Episode 7: How To Get the Money You Need to Grow Your Company
From bootstrapping to venture capital to just plain profits, there are many ways to fund your business's growth. The next step is essential and requires thoughtful consideration. In this episode of Build The Thing, you’ll determine the best route for you and your company as you continue to build it.
“As a general rule of thumb, if a startup founder can't see how what they're doing gets to the point where it becomes a big company… it probably doesn't make a lot of sense to talk to venture capitalists.”
The first step in deciding whether Venture Capital is the right source of funding for you is to determine if you are building a startup or a small business. A startup is a temporary organization that you're looking to scale to reach some sort of exit event, whether selling it to a larger company, listing it as an initial public offering, or otherwise letting go of equity in that company. A small business doesn't necessarily mean you're building the business to sell. A venture capitalist is going to want to invest in a startup, specifically a startup that scales rapidly because they need to make their investment back.
“Not every company is venture-backable, and not all money is good.”
If you’re building a small business and want to maintain control of it, venture funding isn’t the correct option. There are many other sources of funding, including grants, both federal and state, and microlending platforms.
“There are many different ways to scale your business, and figuring out the best financial plan for you and your company will take you to the next level.”
Center your core values when deciding which type of funding to accept for your company. Never sacrifice core values for money.
Guests
Lisa Price: https://www.ibsnewyork.com/ibsnewyorkcom/lisa-price
Brian Laung Aoaeh: https://www.linkedin.com/in/industrialtransformationandsupplychaintechnology/
Felecia Hatcher: https://www.feleciahatcher.com/
Denise Hamilton: DeniseHamilton.co
Cheryl Contee: https://dobigthings.today/team-members/cheryl-contee/
Denitria Lewis: https://www.linkedin.com/in/dnyree/
What is Build The Damn Thing?
No more excuses. No more procrastination. If you’re ready to take your business, side hustle or idea to the next level, then this is the podcast for you! The podcast is hosted by Kathryn Finney, one of the most influential women in tech (INC Magazine), one of the first Black women to sell her startup, and Managing General Partner at the Chicago-based venture firm, Genius Guild.
Based on Kathryn’s bestselling book “Build the Damn Thing: How to Build a Successful Business if You’re NOT a Rich White Guy”, Build the Damn Thing is part storytelling, part mix tape and designed to teach you how to bring your business to the next level. The podcast features lessons and tips from leaders and entrepreneurs who have “Built the Damn Thing” themselves. From serial entrepreneurs to those who take risks to solve problems both abroad and locally — it's all here on the show!