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How Brianna Arps Scored Funding to Build Her Fragrance Brand: Inc Magazine . Video Test Test Test Video
Transcript
00:00 In years past, the landscape for receiving institutional funds looked completely different
00:06 than what it does today.
00:08 You just had to have a great idea, then you might receive funding.
00:11 Now the goalpost is at the 50 yard line, now it's whatever the next yard line in football
00:17 is.
00:18 It's past the goalpost here.
00:21 Hi, and welcome to Your Next Move, produced by Inc. and Capital One Business.
00:28 I'm your host, Britt Morse, Associate Editor at Inc.
00:31 In this series, we're going to hear firsthand from incredible entrepreneurs and experts
00:37 about what goes into building some of the most successful businesses today.
00:43 In this episode, we're going to focus on where it all begins, getting funding.
00:48 To start things off, my colleague, Executive Editor at Inc., Diana Ransom, is going to
00:53 share the options to consider when securing funding.
00:59 When you're just starting up, your funding options often revolve around your friends
01:03 and family and pulling from your own savings.
01:06 But bootstrapping can only get you so far.
01:08 For companies that want to take it up a notch, you'll need to expand your funding sources.
01:13 Here's how to assess which sources are right for you and your growing business.
01:18 First up is crowdfunding.
01:19 The beauty of crowdfunding is your ability to gain some clutch early market research.
01:24 Both angel and venture capital investors will look at your traction in the marketplace before
01:29 making an investment.
01:30 There's also equity crowdfunding.
01:32 This option allows entrepreneurs to vie for funding from investors in exchange for a small
01:37 portion of the company.
01:39 But taking on more investors means you'll need to cater to more investors, and you'll
01:43 risk diluting your share.
01:45 Growth-oriented companies should also consider more traditional financing options, like getting
01:50 a small business loan.
01:52 These loans are a form of debt, so they don't require you to give up equity, and the terms
01:57 are very clearly stated at the outset of any arrangement.
02:00 Typically, banks and other lenders like to see financials from the last two years before
02:05 they agree to lend any money.
02:08 Businesses in more known industries, like construction and franchises, tend to land
02:13 loans with greater success than innovative startups that may sell newfangled technology
02:17 or other harder-to-grasp products.
02:20 So what's the downside?
02:22 Lenders often require collateral, and you may not want to risk your personal assets
02:26 in the process.
02:28 Beyond traditional loans, you can also try vendor financing.
02:31 In these, you typically receive cash or credit from a vendor in exchange for deferred financing
02:36 on equipment or services.
02:39 This type of financing works best when you already have a great relationship with your
02:42 vendor.
02:43 If you're really ready to hit the gas, consider more sophisticated sources of capital, like
02:48 venture or angel investors.
02:51 Keep in mind, these types of investors get equity in your company.
02:55 Think of Mark Cuban on Shark Tank, giving an entrepreneur $200,000 in exchange for 15%
03:00 of her business.
03:01 Cuban would also come in as something of a mentor, and may even require a spot on your
03:06 board.
03:07 It's ideal when an investor understands your industry and can serve as a sounding board
03:11 for ideas and questions.
03:13 Generally, these investors expect nothing if a venture fails.
03:17 And they only make money when your company gets acquired or goes public.
03:21 But make no mistake, the pressure will most definitely be on.
03:25 For the most part, only high-growth companies are best able to meet their rigorous terms.
03:30 That's why they love easy-to-scale software startups or other types of businesses that
03:35 forecast exponential growth.
03:37 If you think this type of capital is right for you, the next step is to find a way in.
03:42 A warm introduction is often the best path.
03:45 Those can come from mutual acquaintances or landing a spot on Shark Tank, of course.
03:50 Landing in a respected incubator like Techstars or Y Combinator can also be a secure path.
03:55 These programs are highly selective, plus they typically take equity.
04:00 The benefits?
04:01 They offer support, including long-term mentorship, community, and financial resources, among
04:07 other things.
04:08 These communities tend to be deeply committed to founder success, which is why the competition
04:13 to get in is often steep.
04:15 Finally, you need to bring it in terms of revenue trajectory.
04:19 These days especially, it will be vital to showcase solid revenue and a path to profitability.
