Raising Money For Fashion Accessories Business
People across all age groups are buying one or the other fashion accessory to compliment their appearance and to make a style statement. Fashion accessories like hats and caps, belts, hand bags, sunglasses, bracelets, necklaces, rings, earrings, thumb rings, other jewellery items, etc. are used by people all over the world. Owing to the huge and ever increasing demand, fashion accessories business offers a great opportunity to earn profits for those who have interest in the field and stay on top of the high levels of competition prevailing in the industry. However, the first thing that one needs to start up a new business or enhance the business existing business is funds. Several factors affects the decision to raising money for fashion accessories business like scale of operations, location of business premises, online or offline selling, projected revenues, projected expenses, forecasted profits, etc.
Raising money for fashion accessories business
There are various options to choose from for raising money for your business. However, you must consider many things before deciding one suitable financing option like rate of interest, payment terms, cost of raising funds, stage of business, stake dilution, method of repayment, period of financing, amount of funds available, installments frequency and amount, etc. All the above factors must be considered, however the importance of each factor will vary from case to case. One requirement that is required is a good business plan for your fashion accessories business. This will make the financiers hopeful about the return on the money invested by them. Below mentioned are a few ways to raise money for fashion accessories business:
? Self financing: Self financing is the first and the foremost option that one should consider for raising money for fashion accessories business. You can utilize your savings, bank balances, and other reserves for the said purpose. You can also hold a sale of items which are not used by you anymore and utilize that money in the business. Self financing is one of the safest and easiest ways to arrange funds. However not everyone is interested in utilizing their personal money as people always want to keep some contingence reserve for the unforeseen emergency situations. In such cases, other options for raising money can be considered.
? Raising money from near and dear ones: Fashion accessories business is one business where you always need to be updated of the latest trends and fashion and make them available promptly for sale to the potential customers. Thus finances are always required. After self financing, the next available option is raising money from near and dear ones, i.e. your friends, relatives, etc. Since these people are expected to be much more flexible and have confidence in your business proposal than third parties, it is a good option to raise money. However, there are several factors because of which everyone is not interested in raising money from near and dear ones. Raising money from family and friends may strain your relationship if things do not turn out as expected. It might also happen that they start interfering in your business decisions. Thus people look for other available options.
? Bank loans: Raising bank loans is another good option for raising money for your fashion accessories business. For raising a bank loan you must submit a good business plan and complete the necessary documentation for the said purpose. Though this option of raising funds is commonly used by many entrepreneurs, it is always good to evaluate the pros and cons before applying for a bank loan.
? Overdraft limit: Taking an overdraft facility on your existing bank account is another good option to get funds for starting up or expanding your fashion accessories business. Bank provides an overdraft limit after judging various factors and submission of various proofs. A limit is fixed for overdrawing the funds and interest is charged only on the amount withdrawn in excess of the available balance in this case.
? Venture capital financing: Venture capitalists are people or companies who provide funds for starting up a business if they feel that the business has good growth prospects and the returns are expected to be good. It is not an easy task to convince the venture capitalists. A good business plan and a lot of effort go in to raise money from this source. Another factor that must be considered while weighing this source of raising funds is that these venture capitalists might ask for some stake in your business or expansion.
? Small business investment companies: Small business investment companies can be approached for raising funds if the scale of operation s is not very large and the growth prospects are good. These companies provide funds to small scale businesses to support them in the initial stages at nominal rate of interest.
The above options are available for raising funds for your fashion accessories business. It will be in the interest of your business to choose the most suitable financing option depending upon your requirements. You can also go for a combination of these options for raising funds.
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Handbags And Purses
Finance For Businesses
Types of fashion accessories business
Promoting Fashion Accessories Business
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