Smallknot has taken their cue from the likes of crowd-funding sites such as Kickstarted and Indiegogo. The online platform assists independent neighbourhood enterprises to create their own funding projects. The service works exclusively with local businesses to help them expand and grow. They are unable to do so on their own as they are lacking one primary factor-capital.
The service allows the business to input all details of the campaign, set the funding goal and the time limit. Businesses can connect with their most loyal customers or gain new custom by offering rewards for those who offer up some cash. Supporters of projects will benefit from the returns in the form of discounts, free products, insider perks and experiences. Most importantly they are able to share the love and keep their favourite, local small businesses area thriving.
An example of a current project on the site in need of funding is Eat Greenpoint, a sustainable locally sourced restaurant. They’re raising capital to turn their backyard into a pottery studio. If you invest $150 you are rewarded with the opportunity to dine in either the backyard or restaurant with five friends (to the value of $210). A smaller donation of $20 can be redeemed in-store or go towards a pottery class.
As well as rewards and discounts an extra incentive to support is
provided through the fact that support translates into improvement in their neighborhood.
Similar to Kickstarter, projects are funded provided they reach their target date. The only downside to Smallknot is it’s primarily based in New York City however they do have plans to expand.
Article By Courtney van der Weyden