Footwear company start-up costs and finding investors
A new shoe start-up is about to be born! You finished your shoe designs, you identified your target market, and your footwear marketing plan is complete! Now, all you need to launch your start
STOP! Before you go looking for investors, there are a few critical steps you must consider.
Before you look for investors for your new shoe company, you need to know HOW MUCH capital you will need and WHEN you will need it. The book, How to Start Your Own Shoe Company, Chapter 6: STARTUP COSTS AND RAISING CAPITAL, explains the first year finances for a shoe startup.
How to Start Your Own Shoe Company will help you to determine how much capital you will need to get started and what you will be spending it on. You will learn about footwear tooling costs, the capital calendar, product costs, development expenses, and shipping rates.
Many footwear startups struggle to grow due to lack of capital. Where can you get seed money? From your family? A bank, crowdfunding, partners, or angel investors? If you borrow too much from the wrong person you may lose control of your shoe company just about the time you are ready to go big.
Don’t be tempted to offer shares or a percentage for startup services. The 10% you offer a shoe designer could turn into a million dollars if you are successful! That same 10% could ruin any plans for future investors or buyouts.
Every young footwear entrepreneur wants their startup shoe brand to be the next AllBirds, Rothy’s, or Tamara Mellon. With careful capital planning and research, you can put your new footwear company on stable financial footing from your first step!