Which are the right sales channels for your fashion business?

                                                 Image courtesy of Stockimages / FreeDigitalPhotos.net

Choosing the right sales channels from the beginning contributes significantly to the success of your business.

There are plenty of opportunities on how to bring your products to your target customer. The first thing to decide is do you intend to retail your products yourself or sell them to a wholesaler? Or do you choose a combination of both?

B2C – Business to Customer (Retail)

The Advantages

• There is no intermediary, which means you will make a higher profit.
• Gain brand loyalty – buying directly from your brand will generate a more personal shopping experience for your customers and if they like your products, they will certainly come back to you.
• Improve your cashflow. Cashflow is the difference in amount of cash in your account at the beginning of a period and the amount at the end of the period. Selling your products directly to the customer means that money will go into your account as soon as you make a sale, while in wholesale in can take up to 120 days until you receive the payments for your products. Especially if you have just started your business it is important to have sufficient cashflow in order to pay your expenses.

B2B – Business to Business(Wholesale)

Wholesale involves selling your products to retail stores. Here are 3 facts on wholesale which are good to know:

•  Wholesale can be an effective way to grow an emerging brand as you will have larger orders on your products.
•  It is lower risk as you will manufacture according to the orders you receive from the retailers. However, as the retailer has to also make their (larger) profit margin, your profits will be lower than when selling directly to your customers.
• Having your product in the right stores can be an effective and quicker way of building your brand especially if you are a new brand and want to gain press coverage.

Do you want to learn more about how to determine the right sales channels for your business? Check out our Routes to Market workshop on 2nd October. 

More info on our upcoming events and workshops here.

By Katja Widder

Digital Innovation in Fashion Contest launches

Announcing the launch of the ‘Digital Innovation Contest – Fashion’ in association with the British Fashion Council (BFC) and the Tech City Investment Organisation (TCIO), to encourage digital innovations that can be applied in the fashion and retail industry.

Offering four businesses the opportunity to develop innovative commercial prototypes that meet the broad objectives that have been set out, together with industry partners BOXPARK, Holition, the London College of Fashion’s Centre for Fashion Enterprise (CFE) and Designer-Manufacturer Innovation Support Centre (DISC), and Bauer Media/Grazia.

This contest is offering four awards of up to £25K to develop innovative solutions


Theme one: Design

• One award of up to £25k for the development of a prototype service or application for the “mass personalisation and customisation” challenge supported by London College of Fashion – DISC & CFE. 
• One award of up to £25k for the development of a prototype service or application for the “intelligent clothing and accessories” challenge supported by Holition. 

Theme two: Retail

• One award of up to £25k for the development of a prototype service or application for the “the mall of the future” challenge supported by BOXPARK. Read more.

Theme three: Media

• One award of up to £25k for the development of a prototype service or application for the “creating a communal and responsive experience through mobile technology” challenge supported by Bauer Media/ Grazia.

The contest is open to any company or developer; it is not necessary to have an existing app or service to apply, or to be currently active in the challenge sector. Applications will be judged on the level of innovation of the proposed prototype, which should meet the specific category challenge and show wider commercial potential and applicability. The applicants must also have a clear idea of the revenue earning potential/business model of their proposed solution.

In addition to the funding, winners of the ‘Digital Innovation Contest – Fashion’ will retain their intellectual property and benefit from the valuable opportunity to establish an early customer for their new technology, by running a minimum three-month trial with the relevant contest partner.

Deadline for submissions to the contest is 12 noon, Wednesday 12 July.

Full contest and application details are available here.

Using Fashion Industry Market Research For Business Development

Research is key to making any business successful and even more relevant to the fashion industry as the variety of products and diversity of your potential customer is vast. The information you gather from your market research will feed in to your business plan and help you identify where your products/idea will fit within the context of the following questions:-

1. What is the size of the segment of the market you want to operate in and how is it performing?
2. Who is your target customer?
3. Where and how do they shop?
4. What are the price points your target customer are willing to pay?
5. Who are your competitors?

Knowing the answers will help shape your product development and overall business direction.

Your research will encompass a variety of sources including national press, blogs,  market databases, trade magazines,  exhibitions, e-commerce platforms, and the high street.

In this post I'm focusing on the first question raised, as your starting point is to find out the size of the market, predict whether it’s an expanding or shrinking segment, and what the impact of the national and international economic climate is likely to be.

To find this out  there are on-line market prediction reports which give you information, statistics, insight, and analysis for every type of fashion and accessory product category. Large brands, marketing and advertising agencies all pay subscriptions to have this information, but the Business Library’s Business and IP Centre gives you free access to most of the main electronic research databases, and is a brilliant resource.

Below are examples of what looking at recent market reports* can tell you:-

• According to the DCMS, the current value of the clothing and footwear market in the UK is estimated at £44.8 million. This is predicted to grow between now and 2017 to £53.1 million. The following shows the levels of expenditure in the UK in 2012 for different apparel categories:
• Womenswear expenditure was £21 million, a growth rate of 13% since 2007. It is predicted to grow a further 21% from now until 2017, to reach an expenditure of £26 million.
• Menswear expenditure was £10 million, a growth rate of 10.% since 2007. It is predicted to grow a further 19% from now until 2017, to reach an expenditure of £11 million.
• Childrenswear expenditure was £5 million, a growth rate of 7% since 2007. It is predicted to grow a further 14% from now until 2017, to reach an expenditure of £6 million.
• Footwear expenditure was £5 million, a growth rate of 6% since 2007. It is predicted to grow a further 12% from now until 2017, to reach an expenditure of £6 million.
• Accessories expenditure was £2 million, a growth rate of 17% since 2007. It is predicted to grow a further 18% from now until 2017, to reach an expenditure of £3 million.

