With getting onto the agricultural ladder becoming more and more difficult, and many companies having lending requests turned down by a mainstream lender, how can you secure money to expand your business?
Innovation in agriculture is the future of securing a business.
Phil Geraghty, co-founder of www.crowdfunder.co.uk, offered practical ideas on how farmers can access alternative funding for a new business idea through the means of crowdfunding.
1. Crowdfunder is an online investment platform based in Cornwall. It has raised more than £500,000 since its launch in 2010 to encourage new business ventures, some of which have been within food and farming.
2. Those with a business or project which requires funding can put their story up online and the general public can invest in it.
3. Projects which have already secured funding include a honey farm, a village bakery and a vegetable bag scheme to support a community farm.
4. The project owners offer rewards to the investors in return for their pledges, which can be as little as £1.
5. For example, investors who funded a village bakery were rewarded with a loaf of bread each day for a year.
6. Projects are conducted on an all or nothing basis, meaning owners must reach their funding targets to secure the money.
7. Crowdfunder allows the projects between 30 and 45 days to raise their financial target.
8. Anyone can add a project as long as it meets the company's guidelines.