[Joe Shanahan]

One of my customers has just ventured into crowd funding.

He says it would be ideal for my business and I am willing to give it a shot as I do feel with a large cash injection I could create a pretty large, solid business.

Has anybody used crowd funding to expand?  How did you get on?

Thanks!

Joe

[andyM]

...............im still at the back of the queue. 

[Joe Shanahan]

...............im still at the back of the queue. 

Don't blame you mate!  But I feel in his platforms early stages it will be mostly him & a few business associates initially investing.  He is minted & owns some of the largest private hospitals in the south- I already feel that he would be willing to invest I'm just wondering how much to ask for.  I know the ideal amount but not sure if that will be seen as too much!

[PoleKing]

Ask for what you actually want.
Have the paperwork to back it up.
If you want £100k but 'go safe', ask for £50k and have to come up with the other £50k some other way, you'll always wonder 'would he have said yes to the £100k initially wanted?'

[Perfect Windows]

...............im still at the back of the queue. 

Don't blame you mate!  But I feel in his platforms early stages it will be mostly him & a few business associates initially investing.  He is minted & owns some of the largest private hospitals in the south- I already feel that he would be willing to invest I'm just wondering how much to ask for.  I know the ideal amount but not sure if that will be seen as too much!

If it's him and a few associates it's not really crowdfunding.  Crowdfunding is more often hundreds of people putting money in separately.  So, for example, www.fundingcircle.com where thousands of people put as little as £20 towards each loan.  The investors have no control over the business; they just receive repayments.

In your case, be aware that he may want some element of control over your business.  Beware of the strings that may be attached to the loan.

Also, "feeling" that you could use a big cash injection is very different from having a nailed down business plan as to how you'd squeeze every penny of benefit out of the loan.  You don't want to borrow £100,000 (say) just because it's available.  What you should borrow is what you can use properly to gain as much benefit as possible to your business.  So, for example, if someone lent me £100,000 tomorrow, for a long time I'd be paying interest on money that I just couldn't use; I'd need completely to redesign the business to be able to use it.

Vin

[Simon Mess]

Maybe i'm just old fashioned, but I just don't see the appeal to this. It reminds me of how these days, singers, bands or whatever, want to get big and famous instantly on some of those crap shows like britains got talent or x factor. They are not willing to put in the graft and do it the way it used to be!.

What is wrong with just building your business up yourself gradually?, go out knocking on doors, or dropping leaflets through letterboxes. You will soon reap the rewards, you will be in control, and you will have the satisfaction of knowing it was all down to you!.

Have some patience, it will be worth it.

[Joe Shanahan]

I'm building it up pretty well gradually, adding a £1000 per month to the round year on year through natural growth only ( referrals and through website/ yell etc. ). That's without leafleting & canvassing.

Problem is i like money and nice things, I want six solo operators out there doing it for me each day so I can just keep the customers coming in.  I'm young & not afraid of hardwork, but I want big things before somebody else gets them!

[HampshireWindowCleaning]

If you're so keen to expand then why don't you bother to canvass or leaflet 

[Perfect Windows]

I'm building it up pretty well gradually, adding a £1000 per month to the round year on year through natural growth only ( referrals and through website/ yell etc. ). That's without leafleting & canvassing.

Problem is i like money and nice things, I want six solo operators out there doing it for me each day so I can just keep the customers coming in.  I'm young & not afraid of hardwork, but I want big things before somebody else gets them!

If that's really what you want then you need to plan to get there.  If you don't plan, you have no chance.  And you might just find that having £100,000 in the bank wouldn't get you there any quicker than you could manage without the money.  Plus, having loads of cash about is a temptation not to look after your costs.  Be wary.

Vin

[richard jagger]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

[Joe Shanahan]

If you're so keen to expand then why don't you bother to canvass or leaflet 

I do canvass & leaflet mate.  My point being that's natural growth- without canvassing & leafleting!

[Paul Coleman]

I'm building it up pretty well gradually, adding a £1000 per month to the round year on year through natural growth only ( referrals and through website/ yell etc. ). That's without leafleting & canvassing.

Problem is i like money and nice things, I want six solo operators out there doing it for me each day so I can just keep the customers coming in.  I'm young & not afraid of hardwork, but I want big things before somebody else gets them!

Perhaps you should try an automated sales funnel then along with the crowd funding.

[Joe Shanahan]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

Can you explain this a bit more please mate?  This is the sort of information I was hoping to hear more of.

[Perfect Windows]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

Get true crowd funding and they can't possibly take the business away from you as long as you make your repayments.  The original description is just of people who want to invest, in which case Smithie's warning is correct.

I still suspect you're looking at the money and thinking of a plan rather than planning and seeing if you need any money.

Vin

[Perfect Windows]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

Can you explain this a bit more please mate?  This is the sort of information I was hoping to hear more of.

If you're young and hardworking (and keen to borrow money for money's sake) then you can fall prey to people who will offer unlimited funding for you to grow your business.  "No limits", "You'll be running the business", "we'll take a back seat", you'll hear but there'll be the option for them to take over if things aren't going well (which they swear is just in there just in case). Then, five, seven,ten years down the line, you find yourself with a business that you've built up being taken off you because "you're not doing as well as we'd hoped given our commitment".  You've done the work, they have the business and the money.

It does happen.  The only solution is to start it off on a legal footing with your own solicitor looking at every aspect of everything you sign.  That will cost a fortune but will also save you a fortune in the long run.  But you're young, so you're unlikely to do it or to listen to their advice.  

So, my advice would be (sorry to repeat myself) to plan a route from where you are to where you want to be.  The very act of planning will clarify your mind and will give you an idea of whether you need anyone else involved.

