Forums: Discussions for entrepreneurs and small business.

I feel like I've posted this a million times and still haven't gotten any answers... so here it goes:

My company is trying to find investors for a new fashion collection we have been working on. We already have the designs and we are ready to start the manufacturing process.  The problem we are having is trying to find investor capital.  We have contacted a few VC firms and we've gotten no answers. We are in need of $30,000.

Where can we find investors that would have an interest in Fashion/Retail/Consumer products? Any help would be appreciated.

Amy G.

Amy,

With the limited information you provided, I can't give you a definite answer to your question. Here are some general comments:

1. There are a number of strategies for bringing capital into a business. The first step on the path to success is to choose your optimum capital strategy

2. We've determined that the "how" of acquiring capital is a bigger contributor to success than the 'where".

3. The amount you seek is definitely below the level of a VC - so you will have to choose one of the other options.

 

If you wish you discuss your specific situation, feel free to send me a MP or contact me directly.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Amy, VC's have no interest in the little guy. They are looking to fund million dollar ventures with million dollar returns on their investment. They are especially not interested in your particular industry, at least not at your start up level. Funding for a new fashion line such as you describe will need to come from your own savings or family/friends.

Other options are getting peer to peer loans which require good credit scores.

Yet another option will soon be available for those that don't qualify for SBA backed loans, venture capital, grants or angels. Please see the blog below for more information.

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Sylvia Freelance Business Plan Writer

Hi Amy, the main reason why your search for investors didn't yield the desired results is because you didn't do your homework. "I need investors now!" is just as unlikely to produce the feedback you're hoping for as if you would throw together a piece for your collection without sketches, proper patterns, mindful selection of the fabric, research of potential customers, competition, and price points.

As Robert and Sylvia pointed out correctly, VCs are not a good starting point for a company like yours. Besides their rather aggressive financial return expectations, they usually invest in portfolio companies where they feel they can contribute extensive industry and operational expertise in addition to their investment. Also, let's keep in mind that equity transactions are usually rather costly to consummate, so pursuing equity investments for $30,000 hardly makes any sense.

Which leads me to my next point. Do you really believe your capital requirements are only $30,000. Based on my experience in the fashion industry, this will hardly cover the costs for creating your Spring/Summer 2010 collection, let alone leave you with any funds to market it or think of Fall/Winter 2010.

Unless you have signed commitments/orders from customers, what is the investor getting out of this?

I think you may want to take a look at our white paper "How to reach High-Net-Worth Individuals with your Private Placement" to learn more about the process of forging strategic relationships with potential investors. This paper is a step-by-step decision making guide that covers the entire spectrum of building successful investor relations, specifically with high-net-worth individuals. Keep in mind that private equity is a relationship business.

The white paper is available at http://www.publications.fastventures.com/reaching-high-net-worth-individuals-with-your-private-placement

I think this document will help develop a better understanding of the process.

If you're interested in striking up a conversation to further discuss your project, please feel free to send me a PM and I'll try to give you a few additional pointers.

I hope this helps.

Mark

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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

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