Blog

  • 10 of the best UK small business ideas

    Looking to start your own business in 2021? At Simply Business, we’ve delved into some of our own customer data to reveal the latest trends among small businesses and the self-employed to give you inspiration to get started. Despite the challenging times, data from the Office for National Statistics showed a dramatic rise in new companies registered in the UK in the second half of 2020. If you’re thinking of joining this entrepreneurial trend, read on to explore top new small business ideas.

    Food and drink small business ideas

    Food and drink businesses have had to adapt and pivot throughout the coronavirus outbreak. Many independent cafes and restaurants began selling produce from their space or went takeaway only. It’s changed how we view food in the UK and many of us have been inspired by the focus on local, homemade, and seasonal produce.

    But what’s the best business to start? We’ve picked out a couple of inspiring ideas.

    What business should I start?

    1. A home baking business

    Like many businesses, bakeries have felt the effects of Covid-19. But demand has remained relatively high for baked goods, so many new entrepreneurs started a baking business from home.

    Cake decorating businesses also seem to be on the rise. Many had to adapt during the pandemic by reviewing the range of cakes they sell, increasing prices, and avoiding bespoke orders.

    What about upcoming trends? A recent survey from Craft Bakers Association found 83 per cent of surveyed respondents believe nostalgic flavours will be popular in 2021. Think Black Forest gâteau or cherry bakewells.

    You can also expect vegan products to be increasingly popular, boosted by the annual Veganuary campaign and more people choosing a ‘flexitarian’ diet. Higgidy’s vegan quiche and Cooplands cream cake, for example, launched earlier this month.

    Inspired? Head to our 10-step guide to starting a baking business from home for what to do next.

    1. Takeaway and delivery
      It’s no surprise that demand for takeaway food businesses soared in 2020. While the food and drink industry has had a challenging year, many pubs, cafes and restaurants managed to adapt to offer deliveries during lockdown.

    In last year’s Summer Statement announcement from Chancellor Rishi Sunak, VAT was reduced from 20 to five per cent up for food, accommodation and attractions. And this temporary reduced rate for hospitality and tourism has now been extended to 31 March 2021. The move is designed to support recovery in these industries and encourage demand.

    Interested? Read our guide on how to start a takeaway business and check our coronavirus guidelines for restaurants and cafes,which includes food to go.

    You can also check food and drink industry insurance information.

    Creative small business ideas
    Covid-19 forced many people to wonder how they could turn their creative hobbies into a lucrative business. According to a survey from desktop factory specialist Mayku, 28 per cent of people in the UK considered starting a creative business since the outbreak of the pandemic.

    What skills do you have that could help you become your own boss, setting up a business from home?

    What business should I start?

    1. A homemade candle business
      A need for escapism, creativity and relaxation saw people turning to candle making during the coronavirus pandemic. And whether out of necessity or an inner entrepreneurial spirit, many of these hobbyists started selling their candles online.

    Interested in starting a homemade candle business? Read about insurance for craft businesses.

    1. A jewellery business
      In terms of small business ideas from home, jewellery making is a popular choice for artists looking to supplement their income. It’s creative and you’ll get to use a range of metals, precious stones, and techniques to create designs that you’re passionate about.

    The cost of setting up your jewellery business depends on equipment and materials – plus you’ll need to consider how much you could sell each item for. As a guide, jewellery makers make an average of £44.34 earned per item sold, according to a survey from DIYs.com.

    You’ll want to consider whether you want to sell online or at craft fairs, or both. Either way, take a look into insurance for craft businesses so you’re protected.

    Independent retail businesses
    In 2020, Statista reported that 87 per cent of UK households made online purchases within the preceding 12 months – the highest figure in the UK for the past 11 years. Whether you design your own products or buy and sell from suppliers, here are some small business ideas to consider.

    What business should I start?

    1. A clothing line
      How about starting a clothing company? You get to define your niche, put your creative skills to the test, and start building a brand. While bricks and mortar shops are in difficulty, selling online could be a smart move.

