Crowdfunding coffee shops open for one year, facing the risk of closing down and starting a business

As the saying goes, "everyone gathers firewood and the flame is high." Crowdfunding model is sought after by many entrepreneurs because of its low threshold, low cost and low risk. However, amid the applause, some cases of failed crowdfunding projects are worth thinking about. These days, HerCoffee, which has been open for less than a year, has heard the news that it is going to close the store. Is this a case or a common fault of the crowdfunding model? Can crowdfunding start-ups do big business?

Crowdfunding coffee shop faces closure after opening one year

When HerCoffee opened last year, it sparked a heated debate over 66 beautiful shareholders in red, as well as hundreds of stars and social celebrities who were present to congratulate them. However, in less than a year, there was news that HerCoffee was going to close the store. One of the shareholders gently said that they were indeed discussing the issue at the moment.

Gentle: if we do not have a new plan, then close the shop, and then choose a new place and so on, this is just a choice, not a decision.

As for the reasons, gently said, on the one hand, the rent is too high, the storefront does not have a flue, can not cook to provide light meals, limiting the development of cafes; on the other hand, shareholders are too busy to take care of the storefront. However, even if it is not profitable, the cafe's shareholders still want the cafe to continue.

Gentleness: the original purpose is not to make money, but to have a platform where the circle helps each other. If profits are also used to help women start their own businesses.

Whether it is profitable or not can't be ignored.

In this regard, net letter Financial Group Marketing Director Ma Weiqiang said that this case is not typical. As an entrepreneurial project, whether it is profitable or not is still a very important issue.

Ma Weiqiang: those who don't care about making money may be of a commonweal or semi-commonweal nature, and most of them still want to make money. The main purpose of this kind of cafe is not to make a profit, but to get information or connections.

It is worth noting that although the popularity of crowdfunding entrepreneurship continues, there are numerous cases of losing money. According to expert analysis, crowdfunding is known as the "dream-selling business" model, which is no different from the usual entrepreneurial process except for the innovation of fund-raising. If you ignore the nature of entrepreneurship, such as the market, profitability, shareholder withdrawal, conversion, dividends and other issues, entrepreneurship is also difficult to sustain.

There are risks in crowdfunding entrepreneurship.

In addition, the risks of crowdfunding entrepreneurship can not be ignored, said Zhao Zhan, an Internet industry lawyer. One of them is legal risk, mainly because crowdfunding and illegal fund-raising are often "separated by a wall." In addition, for 200 specific people's "red line", crowdfunding generally through stock ownership and other ways to skillfully avoid, but this also implies risks.

Zhao Occupy: one of the biggest risks is that these investors are hidden shareholders and are not reflected in the industrial and commercial registration. If the stockholders transfer the shares without authorization, the investors may not know it at all.

However, Zhao Zhanzhang revealed that it is not clear whether "surrogate behavior" is legal or not, and there should be documents coming out this year. Ma Weiqiang is still optimistic about the prospect of crowdfunding entrepreneurship.