Should you grow your business through sales or raise investment capital? It's not a one-size-fits-all answer, but understanding the trade-offs can make you feel more confident.

Today’s episode of the DO GOOD X podcast explores the intersection of purpose and business with hosts Stephen Lewis and Kimberly Daniel. Together, they’ll delve into the crucial decision entrepreneurs face: growing through sales or raising investment capital while breaking down the basics of both approaches and discussing the pros and cons of each.

Kimberly and Stephen also touch on the importance and the challenges of sales, the pressure of securing outside investment, and the benefits of a hybrid approach. Ultimately, each impact-driven entrepreneur must consider their unique circumstances and time horizons when deciding how to fund their businesses and keep doing good.

IN THIS EPISODE:

• (00:00) Intro: Welcome to the DO GOOD X podcast
• (05:42) Distinguishing between sales and raising capital
• (09:09) Benefits and challenges of sales-driven growth
• (12:24) Determining the right funding approach for your business
• (15:49) Importance of sales skills in any path
• (17:22) DO GOOD X unique support for purpose-driven entrepreneurs

KEY TAKEAWAYS:

• Building a business through sales allows entrepreneurs to validate their ideas and create early momentum. This customer-driven approach can lead to more confident investor conversations if capital is needed later, as it demonstrates market demand and traction.
• Sales skills are crucial regardless of the funding path chosen. Even when seeking investment capital, the ability to effectively sell your product, service, and story remains essential for long-term business sustainability and connection with your customers.
• Raising capital through investors can accelerate business growth but may come with added pressure and potential misalignment of goals. Entrepreneurs must carefully consider if the investor's values align with their social impact objectives.
• A hybrid funding model, incorporating small grants or bank loans, can provide capital without sacrificing equity. This approach offers a middle ground between pure sales-driven growth and traditional venture capital.

RESOURCES:

DO GOOD X - Website

DO GOOD X - Podcast

DO GOOD X - LinkedIn

DO GOOD X - YouTube

DO GOOD X - Spotify

DO GOOD X - Instagram

Kimberly R. Daniel catalyzes entrepreneurs and organizations to do good. She is co-founder and project director of DO GOOD X, a community that provides programs and support for faith-driven social entrepreneurs whose businesses focus on positive change. Kimberly also helps purpose-driven organizations clarify and design compelling brand and communication strategies.

With over 15 years of experience developing and leading communications efforts, she is committed to producing effective processes and creating authentic, “sticky” brands that are community-centered. In addition, Kimberly has nearly ten years of experience as a certified life coach. She has facilitated workshops, spoken