Hey all, I'm about to start my own little t-shirt business on a shoestring budget, and I am trying to figure out how much working capital I will need to have ready.
So, if I were to order 25 shirts in one design it would cost ~$200 (about $8/shirt), right? Cool.
Here's my concern. If my design were to start selling like hotcakes (crosses fingers), I might need to order more inventory in a hurry. If I sold all 25 of the initial order I would have ~$350 ($200 + ~$6/shirt profit) in my 'account'. So, can I use that $350 dollars to order more inventory, or do I have to pay separately for more inventory and wait for that $350 to show up in the form of a check?
If I can keep 'recycling' capital for inventory, awesome.
If I have to keep shoveling money into inventory and wait X number of weeks for the profits to come back, I'm going to need a lot more capital to start.
And yes, I read the FAQ, but this particular issue was not very clear to me.