3 Tips On Managing Cash Flow In Your Fashion Business
What is cash flow in business?
The amount of cash that passes in and out of a business is known as Cash Flow. It could be from operations, investing or financing. Cash received in a business is known as inflows, while cash spent is known as outflows.
The effective management of your cashflow plays a major role in the success of your business. So as much as you are trying to sort out operations, employees, and marketing, you also need to spend some time understanding the concept of cash flow as well as how to make the most of it.
Why is cash flow important for fashion businesses?
Having said that, you might still be wondering what does cash flow have to do with my fashion business ? After all Fashion is about dishing out good designs and getting people to buy them right?…Just saying.
You have to realize that Fashion is like every other business, with many channels and sections You still have to divert funds into the different stages of the business such as design, sampling, fabric sourcing, marketing, salaries, etc.
And as a start-up brand, you can only hope all these will generate enough revenue for you to plug back in against the next collection or season. If you neglect your cash flow and refuse to monitor it, you are definitely going to run out of business, no matter how creative you are.
So basically managing your cash flow helps you to do the following ;
Settle debts
Reinvest in your business
Pay expenses
Provide buffer against unforeseen financial challenges .E. t. c
Have you been monitoring your cash flow? If not, then this article is exactly what you need to get started!!!
How do you manage cash flow in a fashion startup?
#1 DO YOUR RESEARCH
As a start-up, you might feel there are a lot of things the business needs, and then you get carried away spending and probably not even taking time to know if you really need it. Perhaps you could have even gotten it at a better price somewhere else. You need to take your time to explore some options, you could collaborate to save costs, research the suppliers you were considering before you make any payment. Ensure you have defined your market strategy before you invest so much into marketing so you won’t be throwing away money.
Doing research might seem like a herculean task, trust me it will pay off. You don’t want to spend a huge amount of money on some fancy packaging material you just saw online, and you realize that might not be appealing to your type of market. Check out this article for important costs you need to plan for in your business.
#2 PRIORITIZE THE RIGHT THINGS
Have you ever heard of the phrase “misplaced priority”? It simply means giving attention to what is less important while ignoring the important one. So as a start-up Fashion brand, you don’t want to do this at all. At the end of your research, you should be able to understand what is important, urgent, and neither important nor urgent.
This will help you ensure you save some money rather than spending it on something that will not yield profit.
For instance, at the beginning of your business, you do not need to spend hundreds of thousands on a website when you could have gotten a cheaper one that you can manage effectively and then upgrade as the business grows.
Don’t get me wrong, I am not saying having a beautiful website is bad, but I am saying you could start with a free website, google my business, or even blogger. Then as you scale up, you can upgrade. You get my gist, right?
And finally for today!!!
#3 DON’T OVERSTOCK
This one is very important!! The fact that you have a large network of people around you does not necessarily mean they are your target market. If you rely on family and friends alone to buy from you, then you are not in for some business. You need to have a strategy to figure out your ideal market.
You may be tempted to start with a variety of styles, colors, and fabrics. That can make a big difference in your overall cash flow. Your inventory can be the difference between a successful launch and a flop–not to mention a number of problems with Money.
In conclusion, how you manage money in the early stages can set your business up for failure or give you a good foundation to build on. How else do you new fashion entrepreneurs can manage money? Share with us in the comments…
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To stand out in the crowd, you need to figure out effective ways to promote your fashion business. You and I know that numerous businesses keep sprouting, yet not all of them even survive the first 2 years as reported by the Bureau Of Labour Statistics as reported by Fundera. Moreover, the advent of covid -19 also contributed to the need for businesses to go digital…Well going digital has long been existing, but it increased drastically in 2020.
As a result, e-retail sales account for 14% of retail sales worldwide, which has been predicted to increase to about 22% in 2023 irrespective of the global economic state, now is the time to start! Fashion trends are very volatile, consumers are having more options to choose from and ready to hop on the next thing. However, you can still attract your customers with the right marketing strategies.
Despite the fact that a lot of brick-and-mortar stores shut down, statistics still show that some Fashion brands made some enormous sales during the pandemic.
Okay let’s get on with it!
Below are 3 ways to effectively promote your fashion business, especially a new brand.
#Get Social
Now is not the time to be antisocial especially when the bulk of your target market belongs to the millennial generation. By the way, getting social goes beyond posting content, you need to engage with your audience online. Understand what interests they have, tell your brand story in a way that resonates with them. Great quality images, videos, and start utilizing reels to grow exponentially.
Social media is active all the time, so besides posting daily, make sure you’re consistently dishing out quality and engaging content.⠀
Easy ahan??? Let’s dive into the next one!!!!
#Influencer Marketing
Another way to effectively promote your fashion brand is by adopting influencer marketing. Let me put it this way, influencer marketing can be summarized as;
A type of social media marketing.
It involves the use of endorsements and product mentions on social media platforms.
It is a well-trusted social proof.
Having said that, we have to realize that people no longer depend on or trust TV ads, more so, not every fashion brand can afford that.
