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2017

A business proposal

Merry TIMES

[MERRY TIMES]
A business proposal on NGO CONSULTANCY services.
CONTENTS

slogan............................................................................................................................................................................................ 3
mission statement ................................................................................................................................................................... 3
Profile ........................................................................................................................................................................................... 3
Our objectives and services ................................................................................................................................................. 4
Procedure............................................................................................................................................................................... 5
ORGANISATIONALSTRUCTURE ........................................................................................................................................ 7
OPERATIONAL PLAN ............................................................................................................................................................. 9
FEASIBILTY ANALYSIS ........................................................................................................................................................ 11
A. Marketing feasibility .................................................................................................................................................. 12
B. Financial Feasibility .................................................................................................................................................... 13
C. Social Feasibility ........................................................................................................................................................... 13
D. Political Feasibility...................................................................................................................................................... 13
E. Legal Feasibilities ........................................................................................................................................................ 14
F. Ecological Feasibility .................................................................................................................................................. 14
MARKET SURVEY REPORT ................................................................................................................................................ 15
GOALS AND OBJECTIVES ............................................................................................................................................... 15
SURVEY RESULT ANALYSIS ......................................................................................................................................... 19
SERVICE INTERFACE : Website ....................................................................................................................................... 20
MARKETING STRATEGIES ................................................................................................................................................. 24
OUT OF THE BOX MARKETING ................................................................................................................................... 25
PROMOTIONAL ACTIVITIES ........................................................................................................................................ 26
Start Up Expenses and Capitalization ........................................................................................................................... 27
Funding Strategies for raising Start-Up Capital ........................................................................................................ 29

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SLOGAN

Give your share to show your care!

MISSION STATEMENT

To generate donations for NGOs and other charitable organization and encouraging people to
donate generously by making sure the donation reaches to the right place/people .

PROFILE

The challenge which the charity organizations face is raising their funds. A lot of investment
must be done in such activities. All Non-Governmental Organizations enlistment requires
sufficient financial properties for appropriately finishing their exercises. Then once again, the
huge bulk of them impart a routine concern and, that is, lack of undertaking subsidizes.

With the emerging awareness of the hitches of the society and the need to immaculate the can
of worms, a lot of organizations have come forward to take the responsibility. Many small
groups of people have taken the initiative of spreading the awareness, schooling the
ignoramus, preserving the environment, developing a sense of social responsibility. These
congregations face yet another issue of competition in fundraising. Not only fundraising is a
difficult task but with a plethora of such associations, the trustees get confused about their
investments. As the NGOs are consistently broadening, there is a rivalry for securing supports.

Not every NGO is engaged in serious social welfare work. Many are fraudulent and many are
there without much serious intent. Amidst this, NGOs doing real work face several challenges.
They face situations where they have to repeatedly vouch for their credibility, struggle to reach
out to donors and have a trouble in collaborating with government agencies.

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It is a common experience that there have been serious charges of misuse and
misappropriation of funds received as grant-in-aid form the government, foreign donors and
raised through their own resources by most of the NGOs. These NGOs may reflect its image to
other NGOs who are working with dedication and commitment.

MAIN IDEA

Our organization aims at catering to the needs of the NGOs and the other related
organizations. Our main aim is to provide funds for the charitable works and events
throughout the whole country by the means of crowd funding. Crowdfunding is when a large
group of people contribute to any given cause. It gives these NGOs and Non Profits a chance
to reach an extended audience, reduces time, cost and effort of fundraising.It goes without
saying that registering with us, gives the NGO access to the already established customer
base and audience of the crowd funding platform. Moreover, our organizationis known for
our transparency and the quality of service which makes all the transactions safe and
efficient for the trustees. At the same time the NGO enjoys the benefits of a generous
donation. Our team can offer some kind of rewards to the donors in order to promote and
appreciate their generosity. Other physical forms of rewards can also be used to encourage
more donors to donate. Personalized certificate of contribution or mementos can be handed
out as a reward to the donors.

OUR OBJECTIVES AND SERVICES

Ngo consultancy provides management services to non-revenue organizations located in


different parts of India. Our objective is to allow Indian Non-Government Organizations by
structuring and documenting their NGO project in achieving their objectives of producing a
sustainable voluntary sector. An enhancing quantity of resources could be raised on the
strength of relationship and trust between Non-revenue companies, government agencies and
the civil society.

