tag:blogger.com,1999:blog-7995609175702203728.post2514946371140255640..comments2024-03-27T08:49:21.255-04:00Comments on THE TOWNHOUSE: A capital idea?Rosehttp://www.blogger.com/profile/02957322201274843811noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7995609175702203728.post-27971204412154247942015-09-11T13:55:35.762-04:002015-09-11T13:55:35.762-04:00A Cedif investment has far to many benefits to the...A Cedif investment has far to many benefits to the investor to simply list in a quick reply. Here are just a few quick thoughts. When investors place money into a Cedif approved business, the business plan has been checked over by the provincial government relentlessly to insure the business is a viable one. Further more 80% of the investment money placed into a Cedif must be placed into hard assests, such as building, land, equipment ect...so if the business were to fail there are assests to pay off the investor. The main reason I feel Cedif's are of the best value for an investor is the fact, you Recive 35% of the money you invest into a Cedif program, though a provincial rebate on your year end taxes. I invest 10 000$ I get back 3500$ at tax time. Lastly you can use existing funds in RRSP, where the individual has already received their kick back in the past and still get their 35% tax break at tax time. For example the maximum amount any one investor can place in a Cedif is 50 000.00$. If I have 50 000$ in my RRSP simply by investing that money into the new shares of the Cedif business I receive 17,500$ in cash at tax time. You have to have enough provincial tax to equal the 17 500$. Tax can be claimed 3 years prior or 7 years forward. So by investing in a Cedif you essentially just pulled out 17 500$ of tax free money from the government and retained a full 50 000.00 in a new local company, which depending on its success will appreciate in value. This is simply a no brainer to invest into Cedif projects when 80% of funds raised is in hard assests and the government gives you 35% tax rebate. Do the math... If the business fails you actually make money, the investors in the Cedif are the first ones to be paid back their investment. Well done Nova Scotia government, this is possibly the best business programs ever initiated by the province that unfortunately many haven't even heard of. What are the drawbacks? The main ones in my opinion are that your investment money placed into the Cedif is locked up for 5 years, if you withdrawal the funds or sell shares to buy into another investment you will be forced to pay back the 35% to the government. As well mentioned previously, the Cedif process is costly and requires a tremendous amount of paper work and back in forth checks at all stages of your business plan. Getting approval is not easy for this program but the extra time and cost are well worth it. Hope this helps. Cheers.Anonymoushttps://www.blogger.com/profile/10589826867516789535noreply@blogger.comtag:blogger.com,1999:blog-7995609175702203728.post-88407402454875250112011-04-04T23:19:48.451-04:002011-04-04T23:19:48.451-04:00have you considered channeling some of the start-u...have you considered channeling some of the start-up costs through a kickstarter account? It offers a lot of the benefits you point out in a CSR model - kickbacks and material incentives for investors - without having to create a separate community of investors through exclusive club meetings, reserved beer mugs, &c.<br /><br />http://www.kickstarter.com/whttps://www.blogger.com/profile/14204888825023891552noreply@blogger.comtag:blogger.com,1999:blog-7995609175702203728.post-83128858926054134602011-03-25T17:01:26.726-04:002011-03-25T17:01:26.726-04:00Thanks, DW and JeffO. This is exactly the kind of ...Thanks, DW and JeffO. This is exactly the kind of stuff we want to be hearing... keep it coming, people! <br /><br />Looking forward to checking out that video–sounds like a direction worth pursuing.Rosehttps://www.blogger.com/profile/02957322201274843811noreply@blogger.comtag:blogger.com,1999:blog-7995609175702203728.post-31031731424492999242011-03-25T11:20:50.471-04:002011-03-25T11:20:50.471-04:00I immediately think CSR or CEDIF; CSR over CEDIF b...I immediately think CSR or CEDIF; CSR over CEDIF because it'd guarantee the foot traffic into your place that'd ensure word of mouth endorsements. People would come in often as they'd have those vouchers to use. Plus, some might choose to not use those vouchers as a way to reinvesting in your place again and again. ("This meal was too good to be free!") Could they share their vouchers to introduce other people who might not have invested but they feel would become a regular if they had a free taste? (If a physical stack of vouchers, could each have a space on the back that read "Try this out on me" or something?) I wonder if a CEDIF investor might be more hands-off as well as being unable to share the benefit of their investment as easily? Who invests in CEDIFS? I mean, I know people do, but who are they? It'd be interesting to know how often the HSP Farmers' Market for example sees their CEDIF investors. Every week? Once a month? At meetings only?<br /><br />I think the $1000 ask is reasonable and do think reducing it'd overburden you with promises of free food. It's also the same as the minimum CEDIF ask, isn't it? People will invest if they can make it in often enough and see the influence your establishment has on local farmers. Acknowledgments in addition to mugs: engraved table or chairs, bar stool, hand stitched names on cloth napkins, small photo collage, etc. There's no shortage of fun ways to make your investors feel a part of the place.<br /><br />Check out this video when you have an hour. The FearLess Revolution, and Common brand (heard of them?), have become topics of discussion around here as we talk about how marketing is becoming more about fostering communities than it is selling people things.<br /><br />http://fearlessrevolution.com/blog/introducing-common.html<br /><br />This guy - an adman turned community-minded thinker-investor trying to enable a re-imagining of capitalism that better supports the creative community and fosters growth in small, community based businesses - is on to something along the lines of how TEDTalks are demonstrating how design plays into everything...jovermhttps://www.blogger.com/profile/08822236909739383372noreply@blogger.comtag:blogger.com,1999:blog-7995609175702203728.post-14260491729828054782011-03-23T17:42:25.164-04:002011-03-23T17:42:25.164-04:00I think the CSR model sounds amazing, though I'...I think the CSR model sounds amazing, though I'm out of town so it's a moot point for me. That being said, if I were in town, I think committing $1000 to four years of eating out would be a bit steep, logistically. Then again, if the price were lower, the number of subscribers would be higher which might a) end up being a big short-term drain on your food planning, and b) limit the kinds of events you could throw for your subscribers. Thinking out loud.lettergradehttps://www.blogger.com/profile/04722873690636571565noreply@blogger.com