The playbook I used to scale woom bikes USA from a garage startup to $20M in sales without a single outside investor.

I’ve built companies the hard way. I took woom from zero to $20MM in U.S. sales without giving up any equity.
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If you think that was smooth or easy, let me stop you right there.

If you want the full backstory on that journey, I’ve shared it in detail here:

• ​Bootstrapping from $0–$20MM: What Really Took to Build woom​

(This article dives into my journey of bootstrapping woom bikes USA from zero to $20M in annual revenue — without venture capital, burning through savings, and navigating relentless cash flow challenges. I share the gritty realities, creative financing strategies, and hard-earned lessons for founders weighing the choice between raising money or betting on themselves.)
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• ​All Capital Has Come From Investors​

(This article explores how the right banking partner and SBA financing helped me scale woom USA from a garage startup to $20M+ in annual revenue without giving away equity. I share lessons on choosing the right bank, leveraging non-dilutive capital, and why founders should rethink funding strategies before turning to investors.)

It was stressful, risky, and required an almost obsessive focus on cash flow and financial creativity.
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I didn’t have a deep-pocketed investor covering payroll. I had to keep the business alive using every financing lever available to me — often using multiple funding options at once.

If you’re a founder or business owner trying to figure out how to fund growth without dilution, I want to share my experience and some tools you might not know about.

The Reality Check First

Before we get into the “how,” let’s get this out of the way: every financing option — whether debt or equity — has its pros and cons.

Equity: You get capital you don’t have to repay, plus the potential strategic help of an investor — introductions, credibility, and sometimes hands-on operational support. But you also give up ownership, decision-making control, and a piece of your future upside.

The biggest trap founders overlook is the valuation gap between today and tomorrow. Let’s say your business is worth $2M today, and an investor takes 20%. That stake is worth $400K at today’s value. If, in a few years, you’ve grown to a $20M valuation, that same stake is now worth $4M — and it no longer belongs to you.

It’s not just about the money you get today — it’s about the long-term cost of giving up a percentage of your company at an early, often lower valuation. The earlier you sell equity, the bigger the chunk of future value you may be giving away.

Debt: You keep ownership, but you take on repayment obligations, often with fixed schedules and interest. If you misjudge your cash flow, it can choke your business.

There’s no “perfect” answer. It’s about choosing the least costly option for your stage, risk profile, and growth plan — in both financial and control terms.

My Non-Dilutive Playbook: How I Funded Growth

Here’s exactly what I used over the years to build without outside equity.

1. Liquid Assets

I went all in. I drained personal savings, sold my home, and even tapped my retirement account.

Why it worked: Immediate liquidity. No approval process. Full control.
​Risks: Personal financial exposure. You’re betting your own safety net.

2. Credit Cards

At one point, I maxed out eight credit cards to keep the business alive.

Why it worked: Quick access to revolving credit, especially when banks weren’t lending.
​Risks: High interest rates, personal liability, and the stress of multiple due dates.

3. Revenue-Based Financing (RBF)

I used Shopify Capital and PayPal Working Capital. These gave me lump-sum funding, repaid as a fixed % of daily sales.

Why it worked: Payments flexed with revenue — slower months meant smaller payments.
​Risks: High effective APR if sales are strong, and the daily draw can still pinch cash flow.
​4. Alternative Financing such as Merchant Loans (more on this below)

I used lenders like OnDeck. Expensive, but they moved fast.

Why it worked: Application to funding in days, not months.
​Risks: High rates, frequent repayment schedules (sometimes daily or weekly).

5. AR Factoring

Amazon Vendor Central allowed me to factor receivables — basically, selling my invoices at a discount for faster cash.

Why it worked: Turned 60–90 day receivables into near-immediate cash.
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​6. UPS Cargo Finance Program

Financed up to 80% of the product value while goods were still in transit.

• Why it worked: Covered the big cash gap between production payment and delivery.

7. Friends, Family, and Crowdfunding

In October 2016, I hit a wall. Inventory payments were coming due, rent had to be paid, payroll was looming — and the business account didn’t have enough to cover it all.

