Our clients often ask us about how much capital it takes to launch a successful apparel business so we wanted to record a short video to explain what apparel entrepreneurs should think about when thinking about capital for their new business.
When thinking about how much capital to raise, it is most helpful to work backwards from where you want to end up. Look at selling/shipping data, work in process requirements, what inventory levels are required and is this impacted by just in time manufacturing?
Cash flow is king when it comes to start up companies. You must understand the terms in which you get paid by your clients and the terms in which you pay your vendors. Are the terms 60 days or 30 days if you get credit at all. Most importantly, can you pay your bills before you get paid by clients?
Retail stores may pay on seasonal basis. Very short season on outerwear business. Figure on interest rate considerations.
Call us at 215-628-2557 if you have questions about raising capital for your apparel company.