Fashion For Profit

Frances’s Commencement Speech to This Years Graduating Students

We currently live in exciting times, of fast changing international businesses and a global economy. Ecommerce allows us to transfer ideas from one part of the world to another almost instantaneously. This has had an incredible impact on the way we now do business.

I began my career in the late 60’s. My internship opened my first career opportunity, which then led me to my first teaching position at my alumni college, and so began my interesting, varied and very rewarding career, which has taken me around the world a few times. 

I have reaped many times over the benefits of those initial four years at Art College in Manchester, England.  I have used my many experiences to consult on design development to many interesting clients, including the Sultan of Brunei, and had my name under license in Japan. I have taught in many colleges and schools both in Europe and the US.

This year I was invited to be a guest of the French government as part of a US

delegation on intellectual property protection. What a special treat that trip was for me, a fashion designer and to visit all the top French fashion houses.  I have just returned from a working visit to Guatemala City, where assisted a large apparel manufacturer with product development.

However, not all my jobs have been the best of experiences, and yours probably won’t be either. But that’s OK!  We learn a lot from negative work experiences and it will be important to turn those bad experiences into a positive learning lessons.  In order for you to succeed, you must learn to recognize opportunities, and to move on when the time is right. 

Find work you love enough to take risks that may sometimes require taking a leap of faith! I hope you all find that passion! Most of you will experience working in difficult situations for difficult people. It will be important to recognize when to move on and not to feel defeated when that happens. We all go through those types’ experiences...  Many of us in the fashion industry have worked for THE Devil Who Wears Prada more than once!

You will work with people from diverse backgrounds who come from many different countries, religions and cultures. Work is about communicating and you need to know how to effectively communicate so that you can work along side others as a team, and eventually become a leader.

Invest in travel, you will reap the many benefits and travel will make you realize how fortunate we are in the US and how most of the rest of the world are not so fortunate. Travel will also teach you much about the many different cultures, which will be an important part of your global networking. Discover the differences between Paris, London, Munich, Milan, Rome and Moscow. 

Enjoy the colors and the traditions of India and Mexico. The old and new beauty of the new industrial China. Visit South America where they manufacture and produce much for us in Northern America.

We communicate via emails, Blackberries, cell phones, virtual conferencing etc.  The use of technology is exploding at an amazing rate. It is all consuming and at times very annoying to have cell phones buzzing and ringing when you want to concentrate, or sit in a meeting with an A.D.D. person, or persons, who thinks it is OK to instant message when their full attention should be focused on the topic!!

Today, you are heading out into an industry that may seem to be very different from the one I entered 30 years ago, but which in many ways remains the same. The same rules count, networking, hard work and your own integrity. The basic rule in life is “DO UNTO OTHERS AS YOU WOULD HAVE THEM DO UNTO YOU”!

Business Start-up CHECKLIST

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.