Diaspora Matters

Until recently, financing a business involved asking a few people for big sums of money. Crowdfunding is turning this idea on its head, using the internet to help entrepreneurs talk to thousands – if not millions – of potential funders that each contribute a small amount.

The idea is the latest in funding innovations. It means small business owners that are being turned down by High Street banks now have an opportunity to appeal directly to small investors. Equally, whereas investing in small businesses was previously the domain of the very rich, this new concept means anyone can reap the benefits of investing in fledgling start-ups – whether you want to risk £20,000 or £5.

The sector is not without its challenges. While partial industry regulation has now been established, discussions are ongoing between crowdfunding pioneers and regulators in an attempt to find a balance between protecting investors – many small businesses flop early on – while allowing for the creativity and freedom needed to make ventures a success.

Party time: Community crowdfunding platform Spacehive enables community projects to get up and running

Companies requiring huge amounts of start-up capital may continue to be funded in more traditional ways – venture capitalists, for example, are likely to carry on plugging the funding gap.

However, in the immediate term, crowdfunding is poised to alter the entrepreneurial ecosystem significantly – just like angel investing, venture capital, and private equity before it.

How does crowdfunding work in practice?

Crowdfunding is a fairly new sector that is still developing. While it is an exciting prospect for many – and gives small businesses access to funding opportunities like never before – it can be a confusing arena for most people because it is presented in such a wide spectrum of ways.

Investments or donations are usually made through online platforms, which then coordinate and administer the fundraising.

Projects will range from those helping to finance community-based projects for no financial return (but a fuzzy, warm feeling inside), to sophisticated portfolio-picking, purely for monetary gain.

You could also opt for something in the middle. Abundance Generation, for example, offer investors the chance to invest in green energy and even allow you to visit your windfarm, but is FCA regulated, has shares on the stock market and offers pension investment options.

According to the UK Crowdfunding Association (CFA), there are officially three different forms of crowdfunding: donation, debt and equity, which it lays out here:

Donation crowdfunding

People invest simply because they believe in the cause. Rewards can be offered such as acknowledgements on an album cover, tickets to an event, regular news updates, free gifts and so on.

Returns are considered intangible. Donors have a social or personal motivation for putting their money in and expect nothing back, except perhaps to feel good about helping the project.

UK Sites include: www.banktothefuture.com, www.buzzbnk.org, www.crowdbnk.com, www.peoplefund.it and www.gambitious.com.

Debt crowdfunding

Investors receive their money back with interest. Also called peer-to-peer lending or lend-to-save, it allows for the lending of money while bypassing traditional banks. Returns are financial, but investors also have the benefit of having contributed to the success of an idea they believe in.

Where crowdsourced money is lent to the very poor, most often in developing countries, no interest is paid on the loan and the lender is rewarded by doing social good. This is sometimes referred to as ‘microfinance’.

Sites include: www.abundancegeneration.com, www.banktothefuture.com, www.buzzbnk.org and www.trillionfund.com.

Equity crowdfunding

People invest in an opportunity in exchange for equity. Money is exchanged for a share in the business, project or venture. As with other types of shares if it is successful the value goes up. If not, the value goes down and you could lose your money completely.

Sites include: www.banktothefuture.com, www.crowdbnk.com, www.crowdcube.com, www.gambitious.com, www.microgenius.org.uk, www.crowdmission.com and www.seedrs.com.

Interested in finding out more? Watch this video guide by crowdsourcing company Trillion Fund:

Credit: http://www.thisismoney.co.uk

ZBIN Comment: We are going to be researching more on this topic and finding out how Crowd funding can help our members. 

Do you have 50 Chickens available? A ZBIN member based in Harare is urgently looking for chickens. If you have them then put your contact details in the comments section below.

Thanks

Every week ZBIN will try and help talented writers with resources on how you can earn an extra dollar. We start with 5 ideas below and more will be coming next week.

A List Apart : ALA publishes original, feature-length articles (1,500-2,000 words) about web design. Submit a pitch, partial draft or a rough draft of your article, along with an outline for consideration. Pays $200.00 per article, typically within a month of publication. Facebook: https://www.facebook.com/alistapart Twitter: https://twitter.com/alistapart

2.   Today I Found Out: If you enjoy conducting research and finding interesting facts and details, while making sure that you get the facts absolutely correct in the process, you may enjoy writing for Today I Found Out. This site specializes in facts and trivia. Send a pitch or an article for consideration. Facebook: https://www.facebook.com/TodayIFoundOut Twitter: https://twitter.com/TodayIFoundOut1

