Crowdfunding for Fashion Startups

Transcription:

The secret to fashion business crowdfunding. Hi. I’m CEO Syama Meagher of Scaling Retail, and today we’re going to chat about how to really make money from crowdfunding. Seems like, these days, you go on Indiegogo or Kickstarter and you have people who are making a ton of money, but how does it actually get off the ground and how do you execute that? Well, I’m going to give you a couple secrets that are hopefully going to help you with that process.

Number one, really identify what your core value proposition is. There are so many fashion businesses that are launching online and that want donations, but what exactly is your business doing that’s going to set itself apart from someone else? So, that’s really identifying your unique selling proposition. You’ve gotta make sure you know what it is, and it has to really stand out and be branded. So, you gotta have some branding in it.

Number two, when it comes to crowdfunding, you can’t think of it as, “Hey, I’m going to produce this video, post it up on Kickstarter and hope that all these people come to find my product.” In fact, it takes a considerable amount of preparation, when it comes to timelines and strategy, in order to get this off the ground. That means you need to be coordinating, “Who are my friends who I’m going to be tapping into? Who are my friends of friends who I’m going to be tapping into? What about my family members?” And remember, the campaigns that do the best are not the ones that get funded, boom, overnight, they’re actually the ones that you start to see some growth. So, if you’re planning on sending out an email campaign to every single person you know, you might want to think about staging that out every single day. That way, you increase the opportunity for your project to be considerably more visible on a regular basis.

Now, number three, you’ve gotta think about what your incentives are, right? What is it that someone’s actually going to be buying into? And I’ve seen a lot of great crowdfunding campaigns where people offer them, you know, a little product, or a tote bag, or something that’s of value and something that’s tangible. I can tell you firsthand, any type of incentive that’s some kind of discount towards the product is not going to go very far. What you really are going to notice is that the things that are working for you the most, or the most effective, are really the products that are going to be giving out some kind of brand asset or brand value. That means really thinking about, what are the different kinds of products that would make sense in terms of an extension? If you’re selling women’s ready-to-wear, you’ve gotta think about, you know, what are the other product lines that I could actually be selling as part of my incentives? Maybe it’s a collaboration with jewelry, maybe it’s a collaboration with some other type of accessory platform.

Now, aside from looking at incentives and making sure your unique value is also there, and then also staging it out, the other thing that is so critical is understanding how much money you need and what on Earth you’re going to be using with this money. That means that if you’re taking money and you’re actually using it towards things like, you know, manufacturing product, or maybe you’re using it towards marketing, maybe you’re using it to actually help with some research and development costs, right? You want to be able to articulate and tell your audience exactly what you’re doing with the money because, otherwise, if you’re just fundraising to fundraise, people are going to say, “Hey, well, does this person really need my money?” Right? How efficient or effective is that going to be?

Now, lastly, no one wants to invest money into someone who has not put any skin in the game. Now, putting skin in the game means how much have you invested in your own business, right? What exactly have you been putting your money into? How productive has that been? And what are some of the results that you’ve seen? Sharing with people that you’ve actually been investing your time and energy into doing something that’s for your business is going to be so critical to getting them to jump on board. Being authentic, being open, sharing your story, sharing your struggles, even, are going to help people empathize and want to help to create a much better campaign for you. Sometimes, guys, we like to think that having a shiny, polished image is really what people are looking for, but it’s transparency, authenticity, showing your value and really showing what it is your brand stands for.

So, guys, please remember this when you’re doing your crowdfunding for fashion. I know it’s a lot of different steps and things like that to consider, but take your time and work through. Remember, the secret to success is simply not just moving forward with a bunch of things, it’s having strategy, right? It’s being able to think cohesively about something and take all the steps in order to make sure it executes 100%. All right, guys, come over to scalingretail.com. Check out all the cool, exclusive content I have. Follow me on Instagram, I’m over @scalingretail. And I hope to see you soon. Thanks. Oh, and don’t forget to subscribe. Bye.

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