Its a daunting task for the NGOs to come up with the right communication to connect with
their potential donors. Our consultancy firm is a legal arrangement in which an individual (the
author) gives fiduciary control of property to a person or institution i.e, the trustee(s) for the
benefit of beneficiaries. Our team of specialists can get ready persuading and innovative
undertaking ideas and arrange relevant supporting archives. Our team can provide a direction
to the trustees and secure them about their investments.

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Financing firms provide support and funding to non-profits, grass-root level NGOs, companies;
but the companies provide funds and support according to their own standards, criteria and
terms. We are not associated with any company, we do not recommend or suggest any
company or organization for any function.

Our team also ensures that transparency is maintained during the transactions. We make sure
that only registered NGOs avail our services so that there is no fraud in the whole procedure.
We make sure that right services are provided to the NGOs in right time by maintaining a
database and linking it to AADHAR CARD.

Not only are we beneficial to these organizations but also we provide a guidance to the donors.
For donors, our firm provides confidence and due diligence. We provide a platform to the
donors to show their generosity by donating for a noble cause. We make them aware of how
their donations could make a difference. We dont charge our donors, and our services and
registration process is free for them. Our project leaders will periodically update donors on the
progress of the projects, just like a public company updates shareholders with quarterly and
annual reports.

PROCEDURE

Collection of resources through crowd funding: We will create a platform, application or


website, where people can provide donations. All they have to do is to register themselves
on our app/website.
The donors have to register themselves on our website before making any kind of donations.
Registration form will be easy & simple to fill only needing basic information. After creating a
profile the donors can easily donate their money to any cause, campaign or any specific NGO
of their choice.
There will be a list of choices on the mode of donation of the money like payment through:-
Online banking
Credit/debit cards
Online wallets like paytm, mobiwik etc.

Subscriptions for NGOs: NGOs who want to enjoy our services have to register online
through our website and fill in proper information and upload few important documents for
verification.
After submitting information, it will take around 1-2 days in which our technical team will
verify all the information. After that they will be contacted by our team regarding our
services and some paper work .at last they have to choose a payment plan of
monthly/quarterly/bi-annually/annually and make payment to enjoy our services.

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Creating a databse: A common database will be created which is shared WITH the
associated NGOs.
The database will provide a triangular relation between us, the NGO linked and the
donee.
The NGO needs to enter the following information about the donee
Name of individual/ group/institution
The person receiving donation in case of a group or institution
Gender(for individual)
Phone number
Address
Reason for financial support(specified)
Amount needed
Amount received
Adhar card/voter id verification

Tracking of donations made: The NGOs are required to share information about the
donee or the incharge of the donations being made based upon the unique
identification system ( Adhar Card/ Voter ID).
A live updation system will be developed on the database which will provide all required
information, as soon as a donation is made, about:
Who received the donation(as an individual or as an institution or group)
Date and time of donation.
Place where donation was made.
Amount of donation required.
Amount of donation received.
Reason for donation.

This will help proper auditing of the NGOs working with us and help us achieve the
transparency we targeted for with real time information.

As we get the confirmation of the donations being made,we notify donors accordingly,
thanking them for their donations and by whom the fund is received.
.
People donating will be notified: As the items donated by the person reach the right
person, a notification will be sent on the donors phone number. The notification will include
thank you note with some basic details of the done.

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ORGANISATIONALSTRUCT URE

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Board of directors

Highest policy- making body in a consulting firm.


Exercises and discharges its responsibilities of high-level policy formation, evaluation
and controlling the firm governance system.

Chairman:

Chairman of a consulting firm manages and provides leadership to the Board of


Directors of the Company.
Chairperson must ensure that the Management Committee functions properly, that
there is full participation during meetings.

The Company Secretary:

This is a vital link between the company and its Board of Directors, shareholders,
government and regulatory authorities.
Ensures that Board procedures are both followed and regularly reviewed and provides
guidance to Chairman and the Directors on their responsibilities under various laws.
Commands high position in the value chain and acts as conscience seeker of the
company.

Managing director:

Managing Director ensures the business performance heads in a positive direction.


