10 Fashion Entrepreneur - Starting Your Own Fashion Business

Illustrator: Lidwine Grosbois

© Fashion Entrepreneur - Sandra Burke

 Fashion Entrepreneurs' Runway to Success 11

1
Fashion Entrepreneurs'
Runway to Success
With your head buzzing with innovative and creative ideas welcome to the
Fashion Entrepreneurs’ world of glamour, style and wealth. From concept
to creation, from the fashion catwalk to the street, fashion entrepreneurs are
continually looking for marketable opportunities to exploit and start a new
business venture.

Who Is This Book For?

Fashion Entrepreneur - Starting Your Own Fashion Business is aimed at
emerging fashion entrepreneurs; students, graduates and those already in
industry who have a keen interest in fashion and want to set up their own
fashion businesses. They might be from the creative industries; fashion
designers, fashion illustrators, fashion marketing; or the commercial sector,
Emerging fashion entrepreneurs need
but will have the passion and determination to drive them forward to achieve passion and determination to drive them
success. forward to achieve business success.
Fashion Entrepreneur is the third book in this Fashion Design Series. It
Illustrator: Maria Cardelli
focuses on the business opportunities for emerging fashion entrepreneurs
and explains how to identify, manage and develop new products, new ideas
and new services. It looks at the innovative, creative and entrepreneurial skills
fashion entrepreneurs need to start their own fashion businesses and enter
new markets - businesses and ventures that will grow and shape the future of
the fashion industry.
There is an increasing recognition by the fashion industry that
entrepreneurial and small business management skills are an essential
component of the fashion entrepreneurs' portfolio of management skills,
together with leadership, team building, communication and networking. This
book will set out these key skills and traits and show how they relate to the
fashion entrepreneurs' portfolio of skills. Fashion Entrepreneur aims to achieve ‘It’s not enough to have a talented
three main objectives: designer, the management must be
• Support the Fashion Enterprise and Small Business syllabus. inspired too. The creative process is very
disorganized; the production process
• Nurture and guide emerging fashion entrepreneurs to start up, survive and
has to be very rational.’ Bernard Arnault,
grow their own businesses.
chairman and CEO of LVMH (Louis Vuitton
• Demonstrate how fashion graduates can use entrepreneurial skills to explore
Moët Hennessy luxury goods company).
work opportunities within the fashion industry.

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12 Fashion Entrepreneur - Starting Your Own Fashion Business

What Is An Entrepreneur?
‘Entrepreneur’ is a French word dating back to the 1700s. Since then it has
evolved to mean someone who undertakes a venture, particularly starting
a new business, and this is central to the understanding of the word
‘entrepreneur’ in the English language. Apparently the French prefer to use
‘créateur d’enterprise’ (creator of an enterprise).

DEFINITION: An Entrepreneur may be defined as, a person who identifies an

opportunity or new idea and develops it into a new venture or project.

The fashion entrepreneur is the key, innovative person managing the

entrepreneurial process. This will usually involve planning, organizing,
directing and controlling the input of suppliers, contractors and the design
team members, together with accepting the associated business risks. The
Nike's pet pooch sits on the sales counter key words from these explanations are; innovation, opportunity, new venture,
wearing his Nike trainers! enterprise, management and risk.
Fashion design does not only include Fashion Entrepreneur: Entrepreneurs are acknowledged as being the driving
womenswear, menswear and force behind innovative change in our society and the fashion and textile
childrenswear but fashion and accessories industry is no exception. Using the above definition, a fashion entrepreneur
for 'man's best friend' ! Why not?! can, therefore, be defined as someone who sets up a new fashion venture, or
starts a new fashion label. To achieve this, the fashion entrepreneur needs to
be able to spot commercial opportunities and determine customer needs by
co-ordinating resources to design, manufacture and supply fashion products
or provide a service.
Fashion Design Entrepreneurs: According to US Government statistics,
fashion designers are five times more likely than any other profession to start
their own businesses. This is partly due to; a low barrier to entry (starting with
a sewing machine at home); the fashion industry's acceptance of fresh, creative
ideas; and that fashion designers are able to offer a product or service (fashion
collection, fashion illustration, fashion design, pattern and garment making).
Employment: Gone are the days when an excellent CV was all that was
needed to find a job in the fashion industry - you now need entrepreneurial
skills as well. In Britain, the government reported that 25% of all graduates
were doing a job that did not require a university qualification. To overcome
this weak link in the education process, fashion entrepreneurs need to
develop their entrepreneurial skills to help them establish a network of useful
contacts and to help them identify career path opportunities. This includes,
not only starting their own businesses, but finding a job within the fashion
industry as an intrapreneur.
Fashion Intrapreneur: Large companies are increasingly recognising that
they need entrepreneurial spirit from their employees to keep their company
at the leading edge of technology and prevent their organization becoming
overloaded with head office bureaucracy. Hence, many fashion intrapreneurs
work within a fashion company using their entrepreneurial skills before
leaving to start their own fashion ventures.
Work Experience: Emerging fashion entrepreneurs will benefit hugely
from the experience of working within the fashion industry before they start
their own businesses. Apart from the 'hands on experience', the potential for
establishing a network of contacts will be invaluable. Even as a student, work
experience is essential and students can achieve this through the fashion
internships (industrial placements) that many fashion designers and fashion
companies offer.
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 Fashion Entrepreneurs' Runway to Success 13

