Friday, 22 February 2013

Is "crowd funding" an option?



I was reading about a 23 year old entrepreneur in Cleethorpes that has appealed for “crowd funding” in order to help set up his new sweet shop, Sugar Rush. For a donation of £5 to £100, the generous recipient is duely rewarded with something in return. I assume in this case, something to do with sweets! Matthew hopes to raise around £1,500 towards the set up of his shop which he feels will be welcomed by the community.

It’s not the first time that a confectionery retailer has turned to its customers for financial help. In 2010, Hotel Chocolat offered its 100,000 “Tasting Club” members FSA approved chocolate bonds at £2,000 each. The result was an investment of £3.7m, with all of the investors receiving bi monthly chocolate deliveries instead of dividends! Hotel Chocolate went on to use the money to develop its manufacturing site in Cambridgeshire, creating 250 new jobs.

Maybe the idea of “crowd funding” is more viable than we think. In these challenging retail times, perhaps your most loyal customers would actually help you to develop and grow going forward by investing a modest amount of money for some element of a regular reward? We’d be interested to hear about any examples where this has worked.

Perhaps an existing confectionery retailer could set up an investment scheme whereby the investor received a special discount card for all of their future purchases? Or maybe it is as simple as a regular supply of sweets and chocolate? Consumers can certainly become emotionally attached to products and retailers within the confectionery market; such is our love of sweets and chocolate! We are quick to “like” our favourite sweet treats by way of their Facebook page so I wonder just how far some of us might go to help them survive and thrive?

I wish Matthew Greenacre all the very best with his Sugar Rush sweet shop. I hope that the good people of Cleethorpes support him and subsequently enjoy the fun of a new sweet shop on their block.

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