Without going into details about the costs of starting up a fashion design business, which are significantly higher than those of "merely" launching a collection, I thought it might be useful to discuss some of the costs involved in launching a modest collection and give a sense of the global amounts. It is possible to do things for less, by cutting corners and relying on friends and acquaintances for a lot of the upfront tasks, but to do the job professionally involves engaging a certain level of investment.
For my initial launch, I will have about eight outfits on display ... I say this with some hesitation, because what I'm offering doesn't fit within standard categories, but let's say that it will be the equivalent of eight outfits, more or less. Eight outfits is a very modest collection - a recent fashion show by a major Montreal designer involved about 40 outfits, and these were "seasonal", aimed for the Spring/Summer period, whereas mine are an "Annual" collection, again a choice for a startup.
The minimum global cost of launching a new line of about eight garments is about 50K$ (50000$). This, in general, excludes the manufacturing costs of the garments themselves. The money is used for organising the fashion show and photoshoot for the website - the cost of photography, video production, organisation, and paying the models, as well as paying the team of people involved in the effort - stylists, make-up, an announcer, music, etc. The reason one pays for all this, is that the fashion show "buzz", the website and the video footage all contribute to driving sales in the initial period. A bill of 50K$ is actually quite low - for larger collections and bigger events, the bill will be much, much higher.
As a "newbie" designer and business man, I found it very difficult to obtain reliable estimates of the costs of doing business before actually embarking on the process. I rather naively thought we could "introduce" new garments on an adhoc basis as the business grew. But although this is always possible, there are timing and marketing issues that affect what generates the best sales, and the "adhoc" approach is often not the best approach. A structured campaign with appropriate marketing will, in general, drive stronger sales that the ad hoc introduction of new elements. This is why people use the "collection" so consistently within the fashion industry.
Finding the right strategy to follow for a start-up company is tricky. Remember, they say that nine out of ten business start-ups will fail. There are lots of "shoals" to wreck the ship in - it requires careful navigation to get through the coral reefs of the start-up process. Underestimating the funding required is just one of the larger dangers that loom!
Tuesday, March 15, 2011
Friday, March 4, 2011
The Joys (and Challenges) of Moving Forward
Time to give an update on how things are progressing!
On my iPhone, I now have a ToDo list that is subdivided into the different categories of what a business needs and does : Management, Administration, Marketing, Sales, Design, and Production. I propose to follow these rough categories to give you an update on how things are going.
Management : By management I mean resources management, of which there are roughly three types currently - staff, finances and inventory. In early February I hired a part-time assistant who's been very productive at getting a whole set of initiatives moving forward while I've been handling design, some marketing issues and also keeping my university career on the ball. I also now have a bank of three going on four or five couturiers/couturières (seamstresses and/or tailors) who I can call on to help with prototype development and the early vetting of production garments. The funding got worked out, although I am still finding dealing with the accounting software to be a major challenge. I think hiring a part-time accountant will be a priority once we start to generate some revenue. Finally, there is no inventory to speak of yet, but we are negociating to rent some office & storage space so that when the inventory does start to arrive we have the space to put it! We shall be acquiring a computer and phone as well for the office in the next few weeks. Also, we obtained a CA # for our clothes, a Canadian legal requirement for the clothing industry.
Administration : By administration, I really mean the top-level meetings, issuing shares and so on. Not a lot going on right now.
Marketing : I have put on a major effort to get an online presence established, and this is going quite well. I have a website with an active blog and a twitter presence that channels back to the blog and website. I've done quite a lot of SEO tweaking and the results are beginning to pay off. Viewership of the website is now above 100 a week and climbing steadily, with a moderate to low bounce rate (40%) and along average viewing time (16 minutes and 12 pages despite the bounce rate) - people are clearly looking at the whole site and not just the blog postings. This bodes well for an online store. I'm also negociating with a company to do the online store after spending some time preparing a website design brief that explains in detail what I want. Locally, I've been promoting the business mostly by word-of-mouth, through my different communities. I am almost finished organizing a Facebook page for the business as well. Also, a newsletter will be issued shortly.
Sales : None yet, of course, but interest is running quite high. We are just in the process of finishing up the first production prototypes, and these will help us garner interest among small boutiques in the region. I've developed a coding system for the garments - the first production run is quite complex and the codes will be needed to make sense of the production and to keep track of where things are at.
Design : Design has been the bottleneck in moving forward, but I've found to my chagrine that it can't be rushed. I can put in at most about three hours a day on design. Then my brain cells start complaining about the intensity of the work! But the first line of garments is (almost) finished, while the first two models of the second line of garment are also more or less completed and ready for production.
