What is the BackaBusiness movement?
SimplyBiz, powered by Nedbank have started the BackaBusiness movement with the Thundafund crowdfunding platform, as another innovative and relevant way that Nedbank is assisting small businesses thrive.
The BackaBusiness movement is a crowdfunding opportunity for entrepreneurs to start up or grow their business. Small business owners set up a campaign to raise funds, while backers support their chosen business on a BUY now, REDEEM a reward later basis.
What is Thundafund?
Thundafund is an online crowdfunding platform. It acts as a connecter for campaigners and backers. The funds pledged via Thundafund are held on behalf of the small business.
What is crowdfunding?
Crowdfunding is raising a sum of money for a specific project through contributions from a crowd of people who ’back’ that idea… In this case, the BackaBusiness movement.
There is a set timeframe of 60 days in which to raise the money and all the people who give money receive a reward in return for their support. (The reward is dependent on the offer made by each business.)
Trade not Aid: A basic principle of crowdfunding is that backers get a reward in return for their contribution. It is not a donation.
SMALL BUSINESS QUESTIONS:
Who is eligible to participate in the movement?
This movement is aimed at entrepreneurs.
- You must be 18 years or older;
- reside in South Africa;
- run a small business that is able to offer rewards or vouchers in return for funding received,
- be a registered member of SimplyBiz. (Registration on SimplyBiz.co.za is free.)
Why should I start a campaign with BackaBusiness?
- Clients, family and friends have your back – they love you and trust your brand. Give them the opportunity to BUY vouchers and rewards NOW that they can REDEEM LATER.
- You can access all the money you raise, at Thundafund intervals, because the tipping point is set at R1.
- Thundafund offer a preferential fee of 5% to Backabusiness campaigners on monies raised.
- You build a strong relationship with customers who have a vested interest in seeing you succeed.
- You will have guaranteed feet coming into your store or clients contacting you to redeem their rewards and they are likely to spend more.
- You will receive templates, guidance, cohort- based training and peer learning through Thundafund to position and create an effective campaign.
- You will receive a SimplyBiz Crowdfunding Handbook.
- Various digital media advertising on the BackaBusiness movement will elevate your campaign. More eyes mean more potential backers!
- There is no limit to how much you raise!
How do I start a campaign?
- Calculate how much money you will need to kickstart your business into the new year. (Be specific and factor in your quiet months).
- Map your network of potential backers – your customers, friends, family, neighbourhood etc.
- Decide what rewards you can offer for cash now. Rewards could be products or services, discount, merchandise or even a share of future revenue streams.
- Register your business on SimplyBiz.co.za
- Start a project on the BackaBusiness page on Thundafund with your SimplyBiz email address.
- Tell your story – why the crowd should support your business. We will help you! Be sure to include images, videos, customer reviews and your accolades.
- Once your campaign is live – share it! Encourage your network to share it too.
How do SimplyBiz and Thundafund provide business and mentorship support in starting and running a campaign?
- Each participant will have access to templates, guidance, cohort-based training and peer learning through Thundafund to position and create an effective campaign.
- The Thundafund team will work with each small-business owner to understand your project and crowdfunding targets.
- The Thundafund team will give advice on the rewards you offer in return for backers’ support. These rewards can be a discount, extra-value vouchers or free products or services with the next purchase.
- Various digital media advertising on the BackaBusiness movement will boost your campaign and increase your chances of reaching more potential backers.
When can I access the money raised?
Two mid-campaign withdrawals can be done on 15 December 2020 and 15 January 2021. Participants must give written notice of withdrawal to Thundafund (5 days prior to the withdrawal date) and transfers will be done according to Thundafund terms and conditions. You will be able to access the total amount of money raised less the 5% preferential Thundafund fee.
Do campaigns have a specific goal amount and end date?
Yes, all campaigns must have a specific goal amount and will be open for funding for a fixed period of 60 days (between 23 November 2020 and 28 February 2021). Once the project has gone live, the goal amount or duration cannot change.
Where can I find Backers?
