You already have the talent and passion to launch a successful fashion business. But you don’t know how to fund your fashion business. You’re not earning enough and quite frankly don’t know where to go to get the funds you need to start.
I completely understand. One of the biggest problems for most fashionpreneurs is finding a way to fund their business. There’s no doubt you need funds right from the start. Even if you are in the idea development stage, you need funds to keep you going.
In this post, I share the top 7 ways you can fund your fashion business without selling your kidney. I encourage you to choose what will work best for you based on your situation, or try out 2 or more methods to ensure you get the funds you need to start.
7 Ways You Can Fund Your Fashion Business
1.) Save Up and Fund It Yourself
A lot of people think the first think to do when they discover their passion is quit their job. That couldn’t be more wrong. I used to work in a bank before I started my fashion business and I saved money while there. This is so important and I wrote about the things you need to do before you quit your job or you’re screwed.
If you are working in a fashion business, take that time and learn from your superiors. Save up money. Plan strategically and start small when you’re ready.
2.) Find a Partner
Sometimes what you need is someone who also believes in your vision. Some people are willing to invest in businesses they know nothing about as long as they have faith in you. If you get a partner, then you need to decide from the onset the roles you’ll play and how profit will be split. Pitch your idea to people that fit your ideal partner.
3.) Ask Friends and Family
This is by far the easiest option for many, but a difficult option for some. Your family and friends might be super supportive of your decision and contribute financially to get your business running. On the other hand, they may be a major head ache and tell you to get over the phase and get a real job.
Whatever the case, your family and friends are most likely going to be willing to help. You should however know that the money provided by family and friends is more often than not limited. You can’t rely on only this if your business model requires a lot of money to kick off except you have wealthy friends and family members.
4.) Find An Angel Investor
An angel investor is basically a successful individual who invests a given amount of money into a startup in return for a small share of the business. You’d have to find these investors and pitch your business idea to them and if it’s good, they’d invest. You might not like this method but what do you have to lose? If they don’t like it, then you know you tried. If they do, then you’ve got the funds you need. You have to be passionate enough to want to put yourself out there and fail. If you’re too afraid, then maybe you shouldn’t start a fashion business.
5.) Take A Loan
You can take a loan from a bank, organization or individual in your locality. Getting a loan might be what appeals most to you on this page but remember that loan attracts interest. Plus, you have to be absolutely sure your business will be successful so you can repay the loan.
This also means that you are starting your business in debt and have to work extra hard to not lose everything.
6.) Consider Venture Capital
Venture capital are usually companies that represent a group of investors. These investors put their money together and the company then uses this money to invest in startup businesses or even established businesses. These investors typically look for a startup with an idea they believe in or an established business with really fast growth. Remember this is an investment and they expect to see returns.
7.) Use Crowd-funding
Crowd-funding is fast gaining popularity in today’s world. You could pitch your idea to the world and random people on the internet will fund it for you. This depends on how great your idea is and of course, how sleek your marketing skills are.
I hope you’ve found one or two ways you can fund your fashion business without selling your kidney. Know any other ways? Share in the comments.