Fashion For Profit

You are the Manufacturer

You are the Manufacturer

I am posting an email I received this weekend and my response as it is a very typical example of emails that I regularly receive

Dear Frances:

First of all, I would like to sincerely thank you for putting together the FBI and all the other resources for fashion designers and apparel manufacturers. Though we are based out of Texas, i refer to your website on an ongoing basis for all the valuable information it has to offer. I have purchased your books- fashion for profit, costing for profit, the dvd seminar, as well as the dvd seminars for fashion for profit, operational management, putting together your sales team, and a well crafted sales agreement. I have read it from cover to cover at least twice and I am constantly finding myself referring to the books when i am at a particular stage of development. The information is in such a concise and easy to find and read manner that, quite honestly it is worth its weight in gold. I only wish we were in california to better take advantage of all the seminars that you offer :) but nonetheless, thank you.

I just have one question that i am hoping you can help me figure out- it has to do with business licenses- we are based in texas, but our contractor/manufacturer that we work with is based in orange county california. Would we need to get a license from California or one from Texas, or both? If I need from california, is it possible to get one without being based there? any light that you can shed on this topic would be greatly appreciated.

regards I H Plano, Texas

Hi I H!

Thank you for your very kind words. I am cc-ing Jesse Atilano who is a compliance expert here in Los Angeles: jatilano@laborlawinc.com (Jesse L. Atilano)

I am not fully sure of the answer to your entire question but what you are in fact referring to is in fact the Manufacturing license, not your business license, which you obtain from your local city where you conduct your business. I do know that if you are doing business in California that you would need to apply for your Manufacturing license. You are the Manufacturer as you purchase the piece goods. The contractor is contracted by you to sew your goods. They need to show you proof of their contracting licenses.

If you are doing business here in California and you are from out of state but using a contractor here in California it is VERY important that you make sure that your contractor provides you with evidence that they have their contracting license. Get a copy of it. If possible see their original copy which should be posted in their place of business. If you are working with a California contractor who has not provided you with his legal documentation you maybe at risk of having all your production confiscated and being fined.

You should be able to find a full answer by going to www.Calgold.gov or by google -ing Manufacturing license. Other wise Jesse may have the time to help you with a for sure answer to your question. Good luck!

Best regards,

Frances Harder

Welcome to my Fashion For Profit Blog!

Welcome to my Fashion For Profit Blog!

First I must ask you to please be patient with my lack of technical skills. As time progresses I hope I will feel more comfortable with this medium.

Arnie, my webmaster is helping me to understand the ropes of what is expected from "Bloggers"

However, I would like to use this opportunity to keep you informed as to some of the daily dramas, good and bad that occur within the LA fashion community in downtown LA, where my Fashion Business Incorporated (FBI) office is located.

For those of you that do not know what I do, and have been doing since writing Fashion For Profit and teaching, here is a short update. I founded the FBI, in 1999 (educational business development non profit), while teaching at Otis College of Art & Design in LA. Of course it didn't just happen and how I managed to create this one of its kind business center is in its self another book!

The FBI was first realized from my own experience as a designer/educator who had seen many talented designers, me being one; fail due to their lack of business skills. So, I educated myself and trained that other half of my brain as to the importance of business skills in running a successful designer/manufacturer company. Taking good creative ideas and learning how to be "commercial" is not usually part of a designer’s vocabulary or training.

Fast forward seven years later:

September 20, 2006 6.30am Start the day with checking emails and walking dogs.

9.30. Drive to downtown LA (28 miles) in my new Prius (love it) to the FBI center in the prestigious

New Mart Building 10.30am Meeting Cheri Bodenstadt, FIDM’s assistant fashion dept. chair to talk about up coming fashion show on the 20^th October. She is an ex student of mine from Otis and loves to produce fashion shows.

Meeting with Andrea Gonzalo (of Project Runway fame). He is also ex student of mine from Otis and is working here for a few weeks.

Lunch meeting with the editor of the Apparel News to talk more about events and up coming seminars.

More meetings………

Must finish writing this as I now have a seminar to prepare for.

Check out 4.45pm

Frances Harder

Business Start-up CHECKLIST by Frances Harder

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