Why a Solid Business Plan Matters for Your EIS crowdfunding strategy
You’ve got a bright idea. But ideas alone don’t raise millions. You need a plan—one that shows investors you’ve done your homework. In the UK, SEIS and EIS schemes are gold for startups. They offer juicy tax breaks. But they also demand clarity. A winning EIS crowdfunding strategy hinges on a business plan that ticks every box.
- Builds credibility
- Clarifies your vision
- Sets realistic goals
No fluff. Straight to the point. Investors love that.
1. Understanding SEIS & EIS Incentives
What are SEIS & EIS?
SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are government-backed. They give early backers tax relief in exchange for equity. Here’s the quick lowdown:
- SEIS: Up to 50% income tax relief on investments up to £100k.
- EIS: Up to 30% relief on investments up to £1m or more.
Why tax incentives matter in your EIS crowdfunding strategy
Tax relief is your secret sauce. It shifts risk. It whispers, “Hey, this looks safe.” Without it, investors might scroll past. With it, they pause. They ask questions. They commit.
Key takeaway: Highlight SEIS/EIS benefits front and centre. Make it impossible to miss.
2. Market Research & Competitive Analysis
Your EIS crowdfunding strategy needs solid proof. That means data. Roll up your sleeves. Dive into research.
- Identify your ideal investor: angels, VCs or friends and family?
- Study similar campaigns on Seedrs and Crowdcube. What worked? What flopped?
- Spot trends: Which sectors drew the most funds last year?
Here’s what you end up with:
- A clear target demographic
- Insight into backer motivations
- A roadmap to position your project uniquely
Don’t guess. Show numbers. Show charts. Show you mean business.
3. Platform Selection and the Oriel IPO Advantage
Platform choice can make or break your EIS crowdfunding strategy. Here’s a quick comparison:
- Crowdcube: Popular, regulated, but takes commission.
- Seedrs: Strong advice, high standards, also fees.
- Oriel IPO: Commission-free, curated, tax-focused.
Why Oriel IPO stands out:
Zero commission. You pay a transparent subscription.
Curated deals. Only SEIS/EIS eligible businesses get listed.
Educational resources. Webinars, guides and direct support.
No hidden cuts. No surprises. Your funds go straight into your project.
4. Crafting a Compelling Value Proposition
What makes you special? This is your “why.” Think of it like a headline on a blog post—short, snappy, unmissable.
- Clearly state the problem you solve.
- Tie it to market demand backed by your research.
- Emphasise SEIS/EIS perks for investors.
Example:
“We’re on a mission to cut plastic waste in half by 2027. Backers get equity in a green tech solution—and 30% income tax relief under EIS.”
Simple. Honest. Hard to ignore.
5. Marketing & Promotion Roadmap
A great business plan isn’t locked behind a PDF. Spread it far and wide. Build hype before you launch.
- Social media blitz: LinkedIn for investors. Instagram for stories.
- Email series: Tease features. Reveal milestones.
- Influencers: Industry experts who vouch for you.
Tip: Use Maggie’s AutoBlog to auto-generate SEO-friendly blog posts about your campaign. Keep content fresh without burning hours on writing.
Pre-launch community building is your secret weapon. Start six weeks out. Gather feedback. Convert fans into early backers.
6. Financial Projections & Budget
Numbers matter. Investors want a realistic roadmap of cash in vs cash out.
Your EIS crowdfunding strategy must include:
- Funding goal breakdown: platform fees, marketing spend, production costs.
- Revenue forecast: pre-sales, subscription plans, follow-on rounds.
- ROI timeline: how and when investors get returns.
Present your forecasts in charts. Show best-case, base-case and worst-case scenarios. Transparency builds trust.
7. Job Creation & Long-Term Impact
Investors love growth stories. Show them the bigger picture.
- How many jobs will you create this year? Next year?
- Will you expand overseas? Launch new products?
- What’s your three-year vision for market share?
Detailing social and economic impact adds weight. It signals you’re not a fly-by-night. You’re in it for the long haul.
Conclusion & Next Steps
A top-notch EIS crowdfunding strategy combines clear research, smart platform choice and compelling storytelling. Your business plan is more than a document—it’s your pitch to the world.
Ready to take the next step? Join Oriel IPO for commission-free, tax-focused funding paired with educational tools and real support.
