Consumer packaged good companies have a wide range of financing approaches to consider. It is important for brand owners to do the research required to understand the risks and potential rewards of different financing options.
Aja Horsley, founder and CEO of Drizzle Honey and a Venturepark Labs Accelerator Alumni shares her insights:
"In the early years financing can help with marketing efforts, building inventory and production, hiring talent and product innovation. However, brand owners should carefully review the pros and cons of debt financing which has interest and strict repayment terms as well as the equity investment approach that could impact control of the business."
See the free Financing 101 Park Guide for some financing basics and a list of resources designed to help growing consumer packaged goods companies meet their goals.