Disclaimer : I am a high schooler and I just turned 18 in September. I don’t know much about business. No one in my family knows much business. If I sound clueless and naïve it’s because I am.
So this summer I started a small clothing brand from my own pocket. I had one design manufactured at a quantity of 50 and it cost me around 1k. I’ve sold out and I turned a turned a profit but it really didn’t seem worth all the work I put in. I know that if I want to see higher returns I have to sell more than 50 shirts.
I want to have my next design made but I just don’t have the money. Is it wise to take out a loan? All I can hear is my mother berating me about what a terrible idea that is.
If I were to take out a loan it would be for less than 10k. But the idea of going into debt at 18 is horrifying. I’m sure I could make it back with time. Having that much money means so much freedom to create the brand I’ve dreamed of. Part of me just feels like I’m too young and inexperienced to chase this passion and I should just work a normal job while I’m in school. I’m just lost.
As you can tell I do not know a lot about the business world and finances. Any and all advice/information will be hugely appreciated.
Your profits should be what increases your growth. If this is not covering your growth you need to increase your prices.
Loans should only be taken out when you have a consistent revenue coming in that can be multiplied with something bought with said loan like equipment, a new building, etc, never the basics like inventory.
Try doing pre sales instead. This way you get the money upfront to produce the product without it breaking your bank.
Thank you for your insight! I did a presale for my last product but it lead to some confusion with my customers and it kind of just felt unprofessional? And even at that price people were complaining and saying it was way too overpriced.
There are some small brands i look up to that charge a lot more so maybe i need to be confident and raise prices. I created my brand though to make a niche style more accessible to all people, but maybe that’s just not a realistic goal for me right now.
With the way my first launch went, even after I sold out, I just have no clue how clothing businesses get off the ground if they weren’t already rich to begin with.
Use a mixture of FOMO & scarcity marketing when promoting a pre-sale and make it clear on your website.
Only xxx available for presale + 20% off for the next hour only. Create an email list & whatsapp business group to send out notifications. Collab with a well known creator in your area to help with a launch & pay them a % of the presale when it sells out.
Just be upfront with your customers that you are only 18 running this business and presales are how you afford to build the brand.
This is not completely true, but it is “safe” advice. It’s all about risk/reward assessment and comparing that to your risk aversion.
Debt is like fire… it is super powerful but if your not careful you can be burned. But getting burned isn’t aways bad… for me at least.