It has been forecasted that volume growth in the fashion industry will not regain pre-recession levels until after 2017 but as you can see, there are areas that are  growing. Despite the recession, luxury brands continue to increase sales and profits, particularly the brands that export to South East Asia and the BRIC markets.

I'll be covering this area in more depth at our forthcoming workshop -
Fashion Business Planning for Success on 12th June.

Let me know what  interesting industry statistics you've discovered?

By Alison Lewy
Founder of Fashion Angel and author of Design Create Sell - a guide to starting and running a successful fashion business.

*Courtesy of the British Library Business and IP Centre

Finance for Fashion Start Ups

At our recent  packed Finance for Fashion Start Ups networking talk, the topic was alternative sources of funding including crowdfunding and Start Up Loans. As we all know, the traditional lenders are not supportive of SMEs, and fashion related ventures are considered high risk, so it’s even tougher for this sector. The good news is that there are now some credible alternatives.

The evening featured presentations from Muriel Dupas, founder of new fashion crowdfunding platform Audacity of Fashion and Fashion Angel’s Alison Lewy, followed by a panel discussion.

Muriel Dupas from Audacity of Fashion

The event was sold out, and attracted a long waiting list, so as requested we are posting a longer blog than usual to capture the key points discussed at the event for those that missed it.

The first presentation was from Muriel, whose background in finance and experience with business angel networks, led her to notice that investors are generally only interested in fashion tech businesses as they don’t understand the fashion industry and are wary of investing. Also the nature of the fashion buying cycle means designers often have to fund several collections and have the finance to support the necessary marketing and PR before they start to generate sales, thus leaving a big funding gap.

Some interesting crowdfunding facts:-
• Rewards based crowdfunding as a route to raising finance is growing rapidly, with the biggest US platform Kickstarter hosting over 4,000 projects and raising in total 400 million since it launched in 2008.
• The platform has hosted 700 fashion specific campaigns and raised around $8million with the average campaign raising between $1- 10K.
• In the UK, NESTA reports that in 2011 £100 million was raised through crowdfunding, which is expected to have doubled in 2012, and in  5 years reach £1.5 billion

One of the most recent successful campaigns on Kickstarter was run by US premium casualwear brand Flint and Tinder. They called for online backers to fund the production of the company’s “10-Year Hoodie” and through pledges and pre-orders, attracted over 6,000 participants and raised almost $700,000 – astonishing considering they were only seeking $50,000!

However, although there are successful fashion projects as this clearly demonstrates  there success rate for fashion campaigns is only around 27%, which is the lowest of the categories hosted.

Muriel came to the conclusion that a different crowdfunding model was needed that built a community of fans specifically interested in fashion and emerging design talent, and that it should  have added value and be more than a platform for raising funds.

Integral to the Audacity of Fashion platform will be the facility for its community to collaborate and connect with each other, allowing users to recommend and find support from photographers, stylists, graphic designers etc.

Designers will also be able to use it to get feedback on their designs and market test new product ideas before going in to production.

Like all such platforms, the basic principle is using the power of followers to finance a specific project by obtaining small contributions from a large groups of fans in return for a ‘reward ‘. This might be a thank you, original sketch, ticket for show or product voucher, depending on the amount of money pledged. It could even be to spend time with you in your studio – the aim is to get your followers to be active and develop an emotional connection with your brand – they are then likely to become loyal customers in the future.

In addition if you build a big following of active fans it can be a powerful tool to use as proof of concept to show potential investors if you want to attract external investment in the future. Muriel sees the non-financial benefits of the platform as important as the funding side.

Key aspects of the AoF platform:- 

• To maintain a high quality of campaigns the platform will be curated and selected by the selection panel of fashion industry experts. The panel will be looking for designers with credible businesses that have passion and drive to drive the campaigns forward.
• Pledges will typically start low at £5 - £10.00 and go up to £1000.
• Each campaign will run for a month however if it doesn’t reach the target then you don’t get any of the money and the participants get their money back.
• The cycle will be around 10 weeks from campaign launch to receiving funds
• Application is free with a 5% charge levied only on successful campaigns, plus any transaction fees.
• Audacity of Fashion will be engaging  a cohort of high profile industry ambassadors to champion the platform to the fashion community

Muriel’s tips for a successful campaign:-

• Your campaign needs to be specific -  be clear what the funding is for. 
• Produce an engaging video that tells your story – this is your main sales tool
• You’ll need good images 
• Your campaign needs to be part of an overall communications/marketing plan - if you generate positive PR around your campaign you’re more likely to reach your goals
• Be creative with your rewards - try and monitise what you’ve already got to offer 
• Your existing family, friends & followers are likely to be the first to support you so actively build your community in advance
• Important to set a realistic target  - if you don’t reach your target you don’t get anything at all and those that have pledged will get a refund.

The platform is due to launch in Spring 2013 www.Audacityoffashion.com

Next Alison gave a short presentation regarding the Start Up Loan (SUL) scheme, a government backed initiative to support young entrepreneurs aged 18-30 with an easy to access loan and business mentoring. So far over 2700 businesses have been helped with an average loan size of £3500-£6000 although it is possible to borrow up to 10K. Larger loans are available but need approval from Start Up Loan Company.

Key Benefits of a Start Up Loan:-
• Gives start ups easy access to finance
• It’s a quick process – decisions can be made within 48 hours
• You don’t give away equity in your business
• Unsecured loan with a low interest rate of 6%
• Flexible payments terms
• Added bonus of Free mentoring
• Global Partner offers including Paypal, Ebay & Intuit
• It’s the best deal on the market

Fashion Angel is the only delivery partner to focus on supporting fashion industry entrepreneurs and so far has approved loans to a wide cross section of fashion related businesses including womenswear, menswear, plus size, swimwear, online marketplaces, jewellery, footwear  and millinery. More information is on our Fashion Angel Start Up Loan page.