3. Cracked :Cracked is looking for writers for list-style articles; if interested, sign up for the writers’ forum. The site is also looking for writers for infographics and charts, and will buy content in text form based on your funny idea. Facebook: https://www.facebook.com/cracked/ Twitter: https://twitter.com/cracked

4. College Humor: College Humor is one of the biggest comedy sites on the Internet. Submit a pitch by e-mail and the editors will work with you on your article. Pay is $35.00 for a single page and $50.00 for a multi-page article. Facebook: https://www.facebook.com/CollegeHumor Twitter: https://twitter.com/CollegeHumor

5.   The Diplomat :The Diplomat covers reporting and analysis related to Asia-Pacific Region. Submit pitches, blogs or feature articles for consideration, and indicate whether you expect payment at that time. Facebook: https://www.facebook.com/diplomatmagazine Twitter: https://twitter.com/Diplomat_APAC

By Alyssa Gregory

So I have been looking at a number of dubious money making schemes that have been brought to our shores over the last 20 years. The first one should be the Jatropha Project where various communities across the country were given free Jatropha Plants with the promise of the wonder tree bringing huge financial benefits to them. Communities were promised heaven on earth with the project expected to produce Jatropha soaps, fuels and a host of other by products which could be sold for a profit.

More than 10 years later no one is talking about this project that once took Zim by storm. Where we taken for a ride? Iam not able to authoritatively answer this one as more research is needed on the subject.

Anyway the purpose of this article is not to review the Jatropha Project; the purpose here is to review some of the dubious business schemes that have landed on our soil from foreign land. The Jatropha is the first one, the second and biggest of them all is the Sack Potato Production that took place in 2013.

So what transpired in the project? Gentle reader, a certain sister returned home from UK and started planting potatoes at the back of her home. She brought new ways of potato production-growing them in sacks as commonly done in UK. Her project ‘became a success’ – a huge success such that it went viral. Everyone started talking about the success of this project, she became a celebrity overnight. Newspapers gave her interviews, radios and television stations followed suit.

The biggest money making project in the country became Sack Potato Farming! Most farmers started inquiring about this project and a number of them purchased sacks and began producing potatoes in this unconventional way. A number of agricultural consultancies cropped up to support sack potato production, some Agriculture Scientists even endorsed the new project as the best way to farm potatoes.

So far I have been talking about others how about my own experience? Dear reader, I too encouraged some of my relatives to take advantage of this unorthodox way of farming potatoes. I had seen on tv a successful project, I had read in the press about a tried and tested method of growing potatoes.

So what happened to this thriving project?  Many people who had invested in the sack potatoes did not reap any meaningful rewards. A lot of farmers reported losses, heavy losses from this project and it did not take long for most farmers to realise that they had been taken for a ride. This was a dubious scheme-we are all taken for a ride!

The potato seeds did not grow as advertised, poor yields were encountered…takabatwa kumeso masikati machena! Ngei pakashaikwa kana mumwe  zvake akavhunza kuti ivhu nemawandiro arakaita aya munyika, imwi hino mugosiya mondoisa mavhu musaki lol

After the collapse of the sack potato project another one with a similar ending landed on Zim soil and it’s the famous Quail, Chihuta Craze! Lets tackle this one next week and establish what happened.

Good morning forum members, today we talk to one of Zimbabwe’s Best Events Management Planner, Ms Memory Mandishona. She is a ZBIN member and is part of various ZBIN WhatsApp platforms such as Baking and Harare Business Group.

Tell the community about yourself

My name is Memory Mandishona aged 30 years, born and raised in Harare,Zimbabwe, from Murewa Chikwaka village, Totem Achihoro Nhari unendoro Nyamasvisva. A travel consultant and events planner by profession. Iam outgoing, self-motivated and have a proactive approach to work, and enjoy working as an event organiser. Passion in this industry has helped me achieve my dreams of running and establishing my own events and catering company. Iam also into the food business industry where I concentrate on baking and cooking.

History behind the name of your company and how long have you have been in the industry?

I named the company ‘Dora’s All Occasions’ after my mother who is my mentor and pillar of strength and established it in 2014.

Do you have employees?

I have a team of about 5 employees and they are on contract basis as functions are not always running during the year. My work includes research on venues, suppliers and contractors, and negotiating prices.

What do you enjoy most about your field?

I am passionate about my job and am always challenged to learn more every time, I like work hard managing my own team using my skills and creativity. It is a joy and a blessing to work with a talented team of professionals. Delivering a successful project brings immense joy and satisfaction to my team.

Your biggest project

My biggest project to date was when I was asked to plan and offer my services for the Botswana Embassy which was a success. This initial project opened more doors for us as referrals are very important in this industry.

