Funding Proposal
An inherent problem most new and emerging entrepreneurs face at the start of their business initiative is to acquire sufficient outside capital. In most instances they lack collateral to secure a loan from a traditional resource such as a bank. Often new entrepreneurs need to rely on friends and family or own savings to get their business off the ground. However, some entrepreneurs have successfully sought financial assistance directly from the general public (the “crowd”), acquiring relatively small amounts from several investors to make up the capital amount they need to set-up and launch their project or business idea. This technique is known as “crowd-funding”. Typical projects are those that offer investors something unusual and innovative; crowd-funders are likely to contribute their expertise to help grow the project; they are even keen to extend their skill set to offer tangible support.
Investing more than money – Entrepreneurs benefit from external support, including preparing a business plan, problem resolution, sales and marketing, advertising, display, transport, communication technology, bookkeeping, warehousing, factory premises, finding outlets, buying raw materials, cost-effective manufacture, competition, branding, employing personnel, negotiating with buyers, and so forth.
Social Responsibility – Deep and intertwined in our humanity is a need to explore social responsibility and become actively involved in projects that will empower impoverished communities. Although the need for large-scale job creation and self-employment opportunities is a constant challenge to halt the rising number of unemployment, a more centralized capital funding mechanism that should be more fully utilized is crowd-funding. In brief, crowd-funding is a social response to helping new entrepreneurs start-up micro and small businesses. It is perhaps one of the most powerful developments in our modern-day socio-economics, and promises to transform the economic landscape to alleviate poverty. Whether it’s funding start-up companies selling crafts, eco-tourism, early childhood development, youth development or community projects such as agriculture — well-managed, collaborative ventures supported through crowd-funding can bridge the collective creative and productive capacity of entrepreneurs with other more sophisticated resources (access to skills training, new technology, new farming techniques, export opportunities) to generate social and economic upliftment.
Funding Proposal – A funding proposal is a written request for money to start or complete a project. The layout of the document must be organized in a professional manner and contain relevant details about the proposed project, including a narrative project overview (executive summary); statement of the problem (motivation to start or complete a project); description of the company or sole proprietor running the project; project details; goals and objectives; facilities; equipment, and supplies. The proposal must also identify the clientele (retailers and end-user customers); implementation plan (methods); staff/administration; resources (available resources and needed resources); licences and permits; a detailed explanation of how the proceeds will be used and repaid (if a loan), and an evaluation plan. A funding proposal is generally used when a large sum of money is being sought from several potential donors (businesses, philanthropists).
Implementation plan:
- Work plan – How will you run the project to achieve specific objectives?
- Risk assessment – Identify any critical risk factors that may impede the project.
- Organisations and Partnerships – List relevant stakeholders in the project and describe the roles and responsibilities of each.
- Project Communication Strategy – What communication strategies will be employed to facilitate ongoing communication with stakeholders?
- Evaluation – How will you assess the projects’ impact?
- Project Timelines – How will the project timelines be monitored and managed?
- Budget – Compile a budget estimate.
Contact Theresa (ecottage@gmail.com) to research and write a Funding Proposal and tools to communicate with stakeholders (newsletters, pamphlets, social networks).
