Continued from Page 1, ProHatch Advantage - A Hybrid Crowdfunding Platform based on their unique Money Supply Chain model .
Phase 1 - "We help the entrepreneur know what to do first. So maybe the food truck needs to invest in some demographic and market studies. That is your first milestone." OK so they know their customers, do what do I do next? "Maybe you need to do some test marketing of your food truck menu to get consumer feedback. That is another milestone. AND a video of your consumer sampling is a really compelling vehicle to attract rewards based donors" This is the first chapter of your story, and the costs associated with these Uses are your first 30 day fundraising goal.
Phase 2 - "So now you understand your market, the next important steps are things you need to know is about your product and production: your vehicle operating costs, your food, labor, distribution overhead… do you know labeling or licensing issues, health department procedures in your processing, permits etc." The costs for these activities are your Phase 2 fundraising goals.
Phase 3 - Here is where you buy your trucks and get going!
However, consider an alternate universe scenario. Before you bought your trucks for big bucks, you learned from executing the Milestones in Phase I and II that there actually wasn't a market for your food truck, but there was a better market for you as a food truck supplier. ProHatch can help you " Pivot". "Instead of running a food truck, reset Phase 3 to make products that can sell to other food trucks, so you become a food truck food supplier." You see, this is the case for a solid planning process, and transparency with your funders. They see you in action as you report on Milestones from funded Phases.
Phase 4 and beyond … either as a food truck mogul or food truck supplier genius maybe you need to move to crowd based lending and then equity based crowd funding to further grow your business, and then use the JOBS Act IPO onramp… but now we are getting ahead of ourselves.
The point is their process helps "unfold" your dream into definable steps reducing the risk for you and the investors. This is why I think ProHatch is uniquely positioned to focus on the consumer sector, where the value proposition for donation rewards investors includes the personal and community returns that come from launching a great product or supporting a business that contributes to the local economy. That VC's and angels look for growth rates that are just not attainable in CPG, makes crowdfunding a win.
I don't see a food and beverage Channel on your platform? Why?
"You did not see a food and beverage channel because Food & Beverage is tightly integrated into all of our current channels." I see their Health and Wellness category as a place for food since increasingly food trends are pointing to better for you foods with great taste.
What is your value proposition to the potential fundee? In other words, why ProHatch vs. Kickstarter, SoMoLend or CircleUp?
All great sites with amazing leadership. ProHatch is a little different, our mission is to channel people's overlapping business, philanthropy and personal interests to fund social impact and business innovation. 'Our value proposition is our Phase-to-Raise crowdfunding process. 30 day funding cycles and the integration of milestone investor reports create a partnership with the crowd." Both Liz and Barry were struck by the "over funding" of projects… it creates a problem for the entrepreneur. " We provide the right funding to the right business from the right donors."
Business plans are rapidly falling out of favor in the investment community… primarily due to the length of time it takes and the delay in launch. Most entrepreneurs can't write a business plan so how do you help them?
I advise my new Foodpreneur this… don't write a business plan but rather start with what is called a one-pager business pitch. So I wanted to know if they were requiring a full plan,(sometimes called "the book") or something on the order of the "one-pager"?
"The value is not so much the Business Plan vs. the value the Business Planning Process. Our site has an interactive set of pages to help you create a business plan in a living document that is media based." They have what I call a packaged process forcing you to think and adding speed to market which is critical today.
ProHatch Vision for the Future
We can be a story based network. This is a HUGE business opportunity to be a broadcasting network… a place to curate. There are so many amazing things about crowdfunding. It works for businesses, philanthropy and personal endeavors because people have multiple interests at any given times and they integrate their social and business networks online and off. Crowdfunding is a source of unending stories about people who are social and business innovators, who are an incredible source of inspiration, education and data. ProHatch focuses on broadcast Channels to deliver a matrix of individually relevant and co-dependent verticals that are the backbone of building strong communities.
Our mission is to be the premier platform for crowdfunding social impact and business innovation. We reach beyond transactions to surround ProHatch's Phase-to-RaiseTM crowdfunding process with a complete menu of Advisory Services and freemium Education needed for early stage enterprises to meet the challenges of ongoing capitalization, business growth, and social crowdfunding.