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    5 Replies Latest reply on Aug 26, 2009 1:05 PM by ontiversmo

    Need Start Up money for innovative New Clothing CO.

    Mz.FiTU Newbie
      Hello. I am in need of start up capital to fund the production and manufacturing of my new clothing line.

      I have my market cornered as well as all of the creative (marketing, promoting, etc.) side done. Now I just need to get the money to get everything started.

      I feel that my company will be successful because there is no other company that is producing the same style as my own.

      My credit is not so good so I dont now how to go about getting a business loan.

      I already have partnering companies that will be producing my goods at a discounted rate, so thats one way I've been able to figure how to cut costs..but I don't have ANYTHING to start with.

      Would LOVE a private investor OR help onhow to get a legitimate Business Loan
        • Re: Need Start Up money for innovative New Clothing CO.
          LUCKIEST Guide
          Need Start Up money for innovative New Clothing CO

          Welcome. Tell us more. Where are you?? How much Start Up Money do you need??

          For How long?? and When and How will you pay me back??

          *Tell me more ab*out* *having partnering companies that will be producing your goods at a discounted rate.

          Can I see a Business Plan??

          • Re: Need Start Up money for innovative New Clothing CO.
            Lighthouse24 Ranger

            It sounds like you have a great product line and plan in mind, but that the scope and pace of full-scale production implementation is beyond your funding capability. In effect, it's like trying to shove a wonderful plate of food into your mouth and swallow it all at once. Try to look at your plan in bite-sized chunks.

            For example, what's your most creative, unique, or attention-getting product? Think about how you could produce a few of those (maybe even just one) and get them in front of customers (eBay, swap meet, consignment shop, or whatever is appropriate). Then take the profit from that sale and expand -- produce more and place them in additional markets. Keep doing that until (a) you have built a business credit history (by paying for your supplies on time), and (b) have built a sales history that shows lenders or investors that as fast as you can produce it, people are buying it.

            If you're starting with nothing (as you said you are), you'll find it difficult to obtain outside funding to launch a large-scale idea that only you understand and believe in. It will be much easier to get funding to expand a business that has already proven on a smaller scale that its product is in high demand. (By the way, I gave similar advice to an aspiring dress designer in a workshop a few years back. She started with one of her many designs, bought the fabric, had a local seamstress cut and sew it, sold it on eBay, and grew from there -- to a net profit of over $300K.)

            I hope that helps. Best wishes.
            • Re: Need Start Up money for innovative New Clothing CO.
              vistasad Adventurer
              No one else is producing the line you are planning? Hmmm. In these times capital is both scarce and costly. You can try by selling a few pieces of e-bay or even direct sales in your city. You could try and sell your whole project to someone in a partnership, that way you would get capital. Best.
              • Re: Need Start Up money for innovative New Clothing CO.
                ontiversmo Wayfarer
                You should consider Purchase Order financing. Here's a very brief overview of how it works. You secure the sale of "x" number of units of your product. Maybe that's an order taken from a boutique, or a larger store. The intended customer will show their interest in purchasing your product by producing a purchase order. With that purchase order in hand, the value of the purchase order can be financed. You can get a cash advance on that purchase order in order to use the cash that's advanced to pay your clothing line supplier. Now that you have the money to pay the folks who will manufacture the clothing, all you have to do is place the order with the supplier, wait and for the shipment. Once the shipment arrives to your customer, you would invoice the customer. At this stage the customer now owes you for the full purchase price of the original purchase order. If you're not able to wait for the customer to pay that invoice, you can also finance the invoice (another cash advance).

                Kind Regards,
                Steve Ontiveros
                Resource Business Partners, Inc.