capital M
‘Money has an emotional charge. It’s undeniable, and people act in relation to a much darker shadow within them based on the earliest wounds of who they were and what they had, versus who they weren’t and what they lacked. Money is the tallest facade we can hide behind and the easiest to watch crumble. But if you look closely, that wall is more transparent than they think.’ - Jonathan Pozniak
In many ways, it mirrors what is happening in the beauty and fashion industry. There is a shift that is taking place. While there is an increasing number of incubators and accelerators working with founders to become the next Drunk Elephant and Glossier, others are taking a more grounded approach. More and more community and purpose driven brands are seeking out more creative ways to organically raise awareness and capital alongside their community they have cultivated.
BOF’s article today echo’s this observation: Read here.
As we continue to see and hear of more and more brands and retailers that have sadly shuttered, we are reminded that receiving external capital does not guarantee growth, profitability or much less success. IF anything, there is even MORE pressure to grow at any cost.
For sure, external capital can be the ‘oil that greases the wheel’, BUT, it is having the capability to know how to optimise the use of the capital that will accelerate your growth toward a path to profitability. A prime example is the Glossier Accelerator program. It was recently reported that 2 of the brands that received grants have shuttered due to the financial climate, BOF reports.. That invites us to ask, how would you use $50,000 to move the needle closer to your growth goals? Glossier came back and proposed that an alum from their accelerator program would receive $100,000 to scale their brand sustainably. Is that necessary if you had the guidance on HOW to smartly guide founders on how to deploy capital?
If given $50,000, how would you use the funds?
Something I always keep in mind and my mentors and advisors remind me of. ‘Every time you reduce your risk you create value’
To your success xx
artist: @theancientgemstone