Consumers want a form of proof that can make them trust your brand. Hence the more reason you need to pick the right influencer. The right influencer communicates with the right crowd. Some influencers get money or your products in return for their services. Yeah, it might seem like an expensive investment, trust me, it pays off when done correctly.
This brings me to my final tip!!!
#Collaboration
I cannot overemphasize the benefit of this. Now is the best time for every fashion brand to put their best in all they do. No room for mediocrity. Work on your strength and collaborate with people that can promote your business effectively. Eg, collaborate with photographers, models, in fact, outsource whatever might slow you down including your marketing and production. If creativity is your core strength, then build on it and get yourself an outstanding team.
One bonus tip>>>>>>
#Get a Website!!!
There is no e-retailing without a website and if you want your audience to know you exist, find you on google search, then owning a website is inevitable. Moreover, a website allows your audience to know more about you through your company profile, blog posts, podcasts, events, etc. Check out this article on how to improve your website traffic.
In conclusion, your website is also a good data source. You can review your marketing and advertising strategies to know what works best and study the trends to make informed decisions. That being said, which of these ways would you love to start with ? Well all 4 ways discussed have their specific benefits, so you can start applying them one after the other.
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Drop a comment for us, we would love to hear your take on effective ways to promote your fashion brand.
When I first decided to quit my job for Fashion school in a country where I knew no one, I had no idea of how it would work. I had my fears and worries. However, I was able to overcome my fears. They could not hold me back!!!!
and that’s the exact point I am driving at!
So if you have ever been scared about starting a business. Given up on taking up a new project. Or letting go in the middle of a project…..
Perhaps at some point in your life, you had to “say no” to a decision you needed to make due to fear.
If you are this person, this podcast is for you!
I have also been there so I can relate perfectly!!!
In this first episode of the Business Nuggets by Martwayne, I shared some examples of fears people might have faced in their businesses or personal lives and how to overcome those fears.
By asking yourself just two questions and answering them sincerely. Trust me, you will begin to challenge fear from a different perspective.
Interested in questions? Click the video below to Listen——————–
Take note, these were the same questions I asked myself. Hence, the more you ask yourself, the easier it will be for you to overcome fear.
How else do you deal with fear in your business? Share with us!
Business Nuggets by Martwayne
A podcast series of short entrepreneurship tips that will help you kickstart or grow your business and help you on your entrepreneurship journey. Each episode is created to help you turn your passion to profit and into a viable business.
Is The Fashion Industry Dealing With Fashion Copycats?
Quite frankly, dealing with copycats has been a long standing concern in the Fashion Industry. Fashion doesn’t have the same copyright protection as other creative media. Which means it’s easy for copycats to get away with theft. But before we dive into the gist, let’s understand what copycat Fashion or knockoff fashion is.
To copy a design simply means to produce the same item made by another Designer without getting a license to do so. In most cases, it is sold for a less price.
From my point of view, there are two ways to it. Sometimes big brands rip off designs they have seen on a runway, mass produce them and sell at lower prices.
In other cases, some designers just pick up pictures off the internet to replicate in their collection or a bespoke service. I get to hear some designers say once they change the sleeves and the neckline, then it’s their design! But we all know that is so not true!Well, some folks might say …
“ What has been will be again, and what has been done will be done again”
As regards the impact of copycats in the fashion industry, there are two schools of thought. According to insights and analysis shared by BOF;
“Some say copycats dilute brand equity and damage sales, reducing incentives to innovate. Others argue that copycats are, in fact, healthy for the fashion industry, because they keep trend cycles turning”…
Apparently, not everyone in the Fashion Industry is in support of dealing with copycats. This makes it easier for copycats to get away in a lot of instances. Moreso, these so-called copycats are quick to taking action. They turn out knockoffs in a matter of few days even before the original designs are produced. Is there really a permanent solution to this? Should we fold our arms and accept that it is part of the journey?
Does Intellectual Property Law Exist in the Fashion Industry?
Well, the obvious truth is that not everyone is embracing the ideology that copycat is as old as the Fashion Industry itself. Flashback to the year 2019, when one of the top Nigeria fashion brands, Deola Sagoe issued an intellectual property warning prior to the unveiling of the Deola Tropical Galactica SS20 01 Surreal™️ collection. This was in a bid to set her brand apart and protecting her brand from the copycat plague.
In other words, some Designers have taken great steps to get legal protection for their designs. However, this law varies significantly in different countries. For instance, in the United States, fashion designs are exempt from copyright protection. Now you are wondering how exactly can you deal with the situation, right?
Firstly, you have to face the reality that some brands are out for making money alone. Nothing about creativity. Even the big brands like Zara and Forever 21 consistently knockoff designs from the Runway. More so, these brands have adopted technology into their businesses. They have been able to study the consumer behaviour, trends and how a certain design is perceived by the consumers.
Bottom line, be ready to deal with the copycats!
4 WAYS TO DEAL WITH COPYCATS IN YOUR FASHION BUSINESS
MAKE YOUR WORK UNIQUE
To stand out from the crowd means you are ready to put in the work. You have to create some uniqueness in how you present your designs to your target market. Be creative in your styling, photoshoot, packaging and even your adverts.
