Fashion Start Up 101

Interestingly enough few fashion programs have entrepreneurship style courses that teach designers how to handle all the in’s and outs of starting their own label.

So what are some of the first steps to get started?

1. Make a Plan–Business planning can make the difference between a thriving company and a company that goes nowhere. You can either take low-cost classes at organizations like FBI or the Small Business Administration or you can go it alone with business planning books from your local library or bookstore. In your plan you’ll define things like your business structure, finances and your sales and marketing strategy.

2. Determine Your Budget–Depending on the type of product you’re selling, your personal skills and launch strategy you could be looking at 100K or more to get your line off the ground. Don’t let this number scare you, it could be much less or much more…but again that depends on your circumstance. What’s important is that your budget makes sense with your goals. It would be fruitless to think you could create a sample line of cashmere sweaters, hire an assistant, attend a trade show and support your first sales orders on a $25,000 start up budget. You’d be surprised at how many business owners are working towards a grand plan they simply don’t have the funds to support.

3. Make a Sample Line–If you’re a wholesale company you should only produce samples to start…….NO Inventory. The last thing you want to do is tie up your precious startup dollars with inventory that buyers could or could not want to buy. Of course you’ll have samples from development but don’t get over-excited and start ordering spare samples just for fun, which is an easy temptation when you first get started. Sample costs add up quick, and at the end of the season if the product is still left hanging around you might just be left thinking where your starup dollars could have been better spent…PR? Marketing? An inspiration trip to the Carribean? Now that sounds like some serious buyers remorse…..

Out of Our Minds....

The book I'm reading this week is called "Out of our Minds...Learning to Be Creative," by Ken Robinson. Although Ken is a little verbose and has an affinity for words most people have to look up in the dictionary, this book brings up a lot of interesting points regarding the art of creativity.

One point I particularity like, explains how a common yet faulty assumption is that being creative should in some way be isolated to the arts. His rationalization includes the thought that wherever you find great success stores whether in business, medicine, sports or rocket science creativity is usually one of the most active ingredients.

So if you're a designer and consider yourself a “creative,” instead of an “analytical,” type don't shy away from practical seemingly less interesting business matters because you don't consider it your "territory," or "expertise." I encourage you to extend your creative juices into some of what you may feel are less glamorous matters of your organization.

Step away from the sketch pad and take some time to work "on," your business....not necessarily "in," your business.

Carve out a day to brainstorm on new business initiatives...or think about how you may be able to creatively increase your profit margin by using new materials or create ways to boost morale amongst your employees and outside contractors.

If you're creative in any way which most all of us are...expand that creativity to more areas within your business. Running a healthier more profitable company should be all the inspiration you need.....

Sharpening the Saw

The only thing I really miss about working in a large corporate environment other than paid time off, stock options, employee discounts and a 401K would have to be learning from the smart and dynamic people that exist in that type of arena. I miss things like watching the way the CEO would help rework the collection changing it from drab to fab with just a few strokes, getting advice from a superior I respected or team meetings where everyone had a different expertise and perspective to share.

Author Steven Covey in his book The Seven Habits of Highly Effective People refers to continuing education as “Sharpening the Saw.” And although in a corporate environment that SAW is sometimes used to stab people in the back:)….Lifelong learning is something that we all should learn to embrace.

Tonight I teach a web marketing workshop at a resource center called Fashion Business Inc. in downtown Los Angeles. In addition to sharing what I know and learned (the hard way at times), it is just another opportunity for all involved to network, share woes, successes and ideas with other fashion business owners.

I know its late notice but as Chuck Willorary says if you happen to be in the Los Angeles area and want to join our live studio audience please contact Fashion Business Inc at 213.892.1669 or www.fashionbizinc.org.