Fashion Entrepreneur Report – Delivering the business of fashion from Nolcha: Fashion Busi: Interview | Are You Ready? The Bottom Line of Launching a Successful Fashion Label

Three steps forward. Two steps back. Up one minute, down the next. The bank account is plentiful today, tomorrow it’s in the red. Promises, let-downs and so many expected and unforeseen challenges. Welcome to the highs and lows of owning a small fashion-design business – any small business, at that.

If you have the courage to be an indie fashion designer, be sure to question whether you’re truly ready. But before you answer, do yourself a favor and read Jennifer Lynne Matthews’ “Fashion Unraveled: How to Start, Run and Manage an Independent Fashion Label” – an inexpensive ($40 U.S.), user-friendly book with an extensive financial-planning model and computer program that produces sound financial projections.

“Most small design companies are started by designers themselves and have no experience in the area of business,” says Matthews, a successful business owner, author and educator. “I am writing from experience on how to keep your small design business flourishing.”

How will you navigate the finances? What type of business entity will you establish? Who will tell your story and where will they tell it? Will you hire a marketing and sales team to promote your brand and sell your collections? Where will you source materials? How will you protect your intellectual property? Do you have an exit strategy? These are only a few of many topics that Matthews addresses and guides you through with ease. And, if you shudder at words like “balance sheet,” “projections” and “profit and loss,” don’t fret -- "Fashion Unraveled" has got you covered.

Chapters 48 through 57 make building a business plan appear painless, almost enjoyable. The business plan is broken down in a simple-to-follow format, and features an example of Matthews’ plan for her company, Porcelynne Lingerie. The accompanying computer program, usable by itself or along with the book, is ideal for those who want to crunch the numbers and be done with it. Just drop your figures into each category, such as Cost of Goods, Indirect Fixed Costs or Pricing, and let it calculate your profit and loss, balance sheet, break-even point, and much more.

“The users, so far, have been shocked when plugging their own data into the model,” says Matthews. “Many have realized they are not charging enough or thinking everything through. The software helps a designer realize the costs, expenses and budget that will make a business profitable."

“Moreover, accounting for every expense in the start-up and maintenance of a business is important in analyzing your pricing model and to show financiers that you understand the risk you are embarking on,” emphasizes Matthews. The computer program enables users to accomplish this.

Matthews also recommends setting aside an emergency fund. If you don’t, you could get hit hard by unexpected occurrences, such as a downturn in the economy. The key is to not jump head first. Matthews advises: “Plan your business, get to know the people in the industry, find mentors who can provide for the largest educations and do your research.”

When asked to provide a list of the top five things a designer must do, if nothing else, to start and maintain their business, Matthews had this to say:

“The most important lesson I have learned is to not sacrifice your vision and dream,” Matthews concludes. “Keeping true to yourself and your goals will not only make for a return customer, but will also ensure a reliable brand and a company you are proud of.”

Click the title Fashion Unraveled: How to Start, Run and Manage and Independent Fashion Label to purchase a copy of the book and software.

Jennifer Lynne Matthews is the designer and owner of Porcelynne Lingerie, business consultant for East Bay Fashion Resource and instructor in fashion design at San Francisco’s Fashion Institute of Design and Merchandising.

(Jennifer Lynne Matthews; left)
By Dawn K. Terrick, president and creative director of DKT Communications, Inc., a full-service custom publishing and marketing communications company.