For a fashion designer, creating their very first collection can be an incredibly exciting experience. But, making garments involves a lot more than just being creative or having a knack for fashion.
After all, fashion designers are entrepreneurs who need to manage their finances properly. Taking control of your finances is vital step to making a lasting mark in the fashion industry.
Here are some essential skills you need to brush up on to meet your business goals:
Understand your credit history
First off, you need to study your credit history. Your credit history and credit rating can help you create a practical funding plan for your business.
Your credit rating will affect your eligibility for loans and other financial opportunities, including which credit cards you are eligible for. If you have a poor credit history or a low credit score, banks might reject your loan request or you might have to pay higher interest on your credit cards or not get a credit card with good points programs.
If you are dealing with poor or no credit history, it will take time to build up your credit. Monitor your credit score on a regular basis. If you find any discrepancies, inform the concerned credit agency.
Master the art of budgeting. Make a budget that you can stick to. Moreover, it should offer complete picture of your finances.
A budget is a vital business tool that will help you track the money going into and out of your business. Along with monthly budgeting, make sure you are maintaining proper and accurate financial records of your business. You can hire an accountant or bookkeeper to manage your financial books.
You may need funds from investors to boost revenue and beat your competition. Friends and family are usually the first place brands look to for early financing.
Borrow and spend wisely
Fashion designers borrow funds to help their businesses grow. But, make sure you are borrowing during times of need. Keep in mind, loans can come with heavy interest payments.
Want more tips and tricks on apparel and accessories design and development? Check out our blog.
As a top apparel and accessories design and manufacturing company in Los Angeles, Lefty Production Co. provides an array of services, which includes design, sketching, fabric sourcing, pattern making, sample making, labels, and more.