Unit 2

Promotion of a Venture

Q1) What do you mean by promotion? Explain the concept of project. 5

A1) Promotion simply means an act of producing or developing or starting an enterprise. Venture means a business project or an undertaking especially a commercial one involving certain degree of risk and uncertainty.

Promotion of a venture is the process of starting an enterprise. It begins when an idea of forming or establishing a venture conceived either by a person or a group of persons and thereafter, go for identifying the scope, nature and size of the proposed enterprise.

Concepts of Projects

Projects generally refer to new attempts with a specific purpose and change so much that it is very difficult to define them accurately. Some of the commonly cited definitions are:

A project is a temporary effort to produce a unique product, service, or result.

(American National Standard ANSI / PMI99-001-2004)

A project is a unique process that consists of a set of coordinated and controlled activities, including start and end dates that are carried out to achieve the goal of confirming a particular requirement.

Includes time cost and resource constraints.(ISO10006)

Examples of projects include basin development, irrigation facility development, new crop development, new animal development, agricultural processing center development, farm building construction, concentrated forage plant puncture wounds. Of these projects, the configuration, type, range, size, and time are different.

Q2) What do you mean by opportunity analysis? Write the objectives of identification of business opportunities                                                                                    5

A2) Opportunity is an advantageous fashion in outside surroundings. It is an appealing challenge concept which an entrepreneur accepts as a foundation for his funding choice. Finding out the opportunities of an enterprise is typically concerning as identity of enterprise possibility. A mere "opportunity" is to be outstanding from enterprise "possibility". Good enterprise thoughts need to be able to being transformed into possible projects. Entrepreneurs typically have exceptional opportunities and choose handiest maximum praise paying likely for execution. Thus, a enterprise opportunity might also additionally take the form enterprise possibility match proves as industrial value.

MEANING OF OPPORTUNITY ANALYSIS

Before taking a choice to enforce new thoughts, it's far essential to enforce new thoughts, it's far essential to take a look at extensive their profitability and viability in order that the project can be a hit and there can be affordable go back on funding. Such researches are referred to as possibilities evaluation and that is completed in diverse ways. While deciding on a challenge, a potential entrepreneur as to keep in mind diverse factors like input, output, social value and benefits. An entrepreneur is usually on seeking out capacity worthwhile possibilities and exploits them withinside the exceptional hobby of his enterprise. Various elements consisting of monetary incentives furnished with the aid of using the authorities, availability of markets and environmental elements etc. also are taken into consideration with the aid of using the possible entrepreneur withinside the manner of possibility evaluation.

OBJECTIVES OF IDENTIFICATION OF BUSINESS OPPORTUNITIES

An entrepreneur desirous of making an investment on a challenge has a search for appropriate possibilities. This isn't always simple, when you consider that he has a totally huge choice, and the scale of the selection are: product/provider, technology, equipment, scale of manufacturing, marketplace, time-phasing and area. The huge variety of possibilities can be summarised follows:

(i) To examine the opportunities of making use of bodily sources of a specific location from technical angle.

(ii) To pick out the ones industries which aren't primarily based totally on nearby sources.

(iii) To pick out the commercial prospects especially location and u . s . as a whole.

(iv) To estimate the capital, labour, transport, electricity, fuel, uncooked fabric for possible industries.

(v) To discover the improvement opportunities of the location almost about agriculture, minerals, labour, irrigation etc.

Q3) Define opportunity analysis. What are the sources of opportunity analysis?                                                                                                                                                          8

A3) Before taking a choice to enforce new thoughts, it's far essential to enforce new thoughts, it's far essential to take a look at extensive their profitability and viability in order that the project can be a hit and there can be affordable go back on funding. Such researches are referred to as possibilities evaluation and that is completed in diverse ways. While deciding on a challenge, a potential entrepreneur as to keep in mind diverse factors like input, output, social value and benefits. An entrepreneur is usually on seeking out capacity worthwhile possibilities and exploits them withinside the exceptional hobby of his enterprise. Various elements consisting of monetary incentives furnished with the aid of using the authorities, availability of markets and environmental elements etc. also are taken into consideration with the aid of using the possible entrepreneur withinside the manner of possibility evaluation.

