Finding the right investors is thought to be the trickiest part of growing a business. Placing that investment money in the right hands is even harder. Many young businesses in the Fashion Industry do not know how to make the initial investment grow or even sustain. Andrew Kahner, Financial Advisor for UBS sits down with Nolcha Magazine to help the creative part of the business understand just how important it is to know where there money is going.
Nolcha: What benefits does a bank, or investment organization garner from working with the fashion industry?
Andrew Kahner: The benefits are that the fashion industry is a multi-faceted business that is accessible to an abundance of market participants, with the potential for a high level of success. Because of this, investment management groups have the benefit of working with a variety of companies and talented individuals. In my own experience, there is a great level of satisfaction that comes from assisting in the process that brings an individual or company's vision into reality.
N: What risks come with investing in the fashion industry?
AK: The fashion industry is a highly volatile market and business models are usually not sustainable. A company needs to be flexible and able to adjust with the ever-changing fashion trends. Business is extremely competitive and windows of opportunity tend to be short. It is essential to have the proper leadership and creative team in place to capitalize on that window of opportunity and make a splash. At UBS, my group focuses on preservation of capital and the protection of client interests. We can work with clients to alleviate the burden of cash management, so the design team can focus on building the brand of the business.
N: Is there anything a designer or retailer can do to take away some of that risk?
AK: Yes, putting a leadership team together that enables the business to adapt with the industry and to have a clear and common vision. Also, to develop a business model with short-term and long-term goals that can be both flexible and scalable. Create a written plan of action with measurable results in specific time frames. Taking the time to go through this process will help you discover any unforeseen risks that you could encounter in the future.
N: With fashion being a “trend” driven business… one day a designer can be unknown, the next they might have the hottest item on the racks, how can a designer and a business partner prepare in the beginning for that type of surge in business?
AK: This is one of the questions to consider when developing your business plan and mission statement. In addition, a comprehensive, financial structure meeting both the personal and professional needs of the designer and the business simultaneously should be created to manage business surges. New wealth can sometimes provoke irrational spending habits, so it's important to develop a clear strategy beforehand and retain professional money managers to maintain a pre-determined level of discipline in the portfolio.
N: What five things do you feel make a wise business investment?
AK: The wisest business investments lead to creating a sustainable, competitive advantage that differentiates you from your competition. This can include developing a recognizable brand for the business, a strong leadership team to drive the business, a Marketing and PR campaign to expose the business, a quality product to sell the business, and a commitment to charitable endeavors to shape the business image.
N: How do you recommend an independent designer find funding to expand their business? What steps can they take to grow?
AK: The best way to start with business expansion is to effectively articulate and share your business vision and desire for funding. Then, not being afraid to ask for it. Never underestimate the value of networking in all different markets. Speak with a financial professional for methods to finance your project and ask where possible sources of funding may lie. "Chance is always powerful. Let your hook be always cast. In the pool where you least expect it, there will be fish." – Ovid.
N: We believe that trends may come and go but “the business of fashion will never go out of style”, with your experience in the business can you speak to this statement at all?
AK: Yes, the business of fashion is cyclical like most business sectors. As trends come and go, the demand will fluctuate as fashion oscillates between necessity and luxury. One distinction that is unique to the fashion industry is the opportunity for designers to constantly reinvent the wheel and overcome unsuccessful seasons. My team focuses on extending the monetary pulse of business, so they can take advantage of growth opportunities when the market is in high demand.
N: Can please add any details about any fashion corporations, labels or businesses that you have worked with on the financial side, or invested in for the intro paragraph?
AK: Unfortunately, I cannot elaborate in specific detail. Our field maintains the same level of client confidentially as medical and legal practices. I can say that we do have significant experience providing financial guidance to a full breadth of businesses in several market sectors. However, UBS does not act as an "Angel Investor" nor do we directly participate in new business ventures. We share our firm's expertise and collaborate with small and large businesses looking to expand and further develop their current platform.
N: Please tell me what UBS is doing to work with young entrepreneurs in creative industries?
AK: UBS offers educational seminars on specific investment opportunities appropriate for young entrepreneurs seeking to create structure for their businesses. In presenting to angel investors, young entrepreneurs want to be aware of available financing solutions that are convenient, accessible, and competitive. The combination of their business knowledge and possible methods to finance a project will only improve their chances of accessing the funds to put their vision into reality. My group, for example, helps them articulate their passion in quantifiable terms. We create flexible strategies to suit present day needs but also take into account the long-term horizon.
0 Response to "Interview | UBS"
Post a Comment