One of the most important aspects to consider when launching a fashion brand is how it is going to be funded. The average cost to start a fashion brand is around $20,000, product development alone is $5,000, so without personal wealth, your options are loans or investment. A loan puts you at risk of severe debt if your brand goes belly up. Investment gives up control of your company, and without a wealthy network may not even be a viable option. The best option to avoid these problems and get the funding your brand needs is to start a crowdfunding campaign.
What is Crowdfunding
Often called a Kickstarter campaign, because of Kickstarter’s early and immense success of the concept back in 2009, but crowdfunding is actually the category of fundraising this is. Crowdfunding is a way to gain capital for your business by allowing many people to contribute small amounts of money through the purchase of goods or services in order to reach a specific financial goal for your business.
Where to Crowdfund
These days there are many great options for crowdfunding, so your brand will determine which platform is right for you. Rewards based crowdfunding is selling goods or services in exchange for money. Often the goods are pre-sales so require a long lead time before they are shipped to the customer. Equity crowdfunding means you sell very small pieces of equity in the brand in exchange for money. Since we are focused on not giving up equity, we will highlight some rewards based crowdfunding that might be a good fit.
Why to Crowdfund
Not only does crowdfunding help you raise capital but it also has added benefits during your intense campaign push that traditional funding does not provide.
While crowdfunding is easily accessible to everyone, it is not as simple as you push go and watch the money flow. If you have never run a crowdfunding campaign before, we *highly* urge you to NOT do this alone because it will require more work and preparation than you expect. Crowdfunding has a clear formula for success, and luckily for you, THR3EFOLD offers a unique course specifically to help you Crush Crowdfunding:
If you need more than just crowdfunding training, our Coaching Club is a 4 month brand accelerator that includes the Crush Crowdfunding course and training, along with other key areas of focus like marketing, branding, sales, press, and wholesale. For a limited time, applications are open to join, so don’t miss out, apply today.