Fashion For Profit

A designer with it all - Tallent plus business drive - A +

Ximena Valero Bows at FBI Center - From Apparel News

June 19, 2009

Photo by Volker Corell

Photo by Volker Corell

Photo by Volker Corell

Mexican-born designer Ximena Valero presented her Fall 2009 collection to buyers during a runway show hosted by Fashion Business Inc. at its new headquarters in the California Market Center on June 12. The collection, cut exclusively from slinky fabric and chiffon, ranged from party-girl mini-dresses to body-conscious floor-length gowns in jewel tones and neutrals. The Los Angeles–based designer paid special attention to edgy back details, creating complicated straps, how-low-can-you-go plunging backs and classically feminine touches, such as flowing ruffles, A-line skirts and prim details. —Erin Barajas

Finding a Fashion Job in a Tough Economy

Finding a Fashion Job in a Tough Economy   This free seminar shows you how to MAXIMIZE your chances of finding a job in this challenging economic climate.  Get the latest on what apparel companies are looking for in a successful candidate and what you can do to stand out from the crowd.       Specific Topics Will Include: --Keys to a Winning Resume and Cover Letter --Marketing Yourself in the Freelance Job Market --Selling Yourself with Superior Interviewing Skills --Negotiating Your Salary in a Tough Economy --Helping Recruiters to Help You Land a Job   This event is being presented by Fashion Business Inc. and 24 Seven, the leading talent recruitment agency for the biggest names in fashion, retail, action sports, home, beauty, marketing, advertisement and entertainment industries.   Date:  Wednesday, July 8, 2009 Time:  5:00pm Cost:  Free Where: Fashion Business Incorporated, California Market Center, 110 E. 9th Street, Suite C786, LA RSVP Required:  Ralinda@fashionbizinc.org

June 12th Fashion Business Inc., Fashion show

: http://littledesignerbook.com/?p=1219

Fashion For Profit Workshop

If you’re in Southern California, I have good news! Fashion For Profit will be in your area sponsoring a workshop to help you learn the ins and outs of starting your own business in the world of fashion.  You’ll meet me, Frances Harder,(Founder/Executive Director of Fashion Business Inc. www.fashionbizinc.org) and Dana Fried, the Managing Partner of Delphic Consulting Group.

We have other workshops planned for other areas around the US so register your email to get updates of when and where we will present next: July 11th & 12th - LA, -  August 1st & 2nd Phoenix, -  August 15th & 16th Dallas, -  November 14th & 15th Atlanta

Some of the important topics you must understand before investing both your time and money:

- How to turn your creative ideas into an apparel business

- What licenses you need and how to get them

- Legal issues and how to set up  your company

- How to determine your funding needs and where to find financing

- Setting the course for success with a sound business plan

- How to get your samples made

- Finding the right manufacturer and how to protect your IP

- Pricing and how to ensure profitability and margins for growth

- Trade shows and what you need to know

- Sales, marketing and branding your product

- How to protect your cash flow in tough economic times

- How to create budgets needed to ensure your business stays on a successful course

Location: The CAMP; 2937 Bristol Street in Costa Mesa, CA 92626

Register by phone: (213) 892-1669 or by email: info@fashionbizinc.org

Registration Fees:

Early Bird (before May 30)- FBI members and students with valid ID $200.00, Non-Members $250.00

After May 30- FBI Members and students with valid ID $225.00, Non-Members $295.00

Space is limited. This is a fantastic opportunity to learn from some of the best in fashion design and merchandising. If you feel that your business could use a jump-start, don’t miss this opportunity.

Should I Start My Own Business In a Recession?

Many argue that it is a good time to start your own business during a bad economy.

Often when the economy is booming, a manufacturer, or retailer can have a greater margin of error.  This type of margin of error could be defined as poor planning, which could result in failure, or not paying attention to running a profitable business.

Now maybe the right time to plan for an investment into a new business, which could then reap the rewards for better times to come. A new business is, by definition, SMALL and as such has few responsibilities or overheads, except YOU the entrepreneur!  So, if you are thinking about taking that leap of faith, you should take time to plan and to ensure you have the financial backing, experience, plus partners to ensure future success.

