Most founders work out correctly what it costs to produce their first batch of clothing. Far fewer work out what it costs to survive until that batch turns back into cash. The gap between those two figures is why so many new brands stall after their first collection: they have stock, but no money left for marketing, replenishment or rent.
Work out the real capital requirement
The capital needed for a first batch has three parts:
- Production cost: fabric, cutting, sewing, trims, labels, packaging, printing, freight.
- Launch costs: photography, website or online shop, samples, first campaigns.
- Running reserve: fixed monthly costs (rent, accountant, subscriptions, perhaps wages) for the period until sales cover costs.
A hypothetical example for a brand launching a tracksuit (hoodie and joggers) in 200 sets:
- production: 200 × 140 lei = 28,000 lei
- launch: photos, site, samples and initial ads = 12,000 lei
- reserve: 4,000 lei a month × 4 months = 16,000 lei
Total: 56,000 lei. If the founder only has 30,000, they must either cut the batch, find the rest elsewhere or shorten the time cash stays tied up.
The usual sources of funding
- Own savings. The cheapest and simplest, but limited. Decide in advance the most you are prepared to lose.
- Pre-orders. Customers pay before production and you make to real orders. Works well if you already have a community; communicate the delivery date clearly.
- Deposits from B2B clients. If you also sell to companies or shops, a deposit on order funds the fabric.
- Bank loan or credit line. Usually needs a track record and security; discuss terms with your bank.
- Grant or guaranteed-loan schemes. Programmes for start-ups and SMEs appear periodically; conditions and timetables change, so check official sources and take specialist advice.
- Partners or investors. They bring money, but also a share of the decisions. Put everyone's rights in writing.
Cut the capital you need before you look for money
The safest funding is the funding you do not need. A few ways to shrink the starting sum:
- Launch fewer styles. One strong product in two colours is easier to fund and to sell than a ten-style collection.
- Produce in two tranches. A first batch of 80 to 100 sets, then another once you see which sizes and colours sell.
- Buy fabric from stock in the exact quantity you need, rather than ordering a made-to-order colour with a 150 kg minimum.
- Negotiate staged payment for labour: part at the start of production, part at the end.
- Postpone costs that do not sell directly, such as expensive custom packaging.
Example: splitting production into two tranches
For the tracksuit above, a first batch of 100 sets costs 14,000 lei, plus launch costs and the reserve. The initial requirement falls to 42,000 lei. If the first batch sells within two months, the takings fund the second. Cost per piece may be slightly higher on smaller runs, but risk and tied-up capital drop considerably.
For a core tracksuit, a fabric with a soft back and a mid weight that can be worn for much of the year is the safest choice for a first batch. We would use our 220 g/m² navy 2-thread fleece, available from stock by the roll: you can buy exactly what you need for the first tranche and come back for the second once you have real sales data. Other weights and textures are in the french terry and 2-thread family.
Plan cash flow month by month
Build a simple six- to twelve-month table of expected cash in and cash out. Each month, note:
- payments for production, marketing and fixed costs;
- expected receipts from sales, estimated cautiously;
- the closing balance.
If the balance goes negative in any month, you need extra funding before that point, not after. Update the table monthly with actual figures and adjust production decisions accordingly.
Common mistakes
- spending all the capital on production and nothing on marketing;
- an oversized batch to make it cheaper per piece;
- short-term loans for stock that sells slowly;
- pre-orders sold without a realistic delivery date.
If you want to work out the exact cost of your first tranche, ask for the stock list or send a quote request with your estimated quantity.
The figures in the examples are hypothetical and only illustrate the calculation. They are not Alteks Tricot prices: we quote the price per kg of each article on request, usually the same working day. Ask for a quote
Frequently asked questions
How much reserve should I keep after launching my first batch?
A prudent rule is to have fixed costs covered for at least three to four months, plus a marketing budget for the same period. First sales often come more slowly than hoped, and without a reserve you risk dumping stock cheaply just to pay the bills.
Are pre-orders a safe way to fund production?
They are useful if you already have an audience and a reliable supplier. The risk is delay: if production runs late, customers get frustrated. Give a realistic date with a safety buffer and keep buyers updated on progress.
Is a bank loan worth it for a first batch?
It may be if you have a realistic sales plan and can repay even if sales are slow. A loan for an untested product is risky. Discuss terms with your bank and work through the pessimistic scenario before signing.
