Capital Raising Strategy assignment for Kenny Points venture capital proposal
Question
Task: How can Kenny Point develop a venture capital raising proposals using Capital Raising Strategy assignment research techniques?
Answer
Executive Summary
This Capital Raising Strategy assignmentwill analyses the company Kenny printwhich is runs by, Matt Johnson.The company will make revenue by selling unique, printed cards of distinct designs.The company will have operations in the industry of greeting cards. The founder of being a trained graphic designer capturing the newmarket through the use of customized greeting cards having the paw prints of their pets. the greeting cards would not require any casting of the pets' paws or any ink for their signature. The company would be launched at the pet Expo to understand the consumers and the players of the industry. After the business runs for two years the company aims to draw an annual revenue of 150000 dollars and expansion two for the two categories of product. The founder also is a full-time employee and is hiring support staff to fill in the gaps in the set of skills required. The company has a contract of 7 hours a week to support a virtual assistant from virtual assistants Pro. A purchase of 7 billion greeting cards with retail sales of 7.5 billion dollars internationally is estimated. most of the sales are driven by females and the average price is between 4 to 6 dollars and the range of full-price is between $1 to $15. Although there are no companies of greeting cards providing customization of the prince of the pets there are artists who provide artwork of the pet and are typically priced very high due to the process being labor-intensive and customized.
Differentiation is the major strategy of the company and segmentation is the second strategy. as there are multiple substitution competitors for the product therefore for print is much more unique and convenient for the five flowers and it will not compete with the price but would focus on expansion in the product category.The Capital Raising Strategy assignmentinvestogations show the flagship product is greeting cards that are been customized using the footprints of the pet with no Inc required. the customers can send the digital image of the fat and after processing the image several different types of card options are provided to the customers. Ideal customers are women who have dogs and cats within the age group of 55 to 25 and are comfortable buying products online and ordering once a week from online portals. an idle customer is required to earn 50000 dollars a year and values the time very highly.As the greeting cards are customized therefore they save significant time and effort in capturing the prints so they are priced higher in the market. cost of a single card is 9.5 dollars while identical costs are reduced three of them would cost $20 and six of them would cause $30.Greeting cards are specific problem solving featuring the pets affordably and uniquelyThe use of digital ads on social media such as Instagram and Facebook would help reach ideal customers. The company will run an online store with the use of digital images and the process of credit creation. The customers can place orders at Kennyprint.com and would receive their orders athome.The Founder has ample contacts with the local print shops for gathering the prices of the prints. After a customer sends the digital image of the pet it takes 10 minutes to fully process the image using the preset in Adobe Lightroom and Photoshop for another editing. The local print shops take one or two days for similar customized orders.Each custom card will cost $2 for set-up and $0.75 for each print. The company can set up an office for processing order shipping and images and the contractors can work at their facilities. The company already has the ownership of some of the software and hardware required for processing the images, and the maintenance of the equipment and replacement must be adequate in case of breakdown.
As per the Capital Raising Strategy assignmentresearch, during the starting phase, the amount needed for the company to do the initial investment as well as bear the advertisement expenses would amount to $2000. The advantage of such type of business is that there is no influence from the investors in managing the company as well as the money is managed carefully. but bootstrapping cannot contribute to growth. So, other sources of funding. Crowdfundingallows easy access to several networks of people with the help of social media. This funding generates revenue from a percentage of the raised funds. Facebook is a popular medium for crowdfunding. the amountof 5000 Dollars for the requisites of presales can be done through crowdfunding. Angel investors are also known as the Angel fund or the seed invest for the private investor are individuals with high net worth to provide financial backing to enter a small startup in exchange for equity ownership in the company. for the further growth of the company $10,000 of Sourcing will be done by the Angel investor. the amount of money would be utilized for hiring talent as well as training the individuals for the required skill set and improvement in the work.The company has motives for expansion to new markets and must not be restricted to printing greeting cards in respect of pets. As per the Capital Raising Strategy assignmentproposals, further expansion will require for Angel investors to be approved for an estimated $20000 expansion.