Take time to understand why some businesses survive and some don’t. One very important and vital part to a successful business in a slow economy is customer loyalty. It will be those with good relationships with buyers and with clientele who will get paid on time and enjoy returning customers. If people are not buying based on price and product, they are buying based on service…

This very important topic I would like to address in my next blog.

I have put it of long enough.....!!!

What a drag after so much fun shopping for it.  I have been cleaning out my clothes closet this weekend!! So now, so much to give away!  Must not shop for the next............... few days, weeks months or even next few years!

 

But, like a drug/alcohol addict, I know I will need that weekly fix (reward) again very soon, or I maybe subjected to withdrawal symptoms of depression on top of anxiety. We females seem to need that mindless reward of walking aimlessly around a mall after a busy week. The quick fix of buying something new to wear. A boost to our self esteem?

 

Interesting the way we western women buy clothes as a reward. Another pair of anything, or a new top of any kind we really don’t need, but why do we keep on buying???

 

The truth is we really need IT!! Men have their own very strange wants and addictions, we women have very simple needs! To shop and shop!

 

Why at last are the car manufacturers realizing it is the women who mostly make the choice as to which car to buy? That chauvinistic car sales man who onced asked me,  “ where has your husband gone” when my husband left to play cards when we purchased the good looking, but very badly engineered VW bug!

 

Whether, cars or washing machines, or where to eat out, if it comes to buying power, women do a lot of spending.  

 

All of the above is of course tong in cheek. In the western world, even though going through such tough financial time are so very much more fortunate than most of the rest of the world. For the most part we still do have the ability, culture and the choice to buy something on a regular bases, whether from Target or Niemen’s.

 

Which, is another new topic for my blog………… Why are clothes still so cheap?? They have not increased in price in the last 20 years.

 

Picking cotton, or sheering sheep, or producing micro fiber, the process of producing clothing is very labor intense. Yet, we can still buy a pair of pants with all that hands on work for $30.00! Amazing! Most people don’t realize the amount of work involved to produce the fabric, the cutting and sewing involved to produce a garment, and then for the retailer to mark up and make a profit!

 

 

California Garment Manufacturing License

Yes, if you are in California and you are purchasing the fabric and having the contractor sew your sample or production you are defined as the manufacturer.
Go to www.Calgold.gov or google -  garment manufacturing license for California.
Best regards,

Frances
www.fashionforprofit.com

Hi Frances I have a question, in your book Fashion for Profit you have a section on "bookkeeping" in which you talk about acquiring a Garment Manufacturing License. I am confused, if I am designing but I do not actually sew any of the items instead I use a manufacturer do I still need this license? I dont plan on having a location where I will house employees (aside from administrative), sewing machines etc.. so I am not sure if I still need one or not. Could you clarify for me please?

Finding a Sales Rep for Your Line

Dear Frances

I am a new business and just showed my first samples at the ENK Show in NYC.  Thanks so
much, FBI, for existing!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  I wish I were in LA to go to so many great offerings, but I'm in the Philly area.
 
I am curious to know if you know any sales representatives interested in having more lines
to show. 
 
My clothing is high quality infant (0-24 month) apparel.

I would suggest that you inquire at stores you wish to sell to and find out which trade shows they attend and what reps they deal with. Like all parts of this industry it is important to know who you are dealing with and if they are the right fit for you and will represent your company's needs.

There are many horror stories out there of manufacturers choosing the wrong reps and visa versa. It is up to you to find your own representative. You can buy books with lists of reps and the types of lines they rep but it is all about personality types and getting references, plus you will need a good agreement in place with them.

You should fly to LA and walk the Marts to find the right showroom for your line. I am sorry but there is no easy way around this.

You can check out my two websites for more help: www.fashionbizinc.org & www.fashionforprofit.com

What Doing Business in a "New Economy" Will Mean

What Doing Business In a “NEW” Economy will mean.