Young Rich List: A recent Business Review Young Rich List revealed that 37% of
the top 100 young millionaires made their fortunes in the creative industries,
the fashion industry being one of them. This is encouraging for all fashion
entrepreneurs as it shows there is a 'pot of gold' at the end of a successful
business.
Entrepreneurs Throughout History: There have been endless accounts of
fashion entrepreneurs starting successful fashion ventures; in the 60s Carnaby
Street, a small back street off London’s then highly fashionable Regent and
Oxford Streets, became the epicentre of the World of Fashion due to many
young, innovative design entrepreneurs starting their own fashion businesses
and making it the 'hippest' street in London.

Fashion Entrepreneurs' Portfolio Of Skills

Fashion entrepreneurship has been the driving force in developing the
fashion industry but, as a profession and an academic syllabus, it is still
relatively new and has yet to formally establish a defined Portfolio of Skills
(Body of Knowledge - syllabus).
The Fashion Entrepreneurs' Portfolio of Skills is an inclusive term used to In the early 1900s, Coco Chanel (Gabrielle
describe the sum of the knowledge of the industry; the skills, traits, tools and Bonheur Chanel), acquired experience in
techniques within the fashion profession. sewing and millinery before she opened
her own hat shop in Paris. She was to
Fashion Entrepreneur become one of the world's most influential
Fashion Entrepreneur Starting Your Small Business fashion designers. Long after her death in
Industry Traits Own Business Management 1971, Coco Chanel’s signature pieces, the
Channel suit, gilt bag and string of pearls,
Technical Skills Creativity, Business Plans Sources of Finance
are regularly being revamped, copied and
Innovation, etc.
reintroduced into fashion collections as the
Opportunities Spot Opportunities Registration Accounts ‘must have’ of the season.
Design and Networking Skills Market Research, Small Business
Manufacturing Trend Research Management Skills

Retail and Risk Management Marketing and Project

Distribution Branding Management

Supply Chain Sales and Leadership and

Management Negotiation Teamwork

Figure 1.1: Fashion Entrepreneurs' Portfolio of Skills – shows a structured

subdivision of the key fashion entrepreneurship topics subdivided into their
component parts.

Entrepreneur Traits: To become a successful fashion entrepreneur you need

innovation to be able to identify opportunities in a climate of ambiguity and
chaos, together with passion and enthusiasm for your products to encourage
you to constantly improve your products' features. You also need determination
and persistence to drive your ideas through the many obstacles and challenges
you come up against. In a competitive market, it is not sufficient to only be
creative, you also need to be entrepreneurial with small business and project
management skills and to be able to build a network of useful contacts.
Technical Skills: The technical skills refer to the technical knowledge you need 'When we started we never thought about
to design and make your products. Every profession has its unique range of making money; a lot of creative people
technical and trade skills and, as a fashion apprentice, you will need to learn don’t. We wanted to create beautiful
things,' Sarah-Jane Clarke, made it to the
your trade to be able to produce professional products so that your venture and
Business Review Young Rich List as co-
products are commercially viable. Training courses will help you ‘fast track’ up
founder of the fashion label Sass & Bide.
the learning curve (university/college, fashion schools, short courses).
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14 Fashion Entrepreneur - Starting Your Own Fashion Business

What Is In This Book?

