How to Design a Fashion Business Strategy
by Matthew Bryan Beck, Demand Media
The fashion industry is booming. As of November 2012, there were 11,839 fashion businesses in the US, representing over $1 billion in revenue, according to IBISWorld’s Fashion Designers market research report. But starting a high-end boutique, designing a couture clothing line, or a producing fashion show is no small task. A small business requires an incredible investment of money, time and energy. First, you need a killer strategy to guide you through your dream project. A salient strategy document succinctly plans and outlines business goals for a fruitful enterprise and formulates strategies and recommendations on how best to achieve them.
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www.inventionhome.comDefine the Products and Funding
Describe the essence of your proposed fashion business to a friend or business partner. Jot down bullet points if it helps. Is it a high-end retail shop? Is it a women's shoe salon? Is it a men's grooming products line? Is it a fashionable maternity wear? Different products and markets have different consumer demographics and considerations. List the primary objectives. What is the target market? What is the fashion niche your business will fit into? What are your projected monthly costs? Where will get the seed money? Be realistic about how much funding you will need to not only open the business, but sustain it long-term.
Research the Market
Research the fashion market and avenue you want to establish your business in. Break it down and itemize costs by clothing type: tops, bottoms, dresses, jeans, outerwear, underwear, swimwear, athletic wear, baby clothes, etc. Investigate historical sales figures, data and trends in that market from reputable trade publications and consult with experienced entrepreneurs and online support forums. Determine your primary competitors. What are their strengths? What are their weaknesses? What are areas in the market in which you should capitalize or avoid?
Related Reading: Justification of Pricing Strategy in the Fashion Industry
Pick the Location
If you want to set up a physical shop, choose where your business will be located. Where is the prime spot for your target customer? Where is the highest concentration of foot traffic? Outline a budget for leasing a property, how much square footage you will need, buying wholesale goods and materials, payroll for the number of employees you will need for operations, merchant account fees for credit cards you will accept, the shop's interior design and other miscellaneous concerns and small details that will require your attention before the shop is ready to open for business.
Write the Document
Sit down and write the whole strategy, section by section. Type out a couple of paragraphs summarizing the most important sections. The opening summary should encapsulate the main vision and important information of the business that you will use to pitch to potential investors. Make it pop. Avoid subjective statements and vague claims; it will not sound authoritative and will discredit your business ideas. Avoid passive language; use dynamic, active language that reinforces what you will DO.
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