|
ARTICLES
Los Angeles Times "Small Talk" January 6, 1999 Advice from Small-Business Experts by Karen Klein Question: I have been an apparel designer for the last 12 years. I produced a small line of my own and made $30,000 in sales my first season out. Unfortunately, I wasn't adequately funded and found myself unable to produce my first months' shipping. I need to seek a backer and don't know where to start. Any suggestions? --Gordina Jovanovic, Monrovia Answer: The apparel business is a perilous one, even when you are fully funded and you have something of a reputation. Every new season means you have to start over in your sales and marketing.Successful apparel companies have a network of contacts and relationships with buyers and they stay on top of the niche they dominate, whether if be high-end women's wear, sportswear or whatever line they specialize in. It's likely to be very difficult to start a business on a shoestring in an industry like this. First off, it's difficult to get funding unless you have a stellar reputation. If you do get start-up funding, cash flow is tough to manage because there is a long lag time between shipping product and getting paid for it. Stores are notoriously slow to pay. And factors -- companies that advance money on accounts receivable -- are costly to do business with and tend to want to lend only on very large orders. In the garment industry, a company with $10 million in annual revenue is not considered a large company. Many people think that if you've got the designs you've got what it takes to run the business. Unfortunately, this is not true. Your best bet may be to partner with a manufacturer, license your designs to that company, and spend time making key contacts within the industry. Finding advisors, mentors and business people who have built companies like you wish to do is crucial. If you can meet people who know this industry and like your designs enough to support you and back you, you may have a chance to start a business down the line. Otherwise, I think you will find it extremely difficult to raise capital and find partners in this industry. - Peter Cowen, |
||||||
|
Peter Cowen & Associates
10850 Wilshire Blvd, 4th Floor Westwood, CA 90024 Main 310-234-3277 Pager 310-915-3292 Fax 310-234-3274 Contact us via email |
|||||||
|
© 2003 Peter Cowen & Associates Web Design by Adriana Vidal Web Designs To contact the webmaster, send mail to A. Vidal |
|||||||
