The panelists included Andreas Ronneseth, cofounder of Revolution Parts, Sean and Thora Dowdell cofounders of Club Tattoo, and was moderated by Carly Levin, NEXT Director at J.P. Morgan. For early-stage founders, raising capital from friends and family might be their first step to launching their business. But at some point, taking on funding or lines of credit to fuel your business might be on the radar. While the panelists suggested to stay debt-free as long as you can, at some point, taking on funding or lines of credit to fuel your business might be needed. When it’s time to raise, they said to have a strong game plan on how you’ll use the cash and pay it back. If you have a non-traditional business, lenders may need more explanation about one’s business model. All businesses will have ups and downs. But with any funding, you only want to take on the amount of debt you can manage, during the good times and bad. Whatever funding you do take on, hiring the right people can help you get through the triumphs and challenges of growing a business. Andreas said investing capital in the right people and building a trusting relationship has been key to his success. In the end, if you plan to seek out investment, the panelists said to know your numbers, align with investment partners who share your vision, and consider taking a conservative approach to your projections – it’s better to under promise and over deliver than have an uncomfortable talk about why you didn’t hit your mark. Read more about the Phoenix startup ecosystem on TechCo This article is part of a Techstars Startup Week content series brought to you by CHASE for BUSINESS. Techstars Startup Week is celebration of entrepreneurs in cities around the globe. CHASE for BUSINESS is everything a business needs in one place, from expert advice to valuable products and services. Find business news, stories, insights and expert tips all in one place at Chase.com/forbusiness. Read the rest of our Startup Week series on TechCo.
