Scaling a CPG Business

Summary: Scaling a CPG business requires significant capital for inventory. Two primary methods exist: partnering with a capital investor or securing loans/lines of credit. Each option presents trade-offs regarding control, growth speed, and personal preference. Insights:

• Capital partners offer faster growth but exert more control over business decisions through covenants.
• Loans/credit lines provide more autonomy but may limit growth potential due to lower funding amounts.
• Choosing the optimal path depends on self-awareness, risk tolerance, and the desired timeline for an exit. Proper Nouns:
• CPG (Consumer Packaged Goods): Refers to the industry the business operates in.
• Wake Up Water: The name of the energy drink mix business used as an example. Research
• What are the typical covenants associated with capital investments in CPG businesses?
• How can entrepreneurs balance the need for rapid growth with maintaining control over their business?
• What are the key factors to consider when choosing between debt financing and equity financing for a CPG business?