Following elements or reassets are protected withinside the possibilities evaluation:

(1) Market and Demand Analysis: Success of a enterprise unit now no longer relies upon on the quantity of manufacturing however particularly at the reality that what quantity of products it is able to be bought withinside the marketplace. Therefore, marketplace and call for evaluation is taken into consideration foundation of possibility evaluation.

(2) Resource Analysis: Entrepreneur has to peer whether or not ok quantity of sources consisting of land, uncooked fabric, machines, technology, monetary reassets, man-electricity etc. are to be had for now no longer. If the ok quantity of those sources isn’t to be had then challenge can be assumed as come to an end. On the contrary, if sources are to be had then an entrepreneur has to peer the reasserts and approach of obtaining those sources.

(3) Technical Analysis: Technical opportunities for organising a challenge are analysed withinside the technical evaluation. If it's far observed that from the technical factor of view challenge status quo isn't always possible then no doubt arises to keep in mind different elements.

(4) Business Environment Analysis: Business surroundings evaluation is essential earlier than status quo of a brand new enterprise. A vital component of the enterprise surroundings affecting funding possibilities is the authorities’ coverage framework.

(5) Financial Analysis: Financial evaluation is a vast beneath which availability of monetary sources and profitability of a challenge is analysed. Various elements consisting of value of challenge, value of uncooked-fabric, technical value, advertising and marketing value, operating value etc. are taken into consideration withinside the monetary evaluation.

(6) Risk Analysis: Various forms of dangers are observed in a specific enterprise wherein monetary dangers, social danger, environmental danger, technical danger etc. are the primary danger. With the alternate of enterprise surroundings, nature and volume of danger additionally get changed. An entrepreneur has to determine the identity of possibility evaluation that what quantity of danger is worried in availing possibility and up to what volume danger reputation will show worthwhile to him.

(7) Plant Location and Layout Situation: The predominant item of plant area evaluation is to discover the location in which plant is to be established. The choice of plant area relies upon up on different factors consisting of, availability of uncooked fabric, labour, electricity supply, transportation centers, conversation and financial institution centers, social amenities, provider centers, marketplace etc. The authorities additionally permits sure incentives and concession for industries improvement in backward regions consisting of concessions in taxes, centers of training, mild and land at inexpensive rates, monetary subsidies, centers for import of uncooked-fabric etc. an entrepreneur have to think about these kinds of elements even as identifying the plant area. An entrepreneur has to additionally put together exceptional format in order that he can produce most manufacturing at decrease value.

(8) Evaluation Analysis: It is the closing degree of possibility evaluation. Following are protected withinside the assessment evaluation:

(i) Evaluation of diverse factors of challenge.

(ii) Evaluation of monetary profitability.

(iii) Evaluation of Social profitability.

(iv) Evaluation of value of challenge,

(v) Evaluation of availability of important sources.

(vi) Evaluation of present opposition.

(vii) Evaluation of opposition in worldwide marketplace.

(viii) Evaluation of results of their outside elements.

Q4) Discuss “External Environment Analysis”. Write the factors affecting environmental analysis.                                                                                                                              5

A4) The word "External Environment Analysis" has been made up of two words 'External Environment' and 'Analysis'. The first word 'External Environment' means elements or factors outside the institution of the entrepreneur, like - economic, social, cultural, political, physical, educational, technical, religious, ethical and international, etc. which affects his business. The other word, 'Analysis' means reactions towards those factors or elements or issues, neglect thereof or taking of decisions by predicting the opportunities.

Hence, in composite form, external environment analysis means such process through which decision is taken, by assessing economic, socio-cultural, political, physical, educational, technical, religious, ethical and international environment or factors or element, or issues and also opportunities.

