How We Scaled Our Business Without Taking VC Money

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VC cash can be appealing, but...

TweetShareShare When it’s time to scale your business, the prospect of cash from a venture capital firm may sound appealing, but it can be tough to raise the funds you really need to grow. Getting VC funding requires extensive networking, rounds of proposals, and detailed projections about the future state of your business.

The perks of crowdfunding: A captive audience As young founders who were very early in our careers, we found that we needed to think outside the box to test and launch our idea. We had a concept for a product we believed in, but we needed to do two things to move forward: The power of pre-orders: Additional fundraising Once we had a successful crowdfunding campaign, we found that pre-orders were a strong stream of funding. We began taking pre-orders on our own website from people who reached out to say they were disappointed to have missed our campaign.

Market smarter by focusing on ROI If you were to raise a large cache of money, it might be easy for your marketing team to take big risks and make major plays for attention without carefully targeting each campaign. However, as a company that was building to be self-sustainable, we needed to be laser-focused on calculated risks. We’re proud to have built a process that involves constant testing and optimizing to stretch every dollar we have to its maximum potential.

Don’t settle for a business model that’s not self-sustainable Decide the pace at which you want to scale up front and aim for that trajectory. Don’t rush into channels that don’t suit your long-term financial goals for the company.

 

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