Raise Funds or Bootstrap

Raise Funds or Bootstrap

The majority of organization leaders want their organization to do more. These leaders either want to serve more customers or provide more value to existing customers. This growth mentality is at the heart of the capitalist system. It’s ingrained in us. Our desire to do more is not necessarily a bad thing, achievement is at the heart of the human existence. While many companies want to grow, the manner that they grow can be quite different. The central question is: are you going to raise funds or bootstrap?

The Virtue of Venture Capital Funds

The rise of venture capital is a microcosm of the capitalist system. At the core of capitalism is the believe that markets will resolve discrepancies. Venture capital is the creation of a market to validate business ideas that have not been completely flushed out. While an injection of cash certainly helps many organizations grow, it does not guarantee it. In fact, there are instances where the injection of cash creates more organizational hurdles for companies that were not yet ready for growth.

The Trials and Tribulations of Bootstrapping

Many new organizations are still finding their footing and bringing on investors can be scary. As a result, many organizations choose not to take on any capital, they choose to make it on their own. However, this approach has challenges of its own. Without expanding the team’s knowledge beyond the existing group, the organization is limited to the skills of the existing team.

Bootstrap to Raise Cash

While venture capital funds can be beneficial to growth, often times it glazes over the structural business problems. On the other hand, there is nobility in trying to make it on your own, but that also has limitations.

Our advice to our clients remains the same–bring on investors when you don’t need them. Run your business off cash flow and grow as the cash grows. When an investor wants to help you grow and brings capital to the table, you will get much better terms without needing the money. This route ensures that your business will never be incumbent to shareholders and their often unrealistic expectations.

If you are curious to know how to get to market without raising any venture capital money, let’s have a conversation–I bet we can help you figure it out.

Building a Marketing Foundation

Building a Marketing Foundation

A lot of organizations do not know how to allocate their time and resources. Every new organization faces two big challenges. The first challenge is the mountain of things to do. The second is that there is not enough time or resources to get them all done. The organizations that can prioritize their mountain of things to do and get them done efficiently will be on a path to success. This approach to learn and repeat the best marketing efforts and deploy them over time is the crux of data-driven marketing.

Building a Marketing Foundation

One of the reasons that so many companies struggle early is because they do not put in a marketing foundation. This foundation tells the organization which marketing efforts are working–and why. The marketing efforts that do not work are expensive. Unfortunately, when an organization does not have a lot of resources, these efforts can be crippling.

Learn by Doing Marketing

Admittedly, sometimes these advertising efforts can work. However, if there is not a marketing foundation in place, it’s impossible to know exactly how to do it again. The most-effective marketing strategies improve on previous marketing strategies. The smart organizations build a system that allows them to test different marketing strategies. Once they have figured out what has worked, they repeat these efforts to add more customers and expand their business.

Marketing Improvement

There are many ways to build a system of continuous marketing improvement. However, the most effective approach starts by understanding how the organization is valued by its stakeholders. Once they understand that, there are a lot of approaches to find the best way to broadcast that message. The organizations that prioritize and dial-in the marketing efficiently are on a path to success.

Data-Driven Marketing

If your organization wants to efficiently grow its customers, creating the foundation for a data-driven marketing ecosystem is the best avenue to pursue. If you want to understand how best to put this foundation in place, let’s talk about the most-effective techniques for organization growth.