The  panel discussion that followed included input from two successful SUL applicants, Remy Ray who is setting up a plus size label, and Joel Adebayo from online platform Utter Couture, who both shared their experiences with the audience. Both confirmed how the SUL loan has allowed them to put their business idea in to reality and how easy they found the application process with the support of the pre-loan mentoring which helped them understand how to generate the  financial forecasts required. They both have also taken up one of the partner offers from Regis and now have a FREE virtual office for six months.

Muriel Dupas and AlisonLewy

The talk was sold out quickly but if you want to find out more about the Start Up Loans, or see if it's right for you, we’re hosting a FREE Finance for Fashion workshop on 30th April at 10.00am.

Spaces are limited and likely to sell out quickly again. For more information go to our Fashion Angel Events page, or click here to book a place.

By Alison Lewy

Designing for Grown Up Women

If you are a fashion designer and aged around 23, you probably consider anyone of 40 to be elderly, and a 60-year-old to be so ancient as not to be worth even the slightest consideration.

This is entirely understandable, but also commercially suicidal in today’s highly competitive fashion market.

For the older woman customer has changed. These days she is unlikely to be a crinkly-haired granny clad in elasticated waist trousers and a fleece who puts her feet up with a cup of cocoa and a copy of Saga magazine.

She is far more likely to be a sassy, savvy, gym-fit woman with highlights, Acne ankle boots and Rouge Noir nails who shops at My-Wardrobe, Matches and Reiss and is probably running a PR firm, editing a magazine (Anna Wintour, editor of American Vogue, is 63) or, hey, like my co-director Cyndy Lessing and me, a fashion website, SoSensational.co.uk

Not only has the older woman changed, but – vitally important to you as a designer who needs to sell his or her products – she has more disposable income than any other female demographic and, most relevant for you, she likes to spend her money on fashion and luxury goods.

• According to a Mintel report, the UK population aged over 55 is in control of around 80 per cent of the country’s wealth. In 2008, it was worth £5.4 billion, and by 2014 – that’s next year – it is forecast to grow to £6.4 billion.

• According to a 2007 Mintel report, women aged 50 to 69 buy more designer fashion and luxury goods than any other group.

• In mid-2006 approximately one in five people in the UK were aged under 16 while one in six people were aged 65 or over. According to market analysts Datamonitor, in 2000 there were about 132 million over-50s in Western Europe. By 2025 there are expected to be 177 million.

If those statistics have made you feel it may be worth taking a fresh look at your attitude to grown up women we have some suggestions which may be helpful. And the good news is that, you will almost certainly be able to extend your line to appeal to an older clientele (as these images from successful luxury brands highlight) without compromising on your aesthetic vision.

Garment length 
This is a vital area to consider. If all the dresses in your collection finish four inches above the knee, your brand will not appeal to a stylish older woman. Take a look at the shapes. Will any of the styles work if they are longer? Big, high profile players like Erdem, Preen, Roland Mouret, Antonio Berardi and Jonathan Saunders have all produced wonderful dresses that are on-the-knee or over-the-knee, which would appeal to a stylish woman of any age.

A perfect example of a new designer label which has taken on board the need to produce longer hemlines  is a fabulous fashion brand called Art on Fashion, which can also be found on the SoSensational Directory. Their offering is beautiful dresses, tunics and tops, in amazing prints created using specially commissioned artwork from artists in Japan, Europe and the USA.

They could quite easily have produced garments appropriate only for a very young clientele, featuring vest tops and short dresses. What they have done, instead, is to offer those things, but they have also produced wonderful and very on-trend over-the-knee dresses and longer-length tops which would appeal to the kind of woman – of any age – who would probably like Erdem, Preen, Berardi, Mouret, Saunders, et al.

Sleeves
Sleeves are a tricky subject. It is quite likely that the image which shimmers into your head is of horrid, polyester sleeves added to a frock as an afterthought. In fact, sleeves are a key trend this season – especially bracelet-length sleeves, which play into the whole retro mood.

Fabric quality
The quality of the fabric will be largely determined by your production budget, but if you have the budget flexibility to produce a few garments in a fabric that is slightly weightier, you may find you have expanded your appeal. Lining can also make a garment appeal to an older customer. But if you can’t afford to – or don’t want to – line a garment throughout, you may want to line the skirt of a dress, especially if it is in a very light colour and very see-through.

Selling online? Give the customer the information she needs 
If you are selling on the web, give the customer as much information as you can. Key pieces of information include whether a garment is lined, the length of a garment and whether the garment is true to size. Not only do you increase the chance she will buy, but you will cut down on returns, which can be a big cost for a fledgling business. And when it comes to length, don’t rely on a model shot making it clear what length a garment is. Even if you publish the model’s height, it can still be hard to judge the correct length, so a simple measurement – in inches and cms – is simple but effective.

By Jan Shure
Jan Shure is the former fashion editor of the Jewish Chronicle, broadcaster, blogger and an award-winning magazine editor. She is co-founder of SoSensational.co.uk, the shopping website for grown-up women.

Images courtesy of Browns, Matches and My-Wardrobe, all available to shop at SoSensational

Social Media for Fashion Brands Event Summary

Last week’s Social Media for Fashion Brands networking talk was one of the busiest yet and we were lucky  to have two guests on our panel this time.  This is a longer post than usual as so much was discussed.

Fashion blogger, Lois Waller, has built a huge following since she started her Bunni Punch blog in 2009, as well as over 5,000 twitter followers. She also runs her own PR agency Carrot Top PR, so has a unique perspective from both a PR and blogger's point of view.

Our second guest was designer Harriet Posner who has extensive experience advising labels on their branding and marketing strategy and has publishing a  book Marketing Fashion as a practical guide to the principles of marketing and branding. She also lectures on Fashion Business and Marketing at the LCF and Insitute Margioni and is about to launch her own label, Brompton Finch, which produces customised interior furnishings and fashion accessories inspired by flowers.

