When starting a fashion business, it is easy to focus on just the branding and products, neglecting other crucial aspects of the fashion business. However, you need to evaluate all the necessary costs to come up with an ideal financial plan.
Generally, your startup cost depends on the type of fashion business you plan to launch. If you want to open a physical store, you will most likely have more upfront costs compared to a brand that operates solely online.
Notwithstanding, we will cover areas we consider essential, especially when you’re just starting on a lean budget.⠀
1. Daily operational cost
Your daily operational cost includes all types of expenses, including one-off, monthly or annual payments. These payments are for your workspace, electricity, phone bill, transport, accounting, internet, and phone bill.
They don’t seem trivial, but if not considered and planned for carefully, you might find yourself running the business at a loss.
2. Samples & Product costs⠀
Think of all the expenses that will contribute to your final clothing cost, and no, stop calculating just the fabric cost. There are other costs for you to consider, such as your technical drawings, patterns, tech packs, trims, labels, packaging, labor, and storage.
3. Training & Consulting Costs
Why make expensive mistakes when you can learn from an industry expert? Invest in a session or get training to avoid making mistakes that will cost you a lot more.
4. Sales & Marketing Cost
Marketing is an aspect a lot of fashion entrepreneurs forget to plan. But it is crucial to the success of the business. Marketing can gulp a whole lot of your reserves if not carefully planned. The costs that fall under this category include; branding, photography, PR, models, make-up, hair, fashion shows, web design, and ad spend.
The important thing to note though is all these costs must be factored into the price of your products if you want the business to survive. If you have no idea how to do so, the Built2Bill Price Calculator does the costing and pricing for you automatically.
If you need in-depth knowledge of how to start and grow a viable fashion business, we have detailed ebooks and online fashion courses you should enroll in. ⠀