Finding a lender or investor to fund your fashion start-up is a task that may have you pulling your hair out. The fashion industry is a hard sector to get yourself into, but it is possible with some hard work and some start-up money. A substantial amount of money.
The positive side of your idea for a start-up is that you have chosen to get into a field that was the leading contributor to the Australian economy last year. In 2021 over twenty-one billion Australian dollars went to help boost the economy. This is something to consider when you are standing in front of a panel of lenders or investors. Being armed with this knowledge will improve your game, meaning that you will be able to have some numbers and facts that could sway their decision on investing in your company.
With that in mind, it is time to discuss a few ways that you can get funding for your fashion start-up. Do not get discouraged when you get a “no” from one of your contacts. Or even a “no” from many of your contacts. Keep pushing and reach for your dreams.
• Side Jobs: While you are designing your fashion line it would be in your best interest to have a job that you can work on the side. This will not only pay yours bills, but it will allow you to save up some money to help you get your line going. You can work as much as needed while still giving yourself time to get your start-up off the ground.
• Pre-Selling: A terrific way to build up some starting capital is to pre-sell your line. This will allow you to build up some capital so you can get some of your fashion lines out, which will then bring in more revenue to continue building. Just make sure that any money you get up front for orders is actually used for that purpose. Do not spend any of the money that you get on anything except your clothing lines.
• Create a Crowdfunding Platform: You can create a platform that shows off your ideas and connects you with private investors that are willing to back your line. By backing your line, it is meant that they will loan you some start-up capital with interest attached to it, or a reward-based loan which guarantees the investor various rewards based on your fashion lines.
• Accelerator Programs: This is another common way to come up with some financial backing. That is not the only benefit of joining this type of program, though. They will offer advice, help with informative classes and seminars, and they will guide you from step one until the end. Just make sure when you go this route to only join the programs that are attached to fashion.
• Businesses and Private Investors: Talking to businesses that have already broken into the field could led you to some good investors, and it could lead you to some great business loans in Australia. The business may even go over your designs and help you personally. In the least, they will give you a recommendation so you can connect with private people willing to loan money but need some backing by proven fashion design models to feel more secure with it.
It has been stated by experts in the field that you will need a minimum of 10 grand to get a low-level line going, and around 100k for top-of-the-line clothing. It all depends on what your fashion line is, and what type of clients you are looking to attract.
Breaking into the fashion designing field is not an easy task. It will be full of people telling you “no,” and others telling you that your designs are not original enough. Remember that all people have their own opinions, so keep at it. Eventually, you will find a lender or private investor that is willing to take a chance on you. When they do, go all out, and prove to everyone that you can do it.