04:25 And whatever your approach, give yourself time.
04:29 Investors rarely work at the speed of your need.
04:32 The process of raising money is almost always harder and longer than you anticipate, so
04:37 you may want to start planning today for the cash you're going to need tomorrow.
04:41 Back to you, Britt.
04:44 Thanks so much for that overview, Diana.
04:47 Before we meet today's guest, we'd like to ask you, our audience, to share some of your
04:52 knowledge with us by taking a poll.
04:55 Let us know your answers in the chat.
04:57 When thinking about funding a business, what has been the best strategy for you?
05:02 Self-funding?
05:04 Friends and family?
05:05 Grant funding?
05:07 Or equity funding, such as private equity and venture capital?
05:10 Next up, we're going to hear from two amazing entrepreneurs, our founder correspondent Ayesha
05:16 Bowe, founder and CEO of Stemboard and Lingo, and today's guest, Brianna Arps, CEO and founder
05:23 of Moodo.
05:25 Brianna is sharing her funding journey with us and what she learned along the way.
05:29 Hi, I'm Ayesha Bowe, and I'm here today with Brianna Arps, founder and CEO of Moodo.
05:37 Welcome to your next move, Brianna.
05:39 I'm so happy to be here with you today to discuss your fundraising journey.
05:42 Thank you for having me.
05:44 I want to know about your business.
05:46 Can you give me your elevator pitch?
05:47 Moodo is a clean luxury fragrance label founded in October 2021, where we make it more mindful
05:53 than ever and more intentional than ever to indulge in self-care and accessorize your
05:58 mood through scent.
05:59 We've raised over $200,000 in non-dilutive funding.
06:03 We've raised institutional funds with our very first investor being Pharrell Williams.
06:08 We have successfully built a community that is excited about fragrance.
06:13 So we've done a lot of cool things.
06:14 Community and capital rest at our cornerstone.
06:17 When I'm thinking about fundraising, I kind of look at it like dating.
06:21 You're not just interviewing me.
06:23 I'm interviewing you.
06:25 Do you have a process?
06:26 Are there questions that you want to have answered in looking for your future investor?
06:30 Absolutely.
06:31 You know, even before I get to the point where I'm asking questions, it's important for brands
06:36 and founders and CEOs and executives to do their own sort of due diligence.
06:41 Perhaps you might know someone who owns a brand in their portfolio.
06:44 Maybe you call them up.
06:45 Hey, how accessible is your investor?
06:48 What connections have they been able to make for you?
06:51 What opportunities have come about, not just from this initial investment from this person
06:55 or this entity or this firm or whatever, but what has that relationship done for you?
07:00 You can be really selective when it comes to determining who you're going to partner
07:05 with.
07:06 Because this is a partnership and it's a partnership for life or until you sell.
07:10 Until that happens, you are with these people forever.
07:12 And I love that you have dating analogies because you're married and there is no option
07:17 to divorce these folks.
07:18 So you really need to be careful and cautious and ask great questions.
07:23 I'm huge on having a list of like qualities.
07:27 And one of the things that I absolutely loved about the people who are on my cap table is
07:32 that they are there for me.
07:35 It feels like we're family.
07:36 I can call you on a Saturday afternoon.
07:39 You know, anytime I have an issue, I can reach out.
07:42 And I think that's really important, right?
07:43 For founders to know what it is that they want to get out of the experience.
07:48 And it can't just be money.
07:49 Yeah, because money is fleeting.
07:51 Like you have to know that this person, this entity, this whatever is going to be with
07:56 you through the good times and the bad times and help you strategize how to get out of
07:59 those bad times as quickly as possible.
08:02 The bar is up here.
08:03 The bar is pretty high.
08:04 Could you tell us a little bit more about the funding that you've received to grow your
08:08 business?
08:09 A lot of what we've been able to raise has been a non-dilutive capital in the form of
08:12 grants.
08:13 Grants offered us the opportunity to practice our storytelling.
08:16 I'm a former full-time journalist, editor, and if I know anything, it's how to tell a
08:21 great story, how to tell a great product story, how to tell a great brand story.
08:24 And grants gave us the opportunity to fine-tune those skills so that when it became time to
08:29 pitch into investors in a more formalized setting, that we were ready and confident
08:33 and had our story down pat.
