Drivepoint

"What are my options for lines of credit/debt? How does all this stuff work?" This is one of the most common questions we get asked by customers. And it's a critical one for optimizing the value of your business (and your personal outcomes as a founder/exec). Tomorrow, we're going straight to the source, with the CEO's of Deep Ocean Partners, Clearco, Steel Capital Management all in one place. The prep call last week was absolute 🔥. You won't want to miss this one. Get on the list now: https://lnkd.in/gjaikRtf

The Fortia Group's Q3 2024 Valuation Webinar [July 2024] will stream live tomorrow, 11th July 2024 at 11 am EST (4pm BST) . Our CEO Emmett Kilduff will discuss the latest valuation trends and consumer product category insights of eCommerce companies. We are honoured to welcome our expert panelists, consumer data and market insight thought leaders, John Fetto (Grips Intelligence), Austin Gardner-Smith (Drivepoint). The report will be made available to all registrants after the webinar. Register: https://lnkd.in/gtu2nZ9p #eCommerce #MergersAndAcquisitions #valuations

Unpopular opinion: Sharing your financials far and wide is a good idea. Yes, publishing sounds scary — but it shouldn’t. I recently sat down with Brett Bone, one of my favorite customers and the VP of Strategic Planning at Simple Modern, to talk about the drinkware brand’s remarkable growth story and the role publishing has played in that story. Whether you’re bootstrapped or accountable to investors, Brett says laying all your cards on the table can help your brand: 👉 Command respect: People take you more seriously when they know *exactly* what you’re planning. 👉 Foster collaboration and improve terms: Your partners will be flattered to be included in your company vision and may be willing to help subsidize your growth with better terms. 👉 Compel action: Things happen much more quickly when everyone is aligned. In his words: "There’s a massive benefit in sharing everything you can with your outside partners. When your business is growing rapidly, your forecasts are always going to be wrong — but the leverage and growth and alignment I’ve seen from publishing your plan far outweigh any drawbacks." Want more top-level strategic finance tips from Brett? Check out his full guide here: https://lnkd.in/eJdtdhws

Having the right working capital stack can make a huge difference in your outcomes as a founder. When you have it nailed, you can: 🚀 Take advantage of growth opportunities, instead of being cash poor when that big order arrives. 💸 Minimize dilution over the life of the business, so you're not selling equity to fund inventory purchases (this can be a massive game-changer for you personally) 💤 Give you the breathing room you need to sleep at night and invest in the business with confidence. But building that stack? It's tricky. There are all kinds of different flavors of capital, each with their own set of rates, fees, and terms. And there's no "best" option - it's a personal decision based on what's best for you and the business, at this particular moment in time. To help break down the decision and shed some light on the ecosystem, we've got the leaders of four different working capital providers joining us next week for a discussion on what to look for and what to expect: Deep Ocean Partners Clearco SVB Steel Capital Management You won't want to miss it. Grab a spot now 👇 👇 👇

❓How much should you spend on inventory, marketing, and operating expenses? ❓How much capital do most companies need at each stage? ❓How can you quickly get the capital you need to grow your business? We worked with Drivepoint to answer your questions. This free guide outlines financial benchmarks and funding solutions for businesses with $0 - $30 million in revenue, so you know how to grow your business the smart way no matter what stage you are in. In this report you will learn how to: 💵 Benchmark your spending on marketing, inventory, and operating expenses compared to other companies at your financial stage 💰Discover the best options for funding your expenses at each stage 📈 Learn more about what different funding solutions can do for your business Download the FREE report here: https://lnkd.in/eccWKfkc #funding #growyourbusiness #financialbenchmarks #yardlinecapital

You can't afford to go into retail. But you'll probably do it anyway. Assume you're a CPG startup. You've built some business in DTC and AMZN. You might even have a few retail doors. You got a meeting with Target. Things are looking up! It could be the best thing that's ever happened to you and the business. The flip? It’s a financial minefield. 💣 But since you’re probably going to do it anyway, let’s at least go in eyes wide open. Here are 7 things you need to plan for: 1. You Don’t Get Paid Up Front: Unlike direct-to-consumer, retailers aren’t going to pay you upfront. This means you’ll be floating significant costs before you see a dime. 2. Ever Heard of Free Fill?: Retailers expect you to provide free product to fill their shelves initially. This “free fill” isn’t just a marketing term—it’s a substantial hit to your cash flow. 3. Sales Team Dilemma: You don’t have a sales team, but you kinda need one. Hiring a good team is expensive, and scrimping here means poor store placement and lackluster sales support, costing you more in the long run. So you've got to find some budget to support the field effort required here. 4. Packaging and Merchandising Woes: Your first foray into retail will likely include mistakes in packaging and merchandising. These errors aren’t just embarrassing—they’re costly. 5. Your Margins Aren’t Retail-Ready: Retail has different margin structures. If your margins aren’t set up to absorb the additional costs and discounts required by retailers, your profitability will take a hit. 6. Can Your 3PL Even Palletize, Bruh?: Distribution logistics are a different game in retail. If your third-party logistics provider (3PL) can’t efficiently palletize and meet retail requirements, you’ll face delays and penalties. 7. Seriously, You Don’t Get Paid Up Front: This can’t be overstated. Payment terms in retail can stretch to 60, 90 days, or more. This delay can choke your cash flow and limit your ability to reinvest in growth. You've gotta have a rock-solid plan to make sure you have enough cash to survive the entry period. And here’s the real question: If you have a working DTC channel, why not just keep getting bigger there and focusing on customer retention? The ceiling is probably higher than you think. TL;DR - Retail can look like a golden opportunity, but the financial reality is far more complex. If you’re not prepared for these hidden costs, it could be a costly learning experience. For those who've done it...what was the biggest thing you wish you could do over??

Eat ramen. Feel good. If you're around NYC Times Square, come find our first immi digital billboard in the wild! #food #foodandbeverage #brand #marketing