Industry Challenges

There is no room for error in this industry; you have to be an expert at planning as clients do not tolerate excuses. You have to deliver high quality services which meet customer requirements. One simple mistake can set your planning back days, maybe even weeks and in this industry reputation counts-your reputation is your biggest asset!

The whole point of planning any type of event is to provide an unforgettable experience for your guests. Whether it’s an amazing and productive training session for employees, a wonderful birthday or anniversary party, or even a more casual gathering for a group of friends, a memorable event should be at the forefront of your planning efforts Food is a very sensitive aspect and one has to know the type of guests, the food they are interested in and issues such as availability and cost.

 Opportunities

The greatest opportunities are you get the chance to network and interact with different people and most clients come from these interactions. A happy client means a happy event manager—which is why every professional relationship in the event planning business starts with a planner-client meeting.

Expansion Plans

I have plans to invest in other African countries and also cover other cities apart from Harare. I also intend to carry out webinar training for some of my clients who are outside Harare.

Festive Holiday Plans

Our busiest period of the year, so we are currently busy with a lot of events such as company end of year parties, weddings, graduation parties etc

Contact Details

Like my page https://www.facebook.com/Doras-all-occasions-catering-1491830011105882/?ref=bookmarks .

Contact me on +263718804243, +263775927479 and +2634573151

Good Morning everyone, We are inviting everyone who is into baking  cakes for sale to kindly register their details here. We are creating one central register of cakes for sale in Zimbabwe where those interested in buying cakes for sale can come.

So if you bake cakes for sale and would like to be promoted for free then register the following details below.

Name :

Contact Number:

Location:

Facebook Page:

Good Evening Investors: From the Inbox :Hi Iam planning to have a small bakery in one of the rural areas  around Harare, can this be a break through business considering the role of big players like Lobels and Bakers Inn in the game.

Forum Responses

Amos Chimwani Yah u will make money but it just depends on how u plan to do your stuff considering kuti the dollar a loaf is overpriced .You can just make fresh bread for half the price, focus on pushing volumes, enter new towns coz the other thing bout business is creating a good customer base, quality product and right pricing

Amos Chimwani And also the other thing get into farming so as to cut the costs of sourcing your stuff elsewhere like floor.just try to be the one  who provides the raw materials than the secondary stuff elsewhere

Francis Mguni Madhlala Its a good idea haumbonyuri wena unotangira pasi zvinoita wena

George Nyawo Armed with a proper market research, quality product, right pricing and customer care strategies you will definitely make it.

Petro Mawire Zvidzayi Great idea buda, have been planning to tackle the same project as well.

Shyreen Muringai bakery has been a good business do your calculation very well and thorough market research zvataurwa nevamwe uko zvinoita wena.

Anesuishe Chiwaya I like the idea that you already have a nice market, the likes of Lobels and proton wont be a heavy burden to your business if you play your game very well. Try not to produce bread only, supply a number of different bakery products. Be strict on the quality of your products and make connections with some shop owners around the area and make deals to supply them with bakery products that way you make sure of a steady cash income and a continued operation. All the best pal

Francis Munangwa In a country with an industry capacity utilization of below thirty percent all business ideas can be good ideas. The weight of a person is not significant on its own; it is only significant when a comparison is made with his weight, height, sex etc. It is how you’re going to do it which is important. Do you have something new which you have, are you focusing on people or money, do you have the passion etc. Rainbow Beverages, then led by Brian Mutandiro entered the beverages sector which was heavily dominated by Delta. They had a good product, Mr Juicy, which became a threat to Delta’s dominance. Delta destroys this brand in a manner which to me was economic sabotage; they bought it and discontinued production. The bigger players can be ruthless. You should also do a proper research as bread production has moved from small bakeries to big bakeries because of economies of scale. Bakers Inn has centralized production and this reduces the production cost. The most important thing is you need to understand that business advice is not a hobby, quality advice is offered for a fee as there is no fit all advice. We can all advise you to try it because we have nothing to lose. Everyone wants to be viewed as positive but personally I’m not comfortable making a decision during the absence of a Devil’s Advocate.

Prisca Ncube Musere very good points there Francis !!!

King Krayza Bee thank you guys, i thing i got a balanced discussion on both sides of a coin. I will consider your views and i hope to come up with a best solution

Livingstone Muringai l believe you can make it my brother and u need the right people to work with especially when u are starting. l have been in bakery industry for about 15years and it needs good strategies and patience. I am willing to assist you. Inbox

Shakespeare Matandanure I think proper business strategies must be carried especially marketing research, to evaluate success and competitive edges ,