Harriet Posner, Alison Lewy and Lois Waller

The talk was kindly hosted by the American Intercontinental University and it was lovely to see their students mix and network with our business club members and fashion entrepreneurs that attended the event.

Most of us are aware of how important blogs and social media platforms are in helping promote a fashion brand, but don’t necessarily know how to utilise these platforms to the best advantage.

Fashion Angel networking talk audience

Below is a summary of the questions posed by the chair Alison Lewy, and some tips from the panel:-

Why does a brand need a blog, and to engage with bloggers?
• Fashion bloggers are good for outfit posts to promote your product. The aim is to get several influential  bloggers to feature your designs to have a wide reach.
• A label’s own blog is a brand building tool to create an emotional connection with your target audience.
• It is important to be clear about who you are trying to reach depending on what your product and target market is.

What makes a good blog?
• A blog should portray your brand in the best light and it should reflects your brands ethos - you shouldn't use it as a platform to moan about things
• Build a conversation and a relationship with the audience by talking about your business journey, what inspires you, sharing behind the scenes footage at your studio or before a catwalk show all  can help.
• Lois’s sees Bunni Punch as an informative tool that mixes up new and old brands, luxury and low end product outfit posts  - happy to include Primark if they produce something she thinks is cool.
• It should be linked to your twitter and Facebook account so they are updated when you post.

How does it help a label reach trade buyers?
• Buyers are now using blogs to research and find new brands – it’s much easier than trawling through websites. They have to be aware of the trends and so they look to the popular bloggers to feed them with up to date information which helps them filter through the brands that approach them.
• If you show at London Fashion Week, make the most out of the opportunity and invite bloggers to attend and wear your products so hopefully they will write about your brand in their show coverage.
• If your brand has built a big following on social media sites eg twitter & Facebook, the buyers will be more inclined to look at it, as it indicates there is a demand for your product.

How does a brand attract the attention of  bloggers?
• Use twitter or email to approach them.  Not all will respond but some will.
• Be aware that now many bloggers attend the shows and contact brands just to get free products, but don’t give anything back.
• Try to build an on-going relationship with a blogger who’s going to feature you on a regular basis.

Do you have to pay  bloggers to feature products?
• The fashion blogging world has changed and some of the influential bloggers do get paid for nearly all their posts. They are offered so much money  that it is no doubt hard to refuse, but it does change the nature of the relationship.
• Lois’s focus is on creativity and showcasing new brands that interest her, in some cases she may earn some money out of it , but it doesn't influence her choices.
• Hilary felt that it’s best to take a pragmatic approach – if a customer clicks on a blog link and then goes on to purchase that product she didn't feel there was anything wrong for the blogger to earn money from it providing the relationship is transparent.
• Consumers follow blogs to see a curated selection of products from a blogger that they feel has a style aesthetic they like, so it can be look on as a service to some extent.

Harriet Posner, Alison Lewy and Lois Waller

What are the important platforms to be on?
This depends on your business model  and your segmentation targeting and positioning – you need to understand and have a presence on the platforms used by your target audience.

Twitter
• Lois told us over 80% of her new clients are through twitter. It’s a powerful research tool for businesses as can be used it to search what relevant  people are blogging about.
You can investigate who the key bloggers are in your field of interest and then  follow them – hopefully they'll follow you back, thus helping to build your community.
• Hashtags can be used to help you find other interesting twitter feeds.

Facebook
• Facebook is particularly useful for customer communication, brand exposure and to drive traffic to a website.
• It is outstanding in terms of engaging people who like a brand, want to share their opinions and participate in giveaways and contests.
• A Facebook page should be kept updated to always look relevant.

Instagram 
• Useful picture sharing application .
• You can take a picture and instantly post it to twitter and Facebook  saving time.
• It lets users follow and like brands, therefore building your community.

Pinterest 
• This virtual scrapbook site is very relevant for fashion brands.
• Many brands are finding posting products on to boards translates in to sales
• It’s useful  for designers to create their own moodboards.
• It’s super quick to set up and update, so very user friendly.

Google+ 
• Google+ may not be very exciting and not much seems to be going on, however it is an important technical tool, as will be soon be the  only way to move up Google search rankings.

Lois Waller’s tips:-

1. Get on twitter - if you’re not on it set up an account immediately!
2. Harass friends/family to like your page – this helps spread the word and move you up the search rankings.
3. When you start you have to be proactive and approach magazine press, bloggers, stylist and PR’s to promote your brand and  build your community of followers 
4. Use scheduling tools to allow you to write bogs in advance when you have the time, and then post them at a later date.
5. If you want to promote your product, try linking it to something that’s on trend using the relevant hashtag.
6. Network – it’s a small industry so face to face networking is the best way to get known . It’s also a great way of sharing expertise and forging collaborations. Even if you don’t have tickets,  go to London Fashion Week and trade shows to get to know the stylists and bloggers.
7. If you want to approach a lot of bloggers – try following them and asking them to follow back, so you can direct message them.

Harriet Posner’s tips:-

1. Content is key - think about your tone of voice - communicate with and project the values of your brand
2. Remember the 4 Cs of Content
   Create  - create engaging content ( See point 1)
   Context - what is the aim and purpose of the content you are creating?
   Conversation - how will your content support two way communication between you and your audience?  Use social media to listen to the conversation as well as generate content.
   Conversion - What does conversion mean to you for each platform?   Think about meaningful conversion points of different platforms.  Are you trying to get someone to sign up for a newsletter?  Do you want them to enter a competition? Are you wanting them to purchase? Is the aim to get them to like or reTweet?  Is the purpose to get a key influence or blogger to contribute or feature your work?
3. SEO - Make sure you use KEY WORDS wisely.  Think about the page title - put what you do before the brand name.  Don't forget to write Alt Tags on images using key words It helps with SEO and bloggers find your images.
4. Website links should be on key word anchor text, not generic words like ‘more’ or ‘click here’ – eg link black leather jackets to link and not ‘here’
5. People search Google by short phrases or 2 - 3 words.  Check the Google Key words tool - for example more people search for Milliner than Millinery. 
6. Use Lists – if you want to keep an eye on a competitor without the public knowing who you are following you can use secret list.

