La La Bakies (no longer active), a small vegan and gluten-free bakery located in Los Angeles, California has turned to crowdfunding to finance business expansion and meet customer demand.
Michelle Marquis, the owner of La La Bakies created a Kickstarter project in the hopes of raising enough money to acquire a bio-diesel or hybrid delivery vehicle, invest in product nutrition facts, and have her business certified as gluten-free, organic, vegan and/or non-GMO.
Having set a $6,000 goal which covers the first two items, the project has raised $5,273 and has less than 2 days to go. Despite being a few hundred dollars short of her goal, Michelle seems hopeful. “Our demand is so high in fact that we get calls weekly about getting into new stores! The only thing missing is the capital to take things to the next level.”
This project is yet another example of how small businesses can use Kickstarter to fund research and development expenses along with market expansion. What better way to finance expansion than via the customers that know and love your product. Check out some of the quotes on her Kickstarter page.
“I am sooooo hooked on your brownies! I buy like 3 bags a week just for myself” -Actual comment from our website
“I just want to tell You how much I love your brownie bites!! I bought 3 boxes today at Erewhon!! Thank you!!” -Actual comment from our website
“The Mexican Hot Chocolate blew my mind…” – FreshfoodLA
“They’re damn good.” – LA, I’m yours
Every business owner knows that word of mouth marketing is one of the most powerful driving forces of new customer acquisition. The problem is that not all businesses can meet market demand, despite having a great product and committed team. More and more, crowdfunding is becoming a viable alternative to small business bank loans, borrowing from friends and family, and maxing out on credit cards.
With rewards like “Mexican Hot Chocolate Brownie” and “Doubt Chocolate Brownie,” a $10 pledge seems more than worth it for a product line sampling. Is crowdfunding the future of small business financing? We’ll have to wait and see.