    Whether it’s selling second-hand clothes, using responsibly sourced materials, or simply repairing old items, is there a clothing business you could open with sustainability in mind? Read more about starting a clothing line.

    1. An online shop
      Selling products online can be an excellent business to start on the side if you have the right products and skill set. With shops on the high street suffering unpredictable closures and coronavirus restrictions, an online presence can be a low risk and low cost way to trade.

    If you’re in need of inspiration for products you could sell online, our guide includes help to get you started.

    Service business ideas
    More people are working from home and shopping online, but what types of businesses are thriving as a result of this change in consumer behaviour? Here are some business ideas to get you started.

    What business should I start?

    1. A cleaning company
      Demand for commercial and residential cleaning has grown in recent years, and it’s likely to continue on that trajectory thanks to coronavirus. With more people working from home than ever before, and a growing number of young professionals with disposable incomes – it’s no wonder that professional cleaning services have seen a surge in popularity.

    Want to know more? Read our step-by-step guide on how to start a cleaning company in the UK.

    1. A courier company
      The Guardian reported this month that online grocery sales now account for 13 per cent of all food sales – up from 7.4 per cent in March 2020, according to Internet industry body IMRG. This trend isn’t just in the food industry – the need for reliable courier and delivery services to transport goods and important documents is also on the up.

    Thinking about setting up a courier service? Read our eight steps to becoming a self-employed courier.

    You can also check insurance for couriers for more information.

    Health business ideas
    People are keen to keep fit and use the latest technology to track their progress and goals – we all saw the number of people out jogging during the first lockdown. And while the fitness industry has had to adapt throughout the coronavirus pandemic, it’s worth exploring these health and fitness business ideas for inspiration.

    What business should I start?

    1. A personal training business
      If you’ve got a passion for fitness and the necessary qualifications, you’ll be ready to take the leap into personal training. Although gyms and sports facilities have faced tough times recently, personal trainers have been able to make the most of outdoor training and one-to-one sessions, as well as offering classes remotely.

    Read our tips on how to start your own business as a personal trainer and find out about personal trainer insurance.

    1. On-demand health and wellness
      We’re all used to being able to access films and music on demand – now this is expanding into the health and wellness space. Just think how many wearable technology products and health and wellness apps are available now.

    Not only is it a booming industry, but it’s one where people are willing to part with their cash. As The Telegraph reported, “British consumers are expected to spend £487 per head annually on ‘wellness’ by 2022, according to analytics firm GlobalData”.

    If you’re an experienced counsellor, life coach, or yoga instructor, for example, you might like to explore digital platforms that offer subscription services like Down Dog and StrideKick, or build up your own YouTube presence.

    Interested in learning more? Check out our insurance for the health, fitness and wellbeing industry.

    What are your top small business ideas?
    The small business ideas in this article are designed to give you inspiration. If you want to explore an idea, make sure you treat it as a business, carrying out the right research and planning – writing a business plan is a great place to start.

  • KMU-Nachfolgemarkt Schweiz

    Während das Geschäft rund um die Nachfolgeproblematik für Kleinunternehmen vor wenigen Jahren noch nicht als Markt bezeichnet werden konnte, sind Angebot (zum Beispiel auf der Business Transaction KMU-Börse) und auch Nachfrage in den letzten 5-10 Jahren rasant angestiegen. Im Vergleich zu früher ist es heute keine Selbstverständlichkeit mehr, dass der Sohn oder die Tochter das Geschäft übernehmen. Bereits gehen gut 60% der Kleinunternehmen mittels Verkauf an familienexterne Personen oder Mitarbeiter über. Dieser Wandel, hin zu einem sich immer noch im Aufbau befindenden Nachfolgemarkt ist auf verschiedene Faktoren zurückzuführen:

