Cultivating Capital: How to Source Money Creatively to Expand Your Business

Ready to grow, but not sure how to fund your aspirations? Today, we share smart + ethical ways to source capital.

BY LAILA GHAMBARI
FOR BARISTA MAGAZINE

Illustrations by Kate Haberer

About a year into running my coffee business, I realized it was time to look beyond daily operations and start working toward a bigger vision. I had poured everything into the day-to-day, creating systems, building my team, and getting the business to a stable place, but growth was calling. I could feel it. The ideas were there, the energy was there. But when it came to money? I was stuck. I didn’t know how I was going to finance any of it.

I realized I needed a new kind of confidence, one that comes from knowing how to turn vision into numbers and numbers into strategy. I didn’t want to just react to what the business needs; I wanted to plan for what it could become.

Like so many others in the coffee industry, I didn’t come from a background in business or finance. Money was something to stretch, not something to raise. I didn’t know the language, let alone the options. And yet, I knew that if I wanted to scale my business in a sustainable way, I had to learn.

With that goal in mind, I began seeking out opportunities to learn more about business funding. I wanted to feel prepared when discussing capital instead of feeling overwhelmed. That’s how I discovered the Capital Literacy workshop hosted by the Portland, Ore.-based organization Xcelerate Women.

What I Learned at Capital Literacy

This event felt like more than just a panel or seminar. Nearly 100 women gathered intentionally and energetically. We weren’t just there to network; we were there to learn, ask bold questions, and demystify capital together.

The night started with an engaging conversation that covered everything from bootstrapping to building investor relationships. The message was clear: Take full control of your finances and be intentional about the capital you bring into your business.

One thing that stood out: Many women fund their businesses with debt rather than venture capital. Yet, debt is often ignored in startup conversations. That night, it received the attention it deserved as a few local lenders shared their insights.

After the panel, we split into small groups with capital mentors—founders, funders, and financial experts who generously shared advice and stories. The room was filled with honesty and generosity.

One of the biggest lessons I learned? Keep hold of your equity as long as possible. If you give up ownership too early, you might lose the freedom to run your business on your terms. I also learned that capital doesn’t just come to you; you have to go out and find it. And when you do, you need to make sure the people you bring in truly share your values. Not all money is good money.

Most encouraging of all? I realized that there are more options out there than I ever knew—loans, grants, crowdfunding, angel investment, and more. You just need to know where to look.

Understanding the Funding Landscape

Let’s be honest, talking about money can feel intimidating, especially if you’ve never done it before. But once you understand the basic funding options available, it becomes much more manageable and maybe even a little exciting.

The following section breaks down the five most common ways to finance a small business, sharing real stories from coffee business founders who’ve been through it. Whether you’re just starting out or planning your next big move, these examples show what’s possible and what might work for you.

Debt Financing

Debt financing involves borrowing money that must be paid back with interest. This can take the form of a traditional bank loan, a line of credit, equipment financing, or a Small Business Administration (SBA) loan. Some business owners even borrow from friends or family or use the equity in their home.

Isaiah Sheese of Archetype Coffee in Omaha, Neb., took out an SBA loan because he didn’t want investors telling him how to manage his business. “As long as I made the monthly payment, I never heard from the bank,” he said. “I wanted to do things on my own terms.”

Still, the process was difficult. “I was shocked by how much I didn’t know,” he said, listing the pile of documents and insurance forms needed to get approved.

Krystal Burns of Palace Coffee in Amarillo, Texas, said her bank partnership strengthened over time. “Once we found a bank that shared our values, we opened a third location inside one of their spaces. The relationship made everything smoother.”

For Bethany Hargrove Letoto of Kalo and Cream in Hilo, Hawaii, debt came from family loans. “Family culture is huge. If money is emotionally loaded in your family, it’s not going to be any easier in your business.” She stressed having clear agreements, even for small loans.

Angel Investors

Angel investors are affluent individuals who provide early-stage funding in exchange for ownership stakes. They frequently invest in businesses they trust, sometimes offering mentorship or advice along with their investment.

Krystal and Patrick Burns raised funds from three angel investors who had no control over their business but fully supported the vision. “Their investment wasn’t just financial, it was personal. We felt responsible to make good decisions for them, too.”

Angel funding works best when trust and alignment are strong. If the investor understands your mission and offers more than just money, it can be a powerful partnership.

Venture Capital

Venture capital (VC) originates from firms that invest in rapidly growing companies in exchange for substantial equity. It’s designed for startups aiming for large exits, either through acquisition or IPO.

For most small coffee businesses, VC isn’t a great fit. It comes with high expectations, performance pressure, and often requires them to grow faster than most coffee companies want or need to.

Still, understanding the VC model helps you think strategically about scale and what kind of growth you want.

Non-Dilutive Capital (Grants + Competitions)

Grants and pitch competitions provide funding that you don’t need to repay, nor do you have to relinquish ownership. These opportunities are often available for mission-driven businesses, particularly in areas like sustainability, community development, or food systems.

