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Crowdfunding

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Localmotive omaha

OMAHA, NE - Crowd-funding has helped several creative platforms and technology companies take off the last year, and now it’s helping Omaha’s Localmotive  food truck.

Last fall, the wheels fell off Localmotive food truck. Actually, the engine failed and the radiator cracked.

“Being out of business that long is very hard,” said co-owner Patrick Favara.

Instead of putting money into a sinking truck, Favara and fellow co-owner David Burr regrouped.

“We actually did walk into every bank. We were told we didn’t have enough collateral upfront, enough to put down on the vehicle up front,” said Favara.

The co-owners needed a truck that better fit their growing need, so they turned to Kickstarter, a worldwide crowd-funding platform.

“It’s never easy asking for money, but we really tried to give back and offer some really cool incentives and make some great partnerships with corporations,” said Burr.

One corporation in particular is Omaha’s Proxibid. Proxibid started as a small start-up and now their executive team helps other entrepreneurs grow their business. That’s why Dana Kaufman said the Kickstarter for Localmotive was a natural fit.

“Maybe if they would have just come to us and asked for a loan, we wouldn’t have been as interested, but the opportunity to have our logo on their truck and really be business partners moving forward is a nice idea,” said Kaufman.

Localmotive plans to pay the $43,000 raised forward to local nonprofits over the next three years.  It has already donated a food incentive for “Growing Cities,” a documentary film that examines the role of urban farming in America.


Find the entire article at ketv.com <here>

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Alabama Brick HouseMOBILE, AL - After two hot dog carts were stolen on Thursday, the owner of the business grabbed the attention of many Mobile citizens.

Nevada Robinson and Jeanine Carlton work at the carts, and are staples in downtown Mobile.

The loss of the beloved carts was heartbreaking.

Carlton suffered great hardship with a teenage pregnancy, domestic violence and drugs. After a conviction, she turned her life around.

Now a convicted felon, Carlton opened Alabama Brickhouse because her daughter loved hotdogs.

Her daughter is now a college student, thanks to that effort.

In response to Carlton’s story, dozens of people started asking how to help.

A GoFundMe was created to enable online donations. Those who wish to donate can visit this link to do so.

Names of those who donate will be written on her new cart, Carlton said.

As of today, the gofundme project has surpassed the initial request for $5,000. Let see how much we can help them raise!!!

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SAN ANTONIO, TX - How many times have you wanted to go to a Farmer’s market only to miss the short window of time they are actually open? Even worse, what if the one good farmer’s market in town is 30 miles away and only open for 3 hours a week? Truckin’ Tomato aims to solve both of those problems by taking the farmer’s market directly to the customers.

Truckin Tomato San Antonio

They will sell locally grown produce, food products, and merchandise on a trailer transformed into a mobile market that is parked on the campuses of businesses, large parks, apartment complexes and special events in San Antonio and the surrounding area. their aim is to bring the highest quality farmer’s market selections to the places people already congregate.

Additionally, the profits generated will help provide meals and supportive services for families experiencing food insecurity in San Antonio. To make this dream a reality they need help raising money to outfit the trailer! The total amount to outfit the trailer is 40K, but an earlier campaign that they cut short to run this one quickly raised $8000!

What Your Donation Helps

They have already purchased the 28 ft. cargo trailer.  Via in San Antonio has donated a propane powered tow truck to pull it.  Now they need to raise the remaining $32,000 to turn it into a mobile farmers market!   The funds raised will allow them to outfit the trailer with the following details:

  • Install refrigerated display case for perishable foods
  • Install 3 sink compartment and juice bar
  • Shelving needed to display produce
  • air conditioning unit
  • refrigerator for prepared meals, meat and dairy for sale
  • lighting on inside and outside of trailer
  • wrap the trailer with custom Truckin Tomato graphics
  • shade awning
  • Generator to power the mobile market

As of the release of this article Truckin’ Tomato has received $2,850 of the $32,000 they need.

