How much cash does it take to start a fashion brand?
Think you’re ready to start your new fashion business? Wait a second. Before you take off, you need to know how much money it will cost to get started.
You may have an idea, but what you really need to do is create a realistic business plan with financials to actually get your business off the ground. Accurately gauging how much capital you need is crucial to success. Underestimate your needs, and you’ll run out of money before the business becomes profitable. Overestimate your costs, and you’ll never raise enough money to get your business off the ground.
Whether your start-up costs total $5,000 or $500,000, you’ll need solid numbers. There is no exact number that I can say you need. Each business has different needs from the amount of styles you make, to how many people you hire. Also your expectations can help you figure it out what you need. Whether you want to do $10,000, $100,000, or $1,000,000 your first year, each dollar volume requires different things. The staffing, marketing, and in fact your whole business has different requirements to accomplish each volume goal.
An experienced industry profession who has knowledge in this area can advise you in what you need to consider.
If your sales are on fire, you can deal with the enviable problem of financing the supplies you need to fill a flood of orders. However, it is often more helpful at the beginning to make a practical plan for the worst-case scenario. You need to know up front how you will weather a month — or two or six– with no sales. How much will it take to keep the doors open while you build your brand recognition? Document it all, including whether you will have employees and what kind of space you will need, down to the cost of ink and paper for your office printer.
Obviously, the more cash you have to fund your startup, the easier your life will be during the often hectic first months. So no matter what numbers you come up with pad it in order to have a cushion. And remember money goes fast so think twice before making any expenditure.
Maria Pesin knows fashion, especially the business side of the fashion industry. Do you know how Manolo Blahnik got his start in the industry? How he leveraged a paltry 3 grand into one of the world’s most famous luxury brands? While she doesn’t take credit for Manolo’s success, Maria has walked a similar path on numerous occasions. The world of fashion is not silicon valley, and it has nothing to do with Madison Avenue marketing. In this industry there is ALWAYS room for something new and exciting, but you have to have your ducks in a row. If that’s what you need, believe me, Maria is the General Patton of fashion ducks!
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