Stitching together a design startup
Like other ventures, you must build a strong network and create a