How to Fund Your Start-Up Sportswear Brand

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-up clients encounter when they calculate the expenditure in launching their new venture.

If you want a 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’s for our start-up brands through some of our partner suppliers who are willing to support our work, 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 won’t be commercial for you and none 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. To do this, you will need to have all your ducks in line, going through the design and development stages, before having finished samples ready to go into bulk production by the time your campaign has finished.

Crowdfunding allows you to pre-sell your concept to customers, obtain the cash for bulk production, and critically create 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 and/or IndieGoGo platforms, photography, film and full strategy for the campaign. This ensures you have the best chance to succeed and turn your concept into reality, whilst reducing the cash flow burden and risk.

When we work on an innovative product that requires a level of R&D, 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 percentage of all genuine R&D back from HMRC who are actively supporting businesses that invest in new technology or innovation. We work with an R&D tax relief specialist that will need to understand your business, product and R&D completed, before then calculating the potential claim and feeding you through the process to make your claim.

These two aspects make the funding of startup 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, whilst critically reducing the amount of risk.

Get in touch if this is something you would like to discuss in more detail.


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