Search News

Results: 21-30 of 2423


Start again

11 Nov 2019

GoFundMe is being used as a method for small businesses to raise funds that are cash-strapped and struggling

6 Nov 2019

A Bristol-based deli with a reputation for incredible cakes and superb takeaway dishes, cooked on site, has been named as Britain's Best Small Shop of 2019.

4 Nov 2019

This year two amazing art shops and a stunning stationery shop have been named in the running to be Britain's Best Small Shop 2019!

4 Nov 2019

This year 3 fantastic gifts shops have been shortlisted that will provide you with everything you could possibly need for Christmas, birthdays and even a few treats for yourself!

30 Oct 2019

This year two children's shops have been shortlisted in the top 25 shopsthat are in the running to be named Britain's Best Small Shop 2019!

30 Oct 2019 | 2 comments

After years of planning, the ‘Connecting Leeds' scheme is now underway,which will transform travel for people who live, work and visit the city.

29 Oct 2019

The Recycled Candle Company and The Naked Pantry New Forest go above andbeyond to ensure their products are environmentally friendly while still maintaining excellent customer service!

28 Oct 2019

The eBike Summit have announced that they will return to Oxford University's Wolfson College in Spring 2020

28 Oct 2019

Alongside The Cycle Show last month Cytech are offering a third off the Theory one course until the end of October, allowing you to start your Cytech journey for less.

25 Oct 2019

Both Jumbo Records and Winyl bring life to the music industry through their passion for records and live events.

GoFundMy Business: The Cash-Strapped Small Business solution?

Posted on in Business News , Cycles News

GoFundMe is a crowdfunding website that aims to harness the power of social networking platforms and the internet to give people the means to raise funds, help others overcome hardship, and meet aspirational goals. It is generally known as a way to raise money for high medical bills, funeral costs or natural disaster relief.

However, according to the GoFundMe Chief Executive Rob Solomon, the crowdfunding website has recently been used as a method for small businesses to raise funds that are cash-strapped and struggling. So far campaigns for small businesses have opened across 19 countries, ranging from comic-book shops to drive-in movie theatres.

The crowdfunding website was a great success for Nicky Perry, a small business owner who owns the restaurant Tea & Sympathy and the fish-and-chip shop A Salt & Battery in Greenwich Village. She started the funding because of high rent costs "We just couldn't pay the rent," Ms. Perry said. "The rent is so astronomical."

Ms. Perry said that she had previously tried extensive ways to cut costs, including changing payroll companies, reducing head count and redesigning its menu. The reaction to her fundraiser has been overwhelmingly positive, with loyal customers stopping by the shop more often and neighbours offering to help out by working for free.

Her campaign has so far raised nearly $52,000 toward its $100,000 goal. She has said that she would consider turning to GoFundMe again in the future should the need arise again.

While there have been multiple case studies of this being an effective method for businesses to raise money and has even kept many businesses alive, not all reactions have been positive. 

One comment on The Wall Street Journal said "I don't believe that businesses seeking charity are operating as legitimate businesses.", while another explained their beliefs by saying "The contradiction between feel good funding and feel good regulatory burden is inadequately elucidated."

Similar campaigns have been used for struggling businesses that need help but don't feel comfortable asking customers for donations. Chris Doeblin, owner of an independent bookshop in Manhattan, has recently started a community lending program after competition from Amazon, rising rents, the increasing minimum wage and an inability to borrow money pushed him to the brink of closing.

Mr. Doeblin has raised $600,000, which he plans to repay within five years at 4% interest, which is a far lower rate than he could get elsewhere. The support he has received from loyal customers will help him stock up for the busy Christmas season.

"People are recognizing that there's a big downside to Amazon and buying things online," he said. "I hope it's not too late."

Initiatives such as the Indie Retail Best Small Shops competition help to bring more attention to independent retailers and highlight the central role that they play in building local communities. As this awareness increases more positive articles have begun to emerge, such as recent evidence showing that the 'death of the high street' may be overstated.

Add a comment

It is quicker to comment when you login

Your email address will only be used to contact you regarding this comment. We will not share your email address with anyone and it will not be published on the website.