There are a few other considerations besides the chaos in our global economy that has resulted in the downturn and lack of sales in the world fashion. Today’s trend in fashion is all about buying interesting contemporary items to add to existing clothing items that are already hanging in closets.  Most of us have enough jeans and other basic clothing to dress up or down, so this new trend I feel was already evolving before the economic turmoil.  It is a product of today’s casual life style that has resulted in confusion for the retail buyers as to know what in fact a “trend” is.

Retailers such as Zara and Forever 21 changed their methods of production and buying habits a couple of years back. They produce small lots and replenished weekly. This was in motion before the truth about corporate greed and insecure investments came to light.

Contemporary fashion demands speed to market that often means domestic production, which due to most sewing contractors losing their production to off-shore competition, good compliant domestic production it is hard to find.  We now need to support speed to market by building and supporting more infrastructure for sewing contractors and apparel manufacturers. In order to achieve this, we need to help them with, financial investment and education to support changes from old production methods to newer “fast fashions”. They will need to retool and regear to accommodate smaller production runs.  This method is called “modular” production, a word I think we will be seeing more and more in the future.

It is important that we restore faith for investors both in the US and around the world.  Our free market is the foundation of the US financial system. Restoring that faith is one of the first steps on the road to economic recovery. The new evolving economy will need investment in new technology, infrastructure and also to embrace modern methods of manufacturing. I feel there is light at the end of the tunnel, but the recovery will not be soon or rapid. Step one is recognizing our problems and finding a solution and acting ASAP, “Speed to Market” has to be our new global chant for a new economy.

New Law for Apparel Manufacturers – VERY IMPORTANT YOU KNOW ABOUT THIS

Consumer Product Safety Improvement Act.  (CPSIA) covers ALL consumer products, not just children's
There are 2 pieces of law that need to be addressed:

• GCC - General Certificate of Conformity. This is a self declaration by the importer of record (or if it's a domestic brand - by the manufacturer and/or brand) essentially saying that your product meets all federal requirements and has been tested in a "reasonable" manner. It covers ALL consumer products regardless of age grade.
• CPSIA 3rd Party Testing Requirement. This applies to children's products only (ages 12 and under). The importer/brand must have a valid test report from an authorized/approved 3rd Party Testing Lab (BV is one of the approved by the CPSC). This covers various things including Lead and Phthalates.

Feb. 10th is a key (critical) date for all manufacturers/brands and retailers. CPSIA essentially says that effective 2/10 any and all product currently on the floor (in inventory) must have been tested to a reasonable program for Lead in Substrates and Lead in Surface Coatings. Ex: If a product was manufactured on 3/1/08 and is still in the retailers’ inventory on 2/10 then the manufacturer/brand must be able to certify that the product was tested and is compliant w/ the legal lead limits.

CPSIA is still evolving. Since this is a legal issue I strongly recommend all companies consult w/ legal counsel.

Go to: www.apparelandfootwear.org for further information.

Also, in today’s LA Times is a good article:

--------------------
Children's clothing makers in a frenzy over lead testing
--------------------

As buyers converge on the L.A. garment district to decide what to stock in stores, already struggling manufacturers are scrambling to have kids' items tested to comply with federal law.

By Alana Semuels

January 16 2009

Jennifer Taggart's testing gun seems an anomaly in this California Market Center room filled with pink tutus and flowery white baby gowns. She holds a laser gun, called the XRF Analyzer, to a tiny dress and waits.

The complete article can be viewed at:
http://www.latimes.com/business/la-fi-lead16-2009jan16,0,2603976.story 

From Earnshaw's magazine

Money Tips
Financing Your Business: Giving (and Taking) Credit Where Due

" Having a basic knowledge of . . . financing options is an essential skill needed by today’s business owner. . . Without it, the failure rate increases dramatically. Lack of adequate capital and failure to apply basic financial management techniques is the number two cause of business failure. Poor overall management and lack of a focused marketing plan are the first and third reasons . . . "

Peter Linington
Vice President, CIT GROUP
From "Financing Your Business" Chapter 5
Fashion for Profit by Frances Harder*
http://www.fashionforprofit.com

