Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Flip

1 2 3 4

Original poster

B*stard Cancer - Crowdfunding

97 replies

ChocoChocoLatte · 16/08/2021 22:01

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!

OP posts:

NoSquirrels · 17/08/2021 08:53

Why do you think it wouldn’t keep going in its present form? If you have the manager/staff capable of buying it/running it then it’s viable with it without you, isn’t it?

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.

Tell your staff. Let them come up with a proposal.

MaggieFS · 17/08/2021 08:56

I think it's hard to fully comment without knowing the nature of the business and how vital it is to the community.

If you've been running it as profitable venture, then I'd expect you to be able to sell it. Or indeed find a manager as pp have suggested.

I do understand where you are coming from though but I think crowdfunding would normally be to keep a community service going. But in this case if it's viable, presumably people are paying to use it? So it's not at risk of closure per se, it's just that you can't continue to run it.
If you were crowdfunding to cover costs and salaries to maintain the service that would be different but that's not the case.

I am sorry for your diagnosis, but I don't think it's the kind of thing I'd donate to either.

ChocoChocoLatte · 17/08/2021 08:57

This reply has been deleted

Message withdrawn at poster's request.

Lumpwoody · 17/08/2021 08:58

I’m sorry about your diagnosis and I hope you find a good solution

Girlintheframe · 17/08/2021 09:03

Could the local community not buy it?
We have cafe/shops here which are owned by the community. Essentially they all clubbed together to buy.
New community deli has opened up recently too. It's fantastic.

diddl · 17/08/2021 09:03

So you want strangers to buy it so that you can donate it to your staff?

Let your staff buy it themselves!

Original poster

ChocoChocoLatte · 17/08/2021 09:03

@NoSquirrels

Why do you think it wouldn’t keep going in its present form? If you have the manager/staff capable of buying it/running it then it’s viable with it without you, isn’t it?

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.

Tell your staff. Let them come up with a proposal.

We changed it during Covid, reduced the amount of days it was open and didn't replace staff who left. We built a successful online/ take away/ supply business in place of the traditional sit in aspect of the business.

We spent a massive amount of time supporting the community with local deliveries/ donating & delivering school meals (which the community part funded without being asked to). It's just the kind of people we are and the kind of wonderful place we live.

It's still currently operating on a reduced level than the initial 7 days a week, 20 staff offering and it's now the time to return it to it's initial status as things reopen.

I don't have the energy to be on hand 7 days a week anymore.

I'll do it for sale purposes but just wanted to investigate other options first.

But if general consensus is a no, then I'll re evaluate. When I first considered selling after my initial diagnosis, we had >40 notes of interest so fingers crossed there are still people out there wanting to buy a business.

Thanks all.

OP posts:

NoSquirrels · 17/08/2021 09:04

If your staff were crowdfunding to do it themselves that’s different.

How can they run it if you think it’s not possible with current management team anyway? How would they do it?

FAQs · 17/08/2021 09:07

I would actually, if it goes towards giving 11 people some peace of mind, I’d give a little.

Original poster

ChocoChocoLatte · 17/08/2021 09:09

@NoSquirrels

If your staff were crowdfunding to do it themselves that’s different.

How can they run it if you think it’s not possible with current management team anyway? How would they do it?

I'll have another meeting with the staff. We spoke about it last week and all agreed to investigate the options.

I have a fantastically supportive book keeper/ land lady who would help and I wouldn't just walk away without providing support etc.

I'm not doing this to disappear off into the sunset and travel the world. I just need to take a step back.

OP posts:

eurochick · 17/08/2021 09:10

Can you offer to sell it to the staff? Or bring in a different manager. Just because one wasn't the right fit that doesn't mean a manager isn't a good solution.

MissyB1 · 17/08/2021 09:14

I dont know much about these things but you could do with a wealthy local investor/ business that would support this. Could you do some local publicising of the problem? It would mean broadcasting your own situation ( I appreciate you might not want to do that), but local press radio etc might turn up some help?

Mantlemoose · 17/08/2021 09:20

www.crowdfunder.co.uk/theredlionculross
Successful crowdfunder local to me for community buy out. Note - they still do need to raise more to buy the actual building and they're hoping for lottery funding for that (historial site). Ultimately people won't donate unless there is a benefit to them.

Original poster

ChocoChocoLatte · 17/08/2021 09:23

@MissyB1

thanks MissyB1. We're already very well established in the local press and I know they would cover the story. I just needed to get it right with regards to crowd funding/ go fund me etc and was looking with someone with some experience to help me navigate through it all.

