Last week two significant things happened. One, an investor with a $10,000 promise dropped out. Secondly, River Falls State Bank clarified that they would be lending WeatherVane Creamery money for equipment and assets rather than starting costs. So, instead of needing to raise $50,000 (raised $40,000 last month!), the choices are to raise an additional $87,000 or cut opening costs by $87,000. River Falls State Bank also said that they couldn’t see doing a line of credit in addition to the loan either. The line of credit was to be available as a buffer in case things do not meet projections in the first opening months.
In looking at how to respond to this, I could possibly see opening WeatherVane Creamery this summer on the most riskiest of terms- basically everything on terms by paying the contractors 50% up front and work out payment plans for the rest, buying inventory on terms, cutting as much as I can from the opening costs while attempting to not sabotage the business needs, and taking out credit cards in WeatherVane Creamery’s name and using them. This strategy does not support the economic sustainability that I am committed to for WeatherVane Creamery.
Another way is to continue fund raising. I met with a few people last Sunday to discuss WeatherVane Creamery branding. It seems like the themes of HIP, MODERN, LOCAL, SMART, QUIRKY, ACCESSIBLE, MAGICAL, and TRADITIONAL SENSIBILITIES are coming through the online marketing. Areas for fund raising were also discussed. River Falls Days, Town and Country Days, and other public event participation was emphasized. Also continuing with the online marketing that would include a weekly video series and a crowd sourcing campaign (like www.indiegogo.com/weathervane-creamery-rocks-this-town ). These things would entail re-working the website (thank you David Foster Babcock for your help recently!), having marketing materials for displays and for social media, a video intro, and an easy, automated ways for people to invest or donate. It would be going to back “on the streets” to market and also would be an opportunity to sell product. Besides raising funds and having sales, these types of activities generate interest and audience which provides a better foundation for WeatherVane Creamery to open with. Opening date would be this winter.
On a personal note, as it looked like we were only $10,000 away from pressing the GO button, I was stretching my personal dollars more and borrowing money to make my monthly expenses. At the same time, I was taking care of some outstanding issues around my health, car, and student loans. I have applied for social assistance. In light of this trend combined with the news that I won’t be taking a paycheck from WeatherVane any time soon, I have started to look at my options. Eddie Bauer has been pestering me to promote to a full-time management position. In considering this (right now we are starting negotiations), I realize that I can do most of the marketing and fund raising things for WeatherVane Creamery at the same time. And if Eddie Bauer can’t accommodate me, I also have an opportunity to expand my cheese sales to chefs and grocery stores in the Twin Cities with St Croix Specialty Foods. I get mileage and commission and can tie in my weekly video series with the professionals that I meet. Either way, a regular income affords me some peace of mind, my credit score intact, and a better structure for getting things done.
WHAT I NEED: For all marketing efforts, I will need support whether it be bodies at the events or people behind the scenes promoting it. I need an active advisory team. I will be in touch with each of you personally (and some I have already) to gauge how to make things work. I have also approached a few people about joining the team. And as always, resources. Anything you’ve got. I envision working with a social media company and a graphic artist. I’ll need to purchase packaging for online sales. I’ll need a 4G phone to act as a hotspot so people can donate or invest on the spot. These things all cost money. I will be in touch with investors to ask permission to use the funds that they have invested towards some of this. I will make a detailed budget.
Please reply with any feedback or insights. I’d love to hear your thoughts. I will be in touch with you in the next two weeks.
Thanks for your support,
Sarah