An overwhelming number of startup fashion businesses fail after they get started simply because they failed to figure out some basic things required to run the business successfully.⠀
In the last few years, South Africa, Kenya, and Nigeria have become the hubs of startup establishment. According to the Venture Capital Report of 2019 by WeeTracker, Nigeria has the maximum score of Venture Capital followed by Kenya and South Africa.
However, in terms of trends, Nigeria has experienced more startup business shutdowns at 61.05%, Kenya at 58.73%, and South Africa at 54.39%.
According to the data from the US Bureau of Labour Statistics, 20% of small businesses fail in the first year, 30% in the second year, 50% in the fifth year while 70% fail within the first ten years. These statistics show that there is an increase in the failure rate hence it is a global concern.
Your business does not have to be on the list of the failed business.
Here are 3 things you need to know before you start the Business of Fashion;
⠀1. Know Your Niche Well
Firstly, you need to determine the niche you want to focus on in the Business of Fashion and avoid pivoting frequently. This will help you establish your brand and be known as an authority in that area. For instance, if you’re launching a plus-sized women’s wear brand or Corporate Clothing Retail, focus on selling those items only.
2. Identify Your Target Audience⠀⠀
Many fashion brand startups fail because they do not know their target market. This article on How to define your target market explains what you need to do before starting.⠀
Avoid making this mistake. Research your target customers’ social, financial, educational, and other backgrounds. This will help you deliver the choice and needs of your customers. For example, if you identify pregnant women as your target consumers, then you should create fashion items as per their choice of colors, trends, comfort, etc.
3. Know What It’ll Cost
Lack of funding is surely one of the reasons many businesses fail without realizing their full potential. In order to avoid such a situation when starting out, have a realistic budget of how much money you need to set up and run your business. After you have your budget ready, work on getting a significant portion of it ready.⠀This article on important costs to plan for will surely help you.
Starting any kind of business requires tenacity, endurance, and dedication. Setting up the business of fashion is all the more challenging because this is a hyper-competitive industry and a very complex one as well even at the smallest of scales that’s why you need to be prepared from day one.⠀
What are your thoughts?…. Let’s discuss …⠀
P.S.
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