I'm afraid chemo brain is an actual thing and having been on constant chemo for >2yrs I can get a bit fuzzy at times lol.

OP posts:

Original poster

ChocoChocoLatte · 17/08/2021 09:25

@Mantlemoose

www.crowdfunder.co.uk/theredlionculross Successful crowdfunder local to me for community buy out. Note - they still do need to raise more to buy the actual building and they're hoping for lottery funding for that (historial site). Ultimately people won't donate unless there is a benefit to them.

That's very helpful @Mantlemoose thank you. Will have a look at it.

OP posts:

3luckystars · 17/08/2021 09:26

It sounds like that you really love this business, have invested so much into it that you don’t want to let it go.
I could be wrong but it feels like you are looking for a way to get some money back for your family, give the hassle away but still be involved in a small way. It’s a hard time for you, it must be really tough to think about selling it and having nothing more to do with it when you have clearly loved building it up.
Nobody is going to forget what you have done. You sound like a great employer and a very hard worker.
I don’t know if there is a solution but I just wanted to wish you all the best x

NautaOcts · 17/08/2021 09:27

Ah whilst I sympathise and can see what you’re trying to do it sounds really tricky to me.
Either it is profitable and can sustain itself or it can’t.
If it can you shouldn’t have problems selling and then it will still be there for the community.
If it isn’t… well I would be confused then about whether it’s a charity, community facility or a business.

Original poster

ChocoChocoLatte · 17/08/2021 09:33

@3luckystars

It sounds like that you really love this business, have invested so much into it that you don’t want to let it go. I could be wrong but it feels like you are looking for a way to get some money back for your family, give the hassle away but still be involved in a small way. It’s a hard time for you, it must be really tough to think about selling it and having nothing more to do with it when you have clearly loved building it up. Nobody is going to forget what you have done. You sound like a great employer and a very hard worker. I don’t know if there is a solution but I just wanted to wish you all the best x

That's very kind thank you.

OP posts:

Bananarama21 · 17/08/2021 09:34

Sounds like you need an investor within the company to keep it running but with that they will take a cut. You cannot expect strangers to keep your business running by funding it when does it stop. I'm not a fan of crowd fundraisers they come across abit grabby unless it's a particular cause like treatments for cancer or cystic fibrosis or over health conditions, there's been people expecting money off folks for holidays etc just doesn't sit well with me.

Original poster

ChocoChocoLatte · 17/08/2021 09:37

@NautaOcts

Ah whilst I sympathise and can see what you’re trying to do it sounds really tricky to me. Either it is profitable and can sustain itself or it can’t. If it can you shouldn’t have problems selling and then it will still be there for the community. If it isn’t… well I would be confused then about whether it’s a charity, community facility or a business.

It IS profitable. It's sustained itself for >10yrs even through the hell that has been Covid19.

I would just like to pass it on to the right people. The last chap who came to see it walked about announcing that hospitality was dead and he'd give me a nominal amount for F&F and consider keeping on the staff..........

People want something for nothing - I'm aware of the irony considering this is a thread asking for advice regards crowdfunding LOL

OP posts:

FudgeSundae · 17/08/2021 09:37

Hello, really sorry to hear this. Crowdfunding wouldn’t work as you still need an owner of the business - that’s an important point of corporate law. You could make it a company limited by guarantee (not for profit/social enterprises are structured like this) but you still need a board of experienced directors to give the guarantee and run it.

In your shoes rather than ask for offers I would partner with an experienced corporate finance professional. They will help you find the right buyer and not some chancer looking to rip you off. Any professional services firm will have a team they does this. Good luck!

Original poster

ChocoChocoLatte · 17/08/2021 09:41

Thanks @FudgeSundae. If the staff set up a limited company and raised funds that way would that be a consideration?

Should I be looking more into a 'gofundme' route?

My head is burst.

OP posts:

Gazelda · 17/08/2021 09:47

Does your council have a business/enterprise support team? I'm sure they'd want to help if they could. And they'd have connections, resources and ideas that you may not have thought of.
It's in the councils interest to support local businesses and employment.
You sound exhausted and in need of some time to think. I hope someone will come forward to ease this worry for you.

chantico · 17/08/2021 09:48

You first need to establish if the staff want to buy, or would prefer you to seek a buyer.

It is up to them to establish how they will fundraise if they want to buy it themselves

What is the current legal status of the business?

CIC might be more appropriate than PLC in the longer run

SprayedWithDettol · 17/08/2021 09:49

I would employ a manager.

Flip

1 2 3 4