External environmental analysis or evaluation is a process through which strategic planner (entrepreneur) evaluates economic, social, official, supply, technological and market conditions to determine the opportunities and challenges for the enterprise and according to which he adjusts his strategy and objectives.

Factors affecting environmental analysis

(1) Economic Factors: The economic environment exercises perhaps the most direct and immediate influence on business environment. They include capital, labour, raw-materials and markets etc. Further, type of economy whether developed, developing or underdeveloped, rates of savings and investment, growth rate of G.N.P. Per capita income, volume of exports and imports, balance of payment position, price level, rates of inflation, deflation, and reflation, means of transport and communication also affect the economy of the country. For example, capital is one of the most prerequisites for establishing a business enterprise. It is regarded as the lubricant to the process of running a business enterprise. The new economic is the process of running a business enterprise. The new economic policy of liberalisation, privatisation and globalisation has given impetus to the development of trade, business commerce and industry in our country.

(2) Social Factors: Social external environmental factors in a country also exercises a significant impact on the emergence of entrepreneur in a country. Social factors in a country determine the exact and level of industrialisation, as they influence, the demand of a product or service at a given point of time. Social factors are bound to have deep influence on consumer taste, temperament, life and living. They include social mobility, social security, social values, family tradition, customs, culture, traditions, spending habits, level of education, size of population, density and sex ration of population, speed of urbanisation etc. The analysts are required to have a detailed social environmental analysis and make necessary suggestion for their improvement.

(3) Technological Factors: The most dynamic force, shaping entrepreneurs density is technology. Technological factor in a country also exercise a significant influence on external environmental analysis. Technology means method, procedure, processor system of production. Technology is not fixed but it is always changing. New technology will mean new ideas, new products and new marketing efforts. This requires the entrepreneur to keep on eye on the fast changing technology. Every new technology is a force for create work. Change in technology may affect production and distribution of goods. Technological environmental analysis leads to -

(i) Increase in production capacity

(ii) Economy of resources

(iii) New discovery, researches, inventions in field of production and resources,

(iv) Increase in competitive power

(v) Improvement in quality

(vi) cost reduction

(vii) Increase sales

(viii) Improvement in the standard of living

(ix) Innovation

(x) Increase in profits etc.

Q5) What are the legal requirement for establishment of new unit?  5

A5) Given the current trends in liberalization, globalization, privatization competition and policy, the government has decided to reduce the number of permits and procedures required. However, certain procedures are required.

1. Obtaining a statutory license: Municipalities / town committees / Gaon Panchayat will issue a trade license or a certificate without objection. The parties must apply for a trade license or undisputed certificate with the appropriate authorities, along with the fees stipulated in such license. If satisfied after scrutinizing the application, the authorities will issue a certificate.

2. License: To carry out industrial activities, either license or registration is required. Large numbers of small / auxiliary units and medium-sized units fall into the tax exemption category based on certain conditions below and do not require an industrial license.

a) Industries are not reserved for the public sector (list of reserved industries is in Appendix-1)

b) does not comply with special regulations (list of specially regulated industries can be found in Appendix-2)

c) Industrial businesses are not subject to 20A and the Monopoly and Restricted Trade Practices (MRTP) Act.

d) The annual foreign exchange requirement for medium-sized units for raw materials (excluding steel and aluminum) or parts and components (after 3 years of production) shall exceed 15% of the annual production or factory value of Rs. It will not be. 7.5 million.

3. Small Industry Registration: Registration as an SSI unit is not strictly required, but it is recommended that you register as a small unit at the district industrial and commercial center in the area where the project is located. Registration is required by the government for the purpose of recording for planning future requirements of the industry. In addition, registration has the right to take advantage of the incentives and benefits available to the SSI sector. DIC grants a temporary registration valid for 5 years, and if the unit goes into production within this period, a permanent registration will be granted.

