How To Successfully Fund Your Own Fashion Brand

The fashion industry is one of the most cut-throat industries out there, rife with competition and home to only a handful of truly successful innovators. It’s an industry that pays its interns little to nothing, and where regulations around freelancing are sketchy at best. Yet the fashion industry is here to stay. People will always need to be clothed and the yearning for new fashion, trends, and bragging rights over brands will not be leaving us any time soon.

In the field of tertiary education, fashion studies are quite prominent. And while many students praise the knowledge acquired, many wind up being dissatisfied with life in the real world of fashion, with many citing unpreparedness when venturing into its actuality. That’s the thing about the fashion industry: it’s tough, really tough, and unless you’re from incredibly decent old money, funding your own brand will be challenging, to say the least. However, it’s not impossible to get things off the ground. With all this in mind, let us now examine a few ways and means that you can go about pitching and funding your fashion brand.

Check out effective tips on how to fund your fashion brand…

#1. Start with your personal connections

Your family and friends should be the first place to look when looking to fund your fashion brand. For one, their investment is likely to come without the risks associated with external players. If you choose you opt for a loan from them, you’re likely to negotiate more favorable payment terms as opposed to what you get with a financial institution like a bank. However, be sure to sign an honest and transparent agreement so everyone knows what they’re getting involved in.

#2. Check fashion events

What better place to find a fashion-focused investor than at a fashion event? From awards ceremonies to trade shows and fashion conferences, there’s something going on in the fashion world that you can be a part of. There’s also the bliss of virtual conventions that offer you the opportunity to network with prospectives without leaving your home. The most important factor to keep in mind when attending these events is to engage in conversations as you never know who you may connect with.

#3. Consider crowdfunding networks

Crowdfunding is an online method used to raise capital for new businesses. Here, you set up your pitch online and investors who appreciate your idea get to invest.  There are three main types of crowdfunding: reward-based, equity, and debt crowdfunding. Reward crowdfunding ensures rewards are given to the investors, equity crowdfunding means your brand is willing to give up a percentage of your fashion startup for the donated sum, and debt crowdfunding allows you to reimburse your donors with monthly interest. Explore each option, keeping in mind the pros and cons, and choose an option that aligns with your business goals.

#4. Find a venture capitalist

Venture capitalism is one of the biggest driving forces in the fashion industry. However, not all VCs are fashion-savvy or even involved in the industry. Hence, it is of great importance that if you’re going to court a VC, both they and you are on the same page. In other words, it’s important to do your research to see which ones have fashion in their portfolio. Ideally, you should know more about imports, forex markets, and taxes before bringing investors in, and possibly they have experience in these financial areas that can be of great advantage to your business.

But that’s not all. You have to make sure that their ideals and vision align with yours. Great minds think alike and two heads are better than one, hence, finding the right VC can be of great benefit in more ways than one. Also, it would count in your favor to be on the level in terms of jargon. Venture capitalists have their own buzzwords and acronyms and by loading up on their jargon, you’ll send a clear message – you’re in the know and you’re passionate.

When you finally land the meeting, here are things to keep in mind…

#1. Look the part

Dress how you want to be addressed comes into play again. Yup, your mom was right. When showing up for any meeting with an investor, make sure you look as seriously as you want them to take you. Wear outfits that fit, make sure your clothes are ironed, look neat and smart, and walk with the confidence of the boss babe that you are.

#2. Play it cool with investors

It’s been said enough times that life is like high school and in many ways, this is not too far from the truth. The teenage world of hormones and dating can very much figure into your investment strategy – that of playing it cool. You could liken it to dating in high school when you were advised not to respond immediately. This is valid for a bunch of reasons; you don’t want to come off as desperate, and you want people to know that you’re important.

Your time and talents are constantly being engaged, hence, the time you take to respond to emails or to return phone calls is gravely limited. Think of the potential fashion investors as eager young teens looking to score. Remember, there’s profit to be had for both parties.

#3. Don’t say more than you have to

Short and concise wins the race. In other words, if you’re going to make a pitch about your fashion brand to an investor or a venture capitalist, say only what’s required. The last thing you want is to veer into unknown territory, and then try to “ooh and ah” your way out. Focus on what you’re good at. Highlight your strengths — be it your ability to recruit great talent or your sales figures.

Also, don’t go in there alone. Think of Dragon’s Den and how often two people have made the pitch as opposed to one. Ideally, take someone with a mind for maths and charts or a business background. He or she can help you mold your investment pitch in just the right way.

Featured image: @kass_stylz/Instagram 

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