Secrets To Scaling Your Ecommerce Brand Ep 370: Why and When to Raise Capital For Your E-Commerce Brand With Jordan West
Businesses need to continue to grow and one of the ways that you can grow faster is by putting fuel in the fire that is your business. E-commerce companies are incredibly cash-intensive so sooner or later you’ll probably need to raise capital.
In this episode, Jordan West talks about when and why you should raise capital for your e-commerce brand. He gives you different ways and different types of raising your capital.
Listen and enjoy this episode!
KEY TAKEAWAYS FROM THIS EPISODE
- The beginning of your business is going to be a very difficult time in the e-commerce space to raise capital.
- Getting investors as an e-commerce company is not difficult but you do need to have an incredible network and you need to build a lot of trust in your network.
- Good investors do not bet on companies; They bet on the people who run the companies.
- Raising capital is not a donation to your company. Investors are buying equity from your company for some future returns.
- You can start with friends and family.
- Angel Investors are high-net-worth individuals that are accredited investors that will come and invest in your business.
- The size of angel investment is anywhere from 50,000 to 500,000.
- You can use angel investors, friends and family, and crowd-funding altogether.
- If you've already built an audience that loves you and believes in you, those are good people to potentially go on the investment side.
- Venture Capital is another great way to raise money.
- Getting private equity is not something that's going to happen until you're doing at least about a million dollars in profit. Wait until you're about 10 million in sales to go there.
- Keeping money in the bank is boring.
- If you aren't active on LinkedIn and you're not building a network, it's probably not the time to raise capital.
- If you've built a personal brand and people know your brand as well, this is the way to go when you're raising capital.
- Raising capital is all about relationships.
Connect with Jordan here:
LinkedIn: https://www.linkedin.com/in/jordan-west-marketer/
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