Complete Guide to Fundraising Management †MyAssignmenthelp.com

Question: Discuss about the Complete Guide to Fundraising Management. Answer: Introduction Two chaps is a from scratch safe and bakery originated in New South Wales. It was being founded by a group of friends as a food startup. However, in few years they succeeded in attracting more people with their diverse and tasty food menus and within a small time, they have been able to gain a reputation in their operating area. However, they are still operating as a startup and are having only one store as of now. Thus, in order to extend their market area along with their brand identity, they will have to open more new stores across Australia. Thus, in case, crowd funding will be the most beneficial and suitable option available for them in raising capital for their extension (Mollick, 2014). This is due to the reason that, crowd funding refers to the raising of fund from known and unknown persons in the market in order to gain capital. This concept is more appropriate for the independent business and thus two chaps being an independent business can opt for crowd funding for their business extension. It is therefore two chaps is being selected due to the fact that they one of the most prominent independent business organizations, which is required for the initiation of the concept of crowd funding. Initiation of crowd funding will help this organization in raising the fund more effectively due to the fact that they are startup organization and it is not possible for them to issue IPO in the stock market to generate capital (Belleflamme, Lambert Schwienbacher, 2014). Moreover, due to their positive reputation and goodwill in their existing operating areas, thus it will not be a difficult for them to raise fund from their existing customers. With the help of the crowd funding, two chaps can have enough capital to extend their market beyond New South Wales. SWOT analysis Effective and easy way to raise fund from the market. It is much lesser complex for the organizations to raise fund compared to operating in the stock market. Initiation of crowd funding will help the organization in enhancing their brand value in the market (Wheat et al., 2013). This is due to the reason that, crowd funding will help them to advertise their portfolio in order to attract fund and thus more people will come to know about the brand. Thus, enhancement of the brand value will be gained by the organization. Initiation of crowd funding will help them in creating an impression of ethical organization among their potential customers. This is due to the fact that with the help of the crowd funding, various stakeholders will get involve in donating fund for the organization and thus a cooperative type concept will get emerged. In case of the stock trading, business organization has to pay dividend or return to the creditors. However, in the case of crowd funding, they do not have to pay any return or dividend due to the fact that the fund being raised with the help of crowd funding will be considered as donation. Raising fund with the help of crowd funding will termed the fund being raised as donation. Thus, it will create hindrances in the general business activities of the organization. This is due to the fact that, donation accepted for business operations will create negative impression among the customers. The fund being donated by the stakeholders may have to be returned in case of any unwarranted activities (Weinstein Barden, 2017). This is due to the reason that, those who are donating will have the expectation that the organization will have only the positive outcome, which may not possible to maintain for the organization. In case of the crowd funding, two chaps may have to communicate with the donators in case of any initiation of new business activities. Thus, it will reduce the organizational effectiveness. There is no limit of raising fund from the crowd funding. Thus, the organization will have huge opportunities in attracting more donations. More people are getting attracted towards the crowd funding due to the positive feeling of helping someone to grow. Fund can be raised from any locations and from as many as people. Donators may ask for the money to be returned in future, which will create obstacles for the organization. Donators may interfere in the internal business activities of the organization due to the feeling that they have invested (Valanciene Jegeleviciute, 2013). It is not reliable and continuous. Thus, organization may not have fund from crowd funding at the time of requirement. SWOT analysis tool is being used due to the fact that, it helped to determine the positive and negative side of the concept of crowd funding for the organization (Hollensen, 2015). Thus, with the help of this tool, two chaps can design their policy of crowd funding accordingly. Moreover, this tool also helps in covering all the related stakeholders of the organizations in determining the opportunities and threats. Reference Belleflamme, P., Lambert, T., Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd.Journal of business venturing,29(5), 585-609. Hollensen, S. (2015).Marketing management: A relationship approach. Pearson Education. Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study.Journal of business venturing,29(1), 1-16. Valanciene, L., Jegeleviciute, S. (2013). Valuation of crowdfunding: benefits and drawbacks.Economics and Management,18(1), 39-48. Weinstein, S., Barden, P. (2017).The complete guide to fundraising management. John Wiley Sons. Wheat, R. E., Wang, Y., Byrnes, J. E., Ranganathan, J. (2013). Raising money for scientific research through crowdfunding.Trends in ecology evolution,28(2), 71-72.