Production : While the whole production process was quite mysterious to begin with, we've more or less worked out most of the kinks and know how and where to go to do this, how much time it takes, and more or less how much it costs. We know what labels need to be made and where to make these, and are in the process of working out packaging requirements. We expect to be in production for the first batch of the first garment line by the end of March.
Our local (Quebec City) launch event won't be in April, but we believe we can meet a deadline in mid to late May now. Our online launch date will be several weeks after the local event as the online store will take a bit of time to develop and, hence, we will be able to use the photos and video footage from the launch event on our online site.
The stress levels have come back down to a more or less reasonable level, while the excitement factor remains high. The adventure continues!
On my iPhone, I now have a ToDo list that is subdivided into the different categories of what a business needs and does : Management, Administration, Marketing, Sales, Design, and Production. I propose to follow these rough categories to give you an update on how things are going.
Management : By management I mean resources management, of which there are roughly three types currently - staff, finances and inventory. In early February I hired a part-time assistant who's been very productive at getting a whole set of initiatives moving forward while I've been handling design, some marketing issues and also keeping my university career on the ball. I also now have a bank of three going on four or five couturiers/couturières (seamstresses and/or tailors) who I can call on to help with prototype development and the early vetting of production garments. The funding got worked out, although I am still finding dealing with the accounting software to be a major challenge. I think hiring a part-time accountant will be a priority once we start to generate some revenue. Finally, there is no inventory to speak of yet, but we are negociating to rent some office & storage space so that when the inventory does start to arrive we have the space to put it! We shall be acquiring a computer and phone as well for the office in the next few weeks. Also, we obtained a CA # for our clothes, a Canadian legal requirement for the clothing industry.
Administration : By administration, I really mean the top-level meetings, issuing shares and so on. Not a lot going on right now.
Marketing : I have put on a major effort to get an online presence established, and this is going quite well. I have a website with an active blog and a twitter presence that channels back to the blog and website. I've done quite a lot of SEO tweaking and the results are beginning to pay off. Viewership of the website is now above 100 a week and climbing steadily, with a moderate to low bounce rate (40%) and along average viewing time (16 minutes and 12 pages despite the bounce rate) - people are clearly looking at the whole site and not just the blog postings. This bodes well for an online store. I'm also negociating with a company to do the online store after spending some time preparing a website design brief that explains in detail what I want. Locally, I've been promoting the business mostly by word-of-mouth, through my different communities. I am almost finished organizing a Facebook page for the business as well. Also, a newsletter will be issued shortly.
Sales : None yet, of course, but interest is running quite high. We are just in the process of finishing up the first production prototypes, and these will help us garner interest among small boutiques in the region. I've developed a coding system for the garments - the first production run is quite complex and the codes will be needed to make sense of the production and to keep track of where things are at.
Design : Design has been the bottleneck in moving forward, but I've found to my chagrine that it can't be rushed. I can put in at most about three hours a day on design. Then my brain cells start complaining about the intensity of the work! But the first line of garments is (almost) finished, while the first two models of the second line of garment are also more or less completed and ready for production.
Production : While the whole production process was quite mysterious to begin with, we've more or less worked out most of the kinks and know how and where to go to do this, how much time it takes, and more or less how much it costs. We know what labels need to be made and where to make these, and are in the process of working out packaging requirements. We expect to be in production for the first batch of the first garment line by the end of March.
Our local (Quebec City) launch event won't be in April, but we believe we can meet a deadline in mid to late May now. Our online launch date will be several weeks after the local event as the online store will take a bit of time to develop and, hence, we will be able to use the photos and video footage from the launch event on our online site.
The stress levels have come back down to a more or less reasonable level, while the excitement factor remains high. The adventure continues!
Thursday, February 17, 2011
Stress Management
One of the real shockers for me in starting my own company was the level of stress it created. The minute I got the financing all organized, bank account open and the money deposited, my stress levels went through the roof. It took me several weeks to get the stress under control, to a level I can manage. I really did not expect this to happen - before getting the company going, I was simply excited about the whole thing.
It is true that, since about last September, I have a dual workload. My responsibilities at the university haven't slackened - if anything, they have picked up speed in several areas, and, at the same time, I have to keep a company on track, designs rolling forward from the worktable into production, setting up the production and the marketing and... the list goes on. Just to get a sense of my own time management, I've started to keep track of the hours I spend on each task. I have found that my week at the university is roughly 40 hours - certainly a drop from where it has been in the past, but still above the legal commitment to 35 hours a week. I'm also spending 30 to 35 hours a week on the company business, and that is since I hired an assistant and started delegating a number of tasks! My relaxation hours, which I've also been keeping track of, seem to be around 15 hours a week - not many, all things considered. I don't include sleep in my relaxation time, or eating, just doing things to distract myself or calm myself or, indeed, relax.
