SBIC
Crowdfunding
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 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
Equity funding entails the exchange of money for shares in the business.
Debt crowdfunding
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
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 DOES SBIC 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 for Crowdfunding?
1.
Corporate Organization
Your company needs to be a registered provincial company with a federal business number.
2.
Currently Operating
Even though the pandemic may have hurt your business, you need to be operating within Canada.
3.
A Compelling Story
People want to help businesses recover and thrive. Successful crowdfunding in the last year has revolved around adding critical elements to pivot the business; outdoor operations, e-commerce sites, take-out & delivery systems or online advertising.
4.
An Appealing Reward
People will contribute, if over time, they know they will receive something unique from your business.
5.
Online Presence
Crowdfunding is dependant on people looking at your business online. Your business needs to have a website, email addresses and a social media presence.
6.
Stakeholder Contacts
You will need to reach out to friends, family, customers, suppliers and others. You will need to have an active database of these.
Frequently Asked Questions
Crowdfunding is when a business or an individual pitches an idea online and appeals for funding to bring the idea to fruition.
Depending on your project, you story, compelling video and the strength of your followers, we can raise from $5,000 to $50,000.
We charge a flat rate of 5% to cover the transaction fees, credit card fees, and any foreign exchange rates if applicable.
Start by filling out the form below and an SBIC representative will contact you to assess your crowdfunding project and help you create the story that will make your campaign successful.
SBIC Crowdfunding is specifically for small businesses who need help preparing their business survive and thrive the COVID-19 pandemic through building an extension of their restaurant or adding a delivery facility to creating an online store.
Thousands of people in Canada are looking for ways to help their neighbors during this pandemic.
Friends, fans, and the communities you are a part of will likely be some of your earliest supporters, not to mention your biggest resources for spreading the word of about your project.
Ready to start
Crowdfunding?
Apply Today
Fill out the below and we will work with you to create a campaign that will increase the success of your fundraising.
