Perhaps the first question to ask is are you ready to run a business? Are you ready to put in all the hours, weekends, free time and holidays to get your company off the ground? Have you considered working for a fashion house to get hands-on experience in all facets of the industry?
Whilst there is plenty of glamour in the fashion world, there is little of it in running a company. The industry is cut-throat, with collections lasting just six months before they become out of date, so having some understanding about how to plan your commercial and creative calendars will be vital to your success.
If you have a mentor or a business partner, the first thing they will advise you is to start with a business plan. Outlining how you see your business developing over a period of three years is a good place to start. You will be able to update your plan and use it as a reference to see if you are achieving the goals you set each season or if you need to make ajustments. When it comes to seeking industry support, like financing or sponsorship, you will almost certainly be asked to provide your business plan, so it's better to have one from the outset.
Key things to include in your plan are who your target market its, which age group of consumer, what stores you are aiming to sell to, identifying who your competition is, and how your brand will stand out from the rest. If this is your first business plan, you can find templates online, or alternatively the British Fashion Council or your local college should be able to provide a template.
From the moment you start your collection you will want to establish yourself as a business. Setting up a limited company is easy, and in the UK this can be registered online in less than 30 minute at www.hmrc.org.uk. Applying for a VAT number is highly recommended, even if you don't sell over the threshold of 82,000 pounds in your first year. The VAT number will make it easier to work with suppliers and if you buy fabrics or manufacture abroad, having a VAT number will mean you don't have to pay VAT on certain services.
Your next step is budgeting. How much start up capital do you need to start your business? You will need to be frugal, getting friends to do favours, working out of your parents garage instead of hiring an expensive studio, but there are some costs that you will not be able to avoid. Firstly you should budget for getting your collection made and do costings for your fabrics, trims, haberdashery and sample-making. Then you need to cover your operational costs, which should include an accountant for your accounts, your staff, rents, supplies, travel and anything you need to do your job on a daily basis. Thirdly you have to budget for sales, whether that be a showroom, a tradeshow or a salesperson. You will need to show your collection in several key fashion cities, like Milan, New York and Paris, and all of this will require some sort of investment no matter how financially astute you are.
If you are a recent graduate and are looking to launch a ready-to-wear collection London is a great place to find support. There are plenty of schemes in both womens and menswear that are in place to find and nurture new talent. The BFC is useful reference to source sponsorship opportunities, but you can go one step further and try to have them appoint a mentor who can guide you personally. Sadly London is not the most supportive fashion city for brands that are not on the catwalk and you may find yourself working extra hard to get noticed by the fashion council.
Perseverance, therefore is the key to success in fashion. Many brands that are household names today have suffered their fair shares of trials and turbulations, somen even faced multiple bankruptcies. So don't give up, Rome wasn't built in a day, so don't expect your brand to be a global must-have after the first year.
Next up: Part III - how to stay ahead in the game