    1. Gesellschaftliche Entwicklungen auf dem KMU-Markt Schweiz
      Der Einfluss des gesellschaftlichen Wandels auf den Nachfolgemarkt Schweiz macht sich in vielerlei Hinsicht bemerkbar. Die zunehmende Akademisierung sowie der technologische Fortschritt eröffnen heute jedem Einzelnen mehr Möglichkeiten als früher, wo die Unternehmensnachfolge beinahe mit der Erfüllung des Kinderwunsches einhergegangen ist. Bei der grossen Auswahl an Berufsmöglichkeiten ist die Übernahme des elterlichen Betriebs heute nur noch eine Option von vielen.
    2. Wirtschaftliche Entwicklungen auf dem KMU-Markt Schweiz
      Die globale wirtschaftliche Entwicklung trägt ebenfalls dazu bei, dass der Nachfolgemarkt für Kleinunternehmen an Bedeutung gewinnt. Im Zuge der Globalisierung greifen Unternehmen vermehrt auf Zukäufe anderer Unternehmen zurück. Diese Strategie verschafft der Käuferin in einem hochdynamischen Wirtschaftsumfeld einen Wettbewerbsvorteil, ohne viel Zeit zu verlieren. Zudem zeigt unsere Erfahrung, dass der Wunsch nach Selbständigkeit gerade in wirtschaftlich unsicheren Zeiten stark zunimmt. Der Wandel hin zu einer Statusgesellschaft unterstreicht den Hang zur Selbstverwirklichung zusätzlich.

    Angebot: Vermarktung als Erfolgsfaktor
    Noch befindet sich der KMU-Nachfolgemarkt Schweiz in der Entstehungsphase. Das Bewusstsein von Firmeninhabern, dass ein Markt für den Verkauf der eigenen Firma vorhanden ist, steigt täglich. Diese Tatsache alleine reicht jedoch noch nicht aus. Wir stellen fest, dass der Markt für den Verkauf und den Kauf von Kleinunternehmen stets von Intransparenz geprägt ist, weshalb der Vermarktung für einen erfolgreichen Firmenverkauf eine zentrale Rolle beigemessen werden kann.

    Obschon in letzter Zeit viele Onlineplattformen entstanden sind, welche Verkäufer und Käufer zusammen bringen, decken diese wertvollen Dienstleistungen nur einen Bruchteil einer erfolgreichen Geschäftsübergabe ab. Bei der Abwicklung des komplexen Verkaufs sind Firmeninhaber bisher mehrheitlich auf sich alleine gestellt. Es ist deshalb naheliegend, dass der Treuhänder bei der Bewertung des Unternehmens behilflich ist, sich der Steuerberater um die geeignete Deal-Struktur kümmert und die Parteien anschliessend beim Rechtsanwalt auf einen für beide Seiten gütlichen Kaufvertrag hoffen.

    Berater beim Firmenverkauf: Qualität statt Quantität
    Der Entschluss zum Verkauf des eigenen Unternehmens ist ein Lebensentscheid und der anschliessende Verkauf ein längerer Prozess, welcher viele Phasen durchläuft und hochemotional sein kann. Die für den Verkauf benötigten rechtlichen Formalitäten können ohne weiteres als Teildienstleistungen von verschiedenen Anbietern bezogen werden. Doch genau da liegen die Stolpersteine. Bei einem ohnehin schon von Emotionen geprägten Austausch zwischen Verkäufer und Käufer beginnen die Diskussionen bei jedem Prozessschritt, in dem eine neue Beraterpartei involviert ist, wieder von vorne. Die Komplexität des Verkaufsprozess liegt darin, die Zügel immer in den Händen zu behalten und die vorhandenen Emotionen neutral steuern zu können.

    Business Transaction gehört zu den wenigen Anbietern, welche Firmeninhaber von der Bewertung über die Vermarktung und Käuferselektion bis zum erfolgreichen Vertragsabschluss begleiten und somit ein vollumfassendes Dienstleistungspaket auf reiner Erfolgsbasis bieten. Mit über 200 verkauften Firmen in beinahe jeder Branche gehört Business Transaction auch punkto Erfahrung zu den führenden Anbietern in der Schweiz.

