Here is a StartUp Friday with a difference.
This week has seen Fashion Week in both Melbourne and Sydney. There has been quite a lot of media coverage focusing on the absence of the “big names”
More than half this year are start ups. To be a startup in the fashion industry takes enormous commitment – financially!
“It costs between $6000 to $14,500 to secure a slot on the Fashion Week schedule, but in reality a show costs up to $80,000 to stage, when the models and all the other production costs have been factored in. No wonder cash, not content, is now king” Georgina Safe in SMH.
She sites when Akira was a startup he didn’t have enough money for shoes in 1996 and the models wearing red socks instead; “Shoes are $100 and I have 15 models; I just don’t have the money for shoes”
12 years ago when I was a StartUp my first business it was a fashion business; I made designer 100% cotton sleep wear. I knew it was a fantastic product, my customers loved it, the market loved it, my clients ordered multiple items. Then as I started to “scale” I found out just how much money was needed to continue and grow to where I imagined I could go.
After 6 months I had some very useful financial data which I used to make realistic projections.
I was able to make an informed decision about my future in fashion and I chose not to continue with that venture. A difficult choice at the time.
People who pursue a career in fashion need significant financial resources in order to be successful. Knowing the financials of any business is critical. Cash flow is critical. Understanding financials can be the difference between starting and creating a successful business or not … I’ve started calling it Financial Tenacity
We are all about Growing Business Healthier