So you’re thinking of going solo.
Do you have what it takes to be successful? Running your own business requires a balance of creativity and professional acumen. If you’re thinking about starting a clothing label, ask yourself the following questions first!
Do I have what it takes to own and manage a small business?
The key word here is manage. You might be a great designer and even have access to capital, but are you suited to manage a business? Ask yourself, am I a self-starter? How good am I at making decisions? Do I have the physical and emotional stamina to run a business? How well do I plan and organize? Are my attitudes and drive strong enough to maintain motivation? How will the business affect my family?
After you explore these personal issues, examine some nuts-and-bolts questions.
Have I researched the markets completely?
Potential investors will need to see that you know the market you are intending to enter. So do your homework! Research potential distribution channels: the stores or markets you wish sell to. Visit stores. Talk to salespeople and check customers’ reactions to the fit and quality of the lines they carry. Check markdown racks to identify poor sellers. Visit the higher-priced stores to research innovative firms and fashion trends. Take notes and refer to this shopping report when you design your line and write a business plan.
What legal aspects do I need to consider?
You will need to set up a bank account with company checks and apply for licenses. Research with zoning laws and other regulations might apply to you. An attorney or the small business association will provide specifics that are applicable to your business and state. Consider your tax status: corporation, partnership or sole proprietorship? Fictitious name registration (DBA filing) will also be required.
How do I find suppliers, manufacturers and sales representatives?
Consult your local library, Chamber of Commerce, or small business association to find trade-specific directories and listings. Trade shows and trade papers are other resources.
How much money do I need to get started?
One of the leading causes of business failure is insufficient start-up capital. Start small, and keep a day job while starting up your new venture on the side in order to avoid hefty loans. You must have enough money in the business to cover operating expenses for at least one year. A credit card with a low interest rate might enable you to finance some the start-up and the production costs, but paying it back in a timely manner will be important.
Should I get a loan?
When you apply for a loan, a clear description of your experience and cohesive business plan will be required. (A future column will detail this process.) Loans are often a good source of start-up cash but you have to be organized. When applying for a loan, you should know: 1) How much do you need to borrow? 2) How will you spend the loan? 3) How do you intend to repay the loan? Specific loans are often available for women and minor. Your local small business association can provide more information.
What kind of a profit can I expect in the first two years?
Be prepared to earn a little profit in the first two years of business. After the first couple of seasons there should be enough income to at least cover operations. With good financial planning the cash flow will improve as your business grows.
Would a partner(s) make it easier to succeed?
If you require additional management skills or start-up capital, a partner may be indispensable. At the same time, the wrong partner can be fatal. A partner’s technical or financial capabilities and personality and character must be considered. If you know your partner well, that’s a start, but a careless mix of business and friendship can lead to conflict. Make a list of what needs to be done and use it to clearly define partner roles. Choose a partner who has skills and complement your own talents. Hiring family members can be a rewarding experience or can cause irreparable damage. Carefully consider their loyalty and respect for you as the owner-manager.
How do I intend to market my product?
Weather you market person-to-person, via direct mail, on the Internet or through a sales representative, the objective is the same: reach as many potential customers as possible. You must define your market share and decide how to best communicate your message.
Frances Harder wrote this article for Sportswear International in 2006.
Frances is the founder and executive director of the fashion Business Incorporated, a nonprofit organization that aids young designers. She is also author of Fashion for Profit, a how-to book and complete guide to starting your own apparel company, from concept to consumer, written with the help and validation of 20 industry experts. www.FashionBizinc.org, www.FashionforProfit.com
Hello Frances,
I just got done reading your blog here. Very interesting. Funny thing I was just considering over the past week doing a small clothing line, somehting that pertains to Romantic Shabby Chic Womans wear. I have been searching allover the web staying up until 2AM and going crazy. Im going to purchase your book soon in hopes that will help me out. I currently go to the garment district there in Los Angles and sell womans junior clothing, but I want something that I have created. I wouldnt know where to start. I have ideas for fabrics, prints on the fabric and styles. But where do I get or design the fabric with the pattern ideas I have? You know all that good stuff. Well again I will be getting your book shortly and hopefully this will help me out quite a bit.
Talk to you soon.
Shantle
Spoiled-Bratz
Posted by: Shantle Shipp | September 21, 2006 at 05:03 PM