The world of fashion has changed over the years, and since the introduction of the internet into lives, we know that we can create businesses with very little – usually a bit of talent, lots of sweat, tears and sleepless nights. But aside from that, starting your clothing brand in today’s global economy is easier than ever!
But what if you are a fashion brand startup and you want to grow your business into a player in the marketplace? Well, you need all of the above and finance.
Yes, 3 out of 5 new businesses fold in the first year of operation with nearly all of them citing money being a massive contributing factor.
So, how do you avoid falling into the same trap and create a fashion brand with funding, here are three top ideas.
Government Startup loan scheme
In a world where everyone talks about business angels and venture capitalists throwing money around, they are not the only way to raise finance for your business.
Startup loans are a great place to begin. What are they? “A Start Up Loan is a government-backed personal loan available to individuals looking to start or grow a business in the UK.”
But that’s not all. They usually come with lots of support and advice in how to make your business work by people who have either started their own businesses or helped businesses grow over many years. With favourable interest rates and deals, this is a great opportunity to start your business journey and get advice that many new entrepreneurs never realised they needed!
Crowdfunding is an incredible way to build your business with people backed finance. But what makes it such an attractive solution? Well there are lots of reasons.
Crowdfunding is a way of getting people – members of the public usually – to back your business and idea. It works by getting people to fund your business idea by contributing to the cause and in return you give something back such as a custom t shirt or for example, restaurants would give away a meal to the value of the contribution.
But the reason why crowdfunding works so well is because it allows you to get feedback from your audience before you also launch anything. If you put out a design and it doesn’t get taken up, or there is little interest, you will have an idea on how it will perform.
Reinvest your profits and go a little bit slower
Sometimes, you won’t have the option of a loan, other times, you can’t raise what you need. But there is one idea that is often overlooked, go a little bit slower. By taking a bit longer to establish yourself, you can work on reinvesting profits from sales and growing your business organically.
This is handy because you’re not obsessed with paying back debts or having to dedicate time to crowdfunding quid pro quo elements. Yes, it will take longer, but it will be sweeter.
In short, you can start a business today with very little and making it grow requires finance. Find a solution that will work best for you, there are plenty to try and will achieve what you require.