Crowdfunding a Cigar Business

[Mr.Maduro]

Lots of layers, big undertaking.

 

[Stillinger]

I think a crowd funding in the cigar business can work, but more for a cigar. B/m? You would have to be in a large market, and I don't know if you are in one. You aren't going to get most of your cash from online with t-shirts and swag. If you offered package deals, or discounts, it might entice some, but that's cutting into your bottom line.

There was a cheese shop that crowd sourced near me, and it offered wine, classes, and discounts, but, once again, they didn't get a large pool (I think they only got like 5-10k) to help supplement.

Crowd sourcing only goes so far. Your business model is more important than 500 people giving you 20 bucks.

 

[MDSPHOTO]

Personally, I think crowd funding is your best bet. Any serious investor is going to do a lot of research on you, the industry and will pick your business plan a part. As we all know, there is a lot of ambiguity regarding the tobacco industry right now. Its anyone's guess how and when the FDA will rule on the pending reform on cigars. My guess is that your average crowd funder has little insight into the industry and would be more focused on your business plan.

 

[SpartanFan]

People crowdfund a product because they want the particular thing. If they can't access what they fund, then they likely won't see a point. Locals would be your by majority only supporters. Cigar lounges are niche markets though, there would have to be demand and substantial desire for a lounge to exist. This is likely only possible if no other lounges around existed. Equally, you'd have to provide legitimate incentive and proof that it would both work out the way you say as well as be able to hold the brands and cater to the primary donators.

Because of such being a niche, you'd have at most a small number of large backers, likely wanting their donations to translate to membership.