08:34 As someone who's a first-time business owner, I did not know anything about grants.
08:38 But let me tell you, there's a lot of them out there, and there are a lot of amazing
08:41 people willing to see us thrive as well.
08:43 That's brilliant.
08:44 You used grants to perfect your pitch.
08:45 Yeah, absolutely.
08:46 Could you tell me a little bit more about your plans for the future and maybe some larger
08:50 funding options?
08:52 Once we raised over six figures in grants, my eyes became a little bit more open to institutional
08:57 funding.
08:58 My heart softened a little bit to the idea.
09:00 You know, Medea is my baby, right?
09:02 I started researching a lot of VC firms.
09:06 A lot of my friends have had institutional funding, so they've been willing to introduce
09:10 me to their investors to make those connections.
09:13 So I figured we could maybe pull some of these investors in.
09:16 Definitely, yes.
09:17 Actually, yeah, definitely.
09:18 Yes.
09:19 So I have spoken with founders, and they're always raising.
09:26 Can you tell me how you're thinking about your next raise?
09:30 And are you in the mode of always raising?
09:33 I will say I'm always raising because I'm always thinking about how the next infusion
09:40 of capital will get us from milestone to milestone to milestone.
09:44 I think some of the biggest mistakes that I've seen is raising just for the sake of
09:50 raising without an intention or a goalpost in mind.
09:53 So every opportunity, every check that we receive, it's for a very specific purpose.
09:59 Can you tell us a little bit more about the waiting game for funding?
10:03 If you don't hear anything, that doesn't necessarily mean a bad thing.
10:06 Sometimes if you don't hear anything, it's because you've perhaps moved on to the next
10:10 round, and they're waiting to share the next big thing with you.
10:14 Do you check in?
10:15 Do you follow up?
10:16 Or is there a protocol?
10:17 I think follow up, if after the specific milestone period has passed, I think waiting a few days
10:24 or even a week, that's a good time to do so.
10:27 Showing that you care and want to know what's going on in the process could also be a really
10:30 good thing.
10:31 Oh, I love that.
10:32 So check in, even if you've passed the deadline, just follow up.
10:36 Just follow up.
10:37 Can you share a little more about how the current funding climate has changed over the
10:41 past few years, and how has that impacted how you approach the future?
10:46 I think the way in which VCs are seeking and sourcing startups that they may want to invest
10:55 in looks different.
10:56 VCs are looking for founders and startups who can speak to those changing times and
11:02 create products and services that have meaningful solutions to the new age consumer.
11:08 But then not only that, how innovative are you?
11:11 Are there outdated, antiquated industries like fragrance that haven't necessarily been
11:16 touched or approached in a different way?
11:18 Are there brands who are speaking differently, or maybe they have a different outlook, or
11:22 maybe they look different physically, like the colors on our packaging, whatever?
11:25 What's your secret sauce?
11:26 I think that's the best way to put it.
11:27 Is it something proprietary?
11:28 Do you have your trademarks in order?
11:30 So there's a lot of things that people are looking at.
11:32 I think in knowing that ahead of time, you can build out a brand that hits on those points
11:37 without having to be told to do that.
11:39 Can you share some of the challenging experiences that you may have had raising funding?
11:43 Yes.
11:44 I think some of the more challenging conversations I've had have been around questions centered
11:53 around my ability to run my business.
11:56 I don't know if it's necessarily meant to be patronizing or condescending.
12:01 I think it comes from a lack of understanding around the business itself, not necessarily
12:08 my ability to run a business.
12:09 I try to just shrug those off and just bring it back to the fact that I am running a business,
12:14 it is successful, it is scalable, and it will be very profitable in the near future.
12:20 You've received a lot of positive press from Mudeo, from Inc. to Today Show to Good Morning
12:25 America.
12:27 Can you share a little more about how the press may have helped you?
12:30 I think the biggest mistake a brand can do is to not share their wins.
12:37 Our very first retailer found out about us through an initial press piece that we amplified
12:42 on LinkedIn.
12:44 So yeah, that conversation came about pretty organically and they eventually came to us
12:50 and said, "We're seeing you everywhere."