The chapters are set out in a logical learning sequence to present the
entrepreneurial and small business management skills you will need to run
a creative company on a day-to-day basis. It is enriched with case studies,
illustrations, photographs, graphics and exercises.
Chapter 2: Opportunities in the Fashion and Creative Industries - Statistically
80% of entrepreneurs start their first ventures in their field of expertise. It is
therefore essential that, as an emerging fashion entrepreneur, you have a clear
understanding of the extent of the fashion industry and where you can find
business opportunities. This chapter uses the fashion and textiles industry
supply chain to subdivide the industry into its component parts and identify
these business opportunities.
Chapter 3: Fashion Entrepreneurs’ Traits – Would you be able to recognize an
entrepreneur if you met one in the street? According to research by the BBC,
if you know what to look for, the entrepreneur’s actions, behaviours and traits
could give them away. So by identifying these people, and their traits, you
Successful fashion entrepreneur Hannah can use them as role models. This chapter will outline the traits you can use to
Marshall advises, ' Do all your groundwork spot innovative opportunities, 'make them happen' and take 'calculated' risks.
prior to starting a business.' Chapter 4: Networking - Networking skills are one of the most important
Fashion Designer: Hannah Marshall entrepreneurial traits that enable you to develop a network of useful business
Photographer: Victor de Mello contacts. This chapter will explain how to identify and analyse your key
stakeholders' needs and expectations, together with the benefits of working
within a fashion cluster and working with a mentor.
Chapter 5: Competitive Advantage – Competitive advantage goes right to
the heart of fashion entrepreneurship – this is the underlying reason why
someone would buy your garments in preference to another brand. This
chapter will outline how you can achieve competitive advantage, particularly
how you address barriers to entry, niche markets, outsourcing and the SWOT
analysis.
Chapter 6: Business Plan - As creative ideas and opportunities evolve into
marketable products, at some point, you need to develop a coherent business
plan to outline where you want your business to go and how you plan to get
there. This chapter will explain how to develop a business plan using seven
key subheadings; Executive Summary, Product/Service Plan, Organization Plan,
Sales and Marketing Plan, Production and Distribution Plan, Financial Plan, and
Risk Management Plan.
Chapter 7: Starting Your Own Business – Before rushing out to start a new
business you should be aware of the benefits and problems associated
with starting a new venture. This chapter will discuss the advantages and
disadvantages of starting your own business and the steps you need to take
to get started, including; company registration, intellectual property, budgets,
setting up your premises, buying equipment, the design and production
cycle, and the triggers that encourage you to start your own business.

'Life is an adventure, so I make clothes to Chapter 8: Market Research - Behind every successful fashion story is an
have adventures in.' innovative product, and behind every successful product is market research.
Vivienne Westwood This chapter discusses how to conduct market research to determine your
target market and includes; trend research, competition and pricing strategy.
Chapter 9: Marketing and Branding - Creating the ‘right’ image has become
a key factor when producing a marketable product. This particularly applies
to the fashion and creative industries as consumers have become much
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 Fashion Entrepreneurs' Runway to Success 15

more conscious of brands, and their perceived status and reputation. This
chapter will discuss how to develop and implement a marketing and branding
strategy to advise your potential and existing customers of your products and
'create an interest'.
Chapter 10: Sales and Negotiation - Generating sales is the reality test of your
business. Convincing your potential customers that your business and your
products will satisfy their needs and are better than the competitions’ is the key
to your success. This chapter will discuss the sales function; where to sell, how to
present your products to the potential customer, and how to close the sale.
Chapter 11: Design and Production Cycle - Whether you produce one fashion
collection every year, every season, or every month, you will go though a
design and production cycle. This chapter will outline the key topics in this
cycle; the design and production brief, the production plan, research and
sourcing, design development, selling your collection, pre-production,
production, distribution and shipping.
Chapter 12: Sources of Finance - Ready cash and seed money are the
life-blood for starting your own business. Without sufficient funds your
new venture’s success will be self-limited because there simply will not be
sufficient resources available to produce your products. This chapter will
demystify the financial requirements needed to run your fashion business.
Chapter 13: Small Business Accounts – If your business is to become successful
and expand, you will need more than a 'shoebox' accounting system.
Accounting terms guide you in your choice of accounting system and demystify
some common reports. This chapter will explain how to produce and manage;
the cash book accounting method, the profit and loss statement, the cash flow
statement, the breakeven analysis and the balance sheet.
Chapter 14: Project Management Skills - Project management is recognised as
a key skill within the fashion entrepreneurs' portfolio of technical and small
business management skills. This is because fashion tasks and events have
all the characteristics of a project; starting your own business, designing new
products, putting on a fashion show. This chapter will show how you can use
Top: Many emerging fashion entrepreneurs
a range of special project management techniques to plan and control your
enter fashion competitions/contests which
projects so they are produced and delivered on time, within budget, and meet
help them gain exposure to the fashion
your clients' goals and objectives. It will also discuss small business growth
industry. If they win they generally receive
phases and how you need to develop leadership and team building skills. a substantial monetary prize and/or an
Case Studies/Interviews: To support the text and present examples from internship to help them 'kick-start' their
different sectors of the fashion industry there are case study interviews with fashion entrepreneurial careers!
fashion entrepreneurs who have developed their own successful fashion Hannah Hoyle awarded 'Young Designer
businesses . of the Year'.
Above: Image, glamour, lights - your
The Appendices contain useful fashion industry documents; the Glossary
fashion runway to success!
helps you learn the language of fashion entrepreneurship and small business
management; Internet Resources, Further Reading and the Index include useful
websites, company names, trade publications, text books and key words.