To donate to this great cause, check out the whole campaign at Indiegogo <here>

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Crowdfunding sites such as Kickstarter and Indiegogo have helped numerous food truck owners meet their financial needs to start up their own mobile food business. Due to this success smaller, niche sites have begun to see success as well.FoodStart Crowdfunding

Entrepreneur Alex Sheshunoff researched which verticals made the most sense for a new crowd funding site and determined the food and beverage sector was the route to go. At that point he launched FoodStart.

Foodstart is a community-funding platform designed just for food trucks and independent restaurants. Through their crowd funding platform your friends, family, customers – anyone – can use their Amazon.com account to back your mobile food business in small increments (i.e. $50 or $1,000).

In exchange for their capital, backers receive perks and rewards such as food discounts, their signature on your truck, cool swag, menu items named after them – whatever you choose!

Sheshunoff’s found that people were hungry to fund projects that they could have a real-world connection with, bridging their digital and physical lives. Taking a page from the popularity of things like Groupon that do just that, FoodStart seeks to help food trucks and other food service businesses to connect with their customers and secure capital at the same time.

FoodStart is currently offering a seed match of $1,000 – the basic requirement is to raise at least $5k from at least 20 different people, and they will add $1,000 to your project.

How it Works:

FOR BACKERS

If you’re reading this page you probably got an email or Facebook post from a friend saying that a new restuarant or brewery was opening up nearby.  Like every business, these guys need money to get started or expand.  And they see lots of benefits for getting it from friends and friends of friends than the office of a mega-bank.

Here’s what to do next:

1) Review the business plan.  Does it make sense?  Do you think they have a shot at it?  If so…

2) Look at the perks they’re offering and decide how much you want to put in.  It might be $10 for a long-term discount on desserts or $250 to have a menu item named after you.

3) Submit your pledge (not an actual payment since the business only gets the cash if they’re funding goal is reached) using your Amazon username and password.

4) Tell your friends about the cool business your backing.

5) Assuming you’ve told enough people about it and they reach their funding goal, you’ll get an email in your inbox and a Ownership Card in the mail.  Whenever you go to the business, just present your card and redeem whatever great perks you’ve earned for being an early backer in the business.

FOR BUSINESSES

For business owners the process is really straightforward.  But you’ll need a few things to get started, including a bank account, a working phone, and a business that’s in the food-and-beverage industry. Assuming you got those covered, you simply need to

1) Upload your pitch. You might need capital to buy equipment or even your truck.  Whatever the purpose, the first step is to post the plan for your project.

2) Pick the Perks. People who are backing you need to get something in return. It might be a cash discount.  It might be a free dessert or the backers name on the truck’s wrap.  Whatever combination of perks you have available, they have market research to help guide you.

3) Tell folks to check it out. Build buzz by telling people about your new project – they have the tools to help with this too.

4) Execute. For Start up Food Trucks: Assuming your funding goal has been met, cash will be deposited directly to your business bank account (less a 2.9% credit card fee and 4% processing commission.)

For Expanding Mobile Food Businesses: Even if you’re goal hasn’t been met, when your campaign deadline is reached Foodstart will deposit the funds that have been raised into your account (less a 2.9% credit card fee and 4% processing commission.)

And now, unlike your competition, you have hundreds of local residents who have an incentive to see you succeed!

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food truck crowdfunding

Once an unknown financing option for entrepreneurs, crowdfunding has quickly evolved into a fast, effective way to raise cash for just about any mobile food industry project. Crowdfunding’s growing popularity is good news for creative culinary types who typically don’t have access to large bank loans or angel investments.

From initial start costs to fleet expansion to new equipment purchases, crowdfunding can cover the whole gamut of various projects food truck vendors need assistance in financing. The great thing is that this funding is likely to keep soaring, as the crowdfunding economy grows from $1.5 billion in 2011 to an estimated $3 billion this year.

Four Things to Do Before Launching Your Campaign

If you want people to give, you’ve got to drum up excitement. Here are four strategies for building momentum even before launching your food truck campaign:

Build your social network. Fundraising season is not the time to be a wallflower. Plan to let anyone who has ever supported your creative endeavors know you’re looking for backers. Don’t have much of a network in the first place? Then build one.

Make a great video. Thanks to the built-in video recording features on smartphones, a good video doesn’t have to cost a dime.