Primarily the Managing Director will be responsible for implementing company policy
and any changes to it
It is also the role of the Managing Director to convene a Board of Directors and manage
any communication between the Board and the Chairperson/Shareholders.
Responsible for representing the company in public at events or with the press.
An understanding of finance related issues in order to analyse company performance

Technical team functions:

Technical team can help in handling our technology needs & roadmap and guiding us in our
technology planning and adoption.

Support Team Funtions:

Support all the problems in Clients.


Analyze if any error is coming in any of the report.
They have to develop new things and release transport request to quality service

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Assists in the development of requirements and specifications.
Notifying donors accordingly about how their donation has helped someone.

Administrative:

Research Associates Functions:

Conducts or assists in employment recruiting and interviewing of new administrative staff.


Trains new administrative employees, allocates and assigns work, and takes an active role in
evaluation of job performance.

Accounting Team Functions:

Leave Day liability balance calculations;


Future Income and Expenditure budget;
Monthly Fixed Cost Assessment;
Debtors and Creditors Lists;
Statement about your sustainability strategy and entity as a going concern.

Auditing Team:

This team will ensure the NGOs who have subscribed for our services will be inspected for their
authencity and background check.

Inspection Team:

This team will ensure maintenance of the database and in case any suspicion arises regarding
the allocation of the money by NGOs , the detail will perform a detailed inspection and make
sure the donations are going to the right place.

OPERATIONAL PLAN

We have created a platform (app/website) which can collect monetary funds and donations
through crowd funding. Then releasing these donations to the needy via different NGOs ,
schools, orphanages etc and making sure that the donations are being reached to the right
people by maintaining a database and linking it AADHAR CARD.

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CREATING A PROFILE
For donors
The donors have to register themselves on our website before making any kind of donations.
Registration form will be easy & simple to fill only needing basic information. After creating a
profile the donors can easily donate their money to any cause, campaign or any specific NGO of
their choice.
There will be a list of choices on the mode of donation of the money like payment through:-
Online banking
Credit/debit cards
Online wallets like paytm, mobiwik etc.

For NGOS
NGOs who want to enjoy our services have to register online through our website and fill in
proper information and upload few important documents for verification.
After submitting information, it will take around 1-2 days in which our technical team will verify
all the information. After that they will be contacted by our team regarding our services and
some paper work .at last they have to choose a payment plan of monthly/quarterly/bi-
annually/annually and make payment to enjoy our services.

ALLOCATION OF THE RESOURCES


The resources generated through crowd funding will be allocated to different NGOs according to
their need and amount of donations received.

CREATING A DATABASE
A common database will be created which is shared WITH the associated NGOs.
The database will provide a triangular relation between us, the NGO linked and the
donee.
The NGO needs to enter the following information about the donee
Name of individual/ group/institution
The person receiving donation in case of a group or institution
Gender(for individual)
Phone number
Address
Reason for financial support(specified)
Amount needed
Amount received
Adhar card/voter id verification

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The NGOs are required to share information about the donee or the incharge of the
donations being made based upon the unique identification system ( Adhar Card/ Voter
ID).

TRACKING OF DONATIONS MADE

A live updation system will be developed on the database which will provide all required
information, as soon as a donation is made, about:
Who received the donation(as an individual or as an institution or group)
Date and time of donation.
Place where donation was made.
Amount of donation required.
Amount of donation received.
Reason for donation.

This will help proper auditing of the NGOs working with us and help us achieve the
transparency we targeted for with real time information.

As we get the confirmation of the donations being made,we notify donors accordingly,
thanking them for their donations and by whom the fund is received.

Problems that may occur

Our main sort of financial support will be from crowd funding. Problems will arise if we do not
get enough funds.

Corruption within the organization/ institution that has received the final donation may spoil
our basic idea of working, since our work is limited until the final donation being made.

FEASIBILTY ANALYSIS

Feasibility analysis is the process of determining whether a business idea is viable. The main
purpose is that it helps you:

To assess the merit of your business idea

Determine whether there is a market for your idea

Whether the idea is financially viable

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Overall demand for new products, services, or ideas

Characteristics of like customers (such as demographics and donating behavior)

Characteristics of likely competitors.

