Getting a fashion label off the ground is one of the most exciting yet challenging business ventures anyone can undertake. Finding success is rewarding, but holding onto it is where the real battle commences. To show your fashion designs aren’t just having their 15-minute of fame, expanding the business would help reach out to new customers. If you’re trying to attract investors, or show the bank of the loan company, you’re a financially sound choice to give a loan. Once you’ve created a map from which you can rely upon for consistent information, you may be tempted to go full on ahead and make the giant leap to expansion. You may be wishing to open a second store, take your products to another region or country. With the loan money or investor, you can financially secure your future and establish the groundwork for your financial projections.
Scanning the environment
Passion for designs, fabrics, and unique styles is crucial in fashion. However, for a small business looking to expand from the humbling beginnings, you need to show your vision is financially feasible. This means you need to understand the particular market in which your label is trying to penetrate or establish a recognised position. Undertake an investigation, looking at how big the market is, how many buyers there are yearly, how fast the particular sector grows and the evidence to support any claims. You also need to identify your competitors. It would be best to compare sales or profit margins side by side.
Forecasting your growth
Before you can get the clearance for a loan or the trust of an investor, you fashion label needs to show the inner workings in the form of a detailed report. With professional bookkeeping services, you can make informed business decisions. By keeping a record of your sales, and money spent to run the business, you can understand where you may improve your business model. The cash flow statement shows the peak and troughs and your immediate fund’s quantity on a monthly basis. With the studying techniques and record, you can convert imageless figures, into bar charts, graphs and simple projections. This helps you to identify how much funding you need for a profit-making growth plan.
Photo credit – markito
As a fashion label is an artistic venture, your business should also focus on the logistical planning for opening a new store. How much will the cost of your fabric be, when you double the demand? Will the distance of your expansion have an affect on your current location with regard to the difference in cost? Different regions and states don’t all have the same price to lease properties and the cost for per square feet might be different. This will determine the physical size of your second store. How much might be the extra delivery costs? Can you spread your employees out, or do you need to take on new staff? How much will their salary bite into your loan or funds? The logistical planning is just as important as securing the funds because unforeseen costs will take large portions of your invested money and may damage your credibility.
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