I reached out to friends, family, and anyone in my personal network who might be willing to help to loan money. This is one of the hardest kinds of fundraising you can do — not because of the paperwork, but because of the emotional weight. You’re not pitching a faceless VC firm. You’re asking people you care about, people you might see at a birthday party or a holiday dinner, to take a risk on you.

Frankly, I was not as successful as I had hoped with this approach. Here is one fun anecdote:

One friend verbally committed to loaning me $10K. I counted on it. In my mind, I was already slotting that cash into my payment schedule. Weeks later, right after the U.S. presidential election, he backed out:

“Trump just got elected. There’s too much uncertainty. I can’t loan you the money”

That was a gut punch — and a painful reminder that cash in the bank is not the same as a promise.

Both are great options and usually early successes in the beginning and are common. Here are a few risks:

Risks with Friends and Family Loans

• Relationship strain: If things go wrong, you’re not just losing money — you could damage a friendship or family bond.
• Unpredictability: Verbal commitments can vanish without warning.
• Emotional drain: The vulnerability of asking can be exhausting and distracting when you need to focus on running the business.
• Blurred boundaries: Mixing personal relationships with business can lead to awkward conversations and ongoing tension.

Risks with Crowdfunding

Crowdfunding sounds like “free money from the crowd,” but it’s not without significant effort and cost:

• Platform fees: Most platforms take 5–10% of what you raise, plus payment processing fees.
• Cap table complications: With equity crowdfunding, you could end up with dozens or hundreds of small investors on your cap table, which can create legal and administrative headaches.
• Time drain: A successful campaign often takes weeks or months of preparation, daily updates, responding to backers, and ongoing fulfillment — all while still running your business.
• Public visibility: If your campaign fails to reach its goal, that failure is visible to everyone.
• Fulfillment risk: For rewards-based crowdfunding, delivering the promised product on time can be costly and logistically challenging — and failure to deliver can damage your brand.

If you go this route — whether through personal loans or crowdfunding — go in with your eyes open. Get commitments in writing, understand the fees and structure, and be transparent about risks. You’re not just borrowing money; you’re borrowing trust and, in some cases, making a permanent change to your ownership structure.

The Common Thread

These tools bought me time, allowed me to fund inventory, make payroll, and keep operations going during cash crunches — without giving up equity.
But they weren’t free. Every decision had trade-offs. The key was to stay close to the numbers and know exactly how each choice impacted cash flow.

The Importance of Financial Literacy

If you don’t understand your numbers, you’re flying blind — and in business, that’s how crashes happen. Cash flow problems are the number one reason businesses fail, and most of those failures come down to poor visibility and bad decisions made in the dark.

You don’t need to become a CPA, but you do need to become the CEO who knows exactly where the money is, where it’s going, and how much runway you have before you run out.

Here’s what I recommend every founder do, no matter the size of the business:

1. Hire a fractional CFO or finance pro you trust when the time is right
   ​When you have outgrown your financial skills and are overwhelmed, look for help. A good fractional CFO isn’t just “someone who does the books.” They’re your financial strategist — someone who can spot cash flow issues before they become crises, help you structure debt or equity deals, and give you a clear financial dashboard so you can make informed decisions. Even a few hours a month with the right person can save you hundreds of thousands in mistakes.'
2. Build a cash flow forecast — and update it weekly
   ​Not quarterly. Not monthly. Weekly. Markets change fast. A forecast tells you how much cash you’ll have in 30, 60, or 90 days based on current inflows and outflows. It lets you act early if a shortfall is coming — whether that’s pulling back expenses, negotiating with suppliers, or arranging financing before you’re in a panic.
3. Stress-test your business model for slow sales months
   ​Many founders plan only for the “good” months. The reality is you’ll have seasonal dips, market shifts, or unexpected slowdowns. Run scenarios: What if sales drop by 20%? 40%? Could you still pay bills, payroll, and debt service?
4. Know your break-even point and burn rate cold
   ​Your break-even point is the minimum sales you need to cover all costs. Your burn rate is how quickly you’re spending cash each month. If you don’t know these numbers, you can’t make smart calls about hiring, marketing spend, or financing.

Bottom line: Financial literacy isn’t optional — it’s a survival skill. The founder who understands the numbers has the power to control the business. The one who ignores them is just hoping for the best. Hope isn’t a strategy.

