Starting your own business could be the best thing to do in light of this unstable global economy. Although small businesses and indie brands are finding it difficult to survive the uncertainties of today’s world, they are much more flexible and nimble than big multinationals. Simple clothing items are having a moment right now. Most people's virtual carts are filled with cool T-shirts and comfy basic wear. If you have some unique designs and want to start up your own T-shirt business, now is the best time.
However, as much as you are excited to get things up and running, thinking about the financial side can be stressful, especially if this is your first business venture. Fortunately, you can now find multiple ways to finance your business. As long as you have a unique brand with cool designs and high- quality products, you can secure all the funds you need to get started. Read on to find out how you can finance your new T-Shirt business.
Raise Money From Family and Friends
Starting your own business can be scary, you will want to minimize the risk as much as you can in case things go wrong. Raising money from people who are close to you can be the best way to go about it. You will find it more comfortable to ask your loved ones for the capital you need. The fact that they have witnessed your passion and hard work early on will encourage them to take a chance on you.
However, it is worth mentioning that getting into business with friends and family can get tricky, so you have to set some ground rules early on. Before asking for the money, prepare samples and a thorough business plan to present to your family, just like you would with an outside investor. Be professional and agree on a repayment method and schedule that you can commit to. This will make the process smoother and will save you from awkward situations with your loved ones.
Crowdfunding is a great way to raise money to start your business. The very essence of crowdfunding will serve you well as a beginner. Creating prototypes of your T-shirt designs and seeing how people perceive them will save you money on essential market research that you will need. To stand out from the plethora of T-shirt brands out there, the T-shirts enthusiasts at Jasper Holland Co explain that you have to find a distinctive selling point that is strong enough to carry your brand. For instance, you can focus on creating “Date-Night” T-shirts for men that strike the right balance between casual and dressy.
Finding your voice will increase your chances of being noticed by the public and their willingness to get behind your promising business. There are different types of crowdfunding, however, donation-based funding might be the most suitable for you if you are not willing to share equity just yet. With donation-based funding, all you have to do is send your contributors your awesome T-shirts before anyone else gets to enjoy them.
Get a Personal Loan
The idea alone might be scary when you are just starting and do not want to begin building your business with debt. But that is not how personal loans should be perceived anymore. Many people from different economic standards resort to banks and other lending agencies to acquire the money they need to finance a personal business. As long as you find a loan you can afford and build a solid foundation for your brand from the very beginning, getting a loan should not intimidate you. With some research, you can find tons of initiatives subsidized by governmental bodies to support small businesses and help them become profitable so they can stand on their own two feet.
Apart from financial support, these entities usually offer business training and seminars to help you develop your business prosper and teach you how to grow your brand more efficiently. When looking for a personal loan, the key is to construct a foolproof business plan. Seek guidance from an experienced friend or hire a business consultant so you can have realistic numbers and find a loan that won’t strain your budding business venture.
Look for an Angel Investor
Angel investors are particularly interested in helping out small personal businesses in exchange for a reasonable share in the equity. Unlike regular investors, their main aim is to support, not to make money, so their lending terms are usually more lenient than their counterparts. Angel investors also care about social welfare and giving back to society, so you need to show them how your T-shirt business can create opportunities for employment seekers and other local, supporting businesses. This will improve your chances of securing an investor in no time.
Try Vendor Financing
To create good quality T-shirts, you must have some great vendors to source the best materials. Ask your vendors to offer you a vendor financing scheme where they loan you the essential materials you need for deferred payment of the revenue you gain from selling your T-shirts. This is a win-win solution; you get to have the capital you need to operate and your vendor has a steady demand for their products. Not only will you save a lot of money in interest you would have paid to banks, but vendor financing also imposes less hassle than having to deal with complicated bank documents and rigid formalities. However, you need to make sure that the vendor(s) you are working with is committed enough and can sustain the agreement for as long as you need it.
T-shirts will always be a hot commodity, they are not going away any time soon. This means that you can have a successful brand if you play your cards right. Use the guide above to choose the right financing method(s) that you can comfortably upkeep. Once you have the necessary funds, get to work, and spend some time researching how you can best use your capital without compromising on quality. Remember that nothing comes easy; you will face many obstacles before you can finally succeed, but it will all be worth it in the end.