Struggling independent businesses in Sheffield thrown a lifeline in new scheme

Independent businesses on lockdown have been thrown a lifeline in a new scheme that raises money from loyal customers before they reopen.
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The ‘Pivot Crowdfunding’ project is aimed at struggling firms that have fallen through the cracks of government support, according to its creator, Sheffield finance expert Barry James.

The strategy has so far raised more than £15,000 for Trattoria Domenico Italian Restaurant in Huddersfield - and he is keen to launch in his home city.

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The blueprint is particularly powerful for those with a good relationship with customers, he says, or a lot of followers online including pubs, restaurants and hairdressers.

Barry James, right, chats to Giuseppe Cino of the Trattoria Domenico Italian Restaurant online.Barry James, right, chats to Giuseppe Cino of the Trattoria Domenico Italian Restaurant online.
Barry James, right, chats to Giuseppe Cino of the Trattoria Domenico Italian Restaurant online.

It is based on ‘rewards’ costing between £30 and £5,000 that can been snapped up by fans and claimed in the future.

And it includes building online ‘engagement’ and devising new ways to operate under the current restrictions.

Mr James said rewards were a way of doing business now, compared to taking a loan and trying to drive sales.

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He said: “This way you’re doing business - getting the money up front for a service. It’s not a panacea, but there are quite a few situations where it’s better than borrowing. A loan is great but needs repaying.”

Jonathan James, Barry James and Kay Klug.Jonathan James, Barry James and Kay Klug.
Jonathan James, Barry James and Kay Klug.

Business partner Kay Klug added: “Everyone lives near a High Street that they love - we don’t want them to die. We want independent businesses to survive, recover and thrive.”

The pair are offering their services for £200, instead of the usual £1,000. They are also seeking ‘sponsors’ such as councils and firms that have done very well during the pandemic, such as supermarkets and some digital firms, to fund projects for others.

The Trattoria Domenico has a rateable value too high to receive a government hospitality grant. But it raised £15,486 from 119 backers with three days left to go on its four-week crowdfunding drive.

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‘Rewards’ offered include a £100 lifetime VIP card, giving 10 per cent off the bill except in December. A £60 reward buys a meal for two NHS staff, two careworkers or two police officers.

A £20 La Amore voucher gives an extra £26 to spend in the restaurant. £50 buys a ticket to a ‘post lockdown party’ at the venue.

Other rewards buy drinks, hampers – and £5,000 buys the ‘La Bella Vita Package’: venue hire, entertainment, food and drinks for 50.

Mr James said proprietor Giuseppe Cino had ramped up his ‘audience engagement’ with online activities including a cookalong, driving his Facebook follower count up from 1,200 to 1,500. And due to demand he had started offering takeaways, creating a new income stream.

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He added: “As long as you have the beginnings of an audience, such as a Facebook or an Instagram page or mailing list, it can work for you.”

Mr James has been an advocate of crowdfunding for years and has written a book on the subject. But he says it is still misunderstood.

He has worked with two firms so far on the Pivot Crowdfunding project and has 12 on the waiting list, he added.

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