Guidelines to Launch a Project ENG

7/30/2019 Guidelines to Launch a Project ENG

1/17

What is a good project? - How do you promote your project? - What is a good

network? - How do I succeed in my goals?

This explanation offers the project provider with a guide to the successful

crowdfunding on CroFun.

I. INTRODUCTION TO CROWD FUNDING THROUGH CROFUN

A. What is CroFun?

CroFun is a web-based crowdfunding platform that you as a project provider offer a commercial and

legal framework for business, social, creative and innovative projects.

As the only crowdfunding platform for European projects, CroFun offers the possibility to create an

ideal mix to finance your project.

Due to the close collaboration with numerous specialists, Crofun is able to assist you, the project

provider, with the development and marketing of your project.

B. What is crowdfunding?Crowdfunding is a concept where many small investors and/or stakeholders are willing to invest small

amounts in projects where they feel an involvement. Crowdfunding means therefore literally means

'funding' by the 'crowd'.


2/17

C. Motivation to take part in crowdfunding1) Motivation for investors Because of the social involvement Because of the original reward Because of the financial return Because of the tax benefit2) Motivation for project providers You can turn to a wide international audience. You can attract considerable capital as you build a brand identity. You receive valuable feedback on the project for which you are collecting money. You can create prospective customers from your investors. You are no longer dependent on major investments. Investors are therefore less able to

exercise influence over your project.

You can increase public awareness of your project by using social media to promote it. You go from mass production to customized production. You can involve your potential customers as you build a brand identity through co-creation.

D. Forms of crowdfunding:Through the platform, Crofun offers the possibility to participate in crowdfunding based on:

1) Donations & Rewards Investors donate an amount without receiving a fee or other form of reward. Investors receive a small reward for their contribution, this could be a book, tickets,

downloads, ...

2) Loans Investors receive a periodic fee for their contribution and must ultimately be fully

reimbursed their original investment.

3) Profit Participation based on Sales (Revenue Sharing) Investors receive a fee that is dependent on the achieved turnover.

4) Shareholding (Equity crowdfunding) Investors take a stake in the capital of the company through share participation. They are

paid via a possible dividend.

CroFun operates on a 90% realization model. In other words, if your project was funded for 90%,they will actually be paid that. At Crofun, we are convinced that when a project provider can get his

project funded for 90% through crowdfunding the remaining capital can be acquired through other

channels if needed.


3/17

E. What projects can you launch?

1) Creative projects: Architecture - Visual Arts - Visual Arts - Books & Comics - CulturalHeritage - Design - Film - Gaming - Fashion - Music - New Media -

Performing Arts

2) NGOs/charities: Health - Environment - Development - Study3) Associations/Non-profit organizations: Youth - Sports - Social - Cultural4) Business projects: Investments - SME - Environment - Start-up programs - Technology

Real Estate

It you have a project that you are convinced belongs on CroFun, but you cannot place it within one of

the predefined categories, please e-mail us and we will check whether your project can be launched on

CroFun.

F. For each project supplier, the right crowdfunding solution!

Donations & Rewards Loans Revenue Sharing Equity Funding

Creative projects Associations/Non-

profit's

Associations/Non-

profit's

SMEs

Associations/Non-

profit's

Freelance Freelance

NGOs/Charities SMEs SMEs

Freelance

SMEs

G. GuidelinesDo you want to place your project on CroFun? Then, it must first be approved. For this, it must comply

with a number of conditions.

We ask you to carefully read and respect the following guidelines as well as the terms and conditions.

1) As a project provider uses the Belgian platform, you must- be resident in Belgium (domiciled);- older than eighteen,- have a Belgian bank account.2) Loans and investments

As an individual you may not apply for a loan or an investment. This right is reserved for start-

ups, professionals, associations and SMEs. Are you a start-up? Then you have to be registered

before the end of the project offer at the entrepreneurs' counter.


4/17

3) CroFun includes different categories of projects. Make sure that you put your project in theright category. Some categories have indeed specific features that are not found in other

categories.

4) If we consider that a project does not belong to the platform, we have at all times the right toremove it. Therefore we have no accountability.

H. Costs

Start-up Cost 181

Success fee 5%

Payment Service Ogone / Paypal

I. How do you start?Examine other crowdfunding projects; compare projects that have succeeded with projects that have

not succeeded. Try to get the right insights to make your project a success.

