Setting a budget is essential for any business. Without enough money to run a business, it will incredibly hard for your fashion dreams to become a reality. We have compiled a list of budget essentials that you may need to take into account. We hope the list below would help you better understand all the finances you'll need to factor into your budget.
ENOUGH BUDGET TO START OFF WITH
Having enough budget to launch your fashion career has to be one of the most essential factors you will need to take into account. You must ensure enough budget to pay for a minimum of two collections, without relying on any sales. It is extremely dangerous to rely on potential profit during your first season, as it could take some time for your brand to build momentum. If you do not have enough funds to start your brand, one of the most practical recommendations is to keep your daily job, at least initially. This is because it would enable you to start off small, test the market and when the time is right, you can make the leap into running your brand full time. While this approach will keep you busy, your financial situation will be stable. Production Costs This includes materials, production, collection design development, sampling and warehouse storage. Shipping & Logistical Costs This includes inventory transportation, online purchase fulfillments, and product shipping. Sales Cost This includes trade fair and showroom fees, logistic fees involved with showcasing your collection and props. Start-up Expenses This includes trademark fee(s) and company registration fee(s). Operation Costs This includes insurance, accounting, equipment, studio rent, travel expenses, petty cash, salaries, taxes, staff welfare, transportation and necessary work supplies. Work supplies must include the little things such as stationary!
I.T. and Website Expenses This includes SEO fees, website hosting, domain registration, website design and development. IT tech support, network and bills associated with the necessary I.T .operations, such as phone bills, etc... Marketing & Promotion Costs This includes product photography, branded supplies, events, social media, public relations agency [PR], fashion shows, online marketing, networking, sponsorship, and creation of look books. Retail Store/ Showroom/ Atelier Expenses This includes necessary renovations if any, rent deposit, store rent, sales staff, store fixtures, point of sale system, insurance and security.