  • 10 Best Places to Visit in Croatia

    Located in the Balkans, Croatia has become one of Europa’s top tourist destination again since its War of Independence in the late 1990s. Like much of Europe, Croatia boasts its share of medieval cities and historic ruins, but what makes this country exceptional is its wealth of stunning natural attractions such as the Plitvice Lakes, the spectacular Adriatic coastlines and gorgeous islands.

    Dubrovnik, is the darling of Croatia’s tourism scene, thanks to a scenic, medieval-era old town jutting out into the water itself. Further north along the coast is Split, famous as the spot where Roman emperor Diocletian built himself a nice little palace almost 1,700 years ago.

    Further inland, you’ll find the capital Zagreb, with its neoclassical buildings and hiking opportunities at the beautiful Krka National Park. Plan your trip to this beautiful European travel destination with our list of the best places to visit in Croatia.

    10. Krka National Park

    Krka National Park

    Located in Central Dalmatia of Croatia, the Krka National Park is a protected area of spectacular natural scenery, wildlife and historic sites. Situated along the Krka River within Sibinik-Knin County, the national park is best known for its numerous gushing waterfalls and natural pools of clear, blue-green waters.

    Easily reached by car and bus from Split to Sibinik, the national park offers well-maintained walkways and boat excursions for getting around. The most popular attraction of the park is the network of cascading waterfalls. The most admired of these are Skradinski buk and Roški Slap.

    Many trails lead right around the waterfalls, presenting fabulous photo opportunities. Some of the falls plunge into natural pools, which are available for swimming. In addition to the waterfalls, the surrounding scenery of lush vegetation, flowers and glimpses of wildlife such as birds and dragonflies enhance the beauty of the park.Best Places to Visit in Croatia

    Also within the park are other places to go such as historic monasteries and archaeological sites of Roman settlements and medieval fortresses. What’s more, there are plenty of tourist facilities such as museums, picnic areas and restaurants.

    9. Zagreb

    Zagrebdreamstime/© Joyfull

    The capital and largest city of Croatia, Zagreb is a vibrant metropolis packed with both historic and modern tourist attractions. Located in northwestern Croatia, the city dates back to the 2nd century AD when a diocese was first established by Hungarian King Ladislaus. Today, Zargreb is a sprawling cosmopolitan city and the heart of Croatian culture, academics and government.

    The city is divided into an Upper and Lower Town, with Upper Town being the historic core where tourists can walk down cobblestone streets and visit old, medieval churches, towers and palaces.

    Some of the city’s most important sites include the Stone Gate with a painting of the Virgin Mary, which survived a major fire in 1731. Ban Jelacic Square is the city’s main square and is the setting of historic architecture and restaurants. The traditional open-air market, Dolac Market, features many stalls selling fresh produce, clothing and local handicrafts. Along the Strossmayer’s Walkway, tourists can see artists, musicians and other street performers.

    8. Korcula

    Korcula

    Best known as the alleged birthplace of the famous merchant traveler, Marco Polo, Korcula is a 30-mile (50 km) island located off Croatia’s Adriatic Coast. Easily reached by ferries from major Croatian cities, Split and Dubrovnik, Korucla is steeped in picturesque landscapes, quaint towns, rich history and enchanting traditions.

    Korcula is comprised of lush green forests, vineyards, olive groves and charming villages such as Blato, known for its baroque churches and long boulevard of lime trees, shops, restaurants and hotels. Popular for its sandy white beaches, Lambarda also features several archaeological remains of Greek and Roman settlements. The island’s main town, Korucla Town, is a historic, walled town with Venetian Renaissance architecture, colorful markets and plenty of tourist facilities.

    Unique to Korcula are its lively cultural traditions and festivals that have been practiced for centuries. Most famous of these is the Kumpanija ritual involving chivalry dances and mock medieval battles with real swords. Another of the island’s popular events is the Marco Polo Fest, a pop music celebration held in honor of the historic explorer.

