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Note: Make sure you read all the mistakes in by commentators! Thanks

I was looking through some of my notes for articles and just wanted to come up with something new that I haven’t seen on any other blog…at least in the manner that I am going to provide the information. What better way to learn than by knowing and listening to mistakes that other clothing companies in your field make. This list is going to go on indefinitely and I will re-post it to the top of the blog either weekly or daily depending on how popular it becomes. I know most of our readers either have or are in the process of starting a clothing line have made a mistake, wit their own stories to tell of were they ordered too many products or set prices too high while trying to start their clothing line or in their day to day business activities. So I am going to begin the post by listing as many mistakes that I have made and know other companies have made that can limit your chance of success as a clothing company.

Purchase-Order Financing:

There are other ways to get your store orders manufactured without using your own money up front. In this article we will discuss one of them. Purchase Order Financing is short term funding used to finance the purchase or manufacture of specific goods. Basically meaning if u just attended a trade show (magic, aaeshow, alpha) and have an abundance of orders or at least $10,000 worth the more the better interest rate. U can attain cash by using your purchase orders from credit worthy store accounts and they will give u the money to finance the orders up front. U than pay your manufacturer and ship your product to stores. The store in return pays the financing company and they (the company) will cut your check (profit) minus the interest u owe them. It?s a very simple process and not a lot of paper work and best of all there is no business credit check or personal credit check on your end. As long as you have quality stores with a proven track record buying your product with a proven history (open longer than 6mths to a year) you will most likely qualify. Interest rates vary between companies depending on the loan amount the more the better and the risk their taking with the stores you?re retailing in.

This is another one of those inspirational posts.

This is also for everyone who emails Dobizo asking how do I get investors interested or someone to finance my company….this is why they want:

• First you must have a company…not just ideas
• Second sell something. Business men and women are not going to invest in something that isn’t proven to make them some kind of return or have an almost 100% guarantee that they are going to make money off of their investment.
• Most likely they will not invest in a company that doesn’t have anything more than t-shirts and has not created some kind of following or has significant brand awareness or a core audience of consumers
• The chances of you getting an investor that is not your friend or family member at an early development stage are slim-none. Those are just the facts

Everybody wants an investor, but probably wouldn’t know what deal they would be willing to offer if the opportunity arises. If you eventually decide to take on a business partner likely it is because they shine in an area where you lack and in most cases that will be financing when concerning a young designer.

If an investor or partner decides to work with your company and provide financing they are not doing it out of the goodness of their heart and in no way am I telling you to go out looking for an investor in the early stage of financing your apparel business, because I think it is a big mistake most will overspend and have all this capital, but nowhere to put it or better yet don’t have a clue of where it goes.

When you gain financing you have to be ready to distribute the money to where it needs to go in order to get your investor a return on his investment as quick as possible, but that also depends on what type of financing you have obtained that is where equity and debt financing become part of the equation.

As you grow and develop your apparel business you will learn that most companies in the industry that you work with will be looking out for what’s best for them…no matter what they tell you.

I’m here to tell you that I have met my share of people that I thought were around to help me or watch me grow, but most likely took advantage of me being naive to the business world or fueled their own business off of my connections or know how…or lack thereof.

Many of my problems arose when working with stores and at the time financing was one of the biggest issues many of my companies faced and I still run into barriers today, but have more knowledge and know how to where I can overcome or find a solution that will fit my budget.

I found this company while searching for videos to upload to the Global Fashion Network and I truly think their services are very interesting particularly for the fashion and footwear market. They cover all segments of the market from art, denim, trade events, the culture, music, skateboarding, sports, t-shirts, technology, and trade shows.

I can’t truly judge what knowledge you would get out of Label Networks weekly newsletters or profile reports, but if it is to any extent of what they describe I guarantee you that it would be worth your dollar.

Label Networks profiles cover everything from trends to why fitted hats are regaining more ground than ever. Educated reports on Youth Culture studies in direct relation to the Apparel Industry and successful brands. Live video footage of trade shows and interviews with exhibitors and organizers. They give you the inside scoop that most can’t, but along with that news is a premium price.

They do have free weekly updates that you can sign up for here, but are very limited compared to the weekly analysis subscription package that starts at $499 a year.

A new California state law caused quite a bit of disturbance amongst the apparel industry community in Los Angeles causing many to think about packing up and shipping to overseas factories.

With many already cutting into their sales and profits due to paying workers compensation, taxes and now a state mandated law proposal to enforce all state employers to pay at least 7.5% of their payroll to cover the cost of health-care insurance for full-time and part-time employees and their dependents or pay into a state pool that would provide coverage.

Many apparel producers are saying this is just giving them more reason to move to overseas factories and start production there, because domestic production is becoming more and more costly. Even though some apparel makers already provide full health care coverage they still wonder about the rules, cost and regulations of a state mandated plan.

source-ApparelNews

Popularity: 8% [?]

Anyone interested in the Apparel Industry should attend this conference if their is any possibility, plus it’s free and by one of the most renowned schools in the fashion industry FIT.

It is a two day event November 7-8 that will be held at the Fashion Institute of Technology in New York. The conference consist of two keynote presentations from industry thought leaders and also will be over 30 educational sessions over the 2 day event.

What you can expect to learn and discuss: Design and Product Development; Manufacturing; Information Technology; Sourcing, Logistics, Transportation; and Retailing. You may also schedule an one on one meeting with PTC PLM by clicking here.

If you are interested in attending this event then make sure you click here to register for the event today!

Popularity: 8% [?]

Another one of those inspirational post something we will probably all eventually do is sell our company to take it to another level.

Kellwood if you remember also bought out urban clothing brand Phat Farm and Baby Phat amongst other large clothing companies and is a leading marketer of apparel and soft goods. Their portfolio consist of many leading brands (Izod) that we wear everyday and the buyout price reflects that….even though I would have expected higher.

After the announcement their share prices jumped because of the offer from Sun Capital (a private investment firm) at a 38% increase for $21 per share from their closing price of $15 a week earlier. I guess everybody wants in on this deal. With an initial offer of $543.9 as of now and could increase depending on how things go for the next few weeks.

Popularity: 8% [?]

This is our first entry on the Dobizo Answers/FAQ page, which I can already see is going to be a big hit….I mean huge. Already the page by itself gets over 1,000 visits per day not views, but visits the pageviews are a whole other story!

I just want to thanks anyone for contributing to the blog, because that is the point of the Dobizo Answers page. It helps me create more content, because you guys give me something to write about.

Every post that I make about the Dobizo Answers question will be on the front page and then archived into a link on the Dobizo Answers page.

Well somebody over at the Real Brother Collection asked the question(s)… below:

My questions are these:

1. Deciding on a minimum order, which one of these below should I use?
1. 6 units per style, per color, per size.
2. 6 units per style, per color,
3. 6 units per style, color and size?

This is the weekly roundup of forum topics that catch my eye or I just think you should know about…also shameless promoting the new Fashion Network!

Ethical Manufacturers caught my eye because the guy is actually wanting the best out of the manufacturer he works with not just for his clothing companies concern, but ethically. So I posted it on the front page of Dobizo in hopes that someone can point him in the right direction meeting all his requirements.

Here is a rundown of some other important post in the Fashion Network Forum:

High End Manufacturing: (Women’s Wear)

The Industry: (Let Us Know Your Frustration)

How Many Items Will A Retailer Buy From Me: (Just Read It To Understand)

What Could Make The Dobizo Network Even Better?

Make sure you join the Fashion Network today it’s free and get instant access to the forum upon joining the fastest growing apparel network.

Popularity: 8% [?]