Step 1: Develop your project

Are you looking for support for your project? Have you thought about crowdfunding? Then, it is

primarily important to develop your project to perfection. Be realistic and formulate achievable

objectives. The better you can describe and illustrate your project, the more potential investors will

show interest.

Step 2: Determine your goalsAt CroFun, you must reach at least 90% of your assumed goals. If not, the capital raised is not paid but

returned to the investors.

Be realistic. What budget do you need? How much capital are you investing yourself? What value can

you offer? It is important to know how to handle others. See what works for them and write your own

success story!

Step 3: Create added value

People support a project for different reasons. Some invest in a project because they feel closely

involved. Others are interested in the rewards they receive for it. Still other investors hope to achieve

a potentially higher return on their investment.

Decide what type of investor you want to attract and what you want to give them in return for their

investment. Again, be realistic here. Don't just think about what they want to give, but also what you

can give them.

Step 4: Marketing and PR

CroFun helps you to find for the best financial solution for your project. But be careful! It is no magic

formula to accumulate capital. We offer you a legal and business framework, but you have to attract

the investors yourself. These come primarily from your own network.

Have you been able to warm your family, friends and acquaintances to your project? Well done!Then, you're ready to attract other investors. Promote your project and keep your network up to date


5/17

with the latest developments. Show that you are passionate! The difference between boring and

inspiring people often relates to the passion that you bring your story.

Step 5: Reap the fruits of your work

Collect capital from all over the world. Reap the fruits of your work and grab the dream you deserve!

Step 6: Ensure the promised return

Make sure that everyone who funds your project gets his reward, return or refund as promised and

agreed.


6/17

II. READY TO GO?

Ready to launch your project? Be aware that the largest amount of the basic funding will come

directly from your network; this is to do with only one issue "TRUST". Trust will be the key word when

raising funds for your project.

A. Analyse & Activate your network

WIDE NETWORK &

THE CROWD

3rd

DEGREE

FRIENDS of FRIENDS 2nd DEGREE

and ACQUAINTANCES

1st

DEGREE FAMILY - FRIENDS

LOYAL FANS

YOURSELF AND

YOUR TEAM CORE

1st

degree network: They invest based on a pre-existing relationship and an existing trust.

Before starting, you are better off yourself to a number of these relationshipsso that they can fulfil their role as ambassadors.

Make everyone in this circle enthusiastic about your project, before you goonline with your project. In order to achieve this, use your social media

(Facebook, twitter, LinkedIn, Google+, YouTube, Instagram, Pinterest...).

2nd

degree network: They will invest as soon as sufficient confidence signals have been generated

from your 1

st

degree network. Confidence signals can relate to the initial investment, but also comments, likes

or discussions that are taking place on your project.

Ensure that there is action within your 1st degree network in order to generateinterest and support from your 2

nddegree network. (Groups to which you are

connected via social media, specific community sites, and association

websites...)

3rd

degree network: They will finally invest in your project. These investors have to be convinced.

Without adequate support from your 1st

and 2nd

degree network, the spark

won't catch fire.

Now pull out all the stops, promotion, publicity, put your project in thespotlight, create the right momentum and see how your crowdfunding project

reaches higher degrees.


7/17

B. What is your net worth?

Know your network and know what it's worth!

What form (s) of crowdfunding speaks to your network the most? __________________

How much capital do you think you can get through your network? __________________

How many people are there in your network? __________________

(Look at your social media contacts, groups, but also go further...)

What is the average amount you could get per person? __________________

(Depending on the crowdfunding form and your audience, this can rise to

25 to 1000 )

What is the amount that you want to collect? __________________


8/17

C. How much time will I spend talking to my network?Through CroFun, you have the opportunity to connect with the main social media; in addition, CroFun

is also present and the CroFun community is growing every day...

Project Amount

2,500 to 10,000

Project Amount

10,000 to 100,000

Project Amount

+ 100 000

INVESTORS(Number)

50 to 200 200 or more + 2000

CAMPAIGN PERIOD(in days)

30 to 45 30 to 60 60 to 90

TIME/DAY 15min. - 2hr. 1hr. to 2hrs. 2hrs. to 4hrs.