    Korcula’s cuisine is among its top attractions. While there is a variety of international restaurants located throughout the island, the local staples of lamb, cured ham and fresh seafood grilled with olive oil and parsley should be experienced. Also not to be missed are the island’s indigenous wines, Posip and Rukatac.

    7. Pula

    Puladreamstime/© Jasmina

    Located at the southern tip of the Istria peninsula in the Adriatic Sea, Pula is a popular destination that has been attracting tourists as far back as ancient Roman times when fans flocked the city’s amphitheater to watch gladiator fights. Having been ruled by various government powers over the centuries, Pula today belongs to Croatia, and is best known for its wealth of Roman ruins and mix of cultures.

    Pula is a vibrant city offering plenty to see and do. The city’s star attraction is the 1st century Roman amphitheater. Known as the Arena, the amphitheater is one of the largest and best-preserved of its kind in the world. Every July, the Arena is host to the Pula Film Festival. Other significant historic structures include the old city gates, arches, monasteries, a Byzantine chapel, a Venetian fortress and the Forum, the city’s main square, which is surrounded by Roman architecture and temples.

    Pula’s natural beauty of rolling countryside and sun-kissed beaches offer outdoor fun and adventure. The nearby Brijuni National Park and farming villages are also great places to visit, while the turquoise coastal waters and sandy beaches offer fishing, sailing, swimming, snorkeling and diving among ancient vessels and World War I warships.

    Accommodation: Where to Stay in Pula

    6. Zadar

    Zadardreamstime/© Deymos

    A three thousand-year old city situated on a beautiful coastline rich in history is sure to draw tourists. Such a city is Zadar, located on Croatia’s northern Dalmatian Coast. Zadar could be called the ideal tourist getaway because it offers plenty to see and do without all the crowds of other popular destinations.

    At the heart of the city is its Old Town, which can be explored by foot. The historic district offers fantastic sightseeing attractions including Roman ruins, medieval architecture and numerous old churches. Some of the city’s most popular sites are the Roman Forum, the circular St. Donat’s Church, 12th century St. Anastasia Cathedral, the Archaeological Museum and the University of Zadar, which is one of the oldest in Europe.

    Besides the Old Town, tourists will find a string of beautiful beaches all along Zadar’s coastline where they can sunbathe, swim and enjoy a variety of water sports. Two unique attractions that are not to be missed in Zadar are the Sea Organ and the Sun Salutation, man-made marvels that use nature to create impressive light and sound experiences. Situated on Zadar’s beautiful seaside promenade, the Sea Organ allows the sea to make its own music as waves push air through 35 underground pipes. After absorbing energy from the sun all day, the Sun Salutation produces a colorful light show at night.

    Accommodation: Where to Stay in Zadar

    See also: Top Zadar Attractions

    5. Rovinj

    Rovinj

    It may appear to be a quiet fishing village on the surface, but Rovinj’s old world charm and surrounding natural beauty make it a leading tourist destination. Located on Croatia’s Istrian peninsula in the Adriatic Sea, Rovinj is an archipelago of 20 islands with its Old Town set on a small peninsula. Historic sites, beautiful landscapes, fabulous dining and modern tourist facilities are just some of Rovinj’s many treasures.

    Narrow streets of cobblestone, stairways, arches and other interesting architecture make the Old Town a sightseeing adventure. Some of the Old Town’s historic gems include seven medieval city gates, the 12th century town clock, the Balbi Arch and St. Euphemia’s Basilica, an imposing baroque church packed with many stunning art works. Also worth seeing are the Valdibora Farmer’s Market, the scenic harbor, Carrera Street with its many shops and art galleries, and Grisia Street, which is lined with artists and souvenir vendors.

