How easy is it to start a crowd fund raising project?

[TravisM]

I was down the pub earlier tonight with a few modelling friends and after a few bevies, the topic of starting a crowd funding project regarding doing a high end Class 91 and Mk IV stock as the Hornby version now really should be relegated to their “Railroad” section of models.

 

Apart from the difficulties in a getting the prototypes scanned, CAD models developed and a host of other difficulties including finding a reliable and reputable factory, what would the start up costs etc expected to be?

 

I realise that it might be the the beer talking and just wishful thinking but how realistic is it in doing?

[Andy Y]

If you have to ask the question and haven't thoroughly researched all aspects of it yourselves you're not ready to go anywhere near the concept.

[TravisM]

If you have to ask the question and haven't thoroughly researched all aspects of it yourselves you're not ready to go anywhere near the concept.

Agreed but someone has to start somewhere and that’s where the question comes in. I foresee it being akin to opening Pandora’s Box and I take my hat off to anyone who’s done it but the question still stands, how easy or more likely difficult is it to start a project like this?

[chris p bacon]

It's difficult.

[tomparryharry]

Research the subject first. Like you, I haven't done crowd funding, and I don't know the first thing, but I do know that you have to 'bone up' before you set forth.

 

If your colleagues want to get together, and pay me about £10,000 every month, I faithfully promise to send you a photograph, showing you how I 'invest' your funds....

 

Champagne Charlie.

[mdvle]

Simple answer, very difficult and a very bad idea.

 

Crowd funding, based on both previous and currently ongoing ones, both takes a lot of time as well as a lot of risk, and the risk has only increased as the number of entities participating in the UK market has increased.

 

So realistically, unless you and your pub mates can front the £400,000 or so a Class 91 and set of Mk4 coaches would cost to tool, it won't happen.

[Revolution Ben]

Hi jools1959,

 

It is a lot of work, but having delivered six crowdfunded models to the market (TEA in N & 00, Pendolino, Class B tanker, IZA vans, hi-cube containers), with three more in production or about to be (Class 92 loco, MMA box wagons, KFA flats) and a further three in tooling/CAD (Sturgeon flat wagon, Class 321, IPA car carrier) I would say it isn't necessarily a bad idea.

 

Reading Andy York's article in BRM recently might be a good start.

 

This is a short list of what you need to do before you think about raising money:

 

*  Choose your team (assuming you don't want to do everything yourself) and assign jobs.

*  Be honest about you and your team's capabilities.  Do you have the necessary skills?  Do you have enough time?  Do you stick with things or get bored easily? etc.

*  Identify what you want to do, why, and ask yourself whether there really would be a big enough market.

*  Contact the owners of the vehicles involved and confirm that you can reproduce the liveries you want.

*  Source drawings or obtain permission to carry out a laser scan

*  Identify a factory or manufacturing partner

*  Obtain quotes with appropriate MOQs.  If your prototype carried different liveries find out what is the minimum for any given paint scheme.

*  Create a method of enabling backers to put money in (you could use a platform like Kickstarter)

*  Create a website to give people somewhere to see the project, find information, get updates etc.  Don't just rely on forums.

*  Contact the model railway press to see if they will provide coverage of your scheme.

*  If you decide to go ahead you'll probably need a dedicated bank account for the project, and be ready to consider VAT issues and arranging payments to factories abroad (probably China.)

*  Keep engaged on social media/forums etc to reassure people and maintain your presence.

 

This is not an exhaustive list and there are lots of other things that need to be done down the line (CAD assessment and feedback, testing, spares, warranty repairs, packaging design, shipping/delivery etc) but it's a start.

 

Bottom line:  It can be a success, but there is a lot of work and you'll need to have a thick skin and a sense of humour!

 

cheers

 

Ben A.

[pete_mcfarlane]

Out of interest, how do platforms like Kickstarter work with these crowdfunded models? Normally they ask for the project to have a working prototype to show before they'll allow investment to start, which implies some initial investment of your own. 

 

(Although the definition of 'working' is open to interpretation https://en.wikipedia.org/wiki/ZX_Spectrum_Vega%2B )

Edited December 4, 2018 by pete_mcfarlane

[TravisM]

Hi jools1959,

 

It is a lot of work, but having delivered six crowdfunded models to the market (TEA in N & 00, Pendolino, Class B tanker, IZA vans, hi-cube containers), with three more in production or about to be (Class 92 loco, MMA box wagons, KFA flats) and a further three in tooling/CAD (Sturgeon flat wagon, Class 321, IPA car carrier) I would say it isn't necessarily a bad idea.

 

Reading Andy York's article in BRM recently might be a good start.

 

This is a short list of what you need to do before you think about raising money:

 

*  Choose your team (assuming you don't want to do everything yourself) and assign jobs.

*  Be honest about you and your team's capabilities.  Do you have the necessary skills?  Do you have enough time?  Do you stick with things or get bored easily? etc.

*  Identify what you want to do, why, and ask yourself whether there really would be a big enough market.

*  Contact the owners of the vehicles involved and confirm that you can reproduce the liveries you want.

*  Source drawings or obtain permission to carry out a laser scan

*  Identify a factory or manufacturing partner

*  Obtain quotes with appropriate MOQs.  If your prototype carried different liveries find out what is the minimum for any given paint scheme.

*  Create a method of enabling backers to put money in (you could use a platform like Kickstarter)

*  Create a website to give people somewhere to see the project, find information, get updates etc.  Don't just rely on forums.

*  Contact the model railway press to see if they will provide coverage of your scheme.

*  If you decide to go ahead you'll probably need a dedicated bank account for the project, and be ready to consider VAT issues and arranging payments to factories abroad (probably China.)

*  Keep engaged on social media/forums etc to reassure people and maintain your presence.

 

This is not an exhaustive list and there are lots of other things that need to be done down the line (CAD assessment and feedback, testing, spares, warranty repairs, packaging design, shipping/delivery etc) but it's a start.

 

Bottom line:  It can be a success, but there is a lot of work and you'll need to have a thick skin and a sense of humour!

 

cheers

 

Ben A.

Hi Ben,

 

Thanks for the information and to be honest, I think the idea is pretty much a spit balling exercise and it was more the beer talking than anything else lol. I have to admit that the information you provided was a insight into what’s needed and the complexities of projects like this. Thank you for that.

[hiffano]

I was down the pub earlier tonight with a few modelling friends and after a few bevies, the topic of starting a crowd funding project regarding doing a high end Class 91 and Mk IV stock as the Hornby version now really should be relegated to their “Railroad” section of models.

 

Apart from the difficulties in a getting the prototypes scanned, CAD models developed and a host of other difficulties including finding a reliable and reputable factory, what would the start up costs etc expected to be?

 

I realise that it might be the the beer talking and just wishful thinking but how realistic is it in doing

 

The biggest issue i found, was finding a company who would even talk to you. 

Hornby and Bachmann will probably ignore you

Dapol and Rapido were too busy

Heljan want to charge a sum equivalent to a small countries annual budget

only two companies had time/willingness to quote for me. 

 

Then there are people, I can't begin to tell you how much abuse I received. Never really understood why, and I hope MIke and Ben didn't receive as much. Also EVERYONE knows better than you, everyone..... you can have all your costings, prices, model lineups. but no, someone will know better.... :-)