There’s no shortage of creative talent at fashion schools, but not every designer manages to turn their passion into a functioning, profitable business. That’s why the British Fashion Council has released a report to help designers make a living from their work. Here are 5 important points of the most useful tips:
1. Behave as a business
To build a successful label, you’ll have to think like an entrepreneur from the start. That means understanding how a business works and putting together a plan that lays out short-term, medium-term and long-term goals. Once your company is up and running, build solid relationships with manufacturers, buyers and investors by being consistently reliable and honest about what you’re doing.
2. Recognize the importance of product development
Start small with one product line, then develop the brand from there, in a way that feels consistent and carries forward the same design DNA.
Setting the right price for your product is crucial in finding success. Work it out by starting with the amount that a customer would be willing to pay, and working backwards to calculate how much you can spend on materials and manufacturing while still turning a profit.
The report recommends that young designers pay more attention to feedback from buyers than from the press; good reviews are nice to have, but the only thing that will sustain a business is sales.
3. Understand and address the challenges of production
New businesses can often struggle with production – you’ll be ordering small quantities at first, which leaves you in a poor bargaining position with manufacturers. They may ask you for a deposit long before you’re going to receive payment from a retailer. This can be difficult, but it’s essential to pay promptly so that production is not delayed – otherwise you could end up late to deliver to retailers, damaging your relationships.
4. Find the key to sales and distribution
To be successful, you’ll need to get the attention of buyers. They’ll want to know what’s unique about your product, how it fits with their other brands, whether it’s at the right price point, and whether your business is well-structured. “I think what could be improved is the designers’ sense of place,” says Anne Pitcher, managing director of British department store Self ridges. “They need to know how they compare to the competition. Who is going to buy the product? Where you would like to be sold, realistically? Will it be the right price? These questions have to be answered before picking up a pen to design.”
If you’re planning to sell online, be aware that colorful and printed products are usually most popular, and any garment with an unusual shape or fit is going to be a tough sell on a website. You’ll also need a complete range of sizes. Once you can afford it, setting up your own website will maximize your profit margins and give you direct access to customers.
5.Understand the importance of cash flow, funding and financing
One of the biggest challenges you’ll face as a new business is that cash flows out – for product development and manufacturing – long before it comes back in from retailers or customers. From the very beginning, you’ll need to know where your funding is coming from and keep your finances under control. Taking investment can mean losing some of your control over the business, so think carefully and don’t give away too much too cheaply.
Hope this blog can help you take the right decision at right time. To know more, subscribe to our newsletter and get notified about new articles to help your Fashion Business.
