How to find an investor for your Fashion Business

Having funding for your business is the life and blood of your Fashion Brand.

When it comes to searching for funding and investment, we have seen the good, the bad and the ugly. So let's share some basic principles and questions you need to ask yourself.

The investor will be investing his own money to buy a share in your business.
In exchange, the investor will expect to get a return on investment in 5/ 7 or 10 years and will also expect that your Management Team delivers the plan.
You must either prove to the investment partner that you have a full business and creative mind or that you have the help, support and guidance of “senior” professionals to help you execute well the action plan indicated in the business plan.

Your business is for sale. what's next?

What are the top 10 questions you need to have top of mind?

1. Do I have a business plan?
2. Do I have clarity on how much money I need to deliver the business plan?
3. Do I know the amount of equity I consider giving away to the investor (Angel Investor, Venture Capitalist ...)?
4. If an investor is ready to learn more, is the executive summary available? *
5. If the investor wants to know more, will you ask the investor to sign an NDA? **
6. As soon as the investor is really interested, can you immediately share the business plan and the 3-year financials? 
7. Will the 3-year financials be ready at the same time as the Business Plan?
8. Does the business plan make sense? Has it been reviewed by at least 1 fashion expert? Has this expert highlighted several improvements?
9. Can you organise a role play Designer/ Investor and can the supposed investor ask you tough questions?
10. What are the possible liabilities in the project? Be honest with yourself. You may see it as an asset however, what really matters, is how does the Investor see it?
    (Liabilities in your stock? your staff? your registered trade mark? your suppliers? your processes…)

You only need one wrong word or sentence and you will lose the investment – Feel free to watch TV series like The Profit (CNBC) or Dragons’ Den (BBC).

Finally (bonus question), who will challenge and question the motivation of the Investor and ensure it is a serious proposition?
In many occasions, we have seen investors wasting your time and your money. 
Make every meeting productive and please ensure there is progress. A "No" is a totally acceptable answer. This NO does not take away the quality of your project and your ability to deliver big bucks! 

* Executive summary - A one or two-page document where you explain your Brand, the key numbers in your businbess plan, the ROI (return on investment), the investment level you are expecting and equity you are planning to give away.

** NDA - Non Disclosure Agreement - This confidentiality agreement will protect you in case the investor wants to steal your idea!

We have been involved in the various steps of the funding journey.

Our contribution to your sucess - Be Invest Ready

We can supply you with some key documents, help you be invest ready, write the business plan or financials with you, organise a role play, join you at a meeting with the investor and much more.

Advice starts from £250 (excl. VAT).