How to fund your start up sportswear brand
Funding your stock is the biggest cost to any business and it’s also the biggest obstacle our start ups clients encounter when they calculate the costs of launching their new venture.
If you want quality product made in a factory with the right skills, technology and service, you will need to order large enough quantities to make it worthwhile for the factory to want to entertain working with you. Developing the samples and setting up a production line needs to be commercially viable for any factory and therefore they will stipulate their minimum order quantity (MOQ). Luckily for our clients, we have negotiated smaller MOQ for our start up brands through some of our partner suppliers who are willing to support our clients, however this is still going to be the biggest cost for any business.
Trying to launch a new brand and wanting to produce 50 per style just isn’t going to work. The costs involved to produce such a small volume wont be commercial for you and non of the quality factories that work with the key brands will entertain such a small volume.
Funding your stock before you place your bulk order is a potential way around this and we can help you do this via crowdfunding. We provide a solution that allows you to obtain orders from customers when you launch without having to commit to the bulk orders. This will need you to have all your ducks lined up and you will need to go through the design and development stages and have finished samples ready to go into bulk production once your campaign has finished.
Crowdfunding allows you to pre sell your concept to customers, obtain the cash for bulk production and critically created some press and brand advocates so that when you launch your site and your stock eventually arrives, you have a database of customers that may order more and help spread the word.
We offer a turnkey solution for crowdfunding, helping you create content for the Kickstarter or/and IndieGoGo platforms, photography, film and full strategy for the campaign so you have the best chance to succeed and turn your concept into reality while reducing the cashflow burden and risk.
When we work on innovative product that requires a level of R&D, then we can also assist you in claiming a portion of this R&D back from HMRC. This is called R&D tax relief and enables you to reclaim a % of all genuine R&D back from HMRC who are actively supporting businesses that invest in new technology or innovation. We work with a R&D tax relief specialist that will need to understand your business, product and R&D completed before then calculating the potential claim and then feeding you through the process to make your claim.
These two aspects make the funding of start ups businesses much less daunting and by investing in the brand, product design, R&D, sampling and crowdfunding campaign, we hope to have a platform that allows your brand to launch successfully while critically reducing the risk.
Get in touch if this is something you would like to discuss in more detail.