4. Pollution Control Clearance: If the project is at risk of pollution, the parties must obtain a "No Objection Certificate" (NOC) from the State Pollution Control Board. The Board first stipulates in the NOC certain conditions to ensure the establishment of facilities to control air and water pollution before obtaining permission to start operations.

5. Business structure: means whether to start a unit in the form of sole proprietorship, partnership, limited company, or public limited company. It usually depends on the size of the project and the degree of risk associated with it.

6. Design Registration: Under the Design Act of 1911, the design of an article shall be newly and originally registered in the features and shapes, configurations, patterns or decorations given to the article by any industrial process or means. I can.

7. Trademark Registration: A trademark is a visual symbol that applies to goods or merchants, and a trademark is a word, letter, number, number, or combination thereof, such as a device (such as Butterfly) or (Binaca or Dalda). Consists of such a feature. Trademarks apply to all goods for the purpose of showing the purchaser that the goods originate from a particular producer.

Anyone who claims to be the owner of a trademark for or proposed to use and wishes to register shall apply to the Trademark Registrar in the prescribed form with the necessary fees. Fees can be paid in cash, bank check, or postal order. For the purpose of trademark registration, the goods are classified into 34 classes. Trademark registration applications should be limited to only one class.

The legal requirements for establishing a new unit / company and raising funds are as follows:

i) Company registration: Before operating, the company must be registered in order to comply with constitutional requirements.

Ii) License Registration: The company requires a license to operate locally, nationally and internationally by the government.

Iii) Sales Permit: A company requires a license to sell goods in the market after being approved by the government.

Q6) What are the basic concepts to be kept in mind to raise as much money as possible?                                                                                                                                            5

A6) When planning big and small funding events, there are eight basic concepts to keep in mind in order to raise as much money as possible.

1. The fundraising event is still fundraising.

Many nonprofits focus on the event part of the fundraising event. They find great headliners, hire nice bands, find good venues and print nice invitations. Then they expect money to flow in. When they don't get paid, they wonder why.

The fundraiser is still a fundraiser and all fundraising rules apply. You need to build relationships (with sponsors, auction donors, guests, etc.). You need to train your donor. You need to ask a question (... Gasping! ... Directly and even by phone). Raising funds through an event does not eliminate the basic rules of financing.

2. Who is important on the team?

What is your event committee / host committee focusing on? Problems arise when it comes to logistics rather than financing. The same applies to your board. If your team isn't enthusiastic about raising money and has a personal network large enough to support it, it's unlikely that you'll reach your event's funding goals.

Find host committee and board members who will take ownership of some of the event funding by selling sponsorships and tickets. Then we will provide you with the training and materials you need to do so.

3. The money saved is the money earned.

Event revenue goals should be viewed in terms of "net revenue" rather than "total revenue." Gross income is all the money you bring in at the event, regardless of the cost of the event. Net income is the money collected at the event minus the cost of the event. Your non profit needs money to pay for program and organization overheads – the only money you can spend on those items remains from the event after you deduct the event costs It's the money you have. Therefore, you need to focus on net income.

The money saved at your event is the money you earn for your non profit organization. Think of it this way. Raising $ 25,000 and spending $ 15,000 on venues, catering, promotional materials, and more for a great event in your organization will ultimately bring you $ 10,000 in net revenue.

On the other hand, you probably have some of your ingredients donated and it's still a great menu, but it's a bit cheaper to go. In that case, you raise $ 25,000 and spend $ 10,000 on the event. That means the final net revenue sent to your organization is $ 15,000. This means a 50% increase in funding revenue relative to revenue.

We spend most of our time bringing money to the event, but don't forget to carefully consider the costs and possible in-kind donations so that you can keep more of the money raised at the event.

4. Don't be distracted by the side show.

There are many "side shows" with non-profit events. There are colour schemes to choose from, wine baskets to put together, event favours to package, and flower arrangements to choose from. Do not be inhaled. Financing is important to your event.