Equity vs Loan Products: Key Considerations

When deciding between equity financing and loan products, it’s critical to weigh both the financial and strategic implications.

Equity Financing

Pros

• No repayment obligation — capital doesn’t have to be paid back.
• Potential strategic support from investors — mentorship, introductions, and credibility.
• Risk is shared — if the business struggles, you’re not on the hook for repayments.

Cons

• Loss of ownership and control — investors get a say in decisions.
• Dilution of future profits — every share you sell is a share of future upside you no longer own.
• Potential misalignment — investor priorities may diverge from your vision or timeline.

Loan Products (Debt Financing)

Pros

• Maintain full ownership and control — you keep 100% of the equity.
• Predictable repayment schedules — easier to plan around cash flow if terms are clear.
• Often faster to access than equity — approvals can be days or weeks, not months.
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Cons

• Regular repayment obligations regardless of performance — the bank doesn’t care if it’s a slow month.
• Can strain cash flow — especially with daily or weekly repayments.
• May require personal guarantees or collateral — puts your personal assets at risk.

Rule of Thumb

• Use equity when you need significant capital for long-term growth and are willing to share ownership.
• Use loans when you have a clear plan to generate cash flow for repayment and want to maintain control.

For many founders, the right answer isn’t purely one or the other — it’s a blend. Strategic equity partners plus well-structured debt can unlock growth while limiting dilution.

Spotlight: Backd (Austin-Based Alternative Financing Option)

I’ve been on more and more calls lately, giving founders deeper insight into the availability of financing and there are many options in the marketplace.
One option I want to highlight is Backd — a local Austin company I first met during the SKU investor huddle.

They focus on relationships, move quickly, and when you call, you talk to a real person who can walk you through your options. It’s not a faceless application portal — it’s a team that understands business realities and can help tailor the right product.

A lot of alternative lenders operate nationally, but few are local enough to sit across the table from you. Backd is right here in Austin, and their funding approach is designed for established, revenue-generating businesses.

Working Capital Advance

• $25K–$2M | 4–18 months | Daily/weekly/semi-monthly repayment
  Min: 1 year in business, $100K/month revenue, credit ≥650

Business Line of Credit

• Up to $750K | 6 or 12 months | Weekly repayments | Revolving as you repay
  Min: 2 years in business, same revenue/credit requirements

Business Term Loan

• $50K–$1.5M | Up to 24 months | Weekly/monthly repayments
  Min: 1 year in business, $100K/month revenue, credit ≥650

B2B Buy Now, Pay Later

• Up to $1M | Net 30/60 | Extended terms up to 12 months — great for offering extended terms to your customers without tying up your own cash.

I recommend at least talking to alternative financing providers to evaluate the fit. Awareness is important — the more you know about what’s out there, the better your decision-making will be when capital needs arise.

Questions to Ask Before Choosing Any Loan Product

• Will this debt help me grow or choke my cash flow?
• Do I fully understand the repayment terms, fees, and real APR?
• Can my business handle repayment in the worst month of the year?
• Am I using this to buy time — or to patch a deeper profitability issue?

Final Takeaways

1. Know your numbers — Don’t wing it.
2. Diversify funding sources — Don’t rely on one lifeline.
3. Model repayment under worst-case scenarios.
4. Weigh cost vs. control — Every time.
5. Move fast, but think long-term — Cheap money now can be expensive later.
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And most importantly — practice risk management and discernment.
Don’t jump into a financing option just because it’s fast or easy. Take the time to understand the real costs, how it affects cash flow, and whether it aligns with your long-term goals.

Gather as much information as you can. Talk to other founders, advisors, and mentors who’ve been through it. Learn from their wins and mistakes. You don’t have to figure this out alone.

And finally, here’s my personal take:

This is your baby. Your passion. Your everything.

If you’re building something meaningful, you have to be all-in. 100%. That doesn’t mean being reckless — it means committing fully to making your business work before expecting others to invest in it.

If, down the road, you decide to bring in investors, they need to see that you’ve already bet on yourself — your time, your money, and your energy. That level of conviction is what attracts the right partners.

At the end of the day, no one will care about your business as much as you do. Own that. Lead with it. Build like it depends on you — because it does.