All The Ways To Finance A Fashion Business In 2018

by MR Magazine Staff

When we interview designers about how they got their brands off the ground (which we do frequently), one of the most common things we hear is that it cost a lot more money than they ever anticipated — so much more that they might not have even started their brands had they known beforehand. And that’s not just to launch, but also to keep the brand afloat. While getting a big order from a major retailer might sound like a good thing for a fledgling brand, it means the brand has a short time to somehow produce that inventory and hire the necessary employees without any money upfront. Direct-to-consumer brands have their own financial challenges, having to come up with the funds for everything — inventory, an e-commerce platform, distribution, marketing and much more from the get-go. In the first few years, most brands lose money rather than turn a profit — it’s why so many emerging brands shutter despite initial buzz. I’ve even heard of accountants advising designers not to start a fashion business if they or their families aren’t independently wealthy. Read more at Fashionista.