Designers often struggle with a lack of funding or budget constraints. However, there are a few necessary investments you must make to build a profitable brand. If you decide not to focus on these areas, failure is inevitable. Let’s discuss below, the three things you should NEVER do.
CUT CORNERS ON PHOTOGRAPHY
If there is no access to a physical product, images are the only way your audience can engage with your product. Moreover, these images can make or break the sale from a potential customer. The product images must represent the quality, branding & essence of your line. Photographers can charge as low as $250 per day. Keep in mind that this does not include the cost of models, which can run about $125 an hour and up. If the shoots are 4 hours, you must pay a half-day rate. Most photographers block two 2-4 hours. As a result, an accurate photography budget estimate is $2000 per shoot. On average, you will need 2-4 photo shoots per year, which include product lifestyle shots.
UNDERESTIMATE YOUR PRODUCTION BUDGET
Production is very niche specific & the skill level can vary by the factory as well as location. One example is Italy, which is known for making high-quality shoes. On the other hand, if you were to find a manufacturer in the United States, the results could be very different. Furthermore, production is often the most expensive element in bringing your product to market. Factories can make errors during the sample phase, therefore, you might need to use more than one to develop a quality sample. As a result, if you think that production will cost $15,000, you should budget for $30,000 & keep a cash reserve.
AVOID BUDGETING FOR THE HELP OF BUSINESS PROFESSIONALS
If you don’t have a background in fashion or have limited business experience, you will need the help of professionals to guide you through the process. There is a good chance that you will need to retain the services of a business consultant & a lawyer. However, the professional services of an accountant are non-negotiable. These expenses are vital to your business expense budget for the year.