Your target cost is one of the key elements to properly developing your product. Here is a handy 4 step process for you to use when you need to do quick and broad calculations, or set up your Excel sheet formulas.
Your target cost is one of the key elements to properly developing your product. Here is a handy 4 step process for you to use when you need to do quick and broad calculations, or set up your Excel sheet formulas.
Business planning involves putting your ideas down and really defining what your company is all about. It gives you focus on the direction you want to go.
There are many things you need to cover when starting your own fashion business.
Some of the things you have to do include:
1) Determining your marketing strategies and distribution strategy
2) Analyzing your competitors
3) Compiling your start-up and succeeding costs (particularly in the first three years)
4) Planning to grow and expand your business.
1) Expenses
2) Budget
3) Funding
4) Accounting
Expenses
These are the different things you invest in as you start your business. Some of them become recurring expenses. Let’s look at some of your major expenses:
You can either:
● Sell it yourself
● Sell it wholesale to retailers only
● Or be a retailer and wholesaler of your clothing line
Sell it yourself
If you plan to sell your own line, you have the option of opening a brick-and-mortar store or an online storefront. Obtain the permits required in your area to run a retail business such as registering your business name and resale permit or sales tax permit. Such business documentation will be necessary in order to open wholesale accounts with clothing suppliers.
The next thing you need to do is find selling venues for your clothing business. The most expensive venue is a traditional, physical store. But there are also some feasible options. Have you heard of the rent free retail incubator with Downtown Winnipeg Biz? You can check that out here.
Less expensive options include mall kiosks, temporary pop-up spaces, your own e-commerce website through companies such as Shopify and Etsy, online marketplaces like Ebay, and social media websites.
Some people have success only selling their clothing brand online. If you do this, include the address for your website on your clothing labels so that customers will remember where to go to get more of your products.
Tradeshows are great venues to promote and get sales leads for your clothing line. Winnipeg currently does not have a fashion trade show or fashion week. If you’d like to support a Winnipeg fashion trade show to showcase your collection along with other designers and local resources (photographers, manufacturers, fabric suppliers etc), email us here.
As you sketch, come up with a gotta-have-it-item in your collection. Diane von Furstenberg did it with the now-ubiquitous wrap dress while Tory Burch had her Reva flats.
Feel free to download any of these worksheets
Budget Worksheet (Operating)
Budget Worksheet (Startup)
Fashion Calendar
Garment Definition Worksheet
Invoice
Order Form (Wholesale Client)
Sample Garment Checklist
Tech Pack