Covid-19 recovery capital breakdown
Growing a fashion company from scratch requires many things, from products a user needs, establishing stable distribution, quality manufacturing, dedicated teams, skills, and talents but most importantly, the funds required to run it. While we were hit challenges from all angles during the Covid-19 phase, our funds are what hurt us the most. It is very important to us that you can see exactly what we are doing as your trust and confidence in us it utmost valuable.
Initial fundraising of $250k through pre-orders and alternative fundings via creator economy :
Cost of Goods Sold - This falls within the 25% to 35% margin depending on the MOQ purchases. We are limiting stocks to prevent wastage but at the same time reduce the cost of import, logistics fees, and product supply storage to cater to continuous growth
Sales and Distribution Expansion in US and Canada - as 70% of our sales is from the US and Canada, we will be focusing heavily on this which includes setting up our team in sales and marketing as well as connection to retail distribution and storage to ensure online sales turn around time is reduced.
Backlog clearance - This is a challenging portion as most investments would consider this as irrelevant but this was trust given to us and we want to honor it, and financial burden dragged on creates not only a negative image for Mestrae but puts a heavy burden on everyone's shoulders. We want to ensure our financial smoothness is maintained from the ground up.
R&D for Interchangeable Heels - we have a lot of great feedback from consumers. Our goal is to continually create robust shoes with variety in selection, get strong intellectual propriety going as well as increase the design space.
R&D for Wearable Technology - Mestrae will grow from a shoe company to a tech company, expanding its portfolio to wearable technology. We will be sharing more as we progress to minimize copies from competitions.
Manufacturing setup - we are setting up a middle ground between our manufacturing and OEMs by ensuring manufacturers are stable in developing orders for us, along with finding and sustaining with the best shoemakers in the industry.
Buffer - this is a crucial runway before we step into the next role. One of our biggest lessons learned was our pain point from not maintaining sufficient buffer to roll. This runway will be a backup fund so that we do not breakdown as we did during Covid-19
Next stage - We will be looking for a co-founder from the US and raising Seed-stage funding.
Special thanks to the grad team from Imperial College, the UK who went into detail on Mestrae's growth and developed a build-up plan.