How to Approach Fashion Angel Investors
The fashion industry has its incredible ups and downs and with that, also its incredible lows, so if you are looking to venture into the fashion industry, then enlisting the help of fashion angel investors is a good idea. They can make a big difference to your business. We all know that being successful in fashion is more about having the right connections and backing than it is about talent, that’s where a fashion angel investor comes in.
why do you need them
Now, when you’re starting out, you should definitely consider a financier to invest in your business instead of a venture capital firm. Why? This is because the idea of venture investing has changed a lot in the last decade or so. Before the whole tech boom (and subsequent bust!), venture capital firms were approached to finance small businesses and businesses. But now that has changed because venture capitalists have much more cash at their disposal and prefer to invest in larger companies.
So angel investor groups have actually taken the place vacated by venture capitalists. They play the role of mini venture capital funds. The basic requirement for any angel investor is that they must be an accredited investor, which means they must have liquid cash in excess of the amount that is available to them due to their property and small savings. An angel investor who is cautious and rational will invest around ten percent of assets in his business.
In the fashion business, financing is of great importance because, let’s face it, the fashion industry, more than any other industry, requires a large amount of financing in its early stages because:
- A lot of money needs to be spent on marketing.
- The two socials are a must where one can network and woo potential clients.
- One needs to have skilled tailors and workers.
- Designers must be extremely talented and from good schools.
- The material to make shoes, clothes, bags or anything must be of very good quality.
How to get their attention
None of this is cheap. The fashion industries require a large amount of working capital, from their initial stage. And this capital cannot be generated by the business alone. If, of course, you are already a wealthy person, this should not be a problem, but if not, and this is often the case, you should definitely look into financing options.
Before you approach fashion angel investors, you need to put together a compelling plan of action, a business plan, so to speak. Of course, he should never reveal his trade secrets, but he gets the idea. More often than not, the group of fashion angel investors you approach will be smart enough to figure out what exactly you’re up to without your explaining it to you.
Offer them a good stake in your company. You can also attract the attention of an angel investor through, for example, press releases. Why? Because they go out of their way to carefully review press releases from upcoming companies. Last but not least, remember to do a lot of networking to woo fashion angel investors.