Beyond adding watermarks and a unique logo, let your brand identity and aesthetics reflect in your business. Sell the feelings to your consumer so they can spot the difference between your product and the knockoffs.
BE INNOVATIVE AND PROTECT YOUR DESIGNS
You can’t copyright types of clothing but you can copyright your unique prints and also register a patent for truly unique items. So ensure you register your designs under the Patents and Designs Act. For further reading on “Intellectual Property and Fashion in Nigeria” take a look at this article.
Do not for once think your business is too small or assume no one can copy your works. Do your research and take all necessary actions.
CHOOSE A REPUTABLE GARMENT PRODUCTION HOUSE
Work with a garment production house that has a credible reputation. You shouldn’t work with people who’ll reproduce or sell your designs or patterns. Prepare an NDA-non disclosure agreement and make your terms as clear as possible.
DON’T BE WEIGHED DOWN
If you’re hit by a copycat, don’t let it weigh you down! Keep producing unique designs, monitor them and try to figure out the source of the design. Send them a message directly or through your lawyer if they continue to steal your work. Let them know you’re willing to pursue legal action. In some cases, copycats are not worth suing because you might end up wasting money and time. For example, the Aba boys print pick off illustrations from the internet, print it on t-shirts and release at cheap prices.
I such cases, suing might not worth it because the art works are usually poorly printed on low quality T-shirts. Hence, the difference is clear! While it might be tempting to call them out, you may lose more and bring them free publicity when you fight with them.
On a final note, take the necessary steps to protect your designs, get professsional help and make sure you build a unique brand .Dealing with copycats is not an easy task, but know when to act, how to act and when to watch from a distance.
Having said all these, which of the 4-ways discussed above have you tried before or would you implement.
A good product description highlights the key features and benefits of your products in the most intriguing ways while keeping them optimized .It is one thing to have few words to describe your products and it is another to make sure you persuade a potential customer Hence, it is not only about the words and the images, it has to lead to sales and conversion.
WHAT IS A GOOD PRODUCT DESCRIPTION?
A product description simply gives an overview of the details of a product. It states the features and the benefits of the products and also gives the consumer the reason to purchase your product.
It is powerful enough to convert a visitor into a potential customer and also capable of putting them off done the wrong way.
Gone are the days when consumers used to purchase goods online just for the sake of convenience and limited availability of online stores. Some shoppers want to know the nitty gritty of the fashion item they are about to purchase.
They are curious about the fiber content, durability, fit, does it have a multiple styling option? Are there any reviews? and the questions go on and on…..
So really you want to do this and do it the right way.
In simple terms, a good product description should
In some cases , it may include videos and frequently asked questions. So it’s up to you to decide how you want your customers to feel.
Why Do You Need a Good Product Description?
Still not convinced about how this affects your customers? Let me give some facts. According to statistics, they play a key role in the purchasing decision of your customers. About 87% of consumers place high importance on how products are described. Consequently, it could give them a reason to buy or do otherwise.
Are you are aware that 50% of customers also return products due to the fact that the product did not match the description. Statistics has also shown that about 98% of consumers decide not to buy a product as a result of inaccurate product description.
Okay here is the gist, writing a good product description does not have to be a hassle. Follow the tips discussed in this article and put yourself on the right path to making more sales and conversions in 2021.
Okay let’s get right into it!
Converse With Your Ideal Target Audience
Setting up an online store or a website already means you have done your market research right?
So you want to write a product description that will resonate with your target audience. You want to go personal with them . Make them feel like it’s the same brand they relate with on your social media platforms. Are they very formal people? Do they like slangs? Would they relate with emojis? What questions do they ask frequently.
Make them feel the same way as a client standing face to face with you will feel. In other words, understand your customers’s lingo.
Tell a Story
Everyone loves a good story, so make sure you evoke an emotion when describing your product. Your product descriptions can describe how the idea for the product was born, tell them how they will feel in it. Explain to the production process or materials. Give them the feel before they even buy it.
Here is an example of a brand that understands her customer lingo and tells a story without missing purpose of the product description.
JENN ARDOR has clearly stated some key features, the materials used, where to wear the shoes to and how you will feel in his pair of shoes.
Straight and concise, yet with a story around it.
Include Reviews and Ratings
Finally ,Including a social proof in your product description goes a long way in making people feel comfortable with buying your products. Consumers naturally want to know if other people have used your products, how did they feel? Was it easy to use? Does it tally with the description? Adding reviews and images of other clients can help emphasize the benefits and features you have included in the description.
ADDITIONAL TIPS
Highlight the most valuable features.
Use videos and creative demos to excite the consumer.
Ensure your product description is optimized for the web.
Communicate as clearly as possible.
On a Final Note!
Your product description is a powerful sales tool. Make it good enough to yield more sales and conversions in 2021.
Has this article helped you? Share your thoughts more ways to write a good Fashion product description.