12:52 And in particular, you know, LinkedIn, Instagram, whatever.
12:54 So I think it's important for you to share and celebrate your wins across all channels,
12:59 blog posts, social media, email, newsletter.
13:02 It's important to do that.
13:04 What's your next move when it comes to fundraising goals?
13:07 My next move in terms of fundraising goals includes closing our first round, which is
13:12 a seed round.
13:13 Very excited about it.
13:14 I think we're almost there and I can't wait to getting that done.
13:20 That was such an informative and inspiring conversation.
13:24 We have more from Aisha and Brianna to come, but now let's hear from another expert when
13:29 it comes to funding your business.
13:32 Cynthia Lowe, SVP, head of Beyond the Card at Capital One.
13:35 Thank you so much, Cynthia, for being here with us today.
13:39 Thanks Brett, excited to be here.
13:41 Throughout this episode, we're covering the types of funding sources that people typically
13:45 think about when we talk about capital, but there are other forms of capital too that
13:50 can be particularly important when starting and growing a business.
13:54 Can you give us some examples and share why they matter?
13:57 A few types of alternative capital come to mind.
14:00 The first is institutional capital.
14:03 This is about whether government and legal frameworks within each business exist and
14:08 whether they create trust and stability.
14:10 Are laws applied evenly and consistently?
14:13 Another is human capital.
14:15 Does your team have the skills and abilities necessary for the business?
14:19 Can they help you grow?
14:20 The third is knowledge capital.
14:22 This refers to the presence of, or access to, specific relevant information.
14:26 This can really range from patents owned by the business all the way to the ability to
14:30 access a subscription to a database of relevant venture capital providers.
14:34 And finally, there's cultural capital.
14:36 This is about the attitudes, beliefs, and values that make up the business culture in
14:40 a country or in a community.
14:41 Understanding cultural capital helps keep team members on the same page about the business
14:46 environment.
14:47 Do these forms of capital have an impact on the bottom line?
14:51 Harnessing the power of these forms of capital can help your business identify opportunities,
14:55 save money, and grow.
14:57 For example, understanding institutional capital helps your business comply with laws, regulations,
15:02 and norms.
15:03 Failure to do so can be costly or threaten the company's livelihood.
15:06 How can companies ensure they're tapping into these forms of capital?
15:11 So often business owners and managers get ultra-focused internally on their own business
15:15 needs.
15:16 It's critical to look up and understand what's going on around them and how they can leverage
15:19 external forces.
15:20 A few examples that come to mind.
15:23 One, accessing business networks or building a personal advisory board to really get that
15:27 outside perspective.
15:29 Two, working with incubators or innovation centers.
15:32 Three, making your voice known to policy makers and thinking beyond grants and tax credits
15:37 to foster business-friendly environments.
15:39 And finally, making sure that all of these learnings can be incorporated into defined
15:43 systems for capturing and sharing knowledge internally.
15:46 Thank you for sharing these insights about using unconventional capital to launch and
15:50 grow your business, Cynthia.
15:52 Thank you, Brett.
15:53 It was my pleasure.
15:54 All right.
15:56 So now let's head back to Diana, who's going to discuss the art of the pitch.
16:03 No matter what your company does, if you're looking for investment, you need to be able
16:07 to tell your company's story.
16:09 That is, you need to be able to pitch.
16:11 Even if you're not a natural-born storyteller, there are a few guideposts you can follow
16:15 to streamline your pitch and still make sure it lands.
16:18 First, be clear and concise.
16:22 Investors will value pitches that are straightforward and still comprehensive.
16:26 Show them that you have a defined, focused business model and that you respect their
16:30 time.
16:31 Next, research your potential investors.
16:34 Pitching is not a one-size-fits-all, so you want to know about their interests and investment
16:38 history, for example.
16:40 How involved do they like to be with their portfolio companies?
16:43 Do they favor certain regions or industries?
16:46 What's their giving range?
16:48 Find out and tailor your pitch accordingly.
16:50 When you're in the room with investors, you'll need to be able to explain the problem your
16:54 company is trying to solve, why you were inspired to solve it, and why your approach is unique.
16:59 Hitting these points will illustrate your advantage over what's already in the market.