A. MARKETING FEASIBILITY

It includes-

Description of the Industry:A private consultancy company which looks into the transactions
made by donators to NGOs and keeps a check over the utilization of that money or if it has
been appropriately for the right cause only.

Current Market Analysis: People are growing more and more conscious these days and the
need for a trusted consultancy provider is high. Taking the advantage being one of the firsts in
this sector, the current market set for us seems favorable.

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Competition: No such consultancy group in India is not formed yet which has same working
idea as our so we are unique in our concept hence not much competition.

Anticipated Future Market Potential:As our company start growing then there will be an
application launch, which will thus help donators to keep a check on their donations as well as
more donators can be added easily.If something unfortunate occurs and there is immediate
need of donation to some part of country the money can be very easily collected through
online portals.

B. FINANCIAL FEASIBILITY

1. Initially very less investment required. We only need specialized marketing team and a tech
person to handle website and social queries .Company will work with a profit margin of 10per
cent or according to the amount donated.

2. By end of one year we will be able to generate revenue approximately needed for the
sustainability of our company.

3. Revenue generated will be invested in further expanding the company and also for the CSR
policies of our company as we are earning for the good cause so some money has to be spent
on good cause only.

C. SOCIAL FEASIBILITY

1. Increasing consciousness of the people in the society towards having a proper transaction
system for good cause and which is going to help then getting famous also.

2. There are people who have influences on the others to or not to purchase some products
orservices; they are called reference groups. Small groups may be a part of reference group.
Thus, recommendations can play a vital role in increasing the sales. As in our marketing strategy
we are arranging meetings with community groups.

3. Growing demand of transparency in every transaction is the need of new generation. So


certain people can come forward and start donation if they were not doing do earlier.

4. The website can also act as a social site which can connect people together if they want to
donate in groups.

D. POLITICAL FEASIBILITY

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1. Political factors play an important role in any business, especially regulations. As recently
people have seen so many corruption stories, now people want something which ensures that
they are not cheated.

2. The legal aspects will also be considered and money of big companies will only be taken
when they have NOC from different government departments.

3. The working of our company will be following the law of the land where it is working and no
such step will be taken which can make the name of company degraded.

E. LEGAL FEASIBILITIES

1. E-commerce has generated tremendous interest among various stakeholders and


entrepreneurs in India. Indian government is also interested in helping the e-commerce
entrepreneurs and stakeholders in having a trouble free environment.

2. Indian government is also committed to protect the socio economic interests of India. As a
result the government is bringing policy reforms but in a bit by bit fashion. However, policy
clarity, especially a good techno legal framework, in India is still missing.

3. The Information Technology Act 2000 (IT Act 2000) governs the online issues of e-commerce
in India. IT Act 2000 is the sole cyber law of India. The cyber law of India mandates that the e-
commerce entrepreneurs and owners must ensure cyber law due diligence in India.

4. With E-Commerce business abound, you need to make sure that you should choose a unique
domain name for your E-Commerce business. Addition of VAT for all applicable products and
pay the taxes to the government.

5. To make the E-Commerce business a separate legal entity federal tax ID number from IRS
(Indian Revenue Services) is required.

F. ECOLOGICAL FEASIBILITY

1.Our company will be using no paper in any type of use (until its money for donation).

2. Our company where ever situated will be mostly using solar energy for the working.

3. As our company is service based so the carbon footprints will be minimized and cause
minimal harm to environment.

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MARKET SURVEY REPORT

GOALS AND OBJECTIVES

To understand the donation capability of people

To understand the willingness of people to donate

To understand the modes and methods of donation

To understand the public view on the transparency exhibited in the activities of NGOs
and charity organizations

To understand how transparency in the charity organizations will affect monetary


donations generated.

SURVEY DETAILS

Survey Topic : Monetary Donations

Sample size : 79

Mode of Conduction : Social Media

Conducted via : Google Forms

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SURVEY RESULT ANALYSIS

According to the results of the market survey conducted:

The probability of people donating is very rare and the amount of donations generated
is quite low ( less than Rs. 10,000 annually).

People mostly give their donations to NGOs or randomly. This is a good opportunity
channel these random donations to NGOs or charity organizations.

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People have very limited knowledge about transparency exhibited in the charity
organizations and consider transparency to be a deciding factor in increasing their
desire to donate.

