Updated: Jun 20, 2022
Have you ever considered starting your own fashion business?
The fashion industry is one of the most bustling, competitive and creative sectors. Despite many hurdles over the past couple of years, the fashion world has still seen some of the most promising growth.
According to this report, it is predicted that the global fashion market is set to grow by 3.9% every year up until 2025. This is growth will add an additional $64 billion to the industry’s value by 2025.
As such, there’s no better time than the present for budding designers who want to start their own fashion business.
Having said that, the fashion industry is still an über competitive industry that you shouldn’t enter unprepared. To ensure that your foray into fashion is hit, here are some basic principles to keep in mind:
1. Determine Your Niche
Though there is room for everyone in fashion, it is getting quite congested. Thus, in order to stand out, you need to be able to determine your specialty or overarching theme. This way, you’re not just going to be another generic fashion
business but rather one that customers know as a specific style authority. For instance, there is Adidas for athleisure and Forever 21 for young, trendy fashionistas.
By determining your own niche you can play to your strengths and avoid spreading yourself too thin. This is an especially important step for small businesses since finding your niche can save you valuable time, money, and energy that you’d otherwise use trying to sell to everyone.
2. Decide on Your Business Type
Having a clear vision when it comes to the business type to go with is important because this is how you will come to define yourself with regard to the government for business taxes. Maryville University states that the main three business types are: limited liability company (LLC), a corporation, and sole proprietorship.
If you want to create a corporate structure with fewer costs and
paperwork that protects your personal assets from business-related financial liability, then you may want to register as an LLC.
If you want to create an independent business that offers room for protection and scalability, consider opting to register as a corporation.
Finally, if you simply want to be legally registered but are worried about the fees involved in being a corporation or LLC, you might want to choose a sole proprietorship since this does also offer some tax incentives and you won’t have to deal with as much paperwork as the other two business types, although you'll have no separation between yourself and your business, legally.
By deciding on the business type sooner than later, you can ensure that your business is legally compliant from the get-go.
Understand Your Competitors
Even with the most unique ideas, it’s important to note who your competitors are and what they’re doing. This Entrepreneur article on business plans explains how you can get a better idea of how to differentiate yourself and gather insights from your competitor’s own mistakes and successes. Once you’ve fully identified and taken the time to review your competitors, this can
be very useful in developing a comprehensive business plan. Having a business plan that includes a competitor analysis may seem unnecessary at first but it’s actually an important step in building a lasting business.
Prove Your Ethics and Values
Currently some of the most important factors that customers expect from brands are inclusivity and sustainability. For the former, inclusivity is especially valuable to have in fashion as more people embrace body positivity and diversity in fashion now than most other industries. Meanwhile, for the latter, given that the fashion industry is a top global waste producer, many customers want brands of all sizes to be more ecologically mindful. Recent consumer polls on sustainability from WeForum reveal that over 66% of customers consider a brand’s green efforts before making a purchase.
Some of the most popular eco-friendly fashion initiatives right now include and ethical and local sourcing.
Aside from more global issues, try to frontload your own beliefs, too. If you’re a working parent who values family life, talk about it openly on your social channels so other moms relate.
If you’re proud of your neighborhood, then represent this in posts. By similarly injecting what you hold close into your business, customers are more likely to connect with you as a community member and human rather than just another replaceable brand. Being more purposeful and transparent with your brand’s values will be respected and appreciated by your core demographic.
Starting your own fashion business can be both exciting and overwhelming. While it’s impossible for things to go smoothly all the time, the better prepared and informed you are about all the aforementioned considerations, the more positive and pleasant your venture can be.
If you have a kid under 18 local to Camden, NJ; take classes in fashion, jewelry or accessory design at my fashion design camp. Register here: www.fashiondesigncentersj.com/registration
For more tips and insights on running your own fashion business, please check out our other posts such as on "How to Manage a Growing Fashion Business" or "How to Develop a Global Fashion Brand" and be sure to subscribe to our mailing list to receive more insights.
Written exclusively for Terinanicole.com
by Allele Chains
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