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How To Figure Out A Financial Budget For Your Start-up Fashion Label?

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BUDGETING

How much money will you need to start up a clothing brand of your own? This is a question that a lot of people ask as they set foot in the industry. Based on the kind of products you want to work on.

Entrepreneurs are always talking about budgeting and a good budget is one of the keys to successful growth. No one really tells us how to budget. How much money you are bringing into your business and most importantly, how that money will be spent.

It’s actually pretty simple to think about how can you really make money without knowing how to spend it?

A good budget will lead you to some positive cash flow at the end of the time period. To start off, it’s good to have a monthly budget. You can compile your history and records to create that into a quarterly and yearly template.

Coming back to the type of company you want it to be, there are mainly three kinds:

  • Amateur:  Where you started it out as just a hobby. You don’t have any plans of expanding your label. You don’t really advertise your products except on social media platforms and it doesn’t involve a huge investment.
  • Indie:  You care about the quality of your products and you have a website for sales and promotion.
  • Professional: You have the funds to promote and advertise your label. You plan to start a brick & mortar store and you are looking forward to investing a lot of money into it. 

Figuring out a budget is the toughest part if you don’t know what type of company you’re planning to form. 

  • How many products do you want to have in your initial collection?
  • What kind of products do you want to have in your collection? Would it be affordable or expensive?
  • Do you plan on designing a website for your label? If not, do you have the funds to pay for a professional web designer?
  • Does authenticity matter to you? Are you ready to pay attention to every little element or detail that goes in the making of a garment, starting from an illustration to the sales (this includes labels, hangtags, business cards, after-sales services, exchange/return on sales, creating a loyal relationship with the customer, promoting your brand verbally and strategically and more)?
  • How are you planning to advertise your product- online, offline or both?

Remember, if you’re at the point of break-even where you’re able to put that money back into your company, it’s definitely going to be worth it!

Keep in mind if you’re really serious about your label, the more money you spend, the better your products will be!

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