CAMPAIGN

E-mails

Social Media

Social conversation

Community

E-mails

Social Media

Social conversation

Larger community

Blog

E-mails

Social Media

Social conversation

Large community

Blog

Offline marketing

Press support

NETWORK

Support and trust

from your 1st and 2nd

degree network

Support and trust from

your

1st

- 2nd

and partially

3rd

degree network

Support and trust from

your entire network


9/17

D. Be critical of yourself and your teamDo you have all the in-house capabilities to ensure a successful implementation of your project from A

to Z? Be critical and see if you have thought about everything; maybe there are certain areas where

you could still use some support. Remember that professional support also costs money, keep this in

mind when preparing your financial plan.

0= not applicable

1 = full control

2 = partial control

3 = not adequately controlled

Current organization Future project Remarks

0 1 2 3 0 1 2 3

1)

Strategic

Develop a strategy: create a vision, determine the focus and the

timetable for the organization in the long term, ...

Identify your market, customer and product segments and where your

company sits in relation to them

Deal and negotiate with your stakeholders: shareholders, customers,

suppliers, employees, competitors, ...

2) TacticalDevelop the legal and fiscal framework to support the (inter)nationalactivities: contracts and clauses, risk-hedging, tax optimization, ...

Manage working capital and future cash flows: inventory, management of

accounts receivable and accounts payable, ...

Implement and supervise changes in the organization: operational,

commercial, personnel, financial, ...

Define the responsibilities and powers between shareholders, directors

and management

3) OperationalRecurrent reporting of financial and operational data to support policy

Implement operational systems to support reporting: cost accounting,

operational database, scheduling software

Financial communication with stakeholders: shareholders, investors,

banks, ...


10/17

E. Project in the spotlightMeanwhile, you already know how your network is put together, you know your own (and your

team's) abilities and you know how much time you will need to spend.

High time to put your project into the limelight!

1) Project titleKeep the title of your project short and concise. Show your visitors what your project is about

with just one word or slogan.

2) Project ImageThe project image is the first image that a visitor will see of your project. It is also important to

choose this carefully.


11/17

3) Project description:Describe your project as completely as possible. Explain step by step what it is about and how

you will bring it to a successful conclusion. Convince your network and the general public that

they should choose you!

Do not limit yourself to a description of your project. Explain what your goal is and how it willsucceed. Emphasize your personal assets (knowledge, experience...) and your project (original,

gap in the market...) and convince potential investors of your future success!

Also, discuss briefly the market in which your project is located. What changes has it

undergone? What are the current trends?

What is your target audience? Who are your main competitors? Are there partners with

whom you can collaborate?

Indicate how the money will be used and make a good plan for your project.

Provide sufficient information about the potential returns that potential investors can get.

Work with milestones. Consequently, you always have something to work towards and

potential investors see how your project is evolving.

Finally be authentic and confident. Show your passion!

4) VideoEach project should make a short video presentation. A video presentation gives your project

the face of a real person, someone with a real story. Potential investors will therefore feel

connected an immediate connection with your project.

When making your video, it is important to be creative. Don't just to go to your desk and read

a piece of text. Be creative; make a product demo, using animations, voiceover techniques, 3D

plans. The sky is the limit.

Keep the video message focused on your project. Don't be too technical, don't make it too

complicated. Ensure that you can convince the crowd to invest in your project.

Making videos does not always have to be done with high-tech materials. Videos with a

smartphone or webcam that are then uploaded work perfectly. Make sure that you have a

good quality video; you need to be able to film with at least in 720p HD.

Before you start filming make sure you have worked out a script for the action you are doing

and have a text that fits with it. A good video draws attention and keeps it until the end. Keep

it simple, but fascinating; take your audience into your world and convince them of your

project. Focus on your message; keep it simple and stupid.

Short videos varying in length between 90 seconds and 2 to 3 minutes are ideal. Realise that

the first 15 seconds of your video are crucial; the viewer decides in this time whether he'll

carry on looking or zap to the next. Are you unable to attract attention and to convince the

visitor? Start again, try a different angle ...

Videos are a powerful medium to create a snowball effect in promoting and publicizing your

project. Make sure that your network can share your video, can post likes on their own blogs

or community. Create a YouTube or Vimeo account and show the world your creation.


12/17

Finally, don't forget to link to CroFun and your project name to get the necessary funding.