Exercises:
1. Define entrepreneurship in your own words.
2. Give examples of entrepreneurs in the fashion industry.
3. Discuss your entrepreneurial career path.

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16 Fashion Entrepreneur - Starting Your Own Fashion Business

The Fashion and Textiles Calendar: Lists some of the key trade shows in the
International Fashion and Textile calendar and their typical dates. The four main
centres for fashion have been; Paris, London, Milan and New York, but events are
held all over the world.
The twice yearly ready-to-wear (womenswear) fashion show schedule for buyers
traditionally takes place over a four week period. For example, Spring/Summer
Designer Collections usually start in the middle of September after the stores have
received their Autumn/Winter (Fall) lines that would have been shown the previous
February/March.
As an emerging fashion entrepreneur, you need to be aware of the industry
holidays as this will influence your design and production scheduling. For example,
European mills usually close for the month of August, and mills and factories in
China close during Chinese New Year.
This calendar is a guide and dates do change. You also need to be aware of new
trade fairs that emerge as part of the fashion and textiles calendar, such as, Bread
and Butter, Barcelona. Fashion weeks are held all over the world, such as, Australia
Fashion Week, Cape Town Fashion Week, Hong Kong Fashion Week. You can check
all current data on the Internet (see Internet Resources at the end of the book).
A/W = Autumn/Winter
FASHION and TEXTILES CALENDAR
S/S = Spring/Summer
Jan Milan Menswear Collections A/W
Paris Womenswear Collections S/S, and Menswear for A/W
Florence Pitti Filati Yarn Show (Knitwear)

Feb Frankfurt Interstoff Fabric Show

London Womenswear Designer Collections and Ready-to-Wear A/W
Madrid Menswear and Womenswear Collections A/W
New York Fashion Week and Menswear Collections A/W
Milan Womenswear Designer Collections - Milano Collezioni Donna
Paris Première Vision Fabric Show and Paris Expofil (Colour Trends and Yarn)

Mar New York Womenswear Market Week Fall 1

Paris Womenswear Designer Collections and Prêt à Porter Paris Exhibition A/W

Apr

May Midseason/Transeason Shows

New York Womenswear Market Week Fall 2

Jun London Graduate Fashion Week (Student Catwalk Shows)

Jul Florence Pitti Filati Yarn Show (Knitwear)

Milan Menswear Designer Collections S/S
Paris Womenswear Couture Collections A/W
Paris Menswear Collections S/S

Aug Las Vegas Magic Show (Fashion Accessories and Sourcing)

Opposite Page: Design New York Menswear Collections S/S
Development example - As
Sept London Womenswear Designer Collections and Ready-to-Wear S/S
an emerging fashion design
entrepeneur you will typically be Madrid Menswear and Womenswear Collections S/S
researching new trends and sourcing Milan Womenswear Designer Collections and Moda Pronta Exhibition S/S
fabrics and trims internationally New York Fashion Week
as you develop your designs and Paris Première Vision Fabric Show and Paris Expofil (Colour Trends and Yarn)
products. This book will guide you in Paris Womenswear Designer Collections and Prêt à Porter Paris Exhibition S/S
all these aspects.
Oct Midseason/Transeason Shows
Fashion Designer: Amy Lappin
New York Womenswear Market Week S/S

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Fashion Entrepreneurs' Runway to Success 17

© Fashion Entrepreneur - Sandra Burke