They say, if you fail to plan, you plan to fail. This is indeed true for designers because a fashion brand is an expensive venture. You hear about labels going under and wonder, what the heck happened? Well, here are three reasons that most fashion startups fail....
#1 LACK OF FUNDING
You have your design concepts ready and you may even have a prototype. The question is, who is going to produce your garments? Where will your goods be manufactured? Where will you source your fabric? How are you going to grade it for sizing? What about quality control? Have you even considered the cost of shipping and logistics?
If you don't have the funds to invest or just happen to run out of money at this stage, your brand won't be able to survive let alone get off the ground.
#2 POOR MARKETING & PROMOTION
The philosophy of "If you build it, they will come" is a colossal joke and whomever conceived that notion deserves a "pimp slap". Look, it's simple, if you don't promote your product, you can't reach your target market. Product - Promotion - Customers = NO SALES
Therefore, the math adds up or in this case subtracts which means you don't have a business, you have a hobby.
#3 BAD FINANCIAL MANAGEMENT
This is a big one! Many designers are guilty of letting their creativity outrun their finances. This is what took down Calvin Klein before being bought by PVH. When they looked at the numbers, they saw that in one year alone, he had spent approximately $250K in prototypes and as we both know, prototypes don't make money, but products do. Some designers just buy fabric without a clear sense of direction of what they are going to do with it. This results in potential fabric waste, which means money in the garbage. You must aggressively manage and protect your funds by using them strategically. It is crucial to the success of any business!
Does your brand need help to get off the ground or are you stuck with the next steps on how to advance your start-up? Find out how I can help you here. In the meantime, follow me on Instagram, Facebook, Pinterest, Twitter & Quora