Have you ever felt the pressure of growing your ecommerce brand without losing control or straining your finances? Many founders face this, especially when growth requires covering expenses for inventory, shipping, and marketing while keeping everything running smoothly.

In a recent masterclass titled “How to Hit the High Growth Stage for Your Ecommerce Brand” led by FounderMade’s CEO, Meghan Asha, along with Andrew Curtis from Clearco and Rafi Arslanian from Thompson Ferrier, the session focused on funding options that support growth without sacrificing equity or adding stress.

Below, you can find some key takeaways on smart financial choices, picking the right funding, and maximizing your business journey.

Financial Literacy is Key to Long-Term Success

Getting a handle on financial basics can make a real difference in your brand’s path forward. Around 50% of small businesses in the U.S. face financial challenges largely because of insufficient financial literacy, with many owners handling financial matters on their own. The most common issues include cash flow management (with 80% of failing businesses struggling with cash flow), budgeting, and tracking financial metrics. Financial awareness doesn’t mean knowing everything all at once; it’s about building a clear picture so you can spot opportunities, make confident decisions, and keep cash flow steady.

Know Your Profit Metrics

Keeping a close eye on your profit metrics can make a big difference as your ecommerce business grows. It’s important to track gross profit and contribution margins to understand your business's true health.

Gross profit shows what's left after subtracting the cost of goods sold, while contribution margins go deeper, including costs like shipping and marketing, to reveal per-unit profitability. With gross margins in ecommerce down 7.4% in early 2024 due to rising costs, tracking these metrics regularly gives you the clarity you need to make smart adjustments.

Different Financing Options Can Fuel Your Growth

It's a good idea to choose funding options that align with your business needs. Think of it as giving yourself room to invest where it counts without the worry of equity dilution or tapping into personal funds. About two-thirds of business owners say that having a streamlined funding process made a huge difference in getting their business off the ground.

Put Your Customers First

Making customer service a top priority can set your brand apart. Every decision, whether big or small, should start with one simple question: Will this improve my customer’s experience? This could mean going above and beyond in your product quality, making communication easier, or ensuring that each interaction reflects your brand’s values. With nearly 73% of customers saying they’d stop doing business after a poor experience, prioritizing service helps build loyalty and trust that lasts.

Grow Your Brand Without Giving Up Equity

Flexible, non-dilutive financing offers your ecommerce brand a path to growth without the strings of equity loss or collateral. With revenue-based funding, you access capital based on your brand’s earnings, with predictable payments that fit into your cash flow. This setup helps you maintain independence, enabling important investments like bulk inventory orders, marketing, or quicker vendor payments, all while keeping ownership in your hands.

Key Takeaways

We’ve learned that growing a successful ecommerce brand is all about making decisions that stay true to your vision. When you understand the financial essentials, keep an eye on profit metrics, and choose the right funding, you can grow with confidence and retain ownership over your brand’s direction. Remember to put customer experience at the forefront and use flexible financing, this way, you’re setting your brand up to scale in a way that feels sustainable and right for you.

📺 Watch the masterclass here: