Adaptation of this business plan is possible for similar project around the world.
Business Plan Description
Project idea. The proposed site will be involved in the field of crowdfunding. The crowdfunding is fundraising in the form of small contributions from a large number of people for implementation of some project or idea. But crowdfunding is just one part of the concept. The project also will be implemented in such directions as traveling together to help people in need and building community with likeminded people.
Business Model. About 5% of raising money will be deducted for organizers of fundrising. But it’s free to sign up, to ask for help, and to contribute to help.
Market Analysis. There are four types of segments in crowdfunding market. They are: charity, bonus, equity and debt. Proposed project will belong to charity model. It is important to notice that such type of crowdfunding collects the largest sums of money: 27% of sites are working on charity base and collect 49% of all funds.
There are more than 1 500 crowdfunding platforms in the world. The most of them – 82% – is based in North America, another 10% – in Europe and the rest – in other regions.
The average size of donation is about $75. The total volume of all segments of crowdfunding market is more than $5 bln. with the growth rate of 89% in 2013.
Competitive Environment. The most serious competitors are following:
Competitor
Number of projects
Sum of fundraising
Compete Rank / US Alexa Rank
GoFundMe
300 thsd. projects
About $450 mln.
428 / 344
Kickstarter
70 thsd. creative projects
$1 bln.
871 / 358
Indiegogo
140 thsd. projects
$100 mln.
973 / 799
Teespring
2,048,007
products delivered
–
1,086 / 628
Other popular crowdfuning sites are characterized by such investment:
Competitor
Investment
Teespring
$21.9 mln.
YouCaring
$50 thsd.
Causes
$16.4 mln.
GiveForward
$2.5 mln.
Patreon
$17.1 mln.
Fundly
$7.8 mln.
Marketing Plan. Such marketing tools as advertising in YouTube, Social Media Marketing, Social Media Optimization, Search Engine Optimization and writing of articles for blogs will be used. The budget for marketing will be about $10 800 per month.
Organizational Plan. It is planned to involve 5 employees except СEO: financial director, web-programmer, web-designer, social media marketer, specialist in users relations. The payroll expenses will amount 13 000 per month.Financial Plan. Indicators of project economic efficiency look as follows:
Financial Indicators
Units
Value
Revenue for 3 Years of Project Implementation
USD
2 985 000
Necessary Investment
USD
164 650
Net Income for 3 Years of Project Implementation
USD
2 068 500
NPV
USD
1 544 486
IRR monthly
%
13%
IRR annual
%
319,10%
Payback Period
months
16
