You would think that if you have a great line of clothes, are good with your needle, fashion angel investors will offer you funds at the ready right? Here’s some news for you, it’s not that easy to get anything done in the fashion world my friend, there are many sharks out there who will strike you down at first opportunity because they want to eliminate all or any sort of competition. That, of course, is fair enough.
But if you want to establish yourself in the fashion business, you have to be on the lookout for angel investors. You have to know how to grab their attention. Showcase your work in as many ways as possible. You can try and attract the attention of fashion angel investors through social media. These angel investors generally like to see the entrepreneurs work hard. In fact, if you are right in the thick of things, you can also attract the attention of larger firms and who knows, great partnerships can be born!
Now, before you speak to fashion angel investors, you need to be careful, because you don’t want your ideas revealed to other entrepreneurs who have the means to execute them before you do. There are some legal precautions you should therefore take.
Before you disclose what you plan on doing, you should get your angel investor to sign a Non-Disclosure agreement (NDA). This is a legally binding agreement which will restrict the other person from sharing the details of the workings of your company with any other person.
Of course, in spite of this there will be a few “unintentional” disclosures, but this will at least keep things under control. In fact, NDAs are reciprocal in most cases, so both the parties involved will be protected. Of course, finally, you will need legal advice to protect your business interests and for further financing possibilities.
When you are dealing with fashion angel investors, you should make sure that very clear roles are defined by you before any accrual investing has taken place. It isn’t so uncommon to find angel investors, who, though they have your business’s best interests at heart, wreak complete havoc because they are under the misconception that they are fashion experts when they are anything but!
Do make sure that you draw up a reasonable agreement, which clearly defines what they can and cannot influence. You also need to check your compatibility with them and find out whether you can make decisions with them on a regular basis. If possible, test their response to a pushback in some way; it is very useful to know what you are getting into before you actually do take the plunge!
A word of caution: Though angel investors are out there to sort of guide your business into become a profit making organization, sometimes, they end up being anything but divine! So, be very careful in your dealings and selection of fashion angel investors!