Not every designer manages to turn their passion into a functioning, profitable business. 

To be successful in fashion business, you need to get an understanding of the biggest challenges and best strategies for fashion entrepreneurs.

Below are guidance to help you build a company that is respected for its creativity, have a high profile and generate profits.

1. Behave as a business

To build a successful label, you’ll have to think like an entrepreneur from the start. That means understanding how a business works and putting together a plan that lays out short-term, medium-term and long-term goals. Be consistently and reliable. You also require the hunger and determination to give it your all.

2. Recognize the importance of product development

Start small with one product line – then develop the brand from there.

Setting the right price for your product is crucial in finding success. Work it out by starting with the amount that a customer would be willing to pay, and working backwards to calculate how much you can spend on materials and manufacturing while still turning a profit.

Pay more attention to feedback from buyers than from the press; good reviews are nice to have, but the only thing that will sustain a business is sales.

3. Be clear about your unique brand proposition, and support it with a marketing and communications plan

It’s important to have a strong vision of your brand’s identity from the beginning.

Start with a marketing plan that sets out which customers you’re targeting, and how you’re going to approach them.

4. Understand and address the challenges of production

New businesses can often struggle with production – you’ll be ordering small quantities at first, which leaves you in a poor bargaining position with manufacturers. They may ask you for a deposit long before you’re going to receive payment from a retailer. This can be difficult, but it’s essential to pay promptly so that production is not delayed.

5. Find the key to sales and distribution

To be successful, you’ll need to get the attention of buyers. They’ll want to know what’s unique about your product, how it fits with their other brands, whether it’s at the right price point, and whether your business is well-structured.  You need to improve on your sense of place, you need to know how you compare to the competition. Who is going to buy your product?

If you’re planning to sell online, be aware that colorful and printed products are usually most popular, and any garment with an unusual shape or fit is going to be a tough sell on a website. You’ll also need a complete range of sizes. Once you can afford it, setting up your own website will maximize your profit margins and give you direct access to customers.

6. Understand the importance of cashflow, funding and financing

One of the biggest challenges you’ll face as a new business is that cash flows out – for product development and manufacturing – you’ll need to know where your funding is coming from and keep your finances under control.