Who doesn’t need more money? But knowing where and how to find the right credit to get you over downturn bumps and sluggish cash flow can be time consuming, tricky and risky. Invest first in the time to gather sound advice from your bank officer, accountant, investors, business counselors, local Small Business Administration and online and other research sources. Here’s just a bit more than two-cent’s worth of financial tips to make dollars and sense:

• Start the Money Search. Better to know where to get cash before you need it to keep your business going. Even if you’re coasting along, be prepared and search for sources to sustain cash flow. Check out free information online about commercial loans, credit scores, equipment leasing, cash advances, working capital, accounts receivable financing and protecting your personal credit. Start at a general information site that provides lots of information and objective options, such as http://www.businessfinance.com (over 4,000 sources of financing!)
• Know Your Banker. If you do not already have a personal business relationship with a bank officer at your branch, foster one. The more the banker understands you and your business goals, the better the opportunity for the bank to adapt its services to your unique needs.
• How Much is Enough? The answer to that depends on the answers to a lot more questions lenders will ask. Be prepared in advance with thoughtful answers. What’s the purpose of the loan? How much personal debt do you have? How much capital is invested in the business? What personal and/or business collateral do you have? Can I see your business plan? How and when can you repay funding? What is your cash flow? Do you have a CPA, attorney, life and liability insurance? What is your business experience? What are your past business success stories? Is it circumstances, setbacks or growth opportunities that require new financing?
• A Partner May Offer More Than Additional Debt Can. Instead of incurring more debt, consider selling equity (ownership) in your company. If you find the right partner, he or she can offer you more than just added capital. Look for talents that complement your current team. A good partner is a gift. The rewards can save your business and provide new opportunities. Instead of a hands-on relationship, there are also venture capitalists that will silently invest in your business, potential and vision for a percentage of profits. Both options could be a better solution than borrowing from lenders.
• Deal with Suppliers. Put creative wheelin’ in your dealin’. Part of financing your business is the history, relationships and payment terms you establish with a variety of suppliers that provide your goods. Earn a relationship of trust by paying on time, over time. Then, if needed you can ask for longer payment terms. Delay payment as long as possible without incurring added charges or jeopardizing trust. Even offer to pay a bit more for fabric and other goods if you can take longer to pay. Such deals can be less expensive than loans and credit lines. Bartering is another option that has gained acceptance in these recessionary times. Can you offer goods or services in exchange for something you want from your suppliers? If you approach negotiation from a position of trust, fairness and teamwork, both parties can give-and-take together and keep business on track.
• Keep Ship Shape. "Don’t ship more than you can afford to lose," advises Kenneth Wengord of FTC Commercial Corp (www.ftccc.net ), a factoring operation specializing in apparel. In shipping orders, protect yourself in advance by not letting greed cloud reason. Don’t over sell or over ship. Retailers are asking clothing manufacturers for credit and merchandise returns. Remember, you are not a banker. Wengord cautions, "Don’t ship C.O.D. If you have concern about payment risk, request payment by credit card. If the retailer is slow in paying, and you assess that the issue is timing of payment versus not receiving payment, then ship in limited amounts. Make it a merchandising/sales decision, not a credit decision."
• Don’t Get Over Your Head. Reduce Overhead. In a sink or swim cash flow, Wengord cautions apparel manufacturers to "keep your overhead as low as possible and keep your inventories lean." More careful planning can keep you from buying too much inventory that you have to sell off. Overhead adds more employees and builds an infrastructure. But when the market turns, you can’t turn it off fast enough. When that happens, a brand with lower operating costs can come in and beat you in price.

There’s so much news about economic woes, we need to pull together and communicate openly with our vendors and retailers to come up with innovative solutions to credit, sales, costs, and selling both at the wholesale and retail levels. What have you found to be credit worthy solutions? Have you discovered your silver linings? Let us know. Email Earnshaw’s Marketing Director David Gaunt, dgaunt@symphonypublishig.com.

* Special thanks to Frances Harder, president and founder of Fashion Business Inc. (FBI) and author of Fashion for Profit, which was a reference source for some of these financing tips. FBI provides the fashion industry with resources and business education to turn business into a profitable reality. Check out the website for services and seminars. www.fashionbizinc.org.