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As we all know with any business there is a huge learning curve…especially in the fashion industry. It’s a whole new world of designs, patterns, construction, manufacturing, printing and everything that goes into producing a clothing line and running?a successful?business.

Bottom line is you will make mistakes and?there will be?consequences. Some will be more of a burden than others and that’s why you were lead here to learn about our experiences and mistakes to hopefully avoid them at any cost especially the ones that could potentially put you out of business. These tips will help you avoid some of the mistakes that I have made personally or seen affect other fashion businesses bottom line some are common sense, but I still see many people new to the fashion industry not avoiding them,?which could possibly be their downfall.

Becoming a?charity instead of a business. (Giving away more clothing than your selling)

First off don’t take this the wrong way there is absolutely nothing wrong with giving back to less fortunate people, but when your business is still in the infant stage and your working on a shoestring budget it can have a detrimental affect on the overall progress of your business. You’re giving out dollars instead of bringing them in.

The focus of this tip is on the beggers that want all the freebies they can get we know them as friends and family…lol. Who wouldn’t celebrate the launch of their clothing business when you receive your first shipment of garments and you might want to save one for when you hit that million dollar mark just to remember where you started. Kind of like framing the first dollar you made from your business (I spent mine! So what?) You would think that they would be your first supporters, but most will want handouts and discounts just because they know you. I usually tell them to go to the store and ask for the same discount and see where it gets them…absolutely nowhere and that is exactly where you will be if you let them take advantage of your business.

The same thing goes for promotional reasons. I know I have sent out my fair share of free shirts and hats to celebrities hoping they would wear it and be seen or photographed. These million dollar?clothing businesses?probably give away more shirts than some of us sell, but their matching million dollar budgets allow them room to do so. Unless you have room in your budget?to spread the freebie love my advice would be not to.

Consignment is not your friend

If you have?been reading Dobizo long enough you should already know how I feel about consignment. I feel that it is one of the worst moves you can make as a clothing line owner. When I was shopping my clothing around to potential buyers consignment was what most of them offered. Not having any other store accounts wasn’t a good look on my part (No proven record)?and I just don’t think any of the store owners/buyers were really willing to deal with the risk of a new fashion?line not selling.

The cons of the consignment deal are too many to count. First off they might not pay you after they have sold. If they do pay it will most likely be past the date you agreed upon or you will have to hassle them taking away your focus on running your business simultaneously creating a bad relationship between your company and the business owner. The?store might file bankrupt or go out of business (Happen to me two times in the same year!)?If you do choose to do consignment your clothing brand will be a last priority to them, because they could care less if your brand sales or not their was no investment involved on their end of the deal other than a little store space that probably needed filling anyway. Why not fill it in for free? Consignment=Suicide end of discussion.

Spending Frivolously

Not paying attention to every dollar you spend when its pertaining to your fashion business. In the?process of running your clothing business you will?eventually purchase small items like office supplies or small items you may need for a trade show or event. You?will quickly write them off, because their small in cost around the $2-$4 dollar range for a purchase order?book or couple dollars for a folder to?file written?orders. In the apparel industry every dollar counts. I mean think about it you may spend as little as 25-75 cents for some labels for production. Will you just write them off? Hopefully not otherwise your?bottom line will be affected severely, because those?small?pennies add up to BIG dollars and will eventually eat into your profit margins and each sale of a garment?will be?worth less and less.?Sales are like oxygen to your business you can’t survive without them. You have to make every dollar count.

I remember how last minute purchases for trade shows and club promotions would add up by the end of the month or how I felt like I was spending more than I was making on supplies, because my budget wasn’t feasible. I was spending dollars and not reporting them in my books…so it just wasn’t adding up! Working the everyday 9-5 that story would most likely end with me fired, but when you’re the owner/founder/designer/head of promotions wearing many hats you take the blame, financial loss and could possibly put yourself out of business. Why would you give your competition the pleasure?

Just for the sake of a sell!

Selling clothes to any store just for the sake of a sell. Never sell yourself short. Every store is not worth your time or the hassle. After everything that goes into producing one piece of clothing shipping to your warehouse, packing, and shipping to the store, collecting payment just to watch your clothing sit in a store…I don’t think so. It’s not because your designs aren’t good, but because your not watching distribution and selling?out of?your target market. Fact is you can’t sell to every one, because everyone want understand the message or live the lifestyle that your clothing represents. Wasting your time working with a store that doesn’t cater to your target customer is bad for?business and will most likely end with a charge back. (Store returning merchandise or holding you liable for unsold garments see this article) Nobody wants their garments sitting on racks collecting dust and?it will give store buyers the wrong impression of your clothing brand, because most likely it will not be selling.

Jumping into the clothing business head first

There nothing wrong with a little confidence and believing in your own?ability, but jumping?into the apparel business without prior experience in some form or fashion is the definition of?career suicide. Not saying you need 5 years at Tommy Hilfiger or Ralph Lauren?to?even think about starting your own clothing line, but at least cracking a book or two and doing some online research or interning will help.

I remember one of the biggest mistake I made was thinking my designs were so great that they would sell themselves I was so?wrong! Where I went wrong was trying to sell my own clothing at a trade show. There is absolutely nothing wrong with that if you have connections and you’re a well known person throughout the fashion?industry or have prior relationships with buyers and store owners. That could work if you already have store?accounts lined up, but neither was the case for my clothing brand at the time.?I knew absolutely nobody at the trade shows, but my partners. One thing I did right was attending the trade show before hand to get a feel for the show and the areas that had high foot traffic, also it’s a good way to get a feel for what the buyers are looking for each season and what your main competition is doing.

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