategies
At 123Entertainment.com, we understand for sure that the first and most important factor is that people visit our site. It is important to note that we currently have an average of 200 visitors per day to our site on their home page (this does not include visits to internal site pages).
This number is expected to increase by 25% per month over the following year, followed by 15% per month in the second year and 5% per month in the third year. At 123Entertainment.com, we believe that traffic is essential because in any online business, we plan to do so with our heavy advertising and advertising strategies, which include:
- search engine positioning
- Sponsor relevant community events / programs
- Use the Internet and social networks. media platforms such as; Instagram, Facebook, Twitter, YouTube, Google +, etc. To promote our services.
- Mount Bill Bards at strategic points in Washington DC.
- I’m sure we go on road shows from time to time. time in target areas
- Distribute our flyers and brochures in targeted areas
Source of income
Our main revenue center on 123Entertainment.com will come when a user has successfully raised capital for a project, new idea, or business. Our company’s crowdfunding sector only allows individuals and businesses to submit funding requests that secure the exchange of goods.We believe that no person or business will be permitted to sell an interest in their business in exchange for capital.
We believe that the main benefit for an entrepreneur / business looking to raise funds is the fact that they can get the money they need to start their business or entertainment events. For people who contribute money to the business, they will receive a product / service in exchange for their contribution. At 123Entertainment.com, we plan to receive a commission of 5% of the total capital raised for the project.
We also believe that in addition to our primary sources of revenue – crowdfunding and booking commissions, as well as corporate sponsorship – at 123Entertainment.com, we also generate revenue from additional paid services that we anticipate. to offer to artists. Without wasting time, these services will include the costs of digitizing artists’ music into RealAudio or MP3 format, digitizing photos for press and selling music CDs with invoices.
- Sales forecasts
123Entertainment.com is a business that was designed to be a huge success, not a failure, so a prototype site was developed and launched into a private list of potential clients and partners, and some contacted to establish new business relationships. . We have also entered into an agreement with several partner vendors to provide incredible opportunities in the online community.
At 123Entertainment.com, we have also built a business management team made up of business and technology professionals and focus groups. were built and now provide ongoing information and feedback to end users throughout the Internet community development cycle.
The first acceptance tests in the market welcomed the potential concept. We also made sales forecasts based on what the industry can get and with a prayer that we won’t face Amy’s threats and objections.
Here are the sales forecasts for 123Entertainment.com over the next three years;
- first year $ 780 10,000
- second year 1,500,000 USD
- > Third year $ 2,400,000
Our pricing strategy
Competition in this sector is very strong, which is why at 123Entertainment.com we will keep our prices below the market average to attract customers and customers. We also plan to run promotions on our website during the main period.
At 123Entertainment.com, we believe we will achieve what we dream of and hope to be part of the future of the crowdfunding industry. At 123 Entertainment.com, we will also receive a cumulative fee of 5% of the total capital raised by the startup project, coupled with a fixed fee of $ 20.95.
- payment methods
Our one goal at 123Entertainment.com is to take over the world, so we plan to create payment methods that work for all of our customers at different times and places. We will create very secure and affordable online payment options. We have partnered with a renowned bank in the United States to be able to provide the following services:
- Payment by card (credit cards, debit cards, chip cards, etc.)
- Electronic banking system
- Mobile banking
- Other electronic payment procedures
Crowdfunding platform business plan Financial forecasts and costs
At 123Entertainment.com, we understand that the budget required to launch our crowdfunding online booking site will depend on the approach and size, which we believe will be very important. We also understand the importance of fundraising in any business venture that is a crowdfunding business.
We have visions on 123Entertainment.com and believe we’ll refund any pennies spent on start-up capital. Here are the ways we plan to spend our startup capital:
- A business that includes a fee in the United States of America will cost $ 750.
- Our price for liability insurance, permits and licenses will be – 10,000 USD
- Our budget for the purchase of office space or warehouse, which will house the number of employees for at least 6 months (including rebuilding the facility) will cost – 100,000 US dollars.
- Office equipment (computers, printers, projectors, markers, servers) / Internet, furniture, telephones, cabinets and electronics) will cost – 100,000 USD
- the amount required to purchase the required software applications – $ 3,500
- The official website launch will cost $ 4000
- Our price is to pay bills and employees for at least 2-3 months – $ 70,000
- Additional fees such as business cards, signage, advertisements and promotions will cost – $ 5,000
- our advertising and marketing budget $ 2.00,000
- Miscellaneous – $ 10,000
Based on our detailed analysis above, we would need $ 2,303,250 . start a business that connects entrepreneurs to micro-investors. This business will be a world class business that will cover all corners of the world.
Generate Funding / Launch Capital Funding for 123Entertainment.com
The decision to launch 123Entertainment.com was made by Daniel Paris and Michael King, who recently brought Seth Williams to their board of directors. These three men have extensive experience in web development, business development and financial management that we know and hope to bring to our business and help it become a center of success and financial power.
The start-up fund required to run 123Entertainment.com is quite significant, but we believe we have the capacity and the mindset. These are the areas in which we intend to generate our seed capital;
- Collect part of the start-up capital from personal savings
- Raise some seed money from friends and other extended family
- Attract business angels and venture capitalists
- They attract most of the bank’s start-up capital (line of credit).
Note : We are looking to raise $ 1M for $ 1.5M in 5 year development, launch and operating cost projections. Potential financing needs may be required for a consumer brand and associated, currently unseen, investments in partnership opportunities.
CROWDFUNDING BUSINESS: A strategy of sustainable development and expansion
At 123Entertainment.com, we are focused and expect the business to grow rapidly in the first three years of operation, and we also plan to implement marketing campaigns that will effectively target individuals and businesses. companies looking to start a new business. or develop new products within our demographic at 123Entertainment.com.
At 123Entertainment.com, we plan to develop our own internal ad programs in the near future which will include static ads on the website. We believe these advertisements will be sold directly to advertisers and not through third party systems such as Google Adsense. During the same period, we will also strive to develop product partnerships and corporate sponsorships, which will further increase the visibility of our business and increase revenue streams.
123Entertainment.com will receive a 10% commission for its online booking area each time. we enter into an agreement between the buyer and the seller of entertainment services. We think this is called a reservation. Since we launched our current booking engine, 123Entertainment.com has successfully booked over 100 reservations with an average commission of $ 100.
It is important to note that this was done without any major publicity and with our workforce working only part time in the company. 123Entertainment.com does not charge any fees to the customer (i.e. the buyer) for the use of its service. We also have a transactional revenue model similar to sites like eBay.com; It shows how serious and organized we are at 123Entertainment.com.
Checklist / checklist
- Company name availability check: complete
- Company registration: complete
- Opening of corporate bank accounts with various US banks: complete
- Opening of platforms for online payments: complete
- Application and obtaining of the tax identification number: in progress
- Business license and permit application: Completed
- Purchase of all forms of commercial insurance: Completed
- Feasibility study: completed
- Rental, reconstruction and equipment of our establishment: finished
- Receive part of the start-up capital from the founder: Completed
- Loan requests from our bankers: in progress
- Preparation of the business plan: completed
- Compilation of employee handbook: complete
- Drafting of contractual documents: in development
- Development company logo: finished
- Graphic design and printing of packaging materials Marketing / promotional material: Completed
- Recruitment: in progress
- Purchase of necessary software applications, furniture, office equipment, electronics and equipment Facelift: In progress
- Creation of an official website for the company: In progress
- Strengthening the reputation of companies (Business PR): in progress
- Occupational health and safety conditions: ongoing
- Establishment of business relationships with banks, financial institutions, suppliers and major industry players: ongoing