    Outside the Old Town, Rovinj is surrounded by spectacular landscapes that provide plenty of outdoor recreation. Rovinj’s beaches are regarded as some of Croatia’s most beautiful. The calm coves present excellent opportunities for swimming and scuba diving, while the outlying islands offer scenic wonders like pristine forests, the Lim Fjord and the Zlatni Rt Forest Park where visitors can enjoy hiking, cycling, rock climbing and more.

    Accommodation: Where to Stay in Rovinj

    4. Split

    Splitdreamstime/© Tupungato

    Nicknamed the “Mediterranean Flower,” Croatia’s second-largest city, Split, is located on a peninsula off the Dalmatian Coast. Its old Roman architecture and orange-roofed houses create a striking contrast with the turquoise sea and dramatic coastal mountains. Abundant sunshine, impressive sights, dining and nightlife all make Split a popular tourist destination. What’s more, the buzzing city serves as a transportation hub to many of the Adriatic islands.

    The city’s main attraction is its historic core of beautiful Gothic and Renaissance architecture of which the Diocletian’s Palace is the crown jewel. Built between 298 and 305 AD, this Roman Emperor palace complex is more like a small city itself with a maze of marble walkways and buildings containing shops, cafes and bars. Inside the palace are many other striking structures like St. Duje’s Cathedral, Jupiter’s Temple, Peristil Square and two original Egyptian sphinx monuments.

    Outside the historic center, tourists will find plenty to see and do including strolling along the seaside promenade, shopping at the lively Green Market, swimming at Bacvice beach, hiking and cycling on the scenic Marjan hill and watching football at the Poljud Stadium.

    See also: Top Split Attractions

    3. Plitvice National Park

    Plitvice Lakes

    One of the most beautiful natural wonders in Croatia and all of Europe, the Plitvice National Park consists of several breathtaking lakes, waterfalls and lush forest. The park’s most notable features are the 16 interconnecting lakes that are divided into upper and lower clusters.

    Formed by natural travertine dams, the lakes range in distinct colors from turquoise to blue, green and gray. Visitors can explore the lakes and surrounding area by walking along the assortment of wooden walkways as well as by boat.

    2. Hvar

    Hvar

    One of the most popular tourist destinations in the Adriatic Sea, Hvar is a beautiful Croatian island off the Dalmatian Coast, favored for its landscapes of spectacular beaches, lavender fields and lush vineyards.

    Hvar’s main city, Hvar Town, is an attractive city, featuring 13th century walls, marble stone streets, Gothic palaces, stunning churches and an imposing old fortress. The town square is one of Croatia’s largest and most beautiful, surrounded by many historic structures like the 17th century Arsenal and the Cathedral of St. Stephen.

    The natural beauty of the island offers outdoor recreation and adventure, from hiking in the cliffs to swimming in the secluded coves and beaches. Boat rentals and tours are available for those wishing to explore the nearby Pakleni Islands. Archaeological sites on the island offer views of ancient artifacts and insight into Hvar’s Neolithic history. Grapceva Cave is well worth visiting to see its interesting formations. The charming villages dotting the lush countryside are great for experiencing the local culture.

    Tourists to Hvar will find a large variety of restaurants ranging from Croatian to Mediterranean and European. At night, Hvar Town bursts into activity with parties, bars and night clubs with live music and dancing.

    1. Dubrovnik

    #1 of Best Places To Visit In Croatiaflickr/daninho_ibk

    Nicknamed the “Pearl of the Adriatic,” the old city of Dubrovnik is one of the prominent tourist destinations of the Mediterranean. Located at the southern tip of Croatia off the Adriatic Sea, Dubrovnik was established in the 7th century on maritime trade. In spite of constant territorial threats from Venice and the Ottoman Empire, Dubrovnik flourished in the Middle Ages as a center of literature, art, science and education.

    With orange rooftop houses sitting in contrast to the blue sky, Dubrovnik presents many sightseeing treasures. The historic district, the Old Town, is stuffed with many historic features such as the old, defensive walls, cobblestone streets, magnificent palaces and stunning churches. A must-see is the 15th century engineering marvel, Onofrio’s Fountain. At night, the Old Town is illuminated, giving it a romantic ambiance.