5) Photos/imagesImages can give your message extra power. As an old Chinese proverb says, "a picture is

worth a thousand words".

Use images to propose your rewards or your product, but also to map for example e.g. your

target group, express turnovers, promote your brand identity, etc.

Images are often used to show the development of your project through updates. With

updates, you keep your project running and make sure that your network continues to expand.

When making photos or illustrations, you should always take into account the digital format;

ensure that the different images are easily uploadable via CroFun, but also through your other

social media. Use apps like Instagram or Pinterest, Flickr or Tumblr to send your images

around the world.

6) Financial plan/Swot analysisAt the CroFun platform, you are required to have a financial plan and a SWOT analysis. This

is not mandatory for crowdfunding projects, which only take part in crowdfunding through

donations and rewards. This does not mean that they don't need to create these.

The financial plan and swot analysis are important for two reasons. Initially, it allows you to

think about the financial image and the market conditions; secondly, it allows you to show a

potential investor that you've thought about it.

Do you have little or no experience? Let a professional such as an accountant help you.

F. Create rewards/returnThink carefully about the rewards and the return you want to offer; a large part of your success will

depend upon this. Rewards can either be products, services, a certain recognition, or experience (we

will discuss this later in greater detail). Again be creative and ensure the right connection with your

project. A return however revolves around a financial yield on the investment itself. Please be

realistic in your forecast or the interest that you can afford.

1) Rewards:Offer a wide range of rewards, each with a different value. For example, values of: 5 to 100

for small and simple things, 100 to 500 for larger, original matters and for the truly unique

rewards you can go to 1000.


13/17

Always ensure that small rewards are easy to distribute, mp3, video, eBook, recognitions on

websites, etc. The larger rewards are often more physical and you will need to send them.

Don't forget to always take the shipping costs into account.

Good rewards are always special, unique or limited, but they can also be socially engaging

which in return other projects are supported.

Create rewards that relate to your project, organize a kind of presale and save yourself a

potential financial hangover if your product does not catch on or if you increase your

circulation because of the huge demand.

2) Types of rewards:Rewards can come in all shapes and sizes; below is a small list to help you with creating your

own unique rewards.

- Acknowledgments (website, acknowledgments in book, CD or movie, logo entries...)-

Tickets (free tickets, VIP tickets, attendance at events as a funder...)- Finished goods (luxury models, gadgets, discounts...)- Experiences (day at work, a role in a project, a unique experience...)- Merchandising and souvenirs- Assistance on other projects (support charities, Fund it Forward...)- Combine rewards

3) Return:Work with different degrees of return. For example, you can allow the return to increase as

the investment increases in size. Be more realistic in the goals that you set, but also make it

sufficiently attractive for investors to invest.

Make sure that the reimbursement or payment of the yield occurs on time. Nothing is more

annoying than late payers; it means additional work and frustration.

The way to measure a good return is the return on new distribution of shares. With

crowdfunding, we are ultimately talking about a form of risk just like a bond. It is therefore

also important to give an investor more return than traditional savings products.

4) Types of Returns:There are two types of return, a form of interest that is paid to obtain a loan and a profit

participation based on a predetermined increase in sales.

Interest on a loan, CroFun offers the possibility to agree various forms of loans betweenthe parties. Think carefully about which type of loan repayment suits the project best:

- loan with fixed monthly repayment- loan with annual interest payment, where the capital is repaid at maturity.- loan where both capital and interest are repaid at maturity.

Profit Participation based on a predetermined increase in sales via CroFun. It is alsopossible to participate in crowdfunding using Revenue Sharing. This means that you

award an investor a predetermined profit-share with the realization of a predetermined

increase in sales. Investments are always in multiples of 10. 10 are equal to 1 profit

participation. Profit sharing is limited in time, min 5 years with a maximum of 10 years.

You decide what fits you best!


14/17

E.g. In the event of a sales increase of + 100,000 I will give 1/per profit

participation

In the event of a sales increase of + 150,000 I will give 2/per profit

participation

In the event of a sales increase of + 200,000 I will give 4/per profit participationOffer issued for a period of 6 years.