Sure, you should have a nice event. Yes, you need to choose a colour scheme and flower arrangement. But do you need a committee of five to spend an hour doing so? Or can you choose something that looks good and do it? I would like the staff to spend 50 minutes making sponsorship calls and 10 minutes choosing flower arrangements. The reverse is also true.

5. Sponsorship> Ticket Sales> Added Revenue Stream

Focus on sponsorship. Next, focus on selling tickets. Then focus on the added revenue sources. Most of the event's efforts should focus on funding, and most of the funding efforts should focus on sponsorship sales. You spend less time selling tickets and need to spend less on additional revenue sources.

Use the 80/20 principle. Focus 80% of your time on 20% of the activities that raise most of the money for your event.

6. The biggest event of the year requires a year of effort.

Do you hold large hands-on deck fundraising events every year, such as gala and annual dinners? If so, you’re big annual event will require a year of effort to raise the maximum amount.

I used to work for a non-profit organization that hosts a major annual supper. Raised a significant portion of the organization's annual budget. When I arrived at the office the next day, one of the staff said, "It was a really good event, but I'm glad it was over. It was a lot of work! When will we start next year's event? A few months?" My answer was “Enjoy today. We will start working on next year's event from tomorrow. "

He exaggerated me, but it wasn't. A big annual event requires a lot of annual effort. We need to start training this year's event donors for next year's event. You need to go see them. Thank them. Ask them other people who may be interested in sponsoring the event. Stay in touch with them. Manage them. Add new prospects. Build a new relationship. Request an event before making an update. The event should take place 4-6 months after the event. It's a year-long effort.

7. Relationships are important.

Financing is all about relationships. All fundraising events are also about relationships. Many nonprofits have corporate sponsors who donate to events each year, but the organization nevertheless has no relationship with anyone in the company. Similarly, many charities do not contact event attendees or silent auction item providers, at least until it is time to request an event next year.

The best way to exponentially increase the revenue of a fundraising event is to start developing event donors in a systematic way. Hold a meeting. Add them to the mailing list. We will hold an event to thank the item providers of the silent auction. Invite event guests to join the volunteer committee. Fostering event donors will not only increase the revenue of next year's event, but also the overall donor base.

8. Event revenue will increase over time.

If you start an event and want it to be an annual event (a large annual gala or a small, simple annual event), the revenue of the event generally increases year by year, at least until you reach the plateau point. Please understand what to do. So if you hold an event that raises $ 50,000 this year and do all the right things to grow the event (that is, what we'll explain in this class), you'll get $ 60,000 ... Next year and $ 75,000 ... Next year.  And the fourth year is $ 100,000.

This is to show a combined effect when the event is executed properly. If you hold a great event, your guests will talk to their friends and bring them to next year's event. If your silent auction is reported, more companies will want to participate in the auction next year. If you treat sponsors really well and grow them throughout the year, they will introduce you to other businesses in their network that may want to sponsor your event. With proper treatment of donors and guests, event revenues will increase year by year.

Q7) What do you mean by venture capital? What are the various sources of raising funds for different types of enterprises?                                                                      8

A7) The entrepreneur has not only to plan his total financial requirement but also work out the strategies to make adequate finance available at various stage. The type of financial support an entrepreneur requires is both long-term as well as short-term to ensure proper financing of his firm. The financial requirements will be in the form of fixed and working capital. Whatever may be the type of capital, there are mainly two methods of raising funds- owned capital and borrowed capital. The sources of owned capital of an enterprise are sale of shares and raising of internal resources and in case of borrowed capital are- sale of debentures, acceptance of public deposits and assistance from different financial institutions etc. But it is always a bit difficult to raise finance from outside sources for a new enterprise. The various sources of raising finance for different types of enterprises are shown below.

