Sample Essay On Kickstarter
Executive Summary for Kickstarter
C/O PERRY CHEN
155 RIVINGTON STREET, NEW YORK, NY 10002, UNITED STATES
Kickstarter is a modern fund provider to the projects that will not succeed with the traditional funding methods. For instance, venture capital and bank loans (Google.com). It is believed that the projects that will be funded by Kickstarter will be successful since Kickstarter will meet their funding needs.
The name of the Company will be Kickstarter. This name was chosen because it gives funds to the starting creative projects. This implies that it will provide the first kick for someone who come up with a creative project by financing him/her.
Kickstarter Company will be located in Rivington Street, New York in the United States of America. Also, this will be the headquarters of the Company will be location. This location was chosen simply because in the United States, there is adequate modern technology will be of help to the company to carry out its activities smoothly.
Kickstarter will target those people who come up with innovative and creative projects across the world. The projects must be creative for them to be funded.
1.1 Company description.
1.1.1 Shareholders of the company.
Kickstarter is a fund raising company that is directed by Perry Chen, Youncey Strickler, and Charles Adler. After trying to organize for a musical concert in 2001 and failed, Perry Chen developed the idea for Kickstarter (Google.com). This idea came into his mind after wondering if the audience would have gone online and bought the tickets, the concert would have been successful. Due to their experience in different fields, they will make sure that the company becomes successful.
Product and services
The company will offer crowd-funding platform designed to raise money for innovative and creative projects but the ownership, and the creators will retain full control of the project. For Kickstarter to fund a project, it must have some fundraising goal, a fundraising deadline and must create something by the project’s end. Kickstarter may not fund some of the projects. They include: pornographic projects and charitable. For a project to be funded it must fall under the following classifications games, comics, art, dance, fashion, music, photography, publishing, technology, theater, food and film.
A project that fits the community rules and regulations is published on the site for seeing. If it is good and creative, Kickstarter users can support the project and plead for funding of the project from Kickstarter.
2.0 Objectives of the company
3.0 Mission statement.
The mission statement of Kickstarter will be “to fund and build a community around their creative projects. Established or indie, big or small, serious or fun.”
4.0 Business management.
The company will be managed by its three founders. Perry Chen will be the company’s chairman, Yancy Stricker will be the Chief Executive Officer and Charles Adler will be the company advisor. The management team will be less concerned with short-term goals like traditional companies. The management targets to maintain and build integrity, trust and expertise of the platform of the long term goals. The company will earn no money until the goals of the funded project are met. Candidates that are working with the company will help it to create a successful campaign that is not charitable or open-ended (Stevieawards.com). The company will be wary of fraud for individual and charitable fund raising. Kickstarter is reluctant to make money on money raised for instance on personal medical bills. According to its management team, Kickstarter will emerge as an alternative source of funding various categories that will cover almost everything.
The management team has no plans of selling the company or maybe tries for an IPO. They hope to continue as a changing web based brand that will help people to attain their goals and create new opportunities.
5.0 Market share and customer.
Since Kickstarter is an international company, it will take a lead in the world. Kickstarter believes that it will lead in terms of market share in the world as compared to its close competitor Indiegogo. It will be achieved as shown in the following ways below:
Indiegogo accepts anybody, but Kickstarter will not do the same.
Indiegogo gives the option of keeping all the money if they miss their goal, Kickstarter does not.
Figure 1: Kickstarter
Source: Infographic by Simaran Khosla
The above statistics shows that Kickstarter will be the leading in the world despite the stiff competition it will face in the market.
After two years of Kickstarter’s commencement, it will be one of the most recognized companies in crowd funding. It estimates that it will cover approximately 67% of the market share with a record of serving many customers in the world.
6.0 Marketing and sales.
The favorable advantage to Kickstarter is that it does not allow projects that are not good investments. Many of the Kickstarter’s projects go on to profits; others go to the extent of losing money, and others have no intentions of making any money. In this case, therefore investors must look for projects that are likely to be profitable (Stevieawards.com). For Kickstarter to succeed or fail, it is based on whether they can advertize their idea to find interested backers. It is projected that of all company projects that may reach 20% of the funding goal, 80% on to succeed. If 60% of their goals are reached, 90% go on succeed.
Kickstarter will be highly focusing on creating many new customers. The company will also retain the existing ones and by persuasion to be able to spend more money on the company’s services. By doing this, the company will eventual meet its objectives.
The main competitor of Kickstarter is indiegogo. It is believed that Kickstarter will secure a competitive advantage in the market than its competitors for instance indiegogo. This is due to its strong management team and quality services that Kickstarter will offer to its customers. After two years of Kickstarter’s commencement, it will be one of the most recognized companies in crowd funding. It estimates that it will cover approximately 67% of the market share with a record of serving many customers in the world (Google.com).
In order to be the kingpin in the market, Kickstarter will use good marketing strategies, quality services to its customers, diversity in services provided and good customer relations for it to penetrate the market.
The business is designed to provide assistance to creative projects by financing them. For the project to be financed, it should have a specific goal and create something. The project creators will submit their ideas to the website with their purpose of the project, their fundraising goals, and their deadline. Is not a guarantee that every project presented to Kickstarter will be funded. For example, projects with no specific objective or charity may not receive funds from Kickstarter. In order a project to be funded it must fall under the following classifications: games, comics, art, dance, fashion, music, photography, publishing, technology, theater, food, and film.
When the projects will be published, they will have their deadlines to meet their goals that they were funded for.
When a project will succeed, the company will charge a 5% fee for all pledges collected. In any circumstances, the project and anything earned from it belongs to the project creator.
The main expense of Kickstarter Company is the funding money. It will need money for it to start funding creative projects. The Company plans to raise approximately $3 million for the start.
9.0 Financial projections and plans.
At the start, the company will allow 320 projects so as to meet their goals (Stevieawards.com). Below is a projection of how funds will be allocated to different fields.
The company does not provide advertising nor does it fund projects directly. Kickstarter will not provide a return on backers either will it have up-front costs. When a project will succeed, the company will charge a 5% fee for all pledges collected. In any circumstances, the project and anything earned from it belongs to the project creator.
9.1 Projected profits.
During The first year of the business, it will expect a profit of $ 130,000. Second year of its operation, it will expect a profit of $ 243,000 and the third year a profit of $ 350,000. These are the estimations of the company in the three years of operation in the business market.
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