News: The funding campaign begins — We need your support

After many months of work, the funding campaign for Heckstall & Smith is live!

UPDATE (1 May):

Given many interested investors would like a little more time to sit down and make their investment, and there is no sense in opening up a campaign to professional investors on a Saturday morning, we have agreed with Seedr to extend our funding campaign soft launch until the end of Monday.

The support and interest has been very touching. Thank you!

I’m sure you would like nothing more than to start your bank holiday weekend mulling over investing in a butchers’ shop, so…

· The share of the business we’re giving up in return for the investment is so that we can give investors a dividend of an average 20% per year
· Because we’re registering for SEIS, investors will get 30% tax relief on their investment and more if they’re putting in capital gains
· If we don’t raise the money through Seedr then you get your investment back in full
· Early investment shows other potential investors there’s momentum behind the campaign, making it substantially more likely they’ll invest
· As well as making money, investors will help put a proper butchers’ shop on Ladywell’s high street!

A lot of people have asked to see the business plan in full, as Seedr is pretty light on detail because of their word-count limits. Please find all 63 pages of it available to download here.

Thank you again for all your support thus far. Have lovely bank holiday weekends.

UPDATE (29 April):

Since our last note, progress has been strong. More enquires and loads of interest in the blog post.

So, with two days left of the soft launch, this is a brief and shameless request to turn interest into investments.

All the information is available on the campaign page, You can invest from just £10 and just £10 does make a difference.

UPDATE (27 April):

We have had a great first weekend. Lots of enquires and a new direct investment into the business of £5,000!

To keep the ball rolling and turn the early interest into money, we want to answer the main question we have received… how is this a good deal for investors and directors, and leaves enough profit to reinvest for growth?

After talking to contacts who deal with investments and our accountant, we decided to use the future maintainable profits model, which values a business on how long it will take investors to get their money back in profit. They still own their share at the end, so have effectively doubled their money. We have said that we want our investors to be at this point after five years, or a p/e ratio of 5.0, which is the average among start-up businesses. A more established business would have a p/e of 10.00 upwards.

Therefore, the £682,000 valuation of the business is so that an investor will own a big enough share of the business to receive an average dividend, around 20%, meaning a profit equivalent to their investment after five years.

Given that the plan is to grow the business further after three years, meaning the business’ future maintain profits would increase, the investors’ shares should also increase in value.

Additionally, of course, they will continue to receive a dividend for as long as they remain shareholders. Given the main people involved in the business are shareholders, it is in our direct interests that the dividend will remain as large as sensible, so don’t worry about it drying up.

Even better, we qualify for a government scheme to encourage investment and reduce investor risk. Seed Enterprise Investment Scheme (SEIS) means that all investors receive a 30% tax rebate on their investment, a massive incentive. Furthermore, if you’re investing capital gains you will see additional relief on that. And, if, forbid, the business shouldn’t succeed, you get further tax relief to mitigate your losses.

Investments can be made directly through the Seedr site, This week is going to be the toughest of the whole campaign, so early investment will make even more of a difference.


One of the big reasons butchers’ shops aren’t springing up on high streets like Ladywell’s is that they are very expensive to set up. We need £160,000 to get the doors open.

The good news is that we’re already £30,000 towards our target. Now comes the big challenge — securing the remaining £130,000.

With banks rarely lending to start-up businesses, we are working with crowd-sourcing site Seedr to raise the money.

Before the campaign is available to the general public, Seedr give us a small window to get investment from people we’re already in touch with. This shows investors unfamiliar with the project that others are already sold on it from day one.

To make Heckstall & Smith happen, this is where we need your help. We have one week to get momentum behind the campaign. To get that momentum we need you to spread the word about the project to those lucky enough to have money available to invest in businesses, or if you can, invest yourself.

People can invest from £10 upwards and for that they will own a share of Heckstall & Smith. All the details are available on the campaign page, but in brief, the shares are calculated so that we can give holders around a 20% a year dividend, as well as seeing the value of their shares grow.

Our funding video is a great introduction to the campaign…

Please go forth and spread the word so we can make this idea into a proper local butchers on Ladywell’s high street.

As well as this email, we are going to be tweeting, @heckandsmith, and blogging, We’re also here to answer questions.