Plan perks people want. If you’re raising money for a food truck or other mobile food business, it makes sense to plan on sending coupons for free food or merchandise as thank yous.

Create multiple entry points. Not everyone has $50 to spare, no matter how great your food truck project sounds. So make sure to have lower pledge levels (starting as low as a dollar) to encourage people to participate in and create momentum for your campaign. Likewise, come up with a few over-the-top perks to reward your biggest backers.

How to Pick the Right Crowdfunding Site

The crowdfunding site Kickstarter has gotten so much publicity lately that you might think it’s your only option. But there are literally hundreds of other sites from which to choose. Here are some of the best, along with their key differentiators:

Kickstarter: With more than $350 million raised for projects since 2009, Kickstarter is the best-known crowdfunding platform, but it also takes the largest cut: a 5% flat fee, plus 3% to 5% for payment processing via Amazon. That means you typically pocket just 90% of pledges. And Kickstarter’s rules dictate that if you don’t reach your goal—even if you raise $9,500 out of the $10,000 you’re seeking—you get nothing. Despite these issues, Kickstarter has a reputation for helping people raise more money than any other site.

Indiegogo: The main reason people choose Indiegogo is that, unlike Kickstarter, it lets you keep all the cash you raise even if you don’t meet your goal. Such largesse doesn’t come free: Indiegogo keeps 9% of funds raised under this “flexible” funding plan, plus a 2% to 3% payment-processing fee. Otherwise you pay a 4% flat fee for Kickstarter-style “fixed funding,” plus the 2% to 3% fee. Indiegogo isn’t just some lame also ran, either. And unlike Kickstarter, Indiegogo allows charity and cause-oriented projects.

Others: Crowdsourcing.org keeps an updated directory of hundreds of crowdfunding sites, if you want to search on your own.

Get Real About Your Overall Costs

The biggest mistake novice crowdfunders make isn’t asking for too much money; it’s not making a realistic estimate of how much money they will need to cover their expenses.

Say, for example, that you know it will cost $15,000 to purchase your truck. Subtract fees (of about 10%, including payment processing), the cost of shipping out gifts to your backers, and taxes, and you might net only half of your total funds raised. In other words, you should ask for at least a third more than the total amount you think your food truck project will cost.

Many crowdfunders don’t realize until after their campaign is over that they underestimated their costs.

If you feel uncomfortable asking for the full amount up front, once you reach a lower goal, you can announce a stretch goal and send updates to your backers explaining how you’d use any extra funding.

How to Drive Thru the Mid-Campaign Deadzone

It happens to even the most successful food truck campaigns: After a swift start and a flurry of pledges from your inner circle of friends and family, donations start tapering off in the second or third week.

Here’s how to turn things around:

Don’t let your food truck campaign drag on too long. A month is the typical sweet spot for most crowdfunding campaigns. Any longer and people will put it on the back burner, then forget to donate. Any shorter and your project can seem rushed and disorganized. It’s also best to end your campaign on a weekday evening so you can give the final push when people are probably bored at home and surfing the web anyway.

Stagger your updates. Assume that donations will taper off in the second week of your campaign—and be ready to re-energize it by sending out an update on funds raised or newly added prizes.

Maintain separate email lists. You may want your first email at the start of the campaign to go only to close friends and family, the second to professional colleagues, and the third to everyone else. Casual acquaintances are more likely to be motivated by seeing that the campaign already looks like a winner. And be careful not to annoy people who already funded you with numerous follow-on solicitations.

Don’t freak out.  The mid-campaign slump is normal, not an early indicator that your project is doomed. Avoid the urge to add perks you can’t really afford or to start emailing people on a daily basis.

How to Satisfy Your Funders

Nobody likes dealing with a flake, especially when that flake has your money. So if you ever hope to get your funders behind another project, you need to assure them that you’re on the ball, making progress, and will have something to show for their faith.

Finish early. Looking for a great way to make your backers really happy? Beat expectations.

Communicate. It’s not always possible to finish early, of course. If you’re running late, like three-quarters of all crowdfunding campaigns, let your backers know.

 

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