Comments on: How to find investors for a clothing line pt.1

By: Kathleen Fasanella

Kathleen Fasanella — Wed, 04 Jan 2012 15:00:19 +0000

A note to those who have read this post and email me because they’re looking for an investor.

Keep in mind that anyone you ask to help you find an investor will expect compensation for their time whether they find someone for you or not. If they do find someone, they will expect an additional finder’s fee.

Finder’s fees can be very pricey (>30%). I know people think they can pull the finder’s fee out of the funding they acquire but all the parties involved know that’s what you’re thinking so the deal is structured in such a way as to prevent it because the investor doesn’t want to pay for that.

It may not seem fair but pretend the situation is on the other foot; an individual is looking for an investment opportunity. In that case, the investor pays the finder’s fee. The company being invested in shouldn’t have to subsidize a deal they did not solicit. That company will be doing their own negotiations for tangible and intangible benefits if they welcome the deal.

By: Kathleen

Kathleen — Mon, 26 Jul 2010 00:04:05 +0000

Wendy: Other than to suggest following the guidelines and suggestions in this post (and its comments) you're responding to, I can only copy and paste the comment I'd written above to someone who'd asked much the same:

Why not just do it yourself? You have to come up with protos first. I’d recommend you get the book. I don’t know how you’ve costed it out but I guarantee it’ll cost less than you think. For comparison, you might want to review the whole analyzing business plan series I’ve been doing (five parts are up). The guy who’s plan I’m reviewing doesn’t even have protos. I can’t see him getting any takers on his concept either.

By: Wendy

Wendy — Fri, 16 Jul 2010 15:31:31 +0000

I wanted to start my business really hand to mouth to see if what I was designing got a possitive responce. I have been doing NYC craft/flea markets for the past 3 years, and have gotten a great responce, and am always a top seller. My problem is it’s only me making everything.
My business needs to grow, in order to grow. How to I find someone to invest at this point?

Thanks!

By: Derick Abram

Derick Abram — Mon, 30 Nov 2009 13:02:58 +0000

This article is good but every type of clothing brand is different. I have plenty of celebrity friends who have clothing lines and some of them are doing very well while other may not. In either case, it just depends with each brand. Some investors like business plans, some like sales reports, others don’t care about anything but the bottom line. It’s just how much work you really put into that will determine what you get out of it. I’ve met all types of clothing CEOs from BCBG, Ed Hardy, Armani Exchange, to Miskeen, LRG, Phat Farm, and Rocawear. All of these people said that if you listen to every story out there that it will drive you crazy. You gotta just take control yourself and put yourself out there to be seen. You will learn as you grow, it’s a part of life. It’s good to have people who are already in the industry to give you connections to make some things easier but in the end it’s all up to you. I know plenty of people who don’t have patents til this day and they are selling like crazy. Others have patents and are doing okay. I’m not saying don’t get it but if you don’t have the budget for it, don’t stress it. My first orders came from Australia and Germany and I wasn’t even catering to them so it’s all about getting your feet wet and crawling before you walk. Nothing in this life comes easy but it gets better with time. Much love!!!

By: Michelle Anderson

Michelle Anderson — Wed, 03 Dec 2008 07:04:26 +0000

Great blog. Very informative. Fashion design is something I definite plan to pursue, as of now I’m currently designing my own clothing and taking orders here and there. Before jumping into this business I’m doing as much research as possible and making sure I understand the do’s and don’ts before I invest ANY money. And truthfully I rather get a few business and fashion merchandising classes under my belt before jumping into it. But I must say I’m getting complements from white women (and men) who shop and Neiman Marcus & Nordstroms to black teenagers and adults who would rather wear Coogi over Robert Cavalli. So I know I have the potential, I just need extensive knowledge of production and merchandising.

By: Andre McCline

Andre McCline — Wed, 30 Jan 2008 23:34:45 +0000

The comments above as well as the article are very informative. I myself am trying to develop a clothing line. Im starting a T-shirt line first and letting it grow for a while. Finding a backer is hard, I think starting small with drive, focus and a realistic plan. Backers will have to notice you. Make noise with your lines style and never look back.

By: Deibe Rondon

Deibe Rondon — Mon, 13 Aug 2007 03:23:22 +0000

this industry is very hard – and to find backer is even harder – financing yourself – its so hard – but also gives you less problems in the long term. – very nice article!

By: Kathleen

Kathleen — Tue, 12 Sep 2006 18:18:32 +0000

Why not just do it yourself? Nobody is going to invest in you if you don't even have prototypes. You have to come up with protos first. I'd recommend you get the book. I don't know how you've costed it out but I guarantee it'll cost less than you think. For comparison, you might want to review the whole analyzing business plan series I've been doing (five parts are up). The guy who's plan I'm reviewing doesn't even have protos either. I can't see him getting any takers on his concept either.

By: Gary J. Heim

Gary J. Heim — Tue, 12 Sep 2006 16:56:58 +0000

So based on the above article, taking into consideration the DO’s and Don’t that are emphasised, how would you proceed if you had the product/designs, projected production costs, project timelines and COGS for the product. The line is not revolutionary in design but concentrates on an industry in active sportswear that is experiencing a renewed vitality……tennis apparel! There has to be a listening ear and interested investor somewhere! Every idea presents and opportunity…….who knows this might be it! The right eyes have to see it………….thank you for your article.

By: alonzo

alonzo — Mon, 21 Aug 2006 05:13:43 +0000

WOW. Thats a good article on business investors and the do’s and dont’s, of a business plan and running a business otherwise it’s really good knowledge. Im starting a clothing line and thats good info. Thanks