An investor has invested 1,000 or has 100 profit participations

Year 1, there is no increase in turnover

Year 2, there is a turnover increase of + 100,000

Year 3 and 4, there a turnover increase of 150,000

Year 5 and 6 there is an increase in turnover of 200,000

TOTAL: 1,300 or a return of 30% over 6 years.

5)

Combination reward and returnWith CroFun, you don't just have the possibility of combining various forms of crowdfunding,

but you are also able to get a loan with interest payment linked to a reward. Try combining

loans and investments with interesting rewards; it gives potential investors an extra push to

choose your project.

E.g. You issue a loan ticket to finance your restaurant. For each loan of 1000 that is

issued, the investor also receives interest of 6% as well as once more 15% discount at a

restaurant visit.

You get this and a loan; and in addition, you immediately have a solid customer...


15/17

III. FINAL CHECK

Before the pushing launch button, it is always advisable to look at everything you've entered again.

Watch your video again, read your project description, check whether your rewards/return are

interesting enough ...

Ask for advice from friends or family, let them see and judge your work. Do not be afraid of criticism;

it ensures that you can improve your project. Seek professional advice; it is often an important

investment to guide your project to success.

Is your social media enabled? Did you have at least a Facebook, LinkedIn, twitter and YouTube

account? Is your network ready to provide feedback? Is it ready to share support and promote your

project? Are you ready to address your entire network? Is your marketing and PR plan ready to be

executed? Are there already articles on your project in the press?

Think about the end date of your project. Are there certain actions that you want to do during the last

week of your project, then it might be useful to finish your project on a Friday night?

Make sure your project complies with the guidelines and general conditions of CroFun, so your project

is published faster.

A. Checklist

o Project Description o Activation Network

o Define project goals o Email lists

o Competencies o Social Media pages

o Risk o 1st

degree network standby

o Quality o Conversation Management

o Suppliers o Traditional Press

o Partnerships o Event

o SWOT analysis

o Financial Plan o Schedule

o Business Plan o Milestones

o References o Organisation Plan

o Project

o Presentations

o Video Equipment

o Images

o Audio content

o Prototype

o Form of crowdfunding

o Other forms of financing

o Own resources

o Rewards

o Return

o Milestones


16/17

IV. STARTED, WHAT NOW?

Started? Congratulations, now there is no turning back! From the time that your project is online,

the clock starts ticking (this may possibly take several days). If you are properly organized, your first

friends will already be ready to invest in your project.

A. CampaigningCreating your project on CroFun was the first big step. Now, it comes down to letting all your

preparations come to their full potential and attract investors to your project. Crowdfunding is no

magic formula; you have to create the magic yourself.

1) Activate your networkMake sure you have 20-50 people within your 1

stdegree network who are ready to assist in

the investment of your project. Thank your investors and start communicating with them

about your project through CroFun, but also through your social media. This will give you a

first form of credibility and trust is created.

2) Promote your project through social mediaLet everyone know that your project is on CroFun and communicate this through your email

contacts, Facebook, twitter, LinkedIn, Google+, YouTube, Pinterest, Tumblr, and other social

media channels that apply to your project. Make topics related to your project through

community groups or sites where you are active.

Provide some kind of teaser, that makes them look at your project, make it interesting for your

network.

3) Tell your storyGet regular updates within your project and communicate these with the same passion. Byuploading new videos or images, you will ensure that your followers remain interested and

start sharing your passion.

4) Create momentumAs soon as you see that your project is starting to get support from your 2

ndand 3

rddegree

network, it is time that you focus on bloggers, new groups, community sites where you are not

active as well as the traditional press.


17/17

5) FinalProvide a dynamic final sprint for your project. As your project progresses towards its end

date, it is important to increase the frequency of updates. Possibly create another event to

thank investors, which in turn will give a boost to new investors.

B. Maintain ContactEven after the successful or unsuccessful funding of your project, stay in touch with your new

network. Whether your project was or wasn't successful on this occasion, they supported you,

believed in your project and will do this again with a new attempt.

1) Rewards/ReturnIf your project was successfully financed, it is important to keep your funders up to date of

any further developments to your project. Always ensure that you deliver the promised

rewards or respect repayment dates.

2) Expand your networkMake your funders your first and loyal customers, expand your network with everyone whohas supported your project or who has taken part in any way.

Guidelines to Launch a Project ENG

Documents

Transcript of Guidelines to Launch a Project ENG