17:04 You need data to back up your points, of course.
17:07 Estimate the total addressable market that could benefit from your product.
17:12 Data and trend research will demonstrate why the market matters and why you're going to
17:16 own it over any competitors.
17:18 You also need to prepare high-level summaries of your financials and projections.
17:23 Be transparent here.
17:25 Present realistic revenue projections, current financial status, and funding needs.
17:31 Investors should see it all and will eventually, so don't give them any surprises.
17:36 Another important area to highlight is your team.
17:40 People are as valuable as ideas when it comes to investing.
17:44 Showcase the team's strengths, its expertise, experience, and commitment.
17:49 Give examples of how they've pivoted and adapted in the past.
17:53 The team includes you, so if there's more to say about your own backstory and what you
17:58 bring to the mission, this is a good time to elaborate.
18:01 These days, investors, media, and consumers are more aligned in their interests than they've
18:06 ever been.
18:08 They all want to know what your product brings to the market, what your values are, and who's
18:13 on your team.
18:14 So be passionate, be prepared, and be personable.
18:18 A pitch isn't just a request for money, it's an invitation to travel together.
18:22 Show them you're worth making the trip.
18:24 Back to you, Britt.
18:27 Thank you, Diana.
18:28 Now we're going to turn it back to you, our audience, with our next polling question.
18:34 When seeking funding from investors, what worries you the most about the investors you've
18:38 talked to?
18:40 Giving up equity in your company?
18:42 The terms that investors are asking you to sign on to?
18:45 Or not getting along with the investors you are meeting?
18:48 Don't forget to share your answers with us in the chat.
18:52 Now let's head back to Aisha and Brianna as they discuss how Brianna developed her pitch
18:57 when searching for funding.
19:00 Let's talk about the pitch.
19:02 As a founder, I know how challenging it can be to craft the perfect pitch.
19:07 I think the first time I did it, I spent weeks on literally like two slides.
19:12 Can you share a little bit more about your process?
19:16 How do you approach the anatomy of the pitch?
19:19 Great question.
19:20 So when I think of pitching, to make it a little less scary for myself, I think of it
19:23 as storytelling instead of this scary thing that you need to do to get an end result.
19:29 Also I like to think of it in terms of icebergs, super easy analogy here and five easy steps.
19:33 So first you have your story, the reason as to why you are even participating in this
19:37 venture, why you've launched it, what exactly are you solving, followed by your competitive
19:42 advantage.
19:43 I always like to say that your unique lived experience is your greatest competitive advantage,
19:48 followed by the ask, what's a pitch without the ask?
19:50 And in this case, we're asking for a chunk of change.
19:54 Last but not least, the follow up.
19:55 Now remember, you're going to have two outcomes of the follow up, either funding or feedback.
20:00 Both are very, very valuable.
20:01 I love that.
20:02 Either funding or feedback.
20:03 Could you share a little bit more about what specific information you include in your decks?
20:08 Absolutely.
20:09 We can breeze through an actual literal pitch deck example.
20:12 First problems, outline them in one, two, three, followed by your solutions.
20:16 You can give a little bit more of a granular understanding of how exactly you're solving
20:20 those problems, followed by your competitors.
20:23 Fun fact, never tell anyone that you do not have any competition.
20:27 You should always be aware of who is doing something similar and how you're doing it
20:31 better in the form of competitive advantages.
20:34 And then also, you need to be very clear about who you're targeting, who you are, followed
20:40 by some feel good, smell good, look good tenants if you're a fragrance brand like we are, right?
20:46 Followed by what is the market opportunity?
20:48 There's a lot of free statistics out there that you can use to help an investor in particular
20:53 understand the size of the opportunity.
20:55 We also have a section on brand traction.
21:00 Brand traction is something that you want to include to showcase that you got a little
21:03 steam under your engine and that you're actually going to make good upon what your promise is.
21:09 Even if you haven't launched yet, you can include some things like, okay, maybe it's
21:12 your first press piece or maybe it's your first hire.
21:15 Anything that can showcase that you're moving the needle along.
21:18 For those who are just getting started and maybe they haven't had their first article
21:22 or being mentioned in the press, are there specific things that you might suggest that
21:26 they include in the traction section?