Social media gives you access to data and a way to reach your target customers and can play an integral  part of your overall marketing/communications strategy but basic marketing principles still apply.

Don't forget, it is a support of and not a substitute, for getting out there and meeting people face to face!

Let us know what works best for you?
By Alison Lewy

Fashion Business Planning for Success.

As the 2013 kicks in, and the A/W 13 selling season is about to start, I though it would be timely if our first blog for the New Year focused on an important business focused New Year resolution.

If you are thinking of starting up a new fashion related business or are running a business without a clear strategy in place, I'd like to suggest your resolution is

‘I'll make a start on my business plan’ 

This topic is something I cover in my book Design Create Sell – a guide to starting and running a successful fashion business, and one of the most requested subjects I am asked to talk about at speaking engagements.

So why do you need a business plan?

Most budding entrepreneurs have heard of a business plan, however many think it’s something you only need if you are approaching banks for a loan or are looking for investment. Whilst this is true, your business plan is also your personal roadmap, as it will be central to your business development; outlining your goals, visions and objectives. As time goes on, you will use it to measure your actual progress against your projections.

‘Failing to plan if planning to fail’

I can’t stress how important it is to have a strategy in place and to start a business plan at the beginning of your business journey. It is essential for any enterprise, but the diversity of product and customers in the fashion industry means to have a chance of success you must be able identify where your product/idea sits within the overall marketplace. A business plan will help you think this through.

If you are a creative person this could take you out of your comfort zone but it doesn't have to be tackled all at once – most plans take a few weeks, or even months, to build. As you go through the process you will undoubtedly come across some problems you hadn't thought of – by planning in advance you have the opportunity to think of solutions.

Much of the information going into the plan will be in your head so it’s a matter of articulating your thoughts and putting them down on paper to start with and as it will take some time to pull together, the sooner you start, the better.

Tips on Writing a Business Plan

Start by dividing your plan into the sections below and try and answer the following points within each section. (There isn't a hard and fast rule as to how long a business plan should be, but you should aim for one to two pages for each section.)
Executive summary

• Although this sits at the beginning of your plan, it’s usually something you do at the end, once the rest of your plan is more or less finished. It should be no longer than  two pages, with just a couple of sentences summarising each section of your plan, as the finer details will be in the main body.

Background

• An overview of the market segment you are moving in to
• The legal status of your business

The Concept

• Describe your business – what are you going to design or make?
• Mission statement – in one or two sentences, state your personal vision for the business.
• Who is your target market? 
• Are you filling a gap in the market, or have you found a solution to a problem?
• What about your designs and/or concept is it different to those already in the market? In other words, what is your Unique Selling Point (USP)?

Sales and Marketing

• What is the size of the market like that you are going in to? Is it a growing market? 
• Who are your competitors? What is your competitive advantage? 
• Have you identified a clear niche?
• Is your brand identity easy to distinguish?
• How will you get wholesale buyers or retail customers to find out about you
• How will you build brand awareness and attract press coverage?

Operations

• What is your background and your role in the business?
• Is there anyone else involved in the business, and if so what are their roles?
• Do you have any other support structures that can help such as a business mentor, accountant, etc.?
• What additional staff or expertise may you need to operate successfully?
• Where will you run your business from?
• Are you going to need to invest in any special equipment?

Production and Sourcing

• How and where will you get your product made?
• Can it be produced at a competitive price point, suitable for your target market?
• Where will you source your raw materials from, e.g. materials, trimmings, fittings?

Finance

• How much money will you need to get started? Think about how much your sample collection will cost to produce, include fixed overheads and ongoing costs. If you’re projecting sales orders at a certain level, how much finance will you need to produce your orders? You will need to include profit and loss projections and a cash flow forecast. 
• Can you obtain this money, either from friends, family, savings, bank, or any other options? 

SWOT Analysis

• This stands for Strengths, Weaknesses, Opportunities and Threats and is a useful exercise to self-analyse your business.  

The good news is that if you are between 18-30 you may be eligible for a 2.5k loan* and FREE business mentoring with Fashion Angel under the Government’s Start Up Loan scheme. As an official delivery partner we can fast track you on to the programme. To find out more just email info@fashion-angel.co.uk and we’ll send you an info pack and application form.

The key when approaching anyone you want to borrow from is to make sure that your business plan is credible. The financial section is absolutely critical to your plan as it will identify your projections for how the business will grow - in terms of both profits and income - and what financing you will need to make that happen. More information on finance is covered in Chapter 10 of the Design Create Sell book.

Remember - This is not a static document; it needs to be amended as your business develops and changes so worth reviewing at least every three months or so.

You can also get help creating your own business plan by booking a place at our next workshop ‘Fashion Business Planning’ on 22nd January. This practical session will guide you through the business planning process and how to go about the research needed.

One thing I can promise you – once you have a plan in place you’ll  have a great sense of achievement and find it much easier to be focus on your business goals.

Good luck and let me know how you get on!
By Alison Lewy

Follow @FashionAngel1

Pinterest Tips to Promote Fashion Brands

Pinterest, the virtual scrapbooking site, has become one of the fastest growing media platforms around, especially among women. Its visually driven content has led to millions of fashion brands and retailers to use Pinterest to promote their goods as it can prove to be a valuable way to build brand awareness for a fashion label.

I like it because it's also one of the easiest platforms to set up and maintain!