This is exactly why we can increase the monetary donations made by making the NGOs and
charity organizations transparent

SERVICE INTERFACE : WEBSITE

NGO Consulting Agencies that have an existing website available

(Ngosindia.net) Chanakya NGO Consultancy (a team of experienced consultants who have


been providing consultancy services related to NGOs, Social Welfare Schemes and Social
Work since 1995.

1. Caters NGO Consultancy Services to Non-Governmental Organisations (NGOs), Non-profit


companies and other types of organisations involved in social work across India.

2. Services on website- include NGO Registration, Support for NGO Funding, Support in NGO
Grant, Designing Project Proposals for funding, developing the NGO Funding Projects for
grant approval, Documentation, Management of NGOs and project implementation work.

3. Provided connections between NGOs only, hence only the needy to needy part is being
catered to, not Needy to the Provider

(http://www.ngoconsultancy.in/mobile/) NGO Consultancy was formed to provide expert


services and work as a catalyst for obtaining grant-in-aid from different sources.

1. This organization works as a link between NGOs working in various parts of India and
contributor firms.

(Ashokaconsultant.com)

Ashoka Ngo Consultancy is a unit of Ashoka Group It provides consultancy services to NGOs and
corporate sector ONLY.

1. .It provides technical support for strengthening capacities in terms of keeping proper
documentation, certification, information technology, accountancy, monitoring & evaluation
and project planning & implementation.

2. Thus, helps NGOs only.

Result:

Chanakya

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1. Catered to NGOs only, thus, don't have same scope and goals as our own website

2. Was not interactive as only contact details were given, no portal for actual interaction via
website itself

NGO Consultancy.com

1. Has same scope as we do as it can connect contributors to the NGOs

2. Not an interactive website, lacks the usability and ease of access provided by our app

Ashoka Consultancy

1. They have an interactive website as you can clearly ask your queries by registering yourself
first and then asking details about anything.

2. Only catch here was that they catered to NGOs only, thus having an incomplete version of our
scope as they don't connect contributors to NGOs rather help NGOs that are new to get
developed.

All in all, no apps were found and the websites found were not at par with the interaction we
provide.

Based upon the recommendation of the review we have suggested a basic skeleton of our
website. Attached below are the screenshots of some of its tabs.

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Mid-sized, Informational and Business website:
Such types of website already have all features of the basic website with additional sub-pages
added into it
With company logo, text-based content, and possibly some of its photos.
Website pages included in the website will be 10-15.
Some of the miscellaneous features that can be included are:
1. Social Media Links and Feed
2. Blog and Press release Column
3. Email and Newsletter sign-up
4. Some other features like Photo Gallery, Slide-show, Calender etc.

Which factors contribute to the overall cost of Website Development?


1. Number of pages:
The amount of pages that needs to be integrated into the website effect immensely in deciding
the cost of the overall website. The more pages you integrate with the website, more would be
the development cost of the website.
2. Designing Style :

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Website designing is the key factor that decides the look and feel of the website. Website
designed should be simple and elegant so that it grabs user attention. Less the inclusion of
heavy videos, animations and javascript based components, more will be the flexibility of the
website. If you engage more complexity in website design, more will be the development cost.
3. SEO Integration:
to promote website and to avail some basic SEO services than it would include some extra
cost in your project cost estimation. Generally, such services would include On-Page SEO, Off-
Page SEO, Social Media marketing and more.
4. Database Integration:
Integration of Database requires in-depth technical knowledge and troubleshooting expertise.
We need to develop and integrate database within our website, it will lead to more expense in
our website development cost.
5. E-Commerce Functionality:
Integration of E-commerce functionality is like adding up the entire development module. Lot's
of things needs to be associated with products page, products description, shopping cart
module, payment gateway module, product back-end management and much more. It's like an
addition of sub-module in the one entire module. It will lead to increase in overall website
budget and will significantly affect the budget.
6. CMS:
Dynamic CMS website needs the creation of multiple HTML pages and maintaining the same.
There are many key factors involved in the management of dynamic content, images, HTML
pages and much more. Development of such advanced CMS will lead to increase in the budget
of website development.
3 things that can hike up the cost of any website:
1. Integration of Customized Features and Functionalities
There are hundred and thousands of features under the hood that can be integrated like photo
gallery, video player, email marketing, social media, plug-ins, marketing, E-commerce etc. Such
features coupled in modules or extension can incur the additional cost of a minimum of RS.
5000
2. Additional Creativity Option
We will have with 2 -3 designing options. If we need more customization and enhancement of
designing capabilities like animations, info-graphics etc, it will cost you additional expense.
3. Integration with Existing client database or Software
This scenario is to replace the existing site while creating a new one. Here, we need to integrate
with the existing SDK's, third-party tools and plug-ins that are currently working and live.

