2019/07/05(Source: FCオーナーズ運営事務局)
When many people start a business, the first thing they face is:
1) What kind of business to conduct
2) Securing funding for the business
Right?
Whether it's a franchise agreement or independent business, until the general business plan is decided, the main tasks involve thinking about various options, asking for opinions, and gathering information.
Now, let's say, after much deliberation, you've finally decided on a business plan. The next hurdle is securing funding. Even if you're enthusiastic and think, "Okay, I'll do it!", you might then realize that your savings aren't enough.
Regarding point 2) securing funding, are you aware of the new fundraising method called "crowdfunding" that has recently emerged in Japan?
-What is crowdfunding?--
English: Crowdfunding. As the name suggests, it's a method of raising funds from a crowd. Entrepreneurs conceive of a new business and then solicit the necessary funds to realize it from a large number of people via the internet. Investor investment methods can be broadly categorized into three types: donation-based (no return), financial (monetary return), and reward-based (non-monetary goods or rights as a return).
Entrepreneurs benefit from crowdfunding because they can directly receive feedback from investors via the internet during the fundraising phase, making it easier to adjust their business based on that feedback. Furthermore, the support from investors who have invested in the business provides a sense of attachment as it develops (a parental feeling), making it easier to acquire customers and fans.
Investors can make small investments even before the business is realized, and in the case of reward-based investment, which is the most common type in Japanese crowdfunding, they can receive non-monetary goods or rights as a return. (Examples: for publishing, the published book; for restaurants, restaurant vouchers, etc.)
Crowdfunding began to gain attention in the United States gradually after 2000. Well-known crowdfunding sites include Kickstarter (https://www.kickstarter.com/?ref=nav) and Indiegogo (https://www.indiegogo.com/#/picks_for_you).
In recent years in Japan, there's also READYFOR, run by Haruka Mera (https://readyfor.jp/).
A recent example of a popular crowdfunding project on READYFOR is the launch of a salad restaurant in Kagurazaka. Interestingly, READYFOR features not only art projects but also a variety of other projects seeking investors, including restaurant openings, NPOs, and international volunteer organizations.
Those looking to start a business can use it as a source of funding ideas, and those struggling to come up with business ideas can draw inspiration from what others are doing.
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