Below are my 5 tips to help you get the most from Pinterest:-

1. Plan a range of boards
First research what your target customer is pinning and other pins, boards and brands that are getting results. Then decide on the themes for your range of pin boards.

Create pin-worthy content. Pinterest is a highly effective tool to share your personality and unique view of the world, all while building a relationship with your existing and potential customers.

Choose great images and videos from your blog - you may - want to consider adding a watermark with your website URL to each of your own images, so that pinners know where it originally came from. Fashion favourites, travel destinations, exhibitions and things that inspire you work well on Pinterest. If you're selling a product then add the price to the pin description. If you want to pin an image from other sources, be sure to ask permission, or make sure the image is royalty free.

It’s good to mix personal content while marketing your business, so try to incorporate your Pinterest content into your blog or website. For example, if you sell jewellery, make your product images as attractive as possible so people will want to buy (and re-pin) them. What you want is for people to find something on your board they emotionally resonate with and repin to their board. This will increase exposure to your board, and ultimately your brand.

Fashion Angel Pinterest Board

2. Start pinning.
In addition to giving your website visitors something pretty to pin, visit other sites and pin, comment and repin their images as you browse online. You don’t want to limit yourself to just pinning your own images, as it will seem too self-promotional and could turn off other users. Plus, the more you can show your audience what a great authority you are in your field, the more you’ll establish yourself in your niche. Tag other pinners by name and say thank you for repins.

Another example: if you’re a footwear designer, you could create boards devoted to historical shoe designs you love, photos of your designs worn by celebrities, images of outfits you think work well with particular shoes, your inspiration behind a forthcoming collection etc.

Being creative and genuine will help build your Pinterest following, which ultimately boosts your business’s potential reach.

Fashion Angel Pinterest Board

3. Get your pins found. 
Consider what content will bring users to your pins and what you want them to take away (repines). Add categories, keywords, hashtags and urls to make your profile and pins SEO-friendly.

Optimize your website for pinning by encouraging your website visitors to pin your content by adding a “pin it” icon to every page of your website. This will let anyone on your site repin any image on your site they might like. Before you do this, you will want to put your website on Pinterest and make sure that the images on your site are “pinnable”. If you’re not sure about this, ask your web designer.

Once you’re up and running, you can then post a “follow on Pinterest” button (available on the Pinterest goodies page) on your blog, email signature, and integrate Pinterest share buttons on your other social media platforms.

4  Host a competition on Pinterest.
Several businesses large and small have hosted “pin-to-win” contests on Pinterest, which can create a tremendous amount of viral excitement around your Pinterest presence. When you get comfortable with Pinterest, you might want to give this strategy a go. Everyone loves free stuff, so the cooler the prizes you offer, the more excited people will be to share with their followers.
I’ll be covering tips on running a successful contest in a future blog.

Fashion Angel Pinterest Board

5: Keep at it. 
As with all social media sites , it require maintenance. If you decide to start a Pinterest board, it’s important that you stay in the game, rather than starting and forgetting your Pinterest account. Dormant Pinterest boards won’t attract new followers. If you download the Pinterest App for mobile/tablet and add the Pin It button to your browser it makes it easy for you to create and add boards wherever you are. You can use the dead time in between meetings or sitting on a train
to browse and add new pins .

If you want to learn more about Pinterest and how social media and blogs in general can help promote your fashion brand, you’ll find our forthcoming Social Media for Fashion Brands talk on 30th January very useful. We’ll be joined by fashion blogger Lois Waller from Bunni Punch and Fashion Communications lecturer Jayne Sheridan.

Tickets are FREE for Fashion Angel Business Club members or £18 for non members. You can book online on the Fashion Angel Events page.

Have you joined Pinterest yet? How do you use it to promote your business?
Please share your tips and experiences with us.

By Alison Lewy

Using Trade Marks To Protect Your Business

Your brand is an important and valuable asset!

This weeks guest blog is by Tahir Basheer, a partner at Sheridans law firm and advises clients in a wide variety of sectors on brand protection. Tahir shares with us his top tips on using trade marks to protect your brand.

'Your brand is the part of your business that communicates to the outside world who you are, the quality of your goods and services, and your company’s image. One way of protecting your brand is through registering it as a trade mark. Trade marks are also a valuable asset for your company.

1. Why register? Registered trade mark protection gives the registered proprietor the exclusive right to use the brand. Furthermore, the trade mark registration is evidence that the registered proprietor is the owner of the brand.  Once registered trade marks last for an initial period of 10 years (for the UK at least).
   
2. Protecting your brand identity It is possible to register most names, slogans and logos as trade marks. The more distinctive the trade mark the more likely it is to be registrable and also the stronger trade mark protection you will have once it is registered.    Therefore, it is important to identify the key aspect of your brand identity and seek to protect it.
   
3. Picking your goods and services of interest Trade Marks are registered in respect of goods and services divided into groups called classes. A carefully and strategically drafted specification will be important for both brand protection and brand exploitation.
   
4. Select your key territories Trade marks are territorial in nature. Therefore, you should apply to register your trade mark in your key territories of interest. This may be where you are currently operating or where you have an interest in expanding in the future. Think about the territories where your manufacture and the territories where you exploit. If you have a number of territories of interest, we can advise on a trade mark filing strategy that will meet your brand protection needs whilst being sensitive to your budget.
   
5. Make your brand work for you Once your trade mark portfolio is in place you can use these assets to work for you. You can licence your trade marks, or enter into franchise deals with, third parties in return for a royalty/receive share. You should note that in some territories, trade mark registrations are required before you can licence, commercially exploit or import goods into that market.
   
6. Trade mark as an asset As well as licensing, trade marks can be bought and sold. A registered trade mark is an identifiable asset which attracts value. Therefore make sure your trade mark and its value are maintained.
   
