Planning to start a fashion company think, money, money, money and more money!!!!!!
My fashion company was started with a business cash award from Salford Business Start-up Awards, to win this prize I had to write a complex business plan and keep business accounts. Honestly even though I did all the paperwork, I never bothered to look at the business plan as it was too complicated, which lead to failing to monitor my business finances properly, resulting in my business going under. To learn more check out my blog post, “How I Failed in Fashion During the On-line Boom”.
To write a business plan you will find loads of complicated templates on-line and if you have been to business start-up workshops they may have told you loads of unnecessary stuff. I believe in keeping it simple, a simple business plan is key to being successful, so below is my guide.
Make it Legal Register your company
Simply register as a sole trader at HMRC, each year you just have to submit how much money you have spent and how much money you have earned. Get cheap public liability insurance from somewhere like Money Supermarket, at first just do this, keep it simple.
Simple Guide to Business Planning a Fashion Company
- How much money do you have now to start the company?
- What are you going to sell, keep it simple start with just one area such as dresses?
- Where are you going to definitely sell, on-line or in a shop?
- How are you going to advertise and how much will it cost?
Business advisors say all the time as a business you expect to loose money in the first few years and not to make a profit. If you are small independent fashion business you just can’t afford to do this and need to be making money immediately. I believed the advisors, even when I was losing thousands I continued to plough more money into my business, buying more stock, becoming more desperate and making more bad business decisions due to this. Follow my simple tips below when completing your business plan, as a guide to manage your money.
- The money you have now spend 30% on equipment or stock, so you have things to sell immediately.
- Keep 70% of your money for advertising, getting that first sale quickly is so important so pay to get seen on social media or use Google ads.
- Sell your items or services with a mark-up of 50% of what they cost you too make, this profit you can put back into your business and buy more stock.
- Trial company for three months, keep a spread-sheet of business accounts incoming, outgoing money and what for.
Business Not Working
If you don’t have enough money for stock or advertising, or after three months you have very few sales your business plan is wrong. If you can’t afford initially stock or advertising then you need to find a cheaper product to sell to a more niche market so advertising is cheaper, for example I found it easier to selling cheap personalised kids t-shirts, then digitally printed, tailor made dresses. If you are not selling it could be your prices are too high, so again you need a cheaper product or your advertising, selling in the wrong places.
For more help about what are good fashion items to sell, where to sell fashion on-line, how to use Google ads and social media check out the rest of my blog section “How to Start a Fashion Company”. Once you have check out the rest of my posts, go back and make any changes to your business plan.