21:28 You can include things like we got our first trademark or maybe our patent is pending.
21:32 Anything that showcases that you're actually moving the needle forward and getting those
21:36 problems and solutions in order.
21:38 That's good advice.
21:39 We can move along.
21:40 Growth projections is something that you might want to include to showcase that maybe if
21:43 you're not profitable now at year one, year two, year three, you're getting there.
21:47 Moving along, newness is something that every investor wants to hear about.
21:51 Okay, yeah, you have this unique solution to this unique problem, but what else is coming
21:56 and how quickly is it coming?
21:58 I love that you focused on a newness pipeline.
22:00 You're going to keep the newness coming.
22:02 Absolutely.
22:03 Can you talk a little more about embargo and the importance of that and what that may mean?
22:08 Sure.
22:09 When someone says something or mentions something on embargo, they're sharing information and
22:13 confidence in hopes that you find that information compelling and intriguing, but that you won't
22:18 say anything quite yet because it's not ready to be shared publicly.
22:21 Got it.
22:22 It's like a secret between you and who's ever reading your deck.
22:24 Yes, and that's a really good point.
22:25 On our decks, we always include a boilerplate that mentions confidential.
22:29 It mentions who exactly we're presenting this deck to and the year and the date, just so
22:33 there's no confusion on who this deck should be in the hands of.
22:37 In addition to the marking at the bottom of the deck, are there any tips that you can
22:42 provide for other founders who may be concerned about where their decks are going?
22:47 Absolutely.
22:48 We rarely ever email our decks in the form of a PDF outright.
22:52 We like to use tracking software like a DocuSend or Doxin so that we can control where the
22:57 links are going.
22:58 We can also control viewership.
23:01 We can also see maybe someone got stuck on slide 10 and then they dropped off.
23:05 We can track that so that maybe we need to revisit slide 10.
23:08 Maybe there's something there that isn't really resonating and perhaps we can contact that
23:12 investor or that person who viewed the deck and get more clarity around their lack of
23:17 clarity.
23:18 As a founder, I can be kind of nosy at this part with the tracking because sometimes I
23:22 send people an email and they don't respond, but they forward it and I can see it.
23:26 I love that as another part of that follow-up and feedback because you're sending out the
23:31 deck, you're using software, and you're able to see where it goes even if they don't respond
23:35 to you.
23:36 Absolutely.
23:37 Now for the money slide.
23:38 You cannot have a pitch deck without outlining what your ask is.
23:41 When I always mention the ask, I'm always very specific about where this particular
23:45 amount of money would elevate our business.
23:48 So perhaps it's in hiring full-time employees or perhaps it's bringing more contractors
23:52 or putting more money towards marketing or inventory.
23:55 Make sure that you're very clear about how you want to use the funds.
23:58 Last but not least, after the ask, after you're very clear about how you want to use the funds,
24:02 I always sneak in a little bit of extra information in an appendix or two or three.
24:08 And it's just a way that you can share more about your team perhaps or maybe you're outlining
24:12 more about your press accolades or maybe you're including some sort of service component to
24:17 your business that you haven't touched on before.
24:20 That's really smart.
24:21 Sometimes investors want to see only 10 slides and you're sharing more information and strategic
24:26 and you're doing it in an appendix.
24:27 I never would have thought of that.
24:29 So now that we've checked out the pitch deck, do you want to go check out some products?
24:32 Yes, let's go.
24:33 Let's go.
24:37 Welcome to the Mideaux Warehouse.
24:39 Wow, these look great.
24:41 Unfortunately, you can't smell us through a screen yet.
24:43 Whoever invents that is a genius.
24:45 So we start with colors and we start with our fonts and how we actually describe our
24:50 products through limited space on the packaging.
24:53 A lot goes into it actually.
24:54 You said your life is all about pitching.
24:56 How do you balance between pitching Mideaux versus pitching Briana?
25:01 We're at the stage where I am the brand, the brand is me.
25:04 And so actually it makes it a little bit easier to pitch because it feels very organic.
25:08 It's all about what can I say or maybe wear or do that makes me memorable.
25:12 So I'm really intentional about it.
25:14 So this is all part of the signature look.
25:15 This is part of it.