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MARKETING STRATEGIES

Marketing is a form of communication between us and our customers with the goal of
providing our service to them. Communicating the value and the need of our service is a key
aspect of marketing.

The Four P's of marketing include identifying and developing our service, determining its price,
figuring out placement in services to reach customers, and developing a promotional strategy.

To succeed at building business marketing strategies, we have to find a reliable way to bring in
low-cost leads. As a start up our budgets are tight, our time is limited, and ROI is also very
important when it comes to modern marketing campaigns. Online marketing strategies are an
excellent avenue for businesses because they're cost-effective and easy to measure. Creating a
strong, scalable online marketing strategy helps us to:

Attract new customers through targeted paid search campaigns, newer and well
researched designs.
Engage and nurture leads with marketing materials that actually speak to customers in a
niche market.
Develop high-impact search strategies with limited budget, time and resources

By optimizing our process of marketing, advertising and promoting our small business products
or services online, we'll be able to set up a recurring stream of leads so we can attract and
retain customers and improve our bottom line.

The DIGITAL EXCELLENCE CAPABILITY FRAMEWORKwill help us review how effectively our
digital marketing is managed across seven key areas:

1. Our Strategic approach


2. Evaluation and performance improvement process
3. Management buy-in to investment in digital marketing
4. Resourcing and structure for digital including integration
5. Data and infrastructure or platforms
6. Integrated customer communications across Paid-Owned-Earned media

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7. Integrated customer experiences across desktop and mobile devices

The DIGITAL MEDIA MARKETINGtechniques would include:

1. Facebook
2. Instagram
3. Twitter
4. Online campaigns
5. Awards
6. Paid ads

Need for online marketing is better as it has following features.

OUT OF THE BOX MARKETING

1. Reaching Society Business Meeting: As the target market are working professional, we can
go to the regular society meetings and do our advertisements through brochures and some
kinds of events. And spread the work and need of our organization in todays time.

2. Collaboration with NGOs: Some NGOs can recommend us to common people and help us to
grow. As some new NGOs are also growing and they can ask customers to pay through us as we
will be acting as clear stream of transactions and that may make customer to become
permanent donor and even they can encourage others to pay different NGOs through our
channel only.

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3. Campus Ambassador: We can take the help of our friends in different colleges and ask them
to organize some simple marketing events. As their parents will also be donating in some NGOs
and then they can pay through us and see how their money is further used.

4. Through media: By this we can expose certain NGOs which are easily making fool to donors
and lying them about the donation utilization. This may make potential donors aware and need
of our consultancy for auditing these NGOs.

5. Making donors famous: Advertising the name of donors who helped in executing certain
problem from the society by announcing their names before movies or publishing in
newspapers and thanking them gratefully for their support for this good cause. This may make
the donors appreciated and also induce their friends or family to become donors.

PROMOTIONAL ACTIVITIES

1. Certificates and Titles: The donors can be given certificates for each and every time they
donate and also titles like PLATINUM DONOR, GOLD DONOR, EVERGREEN DONOR etc., as a
mode of appreciation and acknowledgement of their efforts.
a. PLATINUM: Donor who has reached x amount of money as donations.
b. GOLD: Donor who has reached y amount of money as donations. (x > y)
c. EVERGREEN: Donor who has been donating every year for at least 3 years.
2. Awareness Walks and Camps: Awareness walks and camps can be organized through social
media updates so that people become aware of the needy and their conditions and are
motivated to help them. Not only does this educate them about the real scenario of the
people who are in need of help and what their help means to the needy but also about the
way they can help and what our organization offers to do.
3. Flash mobs, Freeze Mobs and Street Plays: All to make people aware of the need to donate
and what effect it has on the people who need help to sustain their lives.
4. Visits to educational institutions like schools, colleges, universities: Visit to educational
institutions to spread awareness amongst the youth, our future. They might in turn make
their families aware of our efforts and be interested in acting as volunteers or become
future donors themselves.
5. Non-Monetary Rewards: We can make our donors feel good by featuring them on our
website and our campaigns. We can have special column for Donor of the Month in our
website as well. We can also have a stories and experiences section on our websites to let
our donors share their experiences of working with us. The titles and certificates also come
under such rewards.

