Every startup’s financing story will look different, and you have to decide what makes sense for your brand. Here’s how Kara Godlin used funding to grow my company into a multimillion-dollar business.
Most entrepreneurs believe their business is built on a strong foundation of passion, hard work and ingenuity. But creating a successful company always involves another critical ingredient: money. According to a recent Gallup poll, 77 percent of small businesses rely on the personal savings of their founders for initial capital needs.
But scaling your business often requires you to do something that makes many people squirm: ask for money.
The truth is, you can only work out of your garage or home office for so long. An infusion of capital allows you make big changes that can take your company to the next level. And fundraising is crucial for businesses that want to scale; the money allows you to hire more staff, expand your workspace, run marketing campaigns, do better product development, grow your line and much more.
Personally, I’ve used a few different forms of funding over the course of my entrepreneurial journey, and I’d like to think this diversity has helped me build my healthful beverage brand, hint, into a multimillion-dollar business.
Here are a few of my best practices to help you determine what types of fundraising are right for your startup.