It's time to make some changes.
But it’s not as easy to acquire bank loans as it used to be.
Fortunately, crowdfunding has become a viable means to acquiring the capital needed to take that next step for your business to have a post pandemic pivot.
A successful campaign can also be a very effective marketing opportunity, where the support you receive becomes a big story and generates buzz about your business.
What is Small Business in Canada (SBIC) Crowdfunding?
WHAT IS CROWDFUNDING?
Crowdfunding is when a business or an individual pitches an idea online and appeals for funding to bring the idea to fruition.
A dedicated webpage is created to give potential backers as much information as possible, with the goal being to raise a large amount of money via smaller donations.
The people who invest and support your idea are likely expecting some form of a return somewhere down the line – from shares in the business to ‘rewards’ like a private dinner cooked by a chef.
Whether it’s a new concept, an expansion, a new roof or you’re simply trying to survive – crowdfunding is a great way to generate the capital you need.
TYPES OF CROWDFUNDING
Equity funding entails the exchange of money for shares in the business.
Debt crowdfunding (sometimes known as peer-to-peer lending) is when investors lend money to a project but recoup the money back over time with interest.
Reward crowdfunding – probably the most popular form of crowdfunding in the hospitality industry – is when people donate money and receive rewards from the business.
HOW CAN CRAFT WEST HELP?
We work on your application and your plan to execute. We focus on using your online presence as well as ours.
Using your website, social media platforms, together we sell your story as well as your concept. People will invest in an idea but they’re also investing in you. Let them know who you are, your experience, your concept and why they should be part of it. Be clear about what you’re trying to achieve.
Then you’ll need to set a fundraising goal – a set figure which people know you’re trying to achieve. It’s a good idea to look at similar projects that have been successful to ensure you aren’t selling yourself short or setting the bar too high.
To achieve your crowdfunding goal, people need to know about your campaign. Make use of social media, promote in your existing premises if you have one and let people know what your vision is. On your page you should have a video, conveying your message in a personable way.
AM I ELIGIBLE?
In order to be eligible, you will need to meet the following criteria:
Your business is owned, operated, and registered in BC and owned by a BC resident(s)
- Your business must be registered and currently operating
- Your business had more than $30,000 in revenue in 2019
- Your business has repeatable products (goods), or individual items that have slight differences (jewelry or artists)
- Your business does not have an online store or has an online store with limited functionality
In addition to meeting the above criteria, you’ll also be asked to provide the following:
- Current year balance or past fiscal year statement
- Business number
- PST and WorkSafeBC registrations
- Income Tax Return for 2019
- BC Business registration number and official registered name
Need more information?
Let us help you with your crowdfunding project.
We will gather all the information to create your next successful crowdfunding project by our partner company Small Business in Canada.