Suneal Pabari, co-founder of The Roasters Pack in Oakville, Canada, received a grant to hire a developer. “We used it to improve our website and ended up hiring that person full-time.” His only regret? Waiting too long. “I’d been running my business for 10 years before applying for a grant. Don’t be like me. Look into it sooner.”

Crowdfunding

Crowdfunding is when many people contribute small amounts to help fund your business, usually through a platform. There is rewards-based crowdfunding (like Kickstarter) and equity crowdfunding (like Wefunder), where supporters actually invest in your business.

Several months before their anticipated opening in the fall of 2016, Cat & Cloud Coffee in Santa Cruz, Calif., launched a Kickstarter campaign to afford a roaster and “get us across the finish line,” the campaign language read. Founders Charles Jack, Jared Truby, and Chris Baca were in the process of building out their first café on Portola Drive.

The Kickstarter platform allows creators to raise money from the public to fund projects. Jared, Chris, and Charles set a funding goal of $30,000, a deadline (Kickstarter allows campaigns to run up to 60 days), and offered rewards to backers, such as coffee and exclusive products. People pledge money to support projects they like, but their credit cards are only charged if the project reaches its funding goal. Kickstarter uses an all-or-nothing model, meaning if the goal isn’t met, no money changes hands. Once funded, creators use the money to complete the project and deliver rewards, keeping backers updated on progress. Kickstarter charges a small fee, typically around 5%, plus payment processing fees.

“We chose Kickstarter to show we were intentional,” Jared says today. “We needed the money to purchase our roaster from San Franciscan. We like to have a reason, and so everyone knew, ‘We need this, we need it now to open our company, and we are not just trying to get money.”

Cat & Cloud’s Kickstarter campaign lasted from June 8 to July 6, 2016, during which time they exceeded their $30,000 goal, raising just under $35,000. With the funds, they purchased the roaster, completed the café build-out, and opened on September 1, 2016.

“If you want to do a Kickstarter, be prepared to ask, ask, ask, nonstop on every platform possible for help,” Jared advises. “Make sure to have convincing reasoning and buy-in for those who may support you. It’s all or nothing. You have to be passionate and believe in what you’re doing, and you definitely need a following if you’re not putting something groundbreaking into the world.”

Crafting Your Capital Strategy

So, how do you choose the right funding option for your coffee business? It begins with clarity about your goals, your timeline, and your values. Here are some key points to help you develop a strategy that aligns with your business and your vision.

Know your why 

Before you raise a single dollar, be clear on what you’re funding and why. Are you buying a new roaster? Hiring a team? Opening a second location? Your answer shapes the type of capital that makes the most sense. For example, debt might be appropriate for equipment, while grants could support a community-focused program.

Match the tool to the task 

Each funding option has a different purpose. A short-term loan might cover a cash flow gap, but it’s not worth sacrificing equity for. Equity should be reserved for high-growth opportunities that truly benefit from a partner’s capital and input. Choose your funding intentionally, not out of desperation.

Build relationships early 

Don’t wait until you’re desperate for money to talk to a banker, grant officer, or investor. Relationships take time. Every founder I spoke to, whether they worked with banks, family, or angel investors, emphasized the importance of trust and values alignment. People fund those they believe in.

Track your options 

Keep a running list or spreadsheet of every capital opportunity you encounter. Include deadlines, requirements, contacts, and follow-up notes. I like to call it my “capital tracker,” and trust me, it’s a lifesaver when you’re juggling multiple conversations and applications.

Think long-term 

Fundraising isn’t just about covering today’s needs; it’s about setting your business up for sustainable growth. Will the funding option you choose now support your vision in a year? Five years? You don’t want to win today and regret it tomorrow.

Permission to Grow

Remember: Choosing the right capital isn’t just a business decision; it’s a leadership decision. Your funding strategy should reflect not just what you need, but who you are and what you’re building.

There’s no universal method for funding a coffee business. What matters most is that you know your options and pick the one that fits your vision and values.

I left the Capital Literacy event with exactly what I needed: a fresh perspective, practical ideas, and clarity. It gave me the confidence to discuss funding with more knowledge and less fear. I’m not just focused on where my business stands today, but also where I want it to be in five or 10 years.

Money matters can feel intimidating, especially when you’re used to bootstrapping every move. But this experience helped me see that capital is a tool, not a threat. I’m now considering what I want for myself, my business, and my family. Do I want to take the slow route and grow through compounding profits and small, low-risk loans? Or am I targeting faster growth with outside investment? There’s no wrong answer, only what’s right for me and my goals.

That’s what this is really about: making informed, intentional decisions. Whether it’s your first café or your fifth, you have options, allies, and the right to grow on your own terms. 

This article originally appeared in the October + November 2025 issue of Barista Magazine. Read more of the issue online here for free.

ABOUT THE AUTHOR

Laila Ghambari (she/her) is the 2014 United States Barista Champion and has nearly 20 years of specialty-coffee experience. Her expertise is in multi-unit retail operations, learning and development, and team and organizational leadership. She operates a consulting business, by Laila Ghambari, providing simple tools every coffee shop needs to achieve operational excellence, and is also the owner of Guilder Coffee Company in Portland, Ore.

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