(a) Equity Financing: If the new enterprise is in the company form of organisation, it can issue share to the public with proper approval from the Company Law Board and thereby procure necessary capital for the enterprise.

(b) Creation of Internal Resources: The source mobilised in large size and existing concern but has no use in case of new companies. This source covers provision for taxation, provision for depreciation and reserve fund.

(c) Debt Financing: The enterprise may procure capital by sale of debentures. For an established organisation, it is easy to procure debt capital. Here risk of return is less and so the people prefer to purchase debentures.  

(d) Public Deposit: The large and established company, with the object of procuring medium-term capital take up term deposit from the public. The public are given deposit certificate. Though it if one of the most important source of finance, but it is difficult to take up the opportunity for new companies.

(e)Financing by Commercial Banks: The commercial banks supply short term financial requirement through discounting of bill,  cash credit, advance payment and overdraft. These banks supply capital for meeting financial requirement of both short term and long term capital.

(f) Financing by Government Financial Institution: There are government financial institutions to undertake shares and debentures of the company and assume the role of guarantor on behalf of the concern taking loans from other institution. These financial institutions are Industrial Finance Corporation of India (IFCI), Industrial development bank of India (IDBI), Industrial Credit and Investment Corporation of India, State Finance Corporation etc.

(g) Financing by Other Investment Institution: There are number of financial institutions in public and private sector to supply finance to the new enterprise. Life Insurance Corporation of India, General Insurance Corporation of India, Unit Trust of India etc.

(h) Personal Finance: The entrepreneur provides himself for supplying capital by investing his own or family savings. These include cash and personal assets that can be converted into cash.

(i) Government Grants: In specific sectors and areas, there are provisions for grants from government to be financed to new enterprises. Government usually provides adequate finance as grants and subsidy to those cases which are in the list of priority sectors. Thus, by means of grant and subsidy from government, capital is supplied to the entrepreneurs.

(j) Others: Besides the sources stated above, the indigenous money lenders or bankers supply capital on condition basis to the entrepreneur. This may be procured from venture capital firm also. Capital may also be provided by lease financing.

Q8) Explain venture capital. What are the documents required for venture capital?                                                                                                                                                           5

A8) Venture Capital refers to investments in new and untried enterprises which are lacking stable record of growth. Venture Capital involves financial investment on high-risk entrepreneurial business with expectation of earning a high rate of return. It is an alternative form of equity financing for small business. It is the form of capital needed for formation of forms with new ideas or technologies, having a high risk but having potential for rapid growth

Venture Capital is long term financial assistance provided to small enterprises, high technology and risky venture. Venture capitalist takes huge risk in anticipation of future high returns hence venture capital is also known as 'risk capital'.

Following are the documents required for venture capital:

1. Project Report: The project report should be a self explanatory document capable of evoking positive response. It should contain the following items of information about the project.

a) Name of the project

b) Address of the unit.

c) Product to be manufactured.

d) Target of the production- monthly, quarterly and yearly etc. (in terms of quality and value both).

e) Principal raw material to be used.

f) Covered area of workshop- square meter

g) Power requirement- Horse power, K. Watt

h) Employment- No. Of skilled and unskilled labour.

i) Cost of Project:

i) Fixed capital

Ii) Working capital

Iii) Total of both capital.

j) Sales Turnover expected monthly, quarterly or yearly sales proceeds.

k) Expected profit in total and expected profit as percentage of expected sales or capital invested.

l) Breakeven point and chart,

m) Project Profit and Loss A/C, Balance Sheet, Cash Flow Statement, Fund Flow Statement etc.

n) Profit at the various level of capacity utilisation.

o) Gestation period etc.

