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Crowd-funding greenhouses

One Ohio grower used crowd-funding to rebuild a destroyed greenhouse. Could it work for you, too?

Sunny Meadows Flower Farms was in trouble.

The Columbus-based cut flower grower had recently purchased a fifth greenhouse to help extend its growing season. Over a long stretch they had erected the frame, set up the electricity, and rolled out the covering. But Ohio weather rarely shows sympathy. In February, six inches of snow fell in rapid fashion; it piled atop the new structure, collapsing the frame.

Sunny Meadows’ insurance policy didn’t cover the destruction, which meant the farm’s $16,000 loan had become a liability incapable of return and the farm’s selling season wasn’t for a couple of months. Things looked bleak.

However, Steven and Gretel Adams, the farm’s owners, had shared a conversation with another farmer about a website called Indiegogo. The site offered individuals and organizations the opportunity to raise money for worthy causes, via an Internet fund raising mechanism.

Indiegogo is part of a larger contingent of websites that fall under the umbrella category of crowd-funding. Crowd funding allows individuals from across the globe to research, select, and donate to causes of their choice. In recent years, high-profile projects (like the Veronica Mars and Zach Braff movies) have raised millions of dollars through the platforms.

Within the crowd-funding umbrella there are two primary websites, Kickstarter and Indiegogo. For donors, Kickstarter tends to be the more favorable selection. Why? Prior to launching your campaign on Kickstarter you must set a financial goal, which is locked-in, and all donations contribute to that goal. However, should a cause fail to reach its goal, all of the donated money is returned to donors; meaning the donation recipient doesn’t see a dime. Indiegogo tends to favor donation recipients because any money that is contributed to a project, regardless of fundraising goals, is turned over to the cause; which means, even if you set a financial goal and fail to reach it, you will receive whatever funds are donated.

Donation recipients on both sites are encouraged to create a video explaining why they need donations and to offer incentives for potential donors. For example, Sunny Meadows’ offered donors soap (which Gretel makes during the winter), dahlia tubers, a farmer’s market loyalty card, and a one-on-one business consultation. High-profile causes, like the aforementioned movies, offered donors a walk-on role in the films they were supporting. These “perks” are relatively cheap for donation recipients and ensure that both parties (donor and donation recipient) feel as if they’re coming away with something.

The Adams tried to think of what they had in-stock now (tubers, soap) and what they would be able to offer in the future.

“We weren’t just selling things in the present. We also sold vouchers for bouquets and herb trays, and now that we’re at market, people are redeeming their vouchers. We knew that we needed the money at that point and figured it would be worth it come market season,” Gretel says.

Sunny Meadows set a goal of $5,226, a figure they reached based on replacement and construction considerations. They raised $6,566. They contribute their success to two factors: perks, and a feeling of authenticity.

“We gave them a piece of our lives,” Gretel says. “We weren’t trying to put one over on people, they were supportive of the cause and I think that’s why they donated.”

Crafting an appealing campaign is the lion’s share of the battle with crowd-funding websites. People need to feel compelled to donate to your cause, which means you should only use the sites as a last resort. Should it come to pass that you need to use crowd-funding, take the time to make a YouTube video and offer rewarding incentives. And understand that crowd-funding is a gambit that doesn’t always pay off.

For Sunny Meadows, the decision to use crowd-funding did work out. The farm now has six greenhouses, including the one they rebuilt using Indiegogo money. —Chris Mosby

For more: www.oursunnymeadows.com

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