Monthly Archives: June 2017

Jun 27

Why a New Fashion Company Urgently Needs a Business Plan

By Maria Pesin | Business , Fashion

There is so much that goes into starting a business.  Most new entrepreneurs don’t know what it entails.  They don’t even know what their first steps should be.  That is why I advocate for a business plan.  It is a critical step in increasing your chances of success.

Some people think business plans are a waste of time.  Their reasoning is nothing goes as planned, so why take the time to plan?  While that is true there is still an extremely  strong case for it.

A good business plan forces you to answer questions about what your business stands for, your market differentiation, marketing plans, etc.  It also helps you figure out the financials of the business. By making a plan you come up with the structure of your business and the strategies of how you execute.

If you don’t make a plan your business at the mercy of the way the wind is blowing.  Reactive as opposed to proactive.

While things will come up that you didn’t plan on or expect, you can always course adjust.  Which is exactly the best way to run your business?  Truthfully you don’t have a crystal ball so how can you possibly plan for every contingency.  But, plan you must.  Then as you learn what works and what doesn’t you can refine your plan

Since many of my clients have asked me for a business plan, I decided to develop one myself.  I have designed a business plan template for fashion brands that covers mostly everything you need to plan for (unless your business has more unique parts I might not have thought of.  At which point it is easy to add to)

All you do is fill in the template and out comes you business plan.  Nothing could be easier.

If you are interested click here.

 

Jun 23

The Value of Setting Goals For Your Fashion Brand

By Maria Pesin | Business , Vibe Consulting

It seems to me that new entrepreneurs are afraid of setting goals for their business.  They have no idea what their goals should be; so they either don’t do it or they set vague wishy washy goals.

Jay B. Barney and Ricky Griffin authors of “Managing Organizations: Strategy, Structure, and Behavior,” stated organizational goals serve four basic functions; these are:

  1. provide guidance and direction
  2. facilitate planning
  3. motivate and inspire employees, and help organizations evaluate and control performance
  4. Organizational goals inform employees where the organization is going and how it plans to get the job done

Having goals gives you a direction, clarifies your ideas and forces you to come up with a plan to achieve it.  If your goal is to have a volume of $5 million in 3 years there are different strategies you need to take then if your goal is $500,000 in 3 years.  It also required more money so by knowing your goal you can arranging for your financing.   You know the old saying, “Fail to plan, plan to fail,”  Planning your business is one of the most important activities an owner needs to take in order to inure success.

Research shows that specific and difficult goals lead to better task performance than vague or easy goals.

It is so easy to be distracted and want to everything.  Setting goals forces you to be focused, using your time and resources productively.  If an activity doesn’t help you reach your goal you don’t do it.

Your goals should be short term, mid-term, and long term.  This helps you to see if you are achieving your bench marks that will indicate the likelihood of reaching your long term goals.  If you aren’t achieving your short term goals you can course correct before it is too late.

Dream a little, then make your goals for your brand.  Make sure they are s.m.a.r.t.

  • Specific
  • Measurable
  • Achievable
  • Relevant
  • Time sensitive

 

 

 

 

Jun 22

Three Reasons Why You May Need A Fashion Industry Consultant?

By Maria Pesin | Business , Fashion

This is going to sound somewhat self serving, but a good consultant can make a difference between success or failure.  You might be new to the industry or you have been in business for many years.  I have found 3 reasons why hiring someone to help can be valuable.

  1. You are new to the industry or running a business. I speak to a lot of new entrepreneurs who start a business and waste a lot of time and money not knowing what the best use of their resources are.  Many times they spend thousands of dollars with nothing to show for it.  Rather then steering their business in a certain order they may do step 5 before they do step one.  Or they have a warehouse full of merchandise with no plan to sell it.When I started my consulting business I hired a consulting business expert to help me navigate the industry.  I know the fashion industry as I have 30+ years experience.  But, I didn’t know consulting.  It made a difference in how I structured my business so I was profitable from the first month.
  2. Your business is stagnating.  It can be hard to figure out what to do.  You are so in the thick of it you can’t see the forest for the trees. An experienced advisor can look at your business from the outside without any preconceived bias.  They can be a fresh pair of eyes that can help you develop a strategy for growth.
  3. Business is good but you’re not profitable. There can be many reasons for this.  I have come across companies who’s margins are too low, or production costs are unreasonably high, or they waste money on low value activities.  Whatever the reason a knowledgable expert can review your business and aid you in being a profitable and sustainable brand.

