Piggy Bank Check. Get on the numbers.
You have your idea and you have your motivation going. You have asked yourself all the tough questions and you are convinced this is the best idea since the wheel. Now it is time to figure out how much it will cost you to get started and running this fantastic project. Let’s start by listing all the things you will need in order to run your business. This can of course be very individual since we are in different places in our lives and ”careers” (I put it in quotation marks since it is a silly word, more on that some other time).
Here are some typical examples of what you might need to run your business, and stuff you would want to invest in:
- Office space
- Office supply
- Internet connection
- Web site
- Events / shows
- Bank costs
- Salaries / consultant fees
The list above is typically overheads to run your project. Try to slim it down as much as you can. Use the fact that you are a creative person. Do you need an office or studio? Can you work from your kitchen? Who do you know that can help you? You probably know some family or friends that can help you out for free, to a special price, or in exchange of services.
Who do you know that can help you?
How much will it cost to produce your garments?
Try to find out as much price information you can and for the rest you can make qualified guesses. If you can’t find out a cost, make a high estimation rather than a low. Don’t leave anything uncounted for.
Product development costs include:
- Apparel design
- Making patterns and grading
- Materials; fabrics and trims
- Bulk production
Take all costs, put it in a bucket, and weigh it. Who will pay for that? Keep in mind the production cycle is typically around one year. It takes a long while before your end customer buys the product and you get the return of investment. It is not like being a consultant when you send an invoice by the end of the month and receive the money the next.
Go back again to your family, friends, and the brave ones (fools) to hear if they are interested in your venture. When they aren’t enough, you could consider investors, business angels, crowd funding and bank loans. Just find the means to make it happen!