And my final bit of advice?  If you can do it without anyone else's money, even if it's a little slower, do it.  You don't get anything for nothing.  Especially not other people's money.

Vin

[Joe Shanahan]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

Can you explain this a bit more please mate?  This is the sort of information I was hoping to hear more of.

If you're young and hardworking (and keen to borrow money for money's sake) then you can fall prey to people who will offer unlimited funding for you to grow your business.  "No limits", "You'll be running the business", "we'll take a back seat", you'll hear but there'll be the option for them to take over if things aren't going well (which they swear is just in there just in case). Then, five, seven,ten years down the line, you find yourself with a business that you've built up being taken off you because "you're not doing as well as we'd hoped given our commitment".  You've done the work, they have the business and the money.

It does happen.  The only solution is to start it off on a legal footing with your own solicitor looking at every aspect of everything you sign.  That will cost a fortune but will also save you a fortune in the long run.  But you're young, so you're unlikely to do it or to listen to their advice.  

So, my advice would be (sorry to repeat myself) to plan a route from where you are to where you want to be.  The very act of planning will clarify your mind and will give you an idea of whether you need anyone else involved.

And my final bit of advice?  If you can do it without anyone else's money, even if it's a little slower, do it.  You don't get anything for nothing.  Especially not other people's money.

Vin

Vin

Thankyou for taking the time and effort, you've really opened up my eyes to what to look out for.  I guess we all want to be the biggest and some find a comfortable medium to stay at.  Ill keep working with what I have and one day achieve what I want before its too late.  Thankyou Vin, much respect to you.

I guess I was looking for something to put me off & now I have it!  Thanks Chaps :-)

[Joe Shanahan]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

Can you explain this a bit more please mate?  This is the sort of information I was hoping to hear more of.

If you're young and hardworking (and keen to borrow money for money's sake) then you can fall prey to people who will offer unlimited funding for you to grow your business.  "No limits", "You'll be running the business", "we'll take a back seat", you'll hear but there'll be the option for them to take over if things aren't going well (which they swear is just in there just in case). Then, five, seven,ten years down the line, you find yourself with a business that you've built up being taken off you because "you're not doing as well as we'd hoped given our commitment".  You've done the work, they have the business and the money.

It does happen.  The only solution is to start it off on a legal footing with your own solicitor looking at every aspect of everything you sign.  That will cost a fortune but will also save you a fortune in the long run.  But you're young, so you're unlikely to do it or to listen to their advice.  

So, my advice would be (sorry to repeat myself) to plan a route from where you are to where you want to be.  The very act of planning will clarify your mind and will give you an idea of whether you need anyone else involved.

And my final bit of advice?  If you can do it without anyone else's money, even if it's a little slower, do it.  You don't get anything for nothing.  Especially not other people's money.

Vin

Vin

Thankyou for taking the time and effort, you've really opened up my eyes to what to look out for.  I guess we all want to be the biggest and some find a comfortable medium to stay at.  Ill keep working with what I have and one day achieve what I want before its too late.  Thankyou Vin, much respect to you.

I guess I was looking for something to put me off & now I have it!  Thanks Chaps :-)

By the way Vin that might read like I'm trying to say you have found a comfortable level but its not meant that way.  I have lots of respect for where you & your business is today.

[Simon Mess]

Get crowd funding build the business and when its big they will take it away from you. Seen this done before when I was a enthusiastic hard working young  man."Because of this I was out," after ten years.

Can you explain this a bit more please mate?  This is the sort of information I was hoping to hear more of.

If you're young and hardworking (and keen to borrow money for money's sake) then you can fall prey to people who will offer unlimited funding for you to grow your business.  "No limits", "You'll be running the business", "we'll take a back seat", you'll hear but there'll be the option for them to take over if things aren't going well (which they swear is just in there just in case). Then, five, seven,ten years down the line, you find yourself with a business that you've built up being taken off you because "you're not doing as well as we'd hoped given our commitment".  You've done the work, they have the business and the money.

It does happen.  The only solution is to start it off on a legal footing with your own solicitor looking at every aspect of everything you sign.  That will cost a fortune but will also save you a fortune in the long run.  But you're young, so you're unlikely to do it or to listen to their advice.  

So, my advice would be (sorry to repeat myself) to plan a route from where you are to where you want to be.  The very act of planning will clarify your mind and will give you an idea of whether you need anyone else involved.

And my final bit of advice?  If you can do it without anyone else's money, even if it's a little slower, do it.  You don't get anything for nothing.  Especially not other people's money.

Vin

Vin

Thankyou for taking the time and effort, you've really opened up my eyes to what to look out for.  I guess we all want to be the biggest and some find a comfortable medium to stay at.  Ill keep working with what I have and one day achieve what I want before its too late.  Thankyou Vin, much respect to you.

I guess I was looking for something to put me off & now I have it!  Thanks Chaps :-)

I have no desire to be the biggest. Not sure I want to employ someone either, too much hassle, too much rules and regulations, not to mention the thorny issue of finding someone who will work to the standard I would want and expect.

There is a window cleaner in my neck of the woods who runs about 4 or 5 vehicles. I wont mention any names, but a couple of months ago, I was parked on a customers driveway (parallel to the street) when one of his vehicles rolls up and parks on the street right next to my van. The driver then got out and started going round the houses putting leaflets through doors!. There was no reason to park where he did, the street being about 300 meters long, so what was it all about?. I don't know, but I do know that if I was out canvassing and pulled on to a street where another windy was working, I wouldn't even stop, let alone, park next to him. I am not greedy, and there is plenty of other windows out there to clean!.