How To Self-Fund Your Brand Through Side Hustling
Do you have an amazing idea for a sustainable fashion brand but are at a loss when it comes to funding? Don’t worry, we’ve got you covered! Learn all about self-funding, how to do it, and the pros and cons…
GOLDEN QUESTION: How am I going to fund my sustainable fashion brand?
One of the most common ways people tend to fund their business is through their funding — either through personal savings or working another job. That’s why it’s called “self-funding” because you’re funding it yourself — pretty intuitive right?
Self-funding is the most common funding mechanism among our Launch Your Brand Program clients. So, we wanted to give you the details on the pros and cons of self-funding, how you can go about it, and tips on how to do it successfully.
The Pros and Cons
There are pros and cons to every funding mechanism. If you did crowdfunding or pre-sales, you might be stressed about getting enough orders or making the orders in time. Whereas if you borrowed money from family and friends, you might be stressed about them not being able to make their money back. But let’s look specifically at self-funding…
PROS:
You don’t need to stress about money as much
It’s comforting knowing you have a safety cushion
This is more risk-averse than other funding mechanisms
You can be more creative with your business knowing all your “eggs aren’t in one basket”
CONS:
You may be strapped for time
This can lead to stress, overwhelm, & burnout
Your brand may not grow as fast as you’d like as your time is not 100% dedicated to it
Mental mindset roadblocks might occur (e.g. I am a fake entrepreneur, I want to do this full-time, etc.)
Everyone’s financial and risk tolerance is different and everyone’s situation is unique as well. You just need to choose what makes the most sense for you and your business. And you also don’t have to just choose one funding mechanism, you can combine a bunch. For example, we’ve had successful clients self-fund and do pre-sales, as well as we’ve had clients get funding from loved ones and self-fund on top of it. There’s no one way to do this!
How To Go About Self-Funding
If you’re going to self-fund your sustainable fashion brand through a side hustle, we generally recommend some sort of full-time or part-time job where you can create boundaries regarding your time and workload. Working a 9 - 5 where you can set hard boundaries that after 5pn and on weekends you work on your own business, is ideal. If you can get an “office job” that can allow you to work and gain learning experience for your business too, that’s a bonus.
Note from Selina: “While building Recloseted, I also had a Marketing Manager job and although it wasn’t in the fashion industry, I gained a lot of experience about how big corporations work, how to lead teams and motivate people, how to manage high impact projects, how to lead important executive meetings, and more! It’s not directly related to my work at Recloseted, but it has allowed me to transfer a lot of the soft skills over to be a better entrepreneur, consultant for my clients and leader for my team.”
If you don’t want an office job, then something like bartending or waitressing might work because it’s set hours, you get tips and there’s no “take home work” that you have. Alternatively, if you’re a creative — fashion designer or graphic designer - then we highly recommend you freelance. This is great because it’s high paying, hours based, and you get to experience that will directly help your brand.
Essentially, if you’re going to go the self-funding route, you don’t want a job that is going to require you to take home work, just as much as you don’t want a job that is going to be very difficult to navigate when trying to set boundaries, such as an investment banker or on-call-nurse.
How To Successfully Self-Fund Your Brand
If you talk to any entrepreneur about how they achieved success with their business, they always go back to mindset. Having a positive mindset is key because if we’re being honest, entrepreneurship is draining, and if you’re not in the right frame of mind to tackle the many challenges that come your way, your business is not going to succeed. So, here are some ways you can shift your mindset when building your sustainable fashion brand:
MINDSET TIP #1: Seek out mentors and entrepreneurial friends who will understand the process of starting your own business. Oftentimes your friends and family may be supportive of your entrepreneurial journey, but will not be able to truly understand what you’re doing, which can feel quite lonely.
MINDSET TIP #2: Consider your part-time or full-time job to be your side hustle and treat your sustainable fashion brand as the main thing you’re working on. When people ask you what you do, tell them you have your sustainable clothing brand — lead with that and not your 9 - 5.
MINDSET TIP #3: BELIEVE in yourself and know your WHY. Especially if you are founding this solo and you don’t have a co-founder, you need to be your cheerleader!
MINDSET TIP #4: When you’re working your other job, try to see the good in things and be grateful for it. Look at your 9-5 like it’s a part of your brand — you’re doing on-the-job training and getting funding for your brand. You’re also earning a paycheque so that any revenue you earn from your sustainable fashion brand, you can reinvest into the business to grow it.
Remember that starting your sustainable fashion brand and taking on an entrepreneurial life can be very challenging, but it can also be extremely rewarding when you begin to see your vision take shape. If you’re still stuck on how to get started, always feel free to send us an email or DM — we’re here to help!