Backers can be split into 3 networks:
- Your First-Degree Network – The Committed:
These are the people closest to your business. They could be friends, family, or regular customers. They are the people who want you to stay in business! They love your product/service and they have a trust relationship with you.
- Your Second-Degree Network – The Inspired:
These are other people that know you or your business. They may be people on your mailing list, your business’ Facebook fans or Twitter followers. They could be people who have supported your business before, or people in your local community. They may also be the friends and networks of your first-degree network.
- Your Third-Degree Network – The Shoppers:
This is everyone else – the friends of your second-degree networks, the people who may see your business advertised or see a tweet online, or others browsing on the SimplyBiz and Thundafund websites. There are many people out there who want to reach out, but do not know who or how to help. Your story might just be the one that catches their eye!
What are the fees?
- There are no fees to join BackaBusiness – just a simple registration.
- If, and only if, you raise funds, does Thundafund receive a standard 5% fee of funds raised, exclusive of VAT.
- Note: 3rd party fees and administration transaction fees, depending on the payment method can range from 3% – 5.5%, which is paid by you, the business owner.
How much (or little) funding am I allowed to ask for?
There is no minimum and no limit to how much money you can raise.
Be realistic about how much money you need to stay in business. Backers may feel intimidated by an extremely high target, feeling that their small contribution will be just a drop in the ocean.
How long will it take to receive my funds when I reach my target?
You can get the money, at the mid-campaign intervals and once your campaign ends. There is a two-week period during which Thundafund allows a five-day cooling-off period for pending payments and to reconcile all successful payments.
Does Thundafund protect personal and financial details? Is it secure?
The Thundafund platform is compliant to the Electronic Communications and Transactions Act, 2002
For e-payments, Thundafund uses MyGate, one of South Africa’s leading payment gateways, offering the most reliable and secure internet payment gateway.
How does Thundafund monitor delivery of rewards as promised by the small business?
Thundafund does not monitor the delivery of rewards. The ‘contract’ as such is between the backer and the small business, Thundafund is the channel. The power of the crowd to keep business owners to their delivery promises is one of the defining features of crowdfunding. Simply put, the fact that rewards have been promised to many people, mean that there will be many people following up on their reward – and people from the business owner’s own network too.
What TAX do I pay or declare?
It is important to note that neither SimplyBiz nor Thundafund offer any tax advice and that you would need to consult your tax practitioner.
Why do I need to make a video?
A video is your get-up-and-go, your make-it-or-break-it. Why? Because people want to be able to look you in the eye and say, “Do I want to invest with this person/business?”
Do not stress about an Academy Award-worthy aspect, just be yourself and explain what you want to do, within 1-3 minutes. A video makes the interaction personable and gives backers a reason to believe.
If a picture can paint 1 000 words, go figure what a video can achieve!
The important legal stuff:
Rightful owners get barking mad when it comes to things like copyright. DO NOT TRESPASS. Don’t use music, images, video, or other content that you do not have the rights to. The easiest way to avoid copyright headaches is to create all the content yourself or use content that is free-to-public. For legal, mostly free alternatives, check out some of these great resources: SoundCloud, Vimeo Music Store, Free Music Archive, and ccMixter.
What should I do if I’m battling to reach the target funds?
Be honest: reach out to the crowd and post an update to your Backers. Letting your Backers know of any problems you face could even save the campaign. Backers may have that ‘aha’ moment you are missing. They also may be motivated to pledge more or to actively promote your campaign.
Are updates going to be emailed to backers?
Yes. Businesses are expected to communicate with their Backers. How often and in what detail is entirely dependent on the business owner. We do, however, advise you to keep a flow of communication going during the campaign – finding a balance between latest news, and over-informing…
Is a business owner legally obligated to fulfil the promises of their campaign?
Yes, as set out in Thundafund’s Terms & Conditions (https://blog.thundafund.com/how-does-thundafund-work/terms-and-conditions/) a business owner is legally required to fulfil all their Rewards promised. While Thundafund cannot enforce this, the CPA – Consumer Protection Act of South Africa entitles any campaign backer to demand their cashback from the business owner if they don’t receive what’s been promised.