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6. Lucky draws: We can have limited period cashback offers, i.e., the donor gets a said percent
of his donation back as a lucky draw contest winner or some special event winner, etc.
7. Welcome Offers: The donors who are donating for the very first time can be given a
cashback offer of an agreed percentage of the amount they are donating. This is done to
induce more and more donors to join us.

START UP EXPENSES AN D CAPITALIZATION

The Company will have many expenses even before we get to operate our business. Its
important to estimate these expenses accurately and then to plan where we will get sufficient
capital.

What does it cost to start a business?

Expenses before the starting date such as legal, design etc.


Cash In Hand: Enough money in the bank (an asset) to support the company during the
early months before sales reach break-even levels.
Others such as inventory, furniture, buildings, and equipments.
Expenses before startup:

Most businesses have some expenses before they ever open. Legal expenses (for example, such
as setting up business name and logo), website costs, infrastructure requirements etc. Most
businesses need money in reserve when they start. Sales takes time to grow but the business is
spending on payroll, rent and other fixed costs from the very beginning.

1. RESEARCH AND DEVELOPMENT: We would start a business after thorough research


about the industry and our competitors. Only after careful feasibility study will we
decide on how to go about our business. We would need to hire any market research
firm for helping us with the research process. Their fees will be added to the R&D costs.
2. LEGAL: Copyright of Name, Logo, Registration and necessary documentation.
3. INSURANCE: Insurance of the company in case of any emergency and also medical
insurance for each employee.
4. OFFICE RENT: We would start our business by renting a suitable place at a good
location. This would be our office and we would be paying the landlord security money,
rent and also maintenance expenses.
5. OFFICE EQUIPMENT AND SUPPLIES:Desktops, Telephones, Office stationery, etc.
6. TECHNOLOGICAL:Such expenses include the fees for building and running a website,
buying and installing software, etc. We are self-sufficient for creating a website and we

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would create one ourselves. Also our friend from an IT department has agreed to set up
other necessities for the website like SEO etc. at a discounted rate. Other expenses here
would include domain name acquisition and publishing the website.
7. MARKETING AND PROMOTION:This includes costs for printing banners, visiting cards,
brochures, advertisements on paper and various websites, etc.
8. EMPLOYEES:Costs like salary of the employees, bonus or incentives, paid leaves, etc. are
included here.
9. OVERHEADS:Any small unattended expenses would be covered under this category

Total expenses: INR 2,52,000

Opening a new business has a way of costing more than anticipated even after having done the
best research. Therefore, an approach to resolve this is to add a separate line item, called
contingencies, to account for the unforeseeable. A rule of thumb is that contingencies should
equal at least 20 percent of the total of all other start up expenses.

Hence contingency amount = 20% of Startup Expenses


= 0.20 x 2,52,000

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= INR 50,400

Hence, TotalStartupexpenses = INR (2,52,000 + 50,400)

= INR3,02,400

FUNDING STRATEGIES F OR RAISING START-UP CAPITAL

Money is the bloodline of any business. The long painstaking yet exciting journey from the idea
to revenue generating business needs a fuel named capital. Some strategies which can be
adopted for raising start-up capital are listed below:

BOOTSTRAPPING

Self-funding, also known as bootstrapping, is an effective way of startup financing,


especially when we are just starting our business. First-time entrepreneurs often have
trouble getting funding without first showing some traction and a plan for potential
success.
We can invest from your own savings or can get our family and friends to contribute.
This will be easy to raise due to less formalities/compliances, plus less costs of raising. In
most situations, family and friends are flexible with the interest rate.
Self-funding or bootstrapping should be considered as a first funding option because of
its advantages. When we have your own money, we are tied to business and we try to
use it as efficiently as possible.
CROWDFUNDING

