How can I fund my business as a young entrepreneur?
I've designed my own clothing brand called Crowns Clothing Collection and I need capital to be able to get started. I need to raise an estimated $1,000 to buy the clothing, heat press machine, screen sheet etc. I'm currently a junior in high school. What are the different ways I can fund my business? Are there websites that give grants or funding specifically to young entrepreneurs?
Hey the Pres got the laws setup to allow crowdfunding. Or you can look at non-profit micro-funding sites. Us that smartphone and your sewing machine to create a few samples, take pictures and post them in your appropriate social media sites for whom you are actually targeting your clothing line too. And the fun will begin!
Run a grassroots campaign through your friends who you intend to involve. Buy bags of candy bars for fundraising and charge $1.00 profit on each. You'll have $1000 in no time at all.
Since u r still very young, serious investors would normally be reluctant to invest. However, you can trigger curiosity and interest in the investors if you have a business plan with complete details of your business proposition. U need to search out the angel investors once u r done with ur business plan and elicit their interest in various ways.
Alternately, u could request your friends, ur relatives, ur social connects including associations etc. to sponsor you for the venture or for an exhibition of ur collections.
I can offer you an option that's both cost effective and efficient.
Dashia, I admire your entrepreneurial spirit. I would suggest crowdfunding might be a great option for you. Your goal should be to raise more like $10,000. The downside to Kickstarter is if you don't raise the amount you ask for, you don't get funded. For that reason, also consider Indiegogo. There is an excellent tutorial on their site. I have written a blog on crowdfunding which might be helpful to you. Here is the link. http://xlconsultinggroup.com/crowdfunding/ The key is marketing your crowdfunding campaign. It is a lot of work and key is having a great social network. Good luck with your project.
This is tailor made for a Kickstarter campaign with the reward being a shirt.
Then, use the proceeds to make the shirts for the reward winners and have enough left over to start your business. I also think you should be shooting for more like $50,000 to build up some inventory.
First, $1,000 in the business world is no money. It sounds like you need a business plan more than you need equipment. You might have the most fashionable designs, but w/out a plan you'll die on the vine. Perhaps consider taking a portfolio to 6 fashion houses and dressmakers and get their feedback. Hook up with a pro; at your age your time is limited and this will get you feedback and open some doors. Don't be discouraged; you have to kiss a lot of frogs, but once you produce do you have money for inventory, how will you distribute the cloths, warehouse them, etc.
Apart from getting gear second-hand at auction, I know nowt about financing a new venture, but branding is my thing and I say: Slow down!
'Crowns Clothing Collection' sounds cheap, nasty, and a bit amateurish - and I know that's not what you're trying to create. Give your brand personality - I don't mean call it 'Derek', I mean call it something quirky and individual.
There are books on branding. And brand failures - which makes very god reading.
Yes, there is but their are certain things that you will need such as your student counselor should be able to help you with some answers along with guidance and where to research for your future jobs and what web sites to get some answers that may help.You should be very proud of yourself for knowing what you want at a young age. I am 100% sure that if you do not lose focus and set your goals you will be a success and you will need to remind yourself each day that you owe it to yourself to keep your promise to reach that goal. Nothing is ever easy but you can do it and one day when you look back you will feel great that you did it! Best of luck to you and maybe one day I will see your clothing collection on wall street. Remember if you want success hang out with successful people and pay attention!
There are only 3 ways to fund a new business: 1] Take on Debt; 2] Sell equity, 3] Sell your product at a profit.
#3 is the best choice, but for a new business the hardest. #1 is impossible unless you have family and friends that will support your vision and have the assets necessary or you have assets yourself that you are willing to pledge. #2 is the most expensive because you are selling your vision for less than it's worth (almost always).
There are two places to look for debt funding besides bankers. The first is suppliers, people and businesses that will profit when you grow your business. The second is buyers of your product. Get them to pay ahead of delivery and you'll have the money needed to buy equipment and supplies.
In every case you'll be in a position of having to SELL your self and your vision. How are your selling skills. Most entrepreneurs are great at what they want to do, but suck at selling and they are even worse at marketing.
The full discussion is much longer, but this is the central challenge you face.
Good suggestions here so far. Kickstarter for passion.
But what I haven't seen yet is to lay your brand into a current business.
They are already printing shirts but you have the brand. If one is looking to expand you have a whole line ready to go.
Either Partnership or Licensure to suit the parties.
First you find in your own country that, there is any bank who provided loan for small business like younus bank Bangladesh, and at the other hand your design a good presentation/business plan about your project and share with Giant business man and try to motivate them,...
Get money for your parent. Don't get from other sources as you need to repay to them.
The reason is that high chance you cannot create positive returns (money or benefits in kind) to people, don't get yourself in-debt too young
The best way to get funding in your case would be to show people your designs and start taking pre-sale orders. I wouldn't look for grants right now as the grant writing process is very complicated.
You could crowd fund, but you'll need to have a compelling reason for your company other than I want to make clothes. In order for a crowd funding campaign to become successful, your company should be solving a problem commonly found in an area of need.
The goal of your company shouldn't be about making clothes or making money, but more along the lines of providing a solution to a common problem.
Hope that helps you in your entrepreneurial journey...
Check out my free guide to business planning and financing. Using basic common sense, science, and human nature to prove your idea really works and deserves backing is the surest way to get funded.
crowd funding or have your parents and friends help you...BUT FIRST have a good and vetted business plan...Suggest a Score counselor in your area to help u
Hi Dashia,You have to be 18 years old here but this is the best I have ever seen. Watch this webinar,www.paidforbills.com
Dashia, Will is correct Kickstarter is the way to go. Set up an exciting campaign. Don't let anyone steal your dream. $1000,00 could be the start of a great thing for you. I have a good friend who is worth today over $350,000,000. He started his business with $150.00. You can do this.
Best of success, Gil
It's breath taking to hear of your enthusiasm and entrepreneurial spirit. It's also a great sham you're based in the US because I work with educational establishments to discover people like you. And whilst most business incubation services and investors will only fund exemplary business plans (understandably - a risk management approach), I believe and convince the investors I work with to look at the future entrepreneurs who are currently in education and still studying. If we are to provide a pathway and encourage future entrepreneurs, we ought to teach them how to succeed but also how to learn from failure. And in your case, this process will give you enough time to test your idea and you will know if this is scalable or not before you invest the rest of your life in it.
It's people like you I love to meet, mentor and help to succeed.
If I can be of any help, i.e; how to develop your brand and gain a clear understanding of the clothing business landscape, by all means get in touch. I have had two attempts at this and the second time was successful.
Keep working at it and keep hope alive.
Stay in touch and good luck.