7. Recognising trade marks as value for money Whilst the application costs are upfront, given that the trade mark protection covers 10 years, spread out over the 10 year period they are good value for money.
   
8. Preserving the value of your brand Once registered it is important to monitor any third party use of an identical or similar brand. Any unauthorised use may infringe your trade mark rights, which in turn affects the value of your company name and the business which the brand attracts. Therefore you should identify a strategy which deals with infringer's in terms of their risk to your brand.
   
9. Important Notice Registering your company name with Companies House provides you some (albeit weak) protection to protect your brand. However, this does not give your business the same protection or benefits as a registered trade mark.
   
10. Other strategies Consider protecting your brand through other means. This includes copyright and also registering domain names for your brand.

We are pleased to offer Fashion Angel Business Club members a 10% discount on our standard fees. For more information, please feel free to contact me on
T: 0207 079 0103, E: tbasheer@sheridans.co.uk.

By Tahir Basheer

Fashion Angel and Poq Studio - Increasing online fashion sales with mobile apps

Last week we hosted another of our vibrant networking talks, this time focusing on how mobile websites and apps are revolutionising online shopping, Smartphones are becoming a force to be reckoned with for the industry, with over  25 % of online searches relating to fashion brands come from a mobile device.

We discovered how easy it is for a fashion brand to now have their own mobile app and make sure they are not being left behind and benefiting from changing buying patterns of consumers.

The evening started off with a short presentation from Michael Langguth, co-founder of mobile app developers Poq Studio. This set the scene and showed us that its isn’t necessary to spend a lot developing your own app – it’s much simpler and more cost effective to use an existing platform.

After the presentation, Sonja Todd from jewellery brand Tatty Devine joined us for the panel discussion. Tatty Devine launched their own mobile app around 10 months ago and have seen their online sales increase as a result.

First we discussed how to decide whether your brand is ready for a mobile app or not. This is fairly simple as Google Analytics allows to see whether traffic to an existing website is coming from. If you see that a lot of traffic is coming via  a smartphone then you can assume that a mobile app will benefit your business as your target audience are engaging with you this way.

One of the key benefits with an app is the ability to use push notifications as a way to drive sales on your app (it’s like text messaging your customers!).

As ever, good product images are essential – its important to have a few shots of each images so the customer can see the product from different angles, and also to have clear descriptions with key measurements.

As you’d expect some brilliant tips came out of the discussion

Sonja’s top tips for improving online sales:

• Use Twitter to woo celebrities – and then make the most of any famous connections 
• Listen to your customers and see what they want
• Use social media to respond– be as quick and as helpful as possible
• Find the channels that work for you and stick to them, but don’t be afraid to experiment
• Clever discounting can work wonders and boost sales 

Keep your product ranges tight – especially if you are a small brand

Michael’s top tips on getting mobile:

• Check your webshop stats to see how much mobile traffic you’re currently getting
• First step is a mobile website which will work on all platforms. Then an iPhone/iPad app is a must for online businesses that want to grow.
• Choose your developer carefully – ask to see their portfolio to check that they’ve made apps before.
• Don’t be scared – mobile is a great opportunity!

For those that were unable to make the event, Michael’s full presentation is below


Interested in getting your own mobile shopping app and website?  If you’re a fashion or design brand thinking about taking the plunge into mobile, we have arranged a special offer for you with Poq Studio.

They are offering an amazing 30% off the set-up cost and first three months of mobile shopping solutions. Click here to take advantage of the offer.

A big thank you to Michael and Sonja for making the evening such as a success.

Our next event The Shoe Lounge is on 5th December and focuses on setting up a successful footwear brand.

Top tips for fashion designers on getting good PR and their designs worn by celebrities

We held an informal talk on PR and Product Placement and were joined by PR practitioner Alison Lowe from Felicities, and freelance music and celebrity stylist Aimee Croysdill.

Aimee is a successful stylist who liaises with record labels, music videos, press shoots, styling for staging and red carpet events. During the talk she explained that if you are a designer looking to get known you should:

Forge a relationship with stylists- when your garment is used for a shoot or video, your designs will be noticed by many people in different areas of the industry.
Take a chance with new music artists- they may be up and coming but could be the next 'big thing' so this could be very beneficial for promoting your brand. Mulberry noticed Lana Del Ray and now they have named a best selling bag after her.
Fashion shoots are fast paced- garments may not come back in the same quality they left you, if a garment is very precious to you, only lend to editorial shoots.
Social networking is important- most stylists have a Twitter account and are on other social network sites such as Facebook and Pinterest, so make sure you are always following and interacting with them.
High profile events- If you know there is a big event coming up, contact the stylist in your network to see if they need anything for their clients. Let them know what you have available to borrow at that time.

                                 'Pixie Lott - What do you take me for' styled by Aimee Croysdill

Alison Lowe has run several successful businesses including Felicities, a specialist PR and business support agency for emerging fashion talent. As well as having her own business, Alison provides PR and business support to a range of emerging fashion brands. Alison's tips on generating PR for your business were:

Communicate- talk to everyone and anyone about what you do, you never know what contacts people may have.
Know your target market- look through magazines and find styling that suits you and then get hold of the stylist of these shoots. If you want to be a credible designer, put your garments on credible models.
Social networking- Emails to journalists regularly go straight into spam mail so try and build relationships on social networking sites whenever you can.
Use Twitter and Pinterest- ‘Twitter and Pinterest are the biggest things to hit fashion in... forever!’
Respond quickly to any press enquiries- make sure your images are not large file sizes so are quick to download. Large files should be sent via a http site such as Dropbox.
Press releases should always be straight to the point- journalists do not need to know your inspiration, your garments should stand up for themselves. Make sure you keep the information as back up ready if it is needed for interviews.