Crowd-funding is a way to raise money, awareness and support for a project, from the
people around us.Its like taking a loan, pre-order, contribution or investments from
more than one person at the same time.
This is how crowd-funding works An entrepreneur will put up a detailed description of
his business on a crowd-funding platform. He will mention the goals of his business,
plans for making a profit, how much funding he needs and for what reasons, etc. and
then consumers can read about the business and give money if they like the idea. Those
giving money will make online pledges with the promise of pre-buying the product or
giving a donation.
The best thing about crowd funding is that it can also generate interest and hence helps
in marketing the product alongside financing. It is also a boon if you are not sue if there

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will be any demand for the product you are working on. This process can cut out
professional investors and brokers by putting funding in the hands of common people. It
also might attract venture-capital investment down the line if a company has a
particularly successful campaign.
Some of the popular crowd-funding websites include Kickstarter, Dreamfunded,
GoFundMe.
ANGELINVESTMENT

Angel investors are individuals with surplus cash and a keen interest to invest in
upcoming startups. They also work in groups of networks to collectively screen the
proposals before investing. They can also offer mentoring or advice alongside capital.
Angel investors have helped to start up many prominent companies, including Google,
Yahoo and Alibaba. This alternative form of investing generally occurs in a companys
early stages of growth, with investors expecting up to 30% equity. They prefer to take
more risks in investment for higher returns.

VENTURECAPITAL

Venture capitals are professionally managed funds who invest in companies that have
huge potential. They usually invest in a business against equity and exit when there is an
IPO or an acquisition. VCs provide expertise, mentorship and acts as a litmus test of
where the organization is going, evaluating the business from the sustainability and
scalability point of view.
A venture capital investment may be appropriate for small businesses that are beyond
the startup phase and already generating revenues. Fast-growth companies like Flipkart,
Uber, etc with an exit strategy already in place can gain up to tens of millions of dollars
that can be used to invest, network and grow their company quickly.
However, there are a few downsides to Venture Capitalists as a funding option. VCs
have a short leash when it comes to company loyalty and often look to recover their
investment within a three- to five-year time window.
They typically look for larger opportunities that are a little bit more stable, companies
having a strong team of people and a good traction.
Some of the well-known Venture Capitalists in India are Nexus Venture Partners,
Helion Ventures, Kalaari Capital, Accel Partners, Blume Ventures, Canaan, Sequoia
Capital and Bessemer Ventures.
BUSINESSINCUBATORSANDACCELERATORS

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Early stage businesses can consider Incubator and Accelerator programs as a funding
option. Found in almost every major city, these programs assist hundreds of startup
businesses every year.
Though used interchangeably, there are few fundamental differences between the two
terms. Incubators are like a parent to a child, who nurture the business providing shelter
tools and training and network to a business. Accelerators so more or less the same
thing, but an incubator helps/assists/nurtures a business to walk, while accelerator
helps to run/take a giant leap.
These programs normally run for 4-8 months and require time commitment from the
business owners. You will also be able to make good connections with mentors,
investors and other fellow startups using this platform.
In India, popular names are Amity Innovation Incubator, AngelPrime, CIIE, IAN Business
Incubator, Villgro, Startup Village and TLabs.

WINNINGCONTESTS

An increase in the number of contests has tremendously helped to maximize the


opportunities for fund raising. It encourages entrepreneurs with business ideas to set up
their own businesses. In such competitions, we either have to build a product or
prepare a business plan.
Winning these competitions can also get us some media coverage. We need to make
our project stand out in order to improve your success in these contests. We can either
present our idea in person or pitch it through a business plan. It should be
comprehensive enough to convince anyone that your idea is worth investing in.
Some of the popular startups contests in India are NASSCOMs 10000 startups,
Microsoft BizSparks, Conquest, NextBigIdea Contest, and Lets Ignite.
MICROFINANCEPROVIDERSORNBFCs

Microfinance is basically access of financial services to those who would not have access
to conventional banking services. It is increasingly becoming popular for those whose
requirements are limited and credit ratings not favored by bank.
Similarly, NBFCs are Non-Banking Financial Corporations are corporations that provide
Banking services without meeting legal requirement/definition of a bank.

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