I'm not sure how long I can keep this level of time commitment up - I expect that after a year or so it will start to wear mighty thin! For relaxation, a friend gave me some tips that have been useful, and I try to get out and walk a bit more than I used to, and to see friends and/or cultural events, but I must say that most evenings I'd sooner crash than go out.
I've got to do something more active to manage the stress, but I still haven't figured out what is right for me. Exercise, yes, almost certainly, but under what circumstances still remains to be seen. I also realized that I have to engage in some sewing projects that are not within the purview of the company, as I find sewing to be particularly relaxing - it's one of the reasons I got into it in the first place!
It is true that, since about last September, I have a dual workload. My responsibilities at the university haven't slackened - if anything, they have picked up speed in several areas, and, at the same time, I have to keep a company on track, designs rolling forward from the worktable into production, setting up the production and the marketing and... the list goes on. Just to get a sense of my own time management, I've started to keep track of the hours I spend on each task. I have found that my week at the university is roughly 40 hours - certainly a drop from where it has been in the past, but still above the legal commitment to 35 hours a week. I'm also spending 30 to 35 hours a week on the company business, and that is since I hired an assistant and started delegating a number of tasks! My relaxation hours, which I've also been keeping track of, seem to be around 15 hours a week - not many, all things considered. I don't include sleep in my relaxation time, or eating, just doing things to distract myself or calm myself or, indeed, relax.
I'm not sure how long I can keep this level of time commitment up - I expect that after a year or so it will start to wear mighty thin! For relaxation, a friend gave me some tips that have been useful, and I try to get out and walk a bit more than I used to, and to see friends and/or cultural events, but I must say that most evenings I'd sooner crash than go out.
I've got to do something more active to manage the stress, but I still haven't figured out what is right for me. Exercise, yes, almost certainly, but under what circumstances still remains to be seen. I also realized that I have to engage in some sewing projects that are not within the purview of the company, as I find sewing to be particularly relaxing - it's one of the reasons I got into it in the first place!
Monday, January 24, 2011
Plans within plans
While I'm in the process of moving my designs forward to final versions in readiness for production, I have been doing a number of activities on the side to keep the ball rolling. This includes taming the twitterverse so that my company can develop an internet presence, on the one hand, but also putting down on paper a series of preliminary versions of policy documents.
As a researcher with a reputation for "out-of-the-box" thinking, I have long recognized the value and importance of planning, and writing down one's plans. Twenty years ago, as I was entering the academic world as a young professor, I set down on paper my long term plans, which at the time consisted of developing a cogent linkage/platform between the arts and the sciences. In 1990, this was a radical goal - academia was a long way from welcoming such a prospect with open arms. Even today, although there are many more venues where collaboration between the arts and the sciences is taking place, there is still a great deal of resistance to this program. So it seemed unusual and daring at the time.
Mind you, I didn't proclaim my goals up and down my department, but I did quietly work away at them, so that, 20 years later, I achieved what I set out to do.
Over the course of those years, I was involved in setting up a major and well-funded research network as well as managing a research centre and initiating an arts-science business venture. I learned how to write a business plan, and initiated and led several large-scale consultation exercices aimed at developing strategic plans. So I have a good deal of knowledge and savoir-faire about how these things are done.
For my fledgling company, in order to solicit a bank loan, I had to write a business plan. These last couple of weeks, using the business plan as a basis, I have started to set down on paper my understanding of where gdotmoda's marketing efforts need to go - i.e. a marketing plan. Right now, the company consists of only me, but within the next few weeks I shall be hiring an assistant as well as a number of production seamstresses/seamsters. For the assistant, at least, I need to work out a clear approach to marketing. But even simply for myself, writing down my understanding as it develops through voluminous reading is an important task. There are so many things to remember, that a clear set of plans to steer by seems to me, essential. My marketing plan has two major sections, one for internet marketing and one for local marketing. These two subareas have very different marketing needs, and require almost separate marketing plans.
As a researcher with a reputation for "out-of-the-box" thinking, I have long recognized the value and importance of planning, and writing down one's plans. Twenty years ago, as I was entering the academic world as a young professor, I set down on paper my long term plans, which at the time consisted of developing a cogent linkage/platform between the arts and the sciences. In 1990, this was a radical goal - academia was a long way from welcoming such a prospect with open arms. Even today, although there are many more venues where collaboration between the arts and the sciences is taking place, there is still a great deal of resistance to this program. So it seemed unusual and daring at the time.
