Articles & Alerts
Takeaways from “Road to Success: Capital Raises, Exits and CPG-Specific Advisors” Panel
Late last year, I had the pleasure of moderating the panel “Road to Success: Capital Raises, Exits and CPG-Specific Advisors” at the Beauty Connect conference in Los Angeles. Joining me were Kara Posner, a Partner at Giannuzzi Lewendon, Tim Sousa, a Director at Whipstitch Capital, and Sandra Velasquez, CEO & Founder of Nopalera (recently featured on Shark Tank). The inspiration for the panel was to share our collective wisdom with founders of growing beauty and wellness brands and focus on strategies that would help them grow their businesses.
Here are four key takeaways from the discussion:
- Be proactive and prepared. Before you even start talking to investors and raising capital, make sure that you know your numbers. For example, it is advantageous to build your data room in advance so that when people ask about it, it is ready to go, and you do not experience any holdup during the due diligence process. In general, anticipate what investors are going to request so that you can have it ready. This will expedite your process and build your reputation as a company.
- The market has changed, and so have the metrics. Amidst a sea of data and information, three key metrics founders should strongly focus on are gross margin, sales velocity, and Panel Data/Customer Demographics. When raising capital, it is essential to keep track of that information to help you maintain accountability and measure the growth of your business.
- Be bold, consistent and clear with your brand’s vision. Beginning with the end in mind will ensure that you have done the appropriate amount of planning to be able to scale as you desire and use discretion in determining the relationships you need. Additionally, take advantage of networking events and be sure to follow up with investors and maintain relationships to leave a good impression of your business.
- Ever since the pandemic, in-person networking is a commodity. Knowing how to identify the right business partners (even virtually) is more important than ever. When assessing potential partnerships, come to the meeting prepared with your inquiries and specific requests. Find out what network, resources, or expertise the potential partner is bringing to the table to help you scale, and be transparent about what you are looking for in a partnership. While it can be difficult, it can also be best for you to say no! Also, make sure to ask for references and success stories and reach out to the references when possible in the vetting process.
In addition to these themes, my fellow panelists shared incredible insight with the audience. We have captured some of their wisdom in this video, featuring Sandra Velasquez, CEO & Founder of Nopalera. We hope that you find value and inspiration in it.
While there are certainly some tips that may apply more broadly, each brand’s journey will be unique. Please contact me for more information or to discuss planning for your specific circumstances. You can find out more about Anchin’s Beauty, Health and Wellness Group, which I co-lead with my colleague Carolyn Naporlee-Cipolla, here.