Showing 5 posts in Financing.
The decisions an entrepreneur makes at the earliest stages of a business startup are critically important to the business's success. From entity formation to fundraising to intellectual property strategies, the legal foundation that is laid from the outset can accelerate growth and increase options down the road. Read More ›
A drink cooler that doubles as a blender and stereo system. A card game called “Exploding Kittens” for “people who are into kittens and explosions and laser beams and sometimes goats.” A motion picture starring Kristen Bell. These are a few of the inventions and initiatives that have received the most funding on Kickstarter, the popular crowdfunding site.
Kickstarter is an online platform that allows project creators to seek financial backing. If people like a project, they can pledge money to make it happen. Funding on Kickstarter is all-or-nothing - a project must meet its funding goal to receive any money at all. Read More ›
Categories: Crowdfunding, Financing
Kickstarter is a crowdfunding platform for creative projects. Project creators set a funding goal and deadline for their project. If people like the project, they can pledge money to help make it happen. Kickstarter has become a popular platform for designers to raise funds while using “reward” selections to market test their garments or accessories. From the newest in fashion to movies and gadgets, and, yes, even potato salad, a wide range of products and ideas find their way to Kickstarter.
While Kickstarter has been a great fundraising platform for a wide range of people who may have had no alternative source of financing, an issue that many people overlook is the tax implications from a successful Kickstarter campaign. Read More ›
Foster Swift was so excited to be a part of Michigan’s first and only fashion-based business incubator that we were a sponsor of The Runway long before its doors opened. I joined Jeff Henry, whose remarkable talents and endless effort made The Runway a reality, when Jeff first introduced the Designers in Residence to their shared workshop and private studio spaces. Although it was in late July, it felt remarkably like Christmas morning as the designers checked out the almost finished incubator. I was equally thrilled to be a part of The Runway’s grand opening on October 9, 2014, when the City of Lansing had its first chance to see this vibrant addition to its downtown. As we step beyond the wide-eyed enthusiasm of starting a new venture to that “get the job done” phase of incubating new talent, it is time for an update. Read More ›
Categories: Fashion, Financing
It is time to turn around the phrase “creative financing” to consider financing the creative. Lansing Michigan’s newest incubator, The Runway, opened in October. At The Runway, twelve fashion designers are learning how to get their creative ideas to market and move their fledgling Michigan business to the next level. When The Runway’s designers and other members of Michigan’s creative class look for ways to finance their vision, what should they expect?
They can expect to face an uphill challenge if they walk into their local bank and seek traditional financing. Ideally a designer has no inventory – they produce to meet purchase orders and place goods in the hands of the retailer as quickly as possible. A designer is not likely to own valuable equipment. The value of the new designer’s trademark is nominal. Valuation of a “fashion business” is difficult, even in an established market. In New York City, home to a very well-established fashion industry, only designers with two or more years of successful production could hope to obtain a traditional loan.
So the creative need to be creative about their financing, early in their career. As a result, my conversations with newly minted designers, professors and industry experts at Fordham Law’s Fashion Institute’s 2014 Summer Intensive Program frequently turned to non-traditional financing. Three sources of non-traditional financing are of particular interest to a fledgling designer: crowdfunding; loans from family or friends; and factoring.
Categories: Crowdfunding, Financing