Can Thundafund refund the money if a project is unable to fulfil its promises?
No, if the project campaign has been successful and the funds have been transferred to the business, Thundafund cannot refund any money as all transactions operate between business owners and Backers. Once the project has been successful and the project campaign has ended, the pledges are received by the small business. Refunds can only occur on a personal level between business owner and Backer.
How do I know a small business is who they claim they are?
Through Thundafund’s project submission, they have a two-level process to ensure they are admitting bona fide campaigns.
Firstly, the application procedure gathers information about the small business, and takes them through a process of analysing the realities of their deadlines, their ability to deliver on rewards, and the practical aspects of their project.
Secondly, the once-over by Thunda-vettors and Thunda-champions gives an independent audit of a project’s authenticity.
The third and final level is their interaction with you, the backer: watch their video on Thundafund, interact with the business owner and you will get a good sense of who the creators are, and if you would like to take a chance on backing them. You will also see them and be able to interact with them via their video and various social media.
Why should I support a BackaBusiness campaign?
- It’s a win-win – Lockdown was devastating for small businesses, those that survived 2020 need your support to thrive in 2021. They are your local hairstylists, garden services and restaurants. You like them, you trust them, and you want them to succeed.
- The business will reward you and you get to give a gift that keeps on giving.
- Good karma – you will be part of a good cause and ‘good news’ story.
Am I able to ask a business owner questions before I pledge? / What do I do if I have questions about a project?
Yes, we encourage you to ask! Make sure you understand the campaign fully before pledging.
In fact, Thundafund make it easier for you. Each campaign has a discussion forum where you can pose any relevant questions to the business and engage.
Can I back more than one campaign simultaneously?
Absolutely – support as many as you wish and encourage your network to do the same!
When is my card charged?
When you pledge, the funds are taken from your card and placed in a Thundafund holding fund until the business withdraws.
Is my pledge amount publicly displayed?
No, Thundafund protects the integrity of your pledge, so this is only known to you and the business owner. Only your ‘Display Name’ is shown on Thundafund.com and Thundafund never provide your personal or pledge information to any third party without your prior written consent.
What if I want to pledge anonymously?
Thundafund does not have an anonymous feature. You can, however, choose a pseudonym when pledging.
How can I change my pledge amount?
You can make a further pledge, but you cannot withdraw your pledge unless there has been fraudulent activity by the campaign you are backing.
Can I cancel my backing and make a withdrawal?
No, once you have backed a campaign, you will not be able to withdraw.
Can I withdraw or cancel my backing?
Only in special circumstances can a backer withdraw his or her backing from a project. The backer must submit a written request to Thundafund. To withdraw or cancel please send an email stating the reasons why to email@example.com
Who is responsible for fulfilling the promises of a project?
The business owner – the Thundafund team are there to assist and through their mentorship and business support programme they provide an incubative environment for business owners, but it is totally up to them as to whether they take up the support or not.
What happens when a project receives more funds than its target amount?
Champagne anyone? The business keeps the excess amount. Remember, that more money in effect means more people backed the campaign, which results in more rewards needing to be produced and delivered.
Can people from outside South Africa pledge to BackaBusiness campaigns?
Yes, Thundafund is a global crowdfunding cafe. However, only South African businesses may benefit.
How do I pay?
You can pay by Visa or Mastercard. Thundafund allows direct deposits.
How are rewards redeemed?
Once the campaign has reached its target the business owner is responsible for ensuring that every Backer receives his or her appropriate reward (according to the specific offer). Once a project is successful Thundafund gives the full list of Backers and their appropriate details to the business owner.
Once the business owner receives the campaign funds they have raised, they are then fully responsible for the delivery of the rewards directly to their Backers.
How will business owners get my information to deliver rewards?
The delivery/shipping details you have filled in will be given to them, plus your relevant contact details to allow them to fulfil on their promise.
I haven’t gotten my reward yet. What do I do?
Contact the business owner. If in the unlikely event that you are unable to reach them, contact Thundafund at firstname.lastname@example.org.
How do I know when rewards for a campaign will be delivered?
Businesses put in an estimated delivery time for each reward.