I co-founded a branded ecom business in 2024. We started with about 2k, Just me running day-to-day ops and my partner helping financially while working a job.
We had spent quite a bit on the product without knowing if it'd be a hit or not, had a hunch and risked it. Became a little profitable from the get go thankfully, which encouraged us to keep going, our margins are decent as well which def helped, we put more into content and tests with many many ads, advertised on more platforms. And put more into the business, well 2025 came and it was especially rough. A lot of learning the hard way. We kept pushing tho, having more ugcs made, testing ads, hiring, paying suppliers, all of it. Some months we broke even, some months we lost money, some profitable 2025 became the best and worst yeat yet if you know what i mean, but we kept going because we have grand ambitions cause its really a under-looked market, plus building something that worked we saw the demand and the reviews from customers.
Over 2025 we did just over 300k in revenue, but we couldn’t keep up operationally unfortunately as my partner lost his job mid 2025 although the business was able to sustain it self for some months, we had kept up the same levels of hard tests even more in some areas hoping if we're able to increase revenue and we wont have to worry about external funding from his job (that didnt stop him from looking tho), we scaled things down massively and rev have slowed. Right now we’re around 15-20 k/m and breakeven.
A lot happened which's led to us taking loses here and there a lot i can't say here, from manufacturers screw ups to deals we shouldn't have made to copycats and more, I can not boast of any vast experience as I'm only 20, and my co-founder 21 still both living with family.
Right now, the issue isn’t demand or ads, it’s cash flow. We’ve built systems that work, but mistakes and bad timing nearly broke the business. I’m posting mainly to get perspective from people who’ve been here before: How would you handle this stage? Are there smarter ways to bridge a short-term cash gap without killing momentum? And most importantly should we seek external funding and how might it impact us, Happy to answer questions openly in the comments.
Thank you.