    Just outside the Old Town are popular beaches like Banje and Lapad, which offers sunbathing, swimming and water sports. A ferry ride away is the island, Lokrum, with beaches, a monastery and botanic gardens.

  • 5 Equity Crowdfunding Misconceptions

    In order to build a profitable business, sometimes you need to find outside sources of capital to give the company a boost in the right direction. When you do decide to raise capital you might find the range of options available quite overwhelming. It can be difficult to work out which one is best for your company and it doesn’t help that there are also a lot of misconceptions surrounding them. 

    Equity crowdfunding can be a great resource for entrepreneurs to get that capital but we know from speaking to hundreds of businesses considering this option that there are a lot of misunderstandings about what it means, how it works and what you need to do in order for it to be successful. 

    That’s why I’ve put pen to paper, or finger to keyboard, to help clear up the 5 most frequently encountered equity crowdfunding misconceptions.

    1. ‘I can give people my product in return for their investment’

    Equity crowdfunding is not the same as rewards-based crowdfunding where you can give investors your products or service in exchange for investment. Equity-based crowdfunding campaigns must be for registered, limited liability businesses that want to offer shares in their companies in exchange for investment. It is raising capital from the crowd through the sale of part of your company. Equity crowdfunding could give investors a return on their investment in the future, it gives them skin in the game.   

    You’ll often find rewards, or project-based campaigns on crowdfunding platforms like Kickstarter, Indiegogo or Crowdfunder that specialise in the idea of product or services for investment. Equity crowdfunding campaigns take place on platforms like Seedrsand Crowdcube, who provide the FCA-authorised mechanism to collect investments including all the legal and administrative requirements such as issuing of the actual shares. We are partnered with both platforms.

    Although you’ll often see rewards or incentives as part of an equity crowdfunding campaign to entice a range of investor sizes, for example, ‘for every £1000, our investors will receive 2 sustainably made leather handbags’, this is merely used as a tool to encourage investors to increase their amount and is in addition to receiving shares, not instead of. Rewards are a nice to have, not a need to have.

    2. ‘Crowdfunding is for charity’

    Crowdfunding is defined as the practice of funding a project or venture by raising money from a large number of people who each contribute an amount, typically via an online platform. Some of the most high profile crowdfunds have been for charity, remember Captain Tom? So it’s not surprising that people assume all crowdfunding is just giving donations and getting nothing back in return. In fact, this was one of my first thoughts when learning about crowdfunding. Equity crowdfunding on the other hand, is really all about a person investing in the future – both the future of your business and their future in terms of what return they could get on their investment. You’re not asking for charity, donations, or favours. Instead, you’re offering these investors the opportunity to be part of your exciting and promising future.

    3. ‘I’ll find all of my investors on the platform’

    The crowd is not just out there waiting. It often surprises clients to hear that you really need to do the groundwork with your own network to secure a high % of the minimum target before launching any successful equity crowdfunding campaign. This isn’t implying that when you enter our programme you need £120k in the bank from your wealthy neighbour. However, a large portion of the lead up to any successful campaign will include you carrying out a carefully constructed comms plan to ensure you pull the right levers, at the right time, with the right people from your crowd. Securing those soft commitments in the early stages of a campaign is vital for it to succeed.

    The platform should only really be viewed as the tool via which to collect your investments and a way to access a new pool of investors you wouldn’t have otherwise had access to. On average, you’re likely to get roughly 20/25% of your minimum target from ‘anonymous investors’, or what we call ‘friends you haven’t met yet’ e.g.: investors who find your campaign online, people who don’t know you from Adam – but are interested in your business proposition and how you present it on your campaign.

    We will work with you to ensure you map out your crowds correctly from the beginning, so you know you’ve contacted the right people, and more importantly, that you start securing investment months ahead of your campaign launching to the public.