B*stard Cancer - Crowdfunding

[ChocoChocoLatte]

Hello - long time no post. Please note this is not a woe is me post - I'm here because I need some help/advice/guidance from anyone who has taken part in crowdfunding.

Long and short of it is, I'm considering crowdfunding to hand my business over to my staff or local community.

I haven't spent this long and worked this hard to have to close it. We've kept everyone safe and employed throughout covid but my health no long allows me to drive the business forward.

It's a great hospitality business with a loyal customer base and excellent reputation. I desperately don't want to close it but cannot afford to just walk away without getting back our initial investment.

Would this be something we could crowdfund? Has anyone any experience of this?

I have a stage 4 cancer diagnosis since October 2018 and the first half of the year has been pretty tough. I worry that if things took a dramatic turn what would happen to the business. DH will be too busy dealing with the DC (he isn't involved in the business) and there are 10 staff to be considered.

Thanks for reading this far!

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It’s not something I’d donate to I’m afraid. That’s the risk of business. Sorry.

Can you try to sell the business as a profitable business? I believe you can do this through an agent.

I'd like to consider this route before a private sale to ensure the future of the staff and the community aspect of it all.

We had lots of offers a few years ago but people were awful and were offering 1/2 of its worth because they found out about my diagnosis and believed I was desperate to sell.

Afraid I agree with PPs that I'm not sure this is a goer.

I've heard of people crowdfunding to save a well loved business, or to invest in one they want to see open. But this is just to give you some cash, which might be well deserved but I'd expect you to get it in the usual way by selling.

@Lumpwoody

It’s not something I’d donate to I’m afraid. That’s the risk of business. Sorry.

You wouldn't donate to a successful, multi award winning business within your small community that supports all it's residents etc to ensure it's future for the staff and local residents?

Can I ask why? Is it because you wouldn't get some financial return from it?

Yes, can you sell it?

No. I wouldn’t. Because it’s to give YOU money.

I donate to charity. I donate to social enterprise. Not to line the pocket of a business person.

It might make more sense to look for a single partner to buy a share of the business - someone who might be interested in buying the whole company one day

You are highly unlikely to achieve ongoing support via a crowdfunder (especially as attracting generalised support to a business is quite hard), and you'd be back to square one every time the ran out. The awards etc aren't going to be as persuasive as you hope.

Knowing the businesss (and therefore your staff) are in safe hand at the times you need to concentrate on you.

I'm sorry to hear of your diagnosis

Who would run it if you crowd funded?

I would likely donate.

You don’t want to sell it because you have an inflated idea of what it’s worth.

So bring in a manager to rub it?

I guess if it's well thought of locally and is a valuable local resource providing a much need service you might get interest
I can't see it gaining national interest though

*run

I wouldn't because all the reasons it is successful is because of you. If you are removed from running it then the worth immediately drops, who will run it and drive it forward?

Sorry to hear about your diagnosis, and especially sad that you haven't been able to sell, I know too well the amount of time effort and money that go into running a business and how hard it is to recoup.

I wouldn’t donate either. You sound like you are the driving force and I would not have the same faith in your staff/community running it without you.

I’m sorry, but without you the likelihood of the business continuing as it is will be most unlikely and the good teamwork of your staff is likely to unravel.

@Lumpwoody

No. I wouldn’t. Because it’s to give YOU money.

I donate to charity. I donate to social enterprise. Not to line the pocket of a business person.

it would be to give the staff/community the opportunity to buy it? A staff run/ community owned venture.

I'd happily walk away with a third of what it's worth to see it go to the right people and maintain it's vital standing in the community.

Is the business a social enterprise or similar? I wouldn't expect to donate to a business that was a going concern. What would you use the money for?

Rather than donate, why don't you invite people to invest in the business and thereby own a piece of it.

Or, if you want to take some time off then hire a person or people in your place? Your family would still own it.

I think if it was a business local to me, and I knew the backstory, then I probably would donate. I think if you spread the word on local community Facebook pages, you would get a good response. Your friends and contacts, as well as those of your staff and customers, could spread the word quite extensively.

Can you post a link to your business? I wish you the best of luck xx

I don’t think this is something I would donate to either. If it was your treatment, yes most likely I would.

What sort of business is it? That might change people’s views.
I hope it all works out for you.

Still no. Because the reason for the crowdfunded is to give back your initial investment.

And whilst I have every sympathy for you and your cancer diagnosis (honestly) - that’s just a risk of business and you should just sell the business for whatever it’s worth or bring in a manager.

If it had been super profitable and you’d had a manager in who ran it for you you wouldn’t be looking to sell.

Sorry.

Why do you need to sell? Why can’t you just employ a manager to run it day to day?

Wouldn't this end up hugely complicated. Who would the staff answer to? Would there be a community board of interested stakeholders or are you looking for donations to buy the business from you but still run it? It could end up taking you a lot of your time juggling lots of people wanting a piece of your business.

I'm sorry about your stage four diagnosis. I am a fellow cancer patient although stage three. I wish you time and options.

What would you be asking people to donate to, though?

You want to run a crowdfunder - but it should be your staff who figure this out and set it up. They’re the ones who need the money to buy it.

How will they run it? What legal set-up, who would the owners be? Would they buy in shares?

What do the people donating to the crowdfunder get in return?

I wouldn't touch this with a bargepole. Although it sounds very cold, deep down I agree with the previous poster who said this is the risk you took when you chose to be self-employed.

You say you had offers previously but they were too low. How have you established the value of your business? Is there not a chance you might have overvalued it?

I'm afraid crowdfunding is a massive turn-off for me. I think lots of other people feel the same way.

I'm really sorry not to sound more encouraging, but hopefully it's helpful to get some feedback here. I hope you're well-supported in real life. Cancer is shit, stage 4 even more so.

Okay - general consensus is a 'no'. Thank you all.

I certainly don't have an inflated sense of it's worth. We've all worked our arses off throughout lockdown pivoting/turning to keep the staff safe etc.

The unique location of it gives the sense of community surrounding it huge and continued potential and I wouldn't just walk away. I'd happily help the staff, who essentially run it already, I just need to step back.

Scans last month were stable but the stress of waiting on the results with regards to the future of the staff was rather a lot. If my prognosis changes suddenly, DH is going to be left coping with the DC and his work. He doesn't need the added stress of the business too.

Thank you all for your help & kind wishes, will revisit the private sale option.