Our Strategies for Successful Fundraising
Our Strategies for Successful Fundraising
We believe we have implemented effective strategies to raise the necessary funds for FSXR1. Our approach includes promoting FSXR1 in local Ethiopian newspapers, on social media, and at special events. These efforts are targeted at attracting investors, particularly those in the Washington, D.C. area.
Ethiopian Newspapers
Advertising in a community-focused newspaper is an excellent way to reach potential investors. Atref, founded in 2002, is a popular Ethiopian newspaper distributed in over 100 Ethiopian markets, restaurants, and businesses in Northern Virginia, Washington, D.C., and Southern Maryland, with a circulation of 8,000 copies.
We plan to run a full-page and two half-page ads in each publication throughout our fundraising period. This will raise awareness of FSXR1 among potential investors, helping build trust and encouraging participation.
Cost Estimate for Newspaper Advertising
A full-color, full-page ad costs $410, while a half-page ad costs $290 for a 4-week run. We have allocated $4,200 to cover advertising in Atref for six months.
Social Media
Social media is a highly effective tool for reaching potential investors. We will promote FSXR1 across platforms like Instagram, TikTok, Facebook, and YouTube, as well as collaborate with accounts popular within the Ethiopian and Eritrean communities, such as Selamcentral and Balemoya.
Selamcentral is a popular social media account favored by Ethiopians and Eritreans, primarily in the U.S. and Canada, with a strong following in the Washington, D.C. area. It boasts over 193,000 followers, many of whom are highly educated and engaged with Ethiopian and Eritrean culture.
We plan to advertise FSXR1 on Selamcentral five times during the fundraising period. This targeted approach will help us reach our funding goals quickly.
Cost Estimate:
We expect the total cost for advertising on Selamcentral to range between $5,000 and $10,000, due to the high level of follower engagement.
Balemoya is another influential social media account within the Ethiopian and Eritrean community, with over 188,000 followers. This account primarily focuses on Ethiopian food and restaurants, making it an ideal platform to promote FSXR1.
Cost Estimate:
Similar to Selamcentral, we anticipate spending between $5,000 and $10,000 for advertising on Balemoya.
As of April 2024, Instagram has 2 billion monthly active users, making it a powerful platform for targeted advertising. We will focus on users interested in Ethiopian and Eritrean culture, food, history, and entertainment.
Cost Estimate:
Our plan is to reach 250,000 users through four advertisements over six months, with a total budget of $10,000. We estimate this reach could expand to 300,000–1,500,000 accounts. To meet our $2 million fundraising goal, we only need 200 investors.
TikTok, with 1.58 billion monthly active users, is another key platform for reaching potential investors. Like Instagram, we will run four ads to reach 200,000 users over six months.
Cost Estimate:
Our budget for TikTok advertising is $10,000, though we expect to reach fewer people than on Instagram due to higher costs on TikTok.
YouTube remains a valuable platform for video-based advertising, with 2.5 billion monthly active users. We will target viewers with an interest in Ethiopian culture, food, and history.
Cost Estimate:
We have allocated $15,000 for YouTube ads, with the goal of reaching approximately 100,000 accounts.
In addition to Instagram, we will promote FSXR1 on Facebook, the platform with the largest number of active users—3 billion as of April 2024.
Cost Estimate:
We plan to spend $10,000 on Facebook advertising, which should allow us to reach more than 200,000 people.
Licensing and Permits
Securing the proper licenses is a crucial step in launching FSXR1. We will apply for relevant SEC exemptions, as we are raising only $2 million and will not accept investments until the business is operational. Additionally, we will obtain state licenses to ensure compliance with local regulations. We have set aside $10,000 for licensing and permit expenses.
Payroll
Beyond marketing and legal expenses, we have allocated the remaining budget to payroll. Fundraising requires significant time and effort, particularly for meetings with potential investors, which may be necessary to secure their participation.
Conclusion
We are confident that our strategies will enable us to successfully raise the necessary funds for FSXR1 and open a modern restaurant in Arlington, VA. Not only have we developed a comprehensive fundraising plan, but we also aim to establish several successful restaurants across the country.