2. Details of Promoters:

1. Educational, business, experience back ground and information relating to assets and liabilities.

2. Land documents

3. No objection certificate about the technology and product from the concerned authority.

4. Market Survey report.

5. Detail of source of Plant and Machinery regarding indigenous or imported

6. Detail source of raw materials.

7. Qualification for various items.

8. Details of consultants and marketing tie up organisation, if any.

9. Income tax clearance certificate of the promoter.

Q9) Explain competitive factors of venture capital.    5

A9) Competitive analytics market by entering through product or service gaps in areas where competitors are marketing their business, or where they are not or well serviced. You need to provide entrepreneurs with information on how to penetrate. More importantly, competitive analysis helps entrepreneurs develop competitiveness that helps them generate sustainable revenue streams. Large companies like Wal-Mart, for example, are primarily competing for price. The internal efficiency and mass sales available to large companies like Wal-Mart are not available to SMEs, so SMEs usually cannot compete for price, but with other important variables such as better service, better, etc. You may be able to compete well with Wal-Mart-a high quality product, or a unique buying experience.

When preparing your competition analysis, identify your competitors by product line or service segment. For entrepreneurs, this activity can be difficult if the industry does not yet exist. For Bee Love, Palms Barber had no direct competitors, but there were related competitors for traditional skin care products. Her unique idea of ​​honey-based all-natural skin care products has created a new market. Competitive analysis may need to focus on alternative products rather than direct competitors. There are two main tools used to analyze competitors. Competitive analysis grid and "three circles" approach.

Competitive factors also affect external environmental analysis. Competitive play an important role in the conduct of business in his business activities in accordance to the behaviour of his competitors. Competition may be of the following types:

i) Desire competition

Ii) Genetic competition

Iii) Product size competition

Iv) Brand competition

v) Quality competition

Vi) Price competition

Vii) Market competition.

Q10) Why do we need to raise fund in business?     5

A10) The ultimate goal of financing is to raise money, but at least if your radar has long-term viability, it really has to be more than that.

Sure, you need cash to keep your organization up and running and to support your philanthropy and purpose, but financing actually offers some deeper benefits than that.

When done correctly, it helps reach more people, perform better operations, and most importantly, ensure the success of the organization longer than the current funding round. Method is as follows.

1. Fundraising raises awareness

Financing allows you to be creative and force you to move out of your comfort zone. To be eligible for grants, sponsorships, and other free money, you need to prove that you are reaching as many people as possible in as many parts of the world as possible. This means digging into social media, refreshing your website to take advantage of the latest SEO and marketing tactics, and taking a new approach to outreach and maintenance.

b.    Financing requires planning and prioritization

Raising money is not an easy task. It takes a lot of time, energy, and thinking to come up with a solid funding strategy that needs to take a step back to evaluate the entire organization. This can result in the need to actually evaluate operations such as resource allocation, staff, and time-consuming projects. As a result, you can optimize your work and maximize the funding you can get for them.

c.     Financing empowers your team and provides a sense of unity

Fundraising is a great way to inspire your employees and be passionate about your goals. It gives them a common goal to lag behind and a single milestone to reach as a group. This can make all the difference, especially for large organizations and when team members are spread across different departments and departments.

d.    Financing requires finding and maintaining new donors

It's not enough to run a fundraising campaign and find new donors. Finding new donors to raise money is one thing, but maintaining donors is just as important. Organizations need to run a series of paid campaigns and storytelling events to keep donors involved with charities. Nonprofits need funding to run engagement campaigns to retain donors.

e.     Financing keeps you moving forward

Achieving one funding goal doesn't mean you're done; you can sit back and relax. The number of people who support you is constantly increasing, and the things you can do to support your goals are increasing. This means that a constant flow of funds is always needed. This constant need to do more, support more, and achieve more helps to motivate and drive the team, excite the team, and make a passionate change.

Q11) What are the types of fund raising?      5

A11) Following are the types of fund raising:

1) Capital campaign:

These are limited campaigns that are limited by the time of a particular project. These are time-specific and require good preparation and clever execution. That's why many nonprofits do this.