Mind you, I didn't proclaim my goals up and down my department, but I did quietly work away at them, so that, 20 years later, I achieved what I set out to do.
Over the course of those years, I was involved in setting up a major and well-funded research network as well as managing a research centre and initiating an arts-science business venture. I learned how to write a business plan, and initiated and led several large-scale consultation exercices aimed at developing strategic plans. So I have a good deal of knowledge and savoir-faire about how these things are done.
For my fledgling company, in order to solicit a bank loan, I had to write a business plan. These last couple of weeks, using the business plan as a basis, I have started to set down on paper my understanding of where gdotmoda's marketing efforts need to go - i.e. a marketing plan. Right now, the company consists of only me, but within the next few weeks I shall be hiring an assistant as well as a number of production seamstresses/seamsters. For the assistant, at least, I need to work out a clear approach to marketing. But even simply for myself, writing down my understanding as it develops through voluminous reading is an important task. There are so many things to remember, that a clear set of plans to steer by seems to me, essential. My marketing plan has two major sections, one for internet marketing and one for local marketing. These two subareas have very different marketing needs, and require almost separate marketing plans.
Monday, January 10, 2011
Keeping the books!
I know these blog entries don't seem to have anything to do with sewing and design, but as someone who is going through the motions of developing a fashion design business, I think someone may find this useful, as I'm not the only person interested in doing fashion as a business who began with very little knowledge of how to do this! After a quiet time over Christmas as I spent time more with my family than with the project, I started the new year flat on my back with a bad cold. It's only in the last two days that I've started to feel better.
I've started to systematically organize my research effort. Hence one of the tasks I will need to do soon will be to identify my most likely sources of fabric. I've still not made all my decisions in this regard, for example, off-shore versus fabrics produced in Canada or North America - right now, I'm trying to cost it all out and find good quality fabrics at prices that make sense. As I started to make lists of potential fabric sources, I realized I really needed to organize these into a database - my company will need to manage its sources rather more systematically than haphazardly. After some time looking into database software, I decided that what I really needed was to start looking into financial management software, since the fabric sourcing is intimately tied to many of the financial issues, and to develop the sourcing files simply as contact lists, using AddressBook on my Mac.
As a result, I spent time over the weekend reading up on reviews of accounting software for small businesses with a particular focus on MacOS-compatible software. Despite some discussion about a possible Peachtree version for Mac, I was not able to obtain any direct demo for this - instead I downloaded a demo version of AccountEdge (formerly MYOB).
My efforts to understand this software were hampered by my lack of experience with basic accounting principles. But as I struggled with the software, I kept telling myself - "hey, you're a senior academic, this isn't rocket science, tons of people work with this all the time, you just need to 'catch the trick' and you'll be fine". And when I stepped back to read some basic texts about accounting 101, I did finally 'get it', and from that point on, I've been able to use the software with only a few teething problems. The "trick", no doubt obvious to all and sundry who are familiar with accounting, is that you have to double up entries on the Debit side with entries on the Credit side. To some extent, the software does this for you, but until I understood the principle, I was producing nonsense.
Other teething issues were the realization that I needed to turn on "multiple currencies", since many internet purchases are in US$ (or even Euros) and not just in Canadian $, and then I had to figure out how to modify the default exchange rates to something like where they are now. I'm still not at home with invoicing, but I do feel that I am beginning to get a handle on how to use the accounting software to stay abreast of the financial management of my company. At this point, I'm not managing much more than some of the early financial outlays, but even for these I now have a cumulative figure of how much I've paid out to deal with a range of "start-up" issues as well as some ability to understand how these costs distribute across different categories of purchases.
I'm still waiting for the provincial registration papers to come back with tax numbers assigned, while in the mean time moving forward with finalizing the prototypes so that when the start-up money clears, I'll be set to get the production machinery in motion!
I've started to systematically organize my research effort. Hence one of the tasks I will need to do soon will be to identify my most likely sources of fabric. I've still not made all my decisions in this regard, for example, off-shore versus fabrics produced in Canada or North America - right now, I'm trying to cost it all out and find good quality fabrics at prices that make sense. As I started to make lists of potential fabric sources, I realized I really needed to organize these into a database - my company will need to manage its sources rather more systematically than haphazardly. After some time looking into database software, I decided that what I really needed was to start looking into financial management software, since the fabric sourcing is intimately tied to many of the financial issues, and to develop the sourcing files simply as contact lists, using AddressBook on my Mac.
