Whether you’re starting a hobby business on the side or planning on being the next Young Lovers, one thing is certain – starting your own t-shirt label is an expensive process. Although we’ve been through the breakdown of start-up costs in the article over here, the question of how to go about funding your start-up remains. So, let’s go through some of your options.
USING YOUR HARD EARNED SAVINGS
This is by far the hardest way to fund your start-up, but it’s the stuff that legends are made of. We’ve all heard the story of millionaire t-shirt entrepenuar Johnny Cupcakes who started his empire with the money from his part-time job and change he found in the couch. This is in fact how I, and many other t-shirt label owners funded their labels. The reality of this option is a lot of charity meals from friends and weekends spent with nothing to do but work on the label and putting all your profits straight back into your brand. The plus side of this method is that every cent of profit you make stays with you and you have some kick ass stories to tell the press when you blow up.
TAKE OUT A LOAN
Whether you take out a loan from friends and family or hit up a bank, this is a great way to access the funds you need to get your label off the ground. If you feel you can handle the repayments and you’re not easily scared off by interest rates, there’s a great security knowing you have access to the money you need when you are ready to get things rolling. Just be weary when borrowing money from family or friends – nothing can tear a relationship apart faster than money so try get everything in writing and make sure all parties are agreed on the terms of the loan.
FIND YOURSELF A BUSINESS PARTNER
Bringing a partner into your start-up is much like starting off your own savings – but you get someone else’s too, doubling your spending money. But double the owners, double the trouble…excuse the cliche. The truth is, choosing a business partner is a very sensitive and tricky business as the working relationship has to be secure, and the skill set shared. Although it’s tempting to take on a partner to double your start-up cash, remember that you will have to split the profits with them.
GET A GRANT
Depending on where you’re based and your circumstances, it may be possible to get a grant from the government or private sectors. Check with your local government and chambers of commerce to see if you’re eligible for a grant. If you are, you could find yourself with a solid start-up fund that when combined with your savings, could see you in a very pretty starting position.
There are of course other ways to find money to fund the start-up of your t-shirt label, and these are just some of the main ones I have come across. If you have funded your label in another way, please tell us about it in a comment below.
Thank you for reading and please feel free to share this article and comment below – Georgie