1. Planning for Success Presented by Alison Lewy, Founder of fashion business accelerator, Fashion Angel Author of Design Create Sell – a guide to starting up and running a successful fashion business 1 ©FashionAngel2012

2. Who am I? Spent most of professional life working in the industry Over 15 years running my own label Worked with high end designers including Matthew Williamson & Preen Commercial Director of Fashion And Textile Museum 2 ©FashionAngel2012 Founder, Fashion Angel – fashion business accelerator offering mentoring, training, and access to funding Author, Design Create Sell – guide to starting and running a successful fashion business

3. Why am I here? Passionate about helping fashion businesses succeed! 3 ©FashionAngel2012

4. Planning for Success What I’m here to talk about Why research and business planning are key to fashion business success What is a business plan, and what goes in to one Give some tips on how and where to conduct research and how to start creating a business plan (without the headache!) 4 ©FashionAngel2012

5. The Fashion Industry is Important! Contributes over £21 billion to UK economy Contribution to UK GDP is around twice the size of the publishing (£9.9 billion), car manufacturing (£10.1 billion) and chemical manufacturing industries (£10.6 billion), and only slightly smaller than both telecommunications (£28.7 billion) and real estate (£26.4 billion). Consumers spend over £30 billion annually on clothing, shoes & accessories 33% of consumers prefer to buy British 5 ©FashionAngel2012

6. The industry does face challenges!  Lenders/Investors regard lending to the fashion sector as high risk due to:  length of the production/selling cycle  high upfront costs  lack of entrepreneurial skills often present within a creative business.  Takes a long time to build a brand –so quick ROI is unrealistic  UK manufacturing has been on the decline  Lack of focus of business skills needed within fashion education  Closer links needed between creativity and entrepreneurialism 6 ©FashionAngel2012

7. There are also opportunities The UK is distinguished by the creativity of our designers, a strong and diverse retail sector, and a world class fashion education system There’s signs of a slow return to manufacturing in the UK ‘Made In Britain’ has strong global brand value Technology and social media has reduced start up costs You can become an international brand from your kitchen! New ways to retail – online, pop up shops Alternative sources of funding including government’s Start Up Loan initiative, crowd funding platforms 7 ©FashionAngel2012

8. Research is the Key! Research is key to making any business successful Diversity of products and customers mean you have to understand where your product fits. Information gathered during research will feed in to your business plan Research tells you…. Size of market segment you want to sell to Who is your target customer Where do they shop? What are the price right points for your product? Who are your competitors? Keeps you informed of trends and developments 8 ©FashionAngel2012

9. Pricing Strategy Products need to be priced at a comparable level to competitors Need to be in line with customer expectation There's a ceiling unless you are a known luxury brand Customers expect value at all ends of the marketplace 9 ©FashionAngel2012

10. Who are your competitors? 10 Investigate who your competitors are and what they are up to Learn from what they are doing right & wrong Find out who they sell to - helps you draw up a list of relevant stockists A successful competitor indicates there is potential market for your product too! ©FashionAngel2012

11. Where to research Learn to become a detective – check out.. Print and online press Blogs Trade magazines Trade exhibitions Bricks & mortar retail shops Ecommerce sites Online market report databases – size of market Focus groups Trend forecasting agencies Internet a fantastic resource – but don’t forget it’s important to meet real people and touch product too!! 11 ©FashionAngel2012

12. What is a Business Plan? A written document that describes a business in detail, backed up by financial data “ Failing to Plan, is Planning to Fail” 12 ©FashionAngel2012

13. The Business Plan Why create a business plan? NOT just needed to secure funding. It’s your personal roadmap…… Outlines your vision, goal and objectives Identifies how you will achieve these goals Sets out the direction of the business Outlines your growth strategy Highlights additional support required Tells you how much finance needed to set up and run the business Helps you think about what you are doing and spot any potential issues A vital tool for measuring progress and success 13 ©FashionAngel2012

14. What should a Business Plan Include? Executive summary – overview of business. The concept – who you are, what you plan to produce/sell and why. Have you identified a gap/niche in the market? What's your USP?(what differentiates your product/idea from others) Marketing and Sales – who is your target market and how do you plan to sell to them and how much will it cost? The competition- do you have competitors? – what do you do that’s different? Operations – details of where you’ll work from, production/distribution facilities etc. Management & Personnel – your role in the business, who else is there that can support you, what areas may you need to outsource? Financial Forecasts –these draw all above numerically and will include start up costs if applicable, Sales, Profit and Loss, Cash Flow forecasts. SWOT Analysis - Used to assess your business/personal risk Strengths, Weaknesses Opportunities, Threats. 14 ©FashionAngel2012

15. The Financial Forecasts Start up costs – list of all costs including, sampling, equipment, premises, website, marketing, deposits, wages, professional fees etc. Sales projections – a month by month projection of your sales over a 1- 3 year period. Profit & Loss – Your monthly sales projections and the costs incurred to deliver those sales. Projected gross profit can be derived from subtracting your projected costs from projected income. Cash Flow - shows the peaks and troughs of your cash situation on a monthly basis and will identify what funding you will need to make it through the troughs. 15 ©FashionAngel2012

16. Tips for compiling your business plan Break it up in to small chunks – may take few weeks/months to finish. Executive Summary – summarises whole plan. Often easier to leave until end once rest is completed. Should be a couple of sentences for each section. Executive summary important - often first thing lenders/potential investors want to see + a useful communication tool for others. Doesn’t need to be too large – one side of paper per section. Be clear and concise – its not your life story!! Important to be ambitious but be realistic & truthful - especially to yourself! A business plan is not a static document – needs to be reviewed regularly! 16 ©FashionAngel2012

17. To Summarise If you want to succeed in your business you have to have a strategy and clear direction in place. If possible, ask an accountant or financial professional (friend, family member or other contact) to review your plan once you’ve completed it to ensure your financials are credible. You’ll feel fantastic once you’ve captured all the thoughts in your head and put your plan together – I promise! Good luck!! 17 ©FashionAngel2012

18. Questions? 18 ©FashionAngel2012

19. Thank You Alison Lewy, Fashion Angel Mentoring, training, networking and access to funding for emerging and established fashion industry entrepreneurs www.fashion-angel.co.uk 0208 216 3411 alison@fashion-angel.co.uk http://www.facebook.com/FashionAngelBusinessSupport Follow me @FashionAngel1 19 ©FashionAngel2012