Alison Lowe, Alison Lewy and Aimee Croysdill

5 TOP TIPS FROM THE EVENING:
-Talk to everyone
-Use social media to build relationships NOT to bombard people
-Respond to opportunities ASAP, people will not wait around for you
-Target your audience
-Have sturdy samples with nice labels, good quality zips and materials

To find out about more of our events, sign up to our newsletter or go to our
fashion angel events page:

By Sophie Gunn

Fancy winning a copy of Design Create Sell - a guide to starting and running a fashion business?

We're super excited about the launch of our new Twitter competition.

3 lucky winners will receive a copy of  Design Create Sell - a guide to starting up and running a fashion business.

All you have to do is retweet this message:-

We've got 3 copies of Design Create Sell to give away. RT #fashionbook & follow to win. Who doesn't want help with their fashion biz?? 

This essential guide, written by Alison Lewy, fashion industry expert and founder of fashion business accelerator Fashion Angel, will give readers an overview of the fashion industry and what makes it tick. It will guide them through the issues they need to think about before they start and take them through the key steps involved in setting up a new business.

Readers will learn how to conduct the research needed for their business plan and get practical guidance on building their brand, getting their product made, marketing & PR and how and where to sell products. This comprehensive book will inspire fashion lovers to turn their dream into a reality!

Can't Wait? You can order the book now from the Fashion Angel Shop

Competition Terms & Conditions

●     Fashion Angel is solely responsible for all aspects of the competition

●     Participants must follow @FashionAngel1 and use the #fashionbook so we can  DM the winners

●     Entries close: 23.59 on Monday November 12th 2012

●     Open to UKresidents only

●     No cash alternative. Prizes are non-transferable

●     Only one entry per person

●     Entrant’s data is covered by UKdata protection laws

●     The winner will be announced on the FA homepage and through its social media networks.

●     Entrants acknowledge that by entering the competition they are authoring Fashion Angel to contact them with relevant information.

●     Entrants’ data will not be passed to third parties.

●     Fashion Angel reserves the right to withdraw, change or cancel the competition at any time.

Getting it Made - Part 2. Deciding whether to use UK or Overseas production.

In my last post I already talked about how you go about selecting the right manufacturer for your fashion business. But should you use a UK supplier or one based overseas?

It is usually practical and cost-effective to produce goods overseas if you are ordering large quantities. If you are manufacturing offshore, it is helpful if you can produce your first samples in the UK to ensure you get the pattern and the fit right; this will minimise the chances of mistakes when the full run is then made offshore. Consider getting manufacturing quotes for both UK and overseas production so that you can offer competitive prices to a buyer wanting to place a large order.

The benefits of producing overseas

1. Costs: offshore production is generally more cost-effective, especially when producing large volumes. Production costs will vary from country to country.

2. Machinery and technology: unfortunately there has been a lack of investment in manufacturing for many years in the UK, and offshore factories are more likely to have the most up-to-date machinery and CAD/CAM systems. This is particularly applicable to accessory and shoe production.

3. Large pool of skilled labour: some countries still have a pool of skilled labour of specialists workers, particularly in craft areas and embellishment. If the process is time-consuming, with cheaper labour you are able to be far more adventurous.

The disadvantages of producing overseas

1. Costs: economies of scale dictate that small volumes would not achieve favourable costs, and some factories have high production minimums. This is changing, however, and more and more overseas units are gearing up for smaller volumes. Also, you will most likely be subject to currency fluctuations which can affect your profit margin.

2. Quality control: it will be harder for you to control your production. You will have to factor into the production cost your travel expenses to visit the factory. You can sometimes work through an agent; however, they will charge you a fee and it is not always easy to find an agent you can trust to adhere to your high standards.

3. Communication: does your factory have English-speaking staff, or can you speak the local language? How easy will it to communicate what you want? You also have to take into account the time differences and whether they have good broadband connections.

4. Logistics: if you are having samples made overseas you will have to allow for the courier costs of sending raw materials/toiles/samples back and forth. Some of this would be avoided if the factory are sourcing materials locally for you. When working out your production schedule you must allow shipping time (could be several weeks) and also be prepared for production getting delayed or goods stuck in customs. Transport, delivery and insurance costs will also need to be factored in.

5. Cash flow: until you build a relationship with a factory, they may well want 30 per cent payment upfront and the final payment when goods are collected.

The benefits of UK production

1. ‘Made in UK’ can add value to your brand.

2. Costs: your production costs may be higher, but you will have more control over them and they won’t fluctuate.

3. Smaller quantities: UK factories are more willing to produce small quantities.

4. Control: you will be on hand to check the quality and deal quickly with any problems that may arise.

5. Communication: you still have to be organised with your production processes, but communication will be much easier.

6. Scheduling: you will be able to produce orders more quickly as you won’t have to allow extra shipping time.

7. Delivery costs: these can be kept to a minimum and you don’t have to worry that your goods will get stuck in Customs.

Disadvantages of UK production

1. Cost: labour costs are far more expensive in the UK, and therefore the price of production will be higher.

2. Skilled labour: the situation is improving, but manufacturing has been in decline and therefore it can be hard to find good sample and production machinists and cutters. Craft workers for processes such as embroidery, appliqué, etc, are also in short supply so costs may be increased and turnaround times may be longer.

3. Machinery: there is a lack of machinery investment, so it may be hard to get your product made.

4. Digitisation: manufacturing processes have been vastly improved with CAD/CAM systems. However, the cost of these systems has been prohibitive for many UK factories.

Consider getting manufacturing quotes for both UK and overseas production so that you can offer competitive prices to a buyer wanting to place a large order.

Buy Design Create Sell for £12.99

Published in association with Country Living magazine, Design Create Sell offers an overview of the fashion industry and a comprehensive guide to setting up and running a small fashion business, including sections on branding, money management, customer research, the production process and finding routes to market. It’s available from the Fashion Angel Shop for £12.99.