Starting a new t-shirt business is a daunting task that can lead to a lot of money, or empty pockets. One of the first tasks of this challenging endeavor is to know how to fund your new t-shirt company. There are several different ways to come up with the money you need to design, purchase, and distribute your brand new t-shirts. You can start small, ask your parents or relatives, get a loan from a bank, or partner with a friend to fund your company.
Starting With Small Orders
Starting with small orders is a great way to start your own t-shirt business. Purchase 30 t-shirts, which should cost around $3/shirt, and sell them for $15/shirt. Once you sell all of your t-shirts, you will have accumulated $450. Use this money to buy more t-shirts. This process continues until you are able to buy thousands of t-shirts at a time. This is the easiest way to fund your new t-shirt company, but it also takes the longest amount of time.
Ask Parents and Relatives For Money
Asking your parents and relatives for money is the easiest way to obtain a lot of money at one time. Remember that this is a loan, and your relatives will want their original investment back, so be sure to treat this like a business venture. Create a business plan to show your relatives so they know how serious you are about starting a t-shirt company. You should also go into the meeting with your parents/relatives knowing how much money you need them to invest. Asking your parents and relatives for money to fund your new t-shirt business is an easy way to gain a lot of money, as long as you treat it seriously.
Get A Loan From A Bank
If you can avoid getting a loan from a bank to start your t-shirt business, then do it. Banks are a hassle, and have big interest rates that can really cut into your profits. The one good thing about getting a loan from a bank to fund your t-shirt business is that they can give you a TON of money to spend on mass-producing your t-shirts. I suggest avoiding the banks when you start your t-shirt company.
Partner With A Friend
Partnering with a friend when you start a t-shirt company can be a great experience for both people. However, be sure to choose your friend wisely. Business partnerships often ruin friendships, which will eventually ruin your business. Creating a partnership with your friend is a good way to fund your business because it allows you to split the initial costs. If you want to be the majority, then pay 60% of the costs and have your friend pay 40% of the upfront costs.
There are many different ways to fund your new t-shirt business. Starting with small orders or asking your relatives for money is the best way to fund your company. Partnering with your friend is risky because it can ruin your friendship if you have a disagreement. Getting a loan from a bank is the riskiest, and should be avoided unless you have no other choice.
