How Happy Scrappy Is A Personalised Scrapbook Creation...

1. Introduction Happy Scrappy is a personalised scrapbook creation company. It is run through an online website allowing customers to create a virtual scrapbook. The company was extremely successful in the first year and has decided to expand. They will be launching their services to other European countries, developing their website, and employing more staff. This would require raising capital to fund the expansion. This report will investigate different methods relevant to Happy Scrappy to see which option are best suited. 2. Sources of finance There are several methods that can be used to raise finance. The method a business chooses depends on factors of the business; amount of capital required, the purpose, the financial position of†¦show more content†¦Using an external source may be a quick way for business to receive a large sum of money however most of these come with high interest rates causing issues if businesses cannot keep up with instalments. 3. Different methods of raising capital 3.1 Crowdfunding Crowdfunding is a source of external finance which entails collecting money from several supporters. Businesses set up a page online, including details of where and how the money will be used. They then set a target and all the money earnt, if it has exceeded the target will go to the business. This can be used for existing businesses, start-ups, or even developing ideas. Some businesses will offer incentives for investments. This has become popular during the years and has proven to be successful. Equity based crowdfunding grew by 201% in 2014. Since securing funding 70% of businesses have increased turnover and 60% have increased employment. Please see appendix A for average growth. One advantage of using crowdfunding is that it is free. As well as this, if businesses are popular, it can be a fast way of raising capital. It can also be used by the business as a free marketing technique as the word will be spreading therefore even if people just view the page, it creates brand awareness. Some businesses that have used crowdfunding have also benefitted from expert advice and guidance from other business people who regularly use crowdfunding websites. InShow MoreRelatedOutline Of A Business Plan1617 Words   |  7 Pagestransfigure it into a successful and distinguished scrapbooking company. After searching the internet and social media, I have not come across a reputable company that will offer the same services as Happy Scrappy. Most companies will create photo books or send readymade scrap books in which customers will have to add in photos themselves. Although these companies sound similar Happy Scrappy allows customers to candidly create the scrapbook from st art to finish. After comprehensive research in to the