 

Jun 20

How Do You Know If Your Fashion Brand Is Really Good?

By Maria Pesin | Fashion , Sales

One of the worst situations I have to deal with is speaking with new brands who truly believe their collection is far superior to the reality.  I am not saying I’m always right but I have a fairly good sense of what it takes to be successful. So when I see a line that needs work, I always tell the truth.

As the saying goes, Praise makes you feel good but critique makes you better.

The clearest way to know is if customers are buying it.  Consumers vote with their wallets.  The more sales you are doing the better your brand is.  Of course if they are returning it to the store because the quality is poor or the fit is bad then it doesn’t matter how good sales are.

How do you know if your fashion brand is really good if it is a new company?  Here are 3 ways to find out.

  1. Studying your potential competition and seeing how you measure up is an important step in finding out if your brand is going to have good sales.  You need to be as good if not better then the brands you hang with.
  2. Showing your product to your target audience  then listening to the feedback will give you insight, especially if they show enthusiasm for the pieces and want to know where they can buy them.
  3. Try your product in a couple of stores or pop up locations even if it is on consignment and see how sales are.  If it sells great!  If not, find out why.

Many times your initial product will need tweaking till it’s right.  Researching, studying, and testing the market will give you valuable information and will assist you in making your brand really great.  Very few companies open up with a slam dunk and need a few seasons to get their line to be amazing.  And, in this day and age your line really needs to be superior to be successful.

Jun 14

How To Create a Million Dollars business In The Fashion Industry

By Maria Pesin | Business , Productivity , Vibe Consulting

I have created several multi million dollars businesses in the fashion industry.  The key to their growth,was success at retail.  The bottom line is the stores that did well with my product increased their orders each season.  Their customers voted with their wallets and laid down their money to buy.  In order to build a million dollar fashion business you need to have styles that people want.

There are plenty of mediocre products out there, and chances are these companies aren’t making a million dollars. In order to generate big sales, you’ve got to bring something to the table that wows customers and generates buzz within your marketplace.  Product is everything.  That is where you must start.  Creating a great line that stands out in the market as unique is what makes million dollar fashion business.

So you must first ask yourself, what makes me unique in the market and what makes my product fabulous?

As the co-founder behind the Kate Spade and Jack Spade brands, Andy Spade once said; “don’t worry about starting a company, If your product is great, the rest falls into place.”  This doesn’t mean you don’t have to think about setting up you business correctly.  It just means making amazing product is first and foremost.

Consuming data helps make you right.

Even the smallest businesses generate data these days.  If your business has a website, a social media presence, sells wholesale, etc., there is data it can collect on its customers, through its user experience, web traffic, selling reports and more.  Studying your data will tell you what styles work and what doesn’t.  Are you getting enough traffic and is the traffic converting to sales? In this day and age consumers love to comment.  Use all the information to make your collection even better.

The companies I ran started with a pretty good product, but as we learned and grew it got better and better till we were the leaders in our category.  That’s how you create a million dollar brand.

Jun 07

Is Your Fashion Business In A Slump?

By Maria Pesin | Business , Fashion , Vibe Consulting

I have seen a lot of business startups that have had consistent success and growth over many years.  The trends change and they find their businesses stagnating, or worse, shrinking.  Even some of the best brands out their have lost their luster.  Companies like DKNY, Guess, and Juicy Couture, which at times were the hottest, are struggling.  So it is not surprising when small and mid-sized companies reach a wall.

Many people blame it on the economy.  “People are buying,” they say.  They blame it on the Internet stealing people from the stores, or it’s all this cheap fast fashion that customers are buying instead of their product.   But the real truth is somehow these brands have lost their way.

Sometimes it is just complacency.  Brand owners believe the ride will never end.  Most times, it seems to me, it is because their products have become stale.  The market is always changing, and your merchandise has to change with it. If you are lucky, the changes are slow and subtle; sometimes, they are profound.

I believe one of the key ways to deal with change in trends is to always be testing new ideas.  Marketing people, test ads, copy, and promotions all the time to see what works the best.  The same should be true of fashion.  Trying new fabrics, new categories, and new styling aids in keeping you fresh.

Sometimes you do really need an overhaul.  I’m not necessarily talking about a revolution.  But rather, reviewing your products, company structure, marketing and all aspects of your company with the goal of improving your collection and business.

Tony Robbins once said, If you are not growing, you are dying.”  Business should always be growing.  If not, they run the risk of losing their place in the market.  Is your business in a slump?