25:16 And it may change.
25:17 Like I might not always have long hair.
25:19 I might have short blonde white hair or whatever.
25:22 But at the end of the day, the core is that I'm unapologetic about who I am.
25:26 And I think when you lean into something like that, there's no way that someone won't at
25:29 least pay attention to you.
25:31 Your unique lived experiences are your greatest competitive advantage.
25:34 So the more you're able to pour into that, the more compelling you are able to relay
25:38 your pitch and not just your pitch for your brand, but for yourself.
25:42 So lean into the things that make you unique and craft a story around it.
25:46 I have a lot of affirmations.
25:47 I talk to myself a lot.
25:49 We have a scent called worthy on days.
25:50 I don't feel like I'm worthy.
25:51 I spray that scent.
25:52 You know what I'm saying?
25:53 So it's all about being genuine and intentional with your words.
25:58 And the more you say, I can do this, I can raise a million dollars.
26:01 I can raise $2 million.
26:03 The more you start to believe it and then before you know it, you've done it.
26:06 So working on a sense of self-confidence has worked for me.
26:09 That really resonates with me.
26:12 As a founder, I struggled to find my own confidence and being able to write down affirmations
26:17 helped me tremendously.
26:18 It's a practice that I still use to this day.
26:21 Briana, this has been phenomenal.
26:23 Thank you so much for giving me a peek behind the scenes.
26:26 We really enjoyed having you down here in Atlanta.
26:29 Thank you for coming.
26:30 Of course.
26:31 We're really looking forward to your next move.
26:33 That was such a great discussion.
26:36 Thank you so much to Aisha and Briana for sharing their learnings and experience.
26:41 Now let's head back to Diana, who's going to help us figure out the next steps once
26:46 your funding is secured.
26:49 So you did it.
26:51 The money hit your bank account.
26:53 Here's how to spend it the right way on your business and which pitfalls to avoid.
26:57 The first thing you should do is avoid the mistake of overspending on things like a flashy
27:02 office space straight out of the gate.
27:04 And definitely do not throw all of your loan or investment proceeds into marketing.
27:08 Yes, it takes money to make money, but keep your lean startup ethos intact for as long
27:13 as possible to help preserve your runway for as long as you can.
27:18 Especially when your company is pre-revenue or in its early stages, you'll want to stretch
27:22 your funding.
27:23 Do, however, pay yourself, within reason, of course.
27:26 To this point, you may have survived on a spartan diet of ramen noodles and canned beans,
27:31 but that's not sustainable.
27:33 And certainly not altogether healthy.
27:36 Learn what other fellow entrepreneurs decided to pay themselves and when.
27:40 If you can't find a timely founder salary report online, tapping a network of peers
27:45 and mentors should help you with benchmarking.
27:48 And start building your team.
27:50 You'll want to prioritize business development, sales, and other growth-oriented positions.
27:55 After all, these folks will help you generate revenue.
27:58 And you're nothing without a product or service, so ensure your engineering and product development
28:03 teams get your full support.
28:05 But you may be wondering, how do you grow if you're not plowing everything into marketing?
28:10 Study the customers who came to your company without any prior knowledge of you or your
28:14 business.
28:15 You'll get a better feel for how to position your company's products in the market.
28:20 And you'll learn how to reach like-minded future customers.
28:24 What else?
28:25 You'll discover smart ways to grow.
28:27 If you think you're done raising money just because you've completed a funding round or
28:31 landed a loan, think again.
28:33 The "always be raising" mantra is a constant refrain for early-stage company founders for
28:38 a reason.
28:39 Just remember that your top job right now is to keep the lights on and ensure your company
28:44 lasts long enough to see your dreams come to life.
28:47 Back to you, Britt.
28:50 Thanks so much, Diana.
28:51 Well, that's a wrap for today's episode.
28:54 We hope you've enjoyed the insights and conversations from Inc.
28:58 Executive Editor Diana Ransom, our founder correspondent Ayesha Bowe, our guest Brianna
29:04 Arps, and of course, our Capital One expert Cynthia Lo.
29:07 Again, I'm your host Britt Morris for Inc. and Capital One Business.
29:12 Thank you for watching and we'll see you again soon.
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