A Food Entrepreneurs Story
Momma Lenas Southern Comfort Desserts is one of my clients. Deborah is a budding a budding food entrepreneur that turned a great idea into her first new product, Eggnog Poundcake. Her new product launch started November 19 in 3 stores in northern New Jersey and was a smashing success, it really tastes great! So she now is expanding to a second flavor and has other retail locations interested in buying.
So Deborah asked me to give her a launch scenario which I quickly created a launch budget on an Excel spreadsheet. When she saw it, she said it looks great BUT how do I raise money to grow my business?
Crowd Financing Comes in 3 Flavors for Foodpreneurs
Hundreds of clients who are food startups and early stage specialty food companies have asked me the same question on funding. Most investors ignore food startups and many won't even look at a food business under $10 Million in revenue. So it becomes a "Catch 22" food entrepreneurs get the retail buyer to give them product placement in grocery stores YET they lack the capital to fund inventory, packaging, accounts receivable, slotting allowances (ouch!) and so on.
So now I can tell new and existing clients to consider crowdfunding.
ProHatch, is a unique hybrid crowdfunding platform using Phase to Raise, a series of 30 day funding cycles with 3 prescheduled milestones. They don't leave the entrepreneur out in the cold... they help them "think realistically about how you raise and use capital to create value, and then report back to funders".
I interviewed the cofounders in a 2 part series Part 1 Introduces ProHatch and how they Help the Entrepreneur Build Their Story preparing them for the fund raising journey. Part 2 Illustrates their Phase to Raise program by using an example of a startup food truck business.
Are Your Considering Crowdfunding to Grow Your Specialty or Artisan Food Company?
If you are, drop me a note... I'd love to chat and even write a blog post about your brand.