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Small business financing comes in many forms, but it all falls into two main categories: dilutive and non-dilutive financing. Dilutive financing requires an exchange of equity, or ownership, in the company, while non-dilutive financing allows founders to retain full ownership. The goal of every company is to make a profit.
The idea is that when the company begins to earn a profit, the investors will get their initial money back — plus the extra slice of equity for taking a chance. A small business grant is an investment given to a business by a government, corporate, or non-profit entity. Evaluate your financial health.
It’s why Canva can call itself a multibillion-dollar platform and how ConvertKit pulled itself up to compete with goliaths like MailChimp and Campaign Monitor. Where campaigns to build brand awareness and generate top-of-funnel sales drive traditional marketing, data across the entire customer lifecycle drives growth hacking in marketing.
Problem is, by the time the coffee shop opens it’s doors, or the e-tailor launches, they’ve invested a significant amount of resources, and have to figure out how to recoup their expenses, let alone profit. How Fab.com Received $300,000 In Profit 30 Days After Pivoting. image source.
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