2) Corporate support:

As the name implies, this is a charitable donation from a company to an organization. The organization involves NGOs and other nonprofits. Nonprofits approach businesses and explain their mission. Few companies contribute to their goals from either the set budget or its foundation. Few companies may be interested in sponsoring an NGO's capital campaign. That's because it increases the reach of the brand. This is called because branding.

3) Online fundraising:

This method is one of the easiest ways to raise money for a cause. Being online, you can reach a larger audience that may be physically impossible. Most nonprofits in India do not harness the power of online financing. There are funding platforms like Milaap that use crowd funding to raise money for projects.

4) Income:

Income is the amount of money you earn from producing goods and services offered by nonprofits. For example, NGOs may make and sell handmade products and accessories such as handbags. If you have purchased any of these handmade accessories, this usually requires a marketing plan. Accessories purchased under the Being Human brand contribute to the Being Human Foundation, and the "Being human" brand is a perfect example.

5) Grant:

A grant is the amount of cash given to an organization or individual for the exact purpose. Individuals who choose a grant should keep track of all the data they may need in the future. There are also certain government grants.

6) Membership campaign:

This is one of the effective ways to get people together to learn more about your organization and the work you are doing. Bringing in members increases the chances of raising more money for the campaign, as most members turn into donors in a short period of time.

7) Special event:

Raising funds to support a cause from a special event proves to be the most efficient way, as it not only raises funds, but also raises awareness of your brand and the importance of the cause. Many artists, such as Justin Bieber and Coldplay etc, support a small number of charities and hold charitable concerts to donate a percentage of their proceeds for charitable purposes.

There are many other ways to invest money in a project. Crowd funding is one such method. People often confuse crowd funding with financing. That's why we need to see this, which distinguishes between crowd funding and funding.

Q12) What is the purpose of raising fund?      5

A12) Financing is essential to the survival and success of nonprofits and charities. In fact, funding campaigns are often the main focus of these organizations, as without working capital, they cannot provide the services they need to reach their key goals. Before the advent of digital marketing, financing was primarily focused on getting as many donations as possible, but outreach in today's competitive environment is another equally important goal. You need to focus on.

Increase brand awareness

With intensifying competition and diminished attention, it is no longer enough for nonprofits and charities to simply solicit donations from people. Charities need to market themselves in the same way as standard companies trying to reach their target audience. In short, financing should focus on building the "brand" of the organization. This includes the organization's mission, culture, and quality that makes it unique. Valuable content on your website, such as social media campaigns, articles, videos, and even live stream sessions, can increase viewer engagement through likes, tweets, and comments on social media platforms. Through these methods, charities build awareness that future donors can be transformed into real donors.

Give incentives to expired donors

Fundraising campaigns should also focus on converting donors who have made a single contribution to becoming regular donors. A common axiom in business is that maximizing existing customers is much easier and much cheaper than acquiring new ones. Charities have "donors" rather than "customers," but the axioms still apply because the ultimate goal is the same. In other words, persuade people to give money to the company. Charities can launch a donor campaign by identifying the number of donors who have made a donation only once. Next, you need to establish the goal of converting a certain percentage of those donors to regular donors. Next, the organization needs to target these donors with content such as personalized emails, newsletters, and special event notifications to remind donors why they need to reconnect to the organization.

Raise funds for operating costs

Nonprofits must meet operating costs to continue their business. These costs include rent, utilities, liability insurance, salaries, purchases of office equipment and furniture, launching campaigns for upcoming charitable events, and community engagement programs. Without funding from fundraising, charities would not be able to cover these operating costs or function as intended. However, one risk is that the tax exemption status of an organization can be compromised if too much funding is allocated to staff salaries.

Fund the fund

Financing also helps nonprofits set up funds. A fund is a restricted fund that allows an organization to use only interest accrued from the fund. That is, the organization cannot use the original fund for the fund and can grow the original fund over a period of time. The advantage of donations is that they provide charitable organizations with financial security and help them survive the annual recession and less than expected donations.