As a result, I spent time over the weekend reading up on reviews of accounting software for small businesses with a particular focus on MacOS-compatible software. Despite some discussion about a possible Peachtree version for Mac, I was not able to obtain any direct demo for this - instead I downloaded a demo version of AccountEdge (formerly MYOB).
My efforts to understand this software were hampered by my lack of experience with basic accounting principles. But as I struggled with the software, I kept telling myself - "hey, you're a senior academic, this isn't rocket science, tons of people work with this all the time, you just need to 'catch the trick' and you'll be fine". And when I stepped back to read some basic texts about accounting 101, I did finally 'get it', and from that point on, I've been able to use the software with only a few teething problems. The "trick", no doubt obvious to all and sundry who are familiar with accounting, is that you have to double up entries on the Debit side with entries on the Credit side. To some extent, the software does this for you, but until I understood the principle, I was producing nonsense.
Other teething issues were the realization that I needed to turn on "multiple currencies", since many internet purchases are in US$ (or even Euros) and not just in Canadian $, and then I had to figure out how to modify the default exchange rates to something like where they are now. I'm still not at home with invoicing, but I do feel that I am beginning to get a handle on how to use the accounting software to stay abreast of the financial management of my company. At this point, I'm not managing much more than some of the early financial outlays, but even for these I now have a cumulative figure of how much I've paid out to deal with a range of "start-up" issues as well as some ability to understand how these costs distribute across different categories of purchases.
I'm still waiting for the provincial registration papers to come back with tax numbers assigned, while in the mean time moving forward with finalizing the prototypes so that when the start-up money clears, I'll be set to get the production machinery in motion!
Wednesday, December 22, 2010
g dot moda inc.
Well, the company is now incorporated under Canadian law as "g dot moda inc." The incorporation process consists of having an official name search done for the proposed name and any likely variants (the idea is that the name must be distinct from those of other businesses so as not to cause confusion), preparing the Articles of Incorporation, then paying some fees and submitting the application for approval. This used to take several days, but this time the approval came back the same day. It turned out that there is already a "C.G. Moda Ltd" in Canada, and I know there is a G. Moda in New York (a furniture company), so going with "g dot moda inc." is much more distinctive and is what my website address is anyway!
I now have to have the company Registered under Quebec law - the Quebec government will give the company a unique taxation number and the name will be recorded in the Quebec business registry. The paperwork has gone in the mail for this - unlike the feds, this still has to be done the old way.
So g.moda is now officially incorporated, which means I am ready to set up a bank account for the company, as soon as I get home in January. I'm leaving for Victoria later today for the Christmas holidays, to spend time with one of my brothers and his family, as well as old friends.
My priorities when I get back are to finalize the design of the g-zip garment line (my first line) and get the company's finances into order. I have decided to focus my effort more towards the first garment line, to at least get that off the ground ASAP, before focusing more on the second planned garment line, g-eode. I have ideas about several other lines - these ideas are firming up over time.
Merry Christmas and a Happy New Year!
I now have to have the company Registered under Quebec law - the Quebec government will give the company a unique taxation number and the name will be recorded in the Quebec business registry. The paperwork has gone in the mail for this - unlike the feds, this still has to be done the old way.
So g.moda is now officially incorporated, which means I am ready to set up a bank account for the company, as soon as I get home in January. I'm leaving for Victoria later today for the Christmas holidays, to spend time with one of my brothers and his family, as well as old friends.
My priorities when I get back are to finalize the design of the g-zip garment line (my first line) and get the company's finances into order. I have decided to focus my effort more towards the first garment line, to at least get that off the ground ASAP, before focusing more on the second planned garment line, g-eode. I have ideas about several other lines - these ideas are firming up over time.
Merry Christmas and a Happy New Year!
Thursday, December 2, 2010
Moving forward
Well, the bank approved my application for a loan, so I'm good to go, to set up my company and move the project forward! This morning I couldn't keep still, I was bouncing up and down so hard!
I've a website up and running, too - the address is "www.gdotmoda.com". My company is called "g.moda" - "g" for my name, and "moda" for fashion, although you could also interpret it as "g's way". The "dot" is a kind of bridge between the design and the production. The website is kind of a "placeholder" site right now - nothing is really revealed, but you get a glimpse at some of what is being planned. Essentially, the first two garment lines are described in fairly general terms. As the company moves towards its inaugural event, I plan to slowly reveal a bit more, just to keep prospective clients interested, with the big reveal happening at the inaugural event and its online equivalent. The website will be transformed into a sales site, where you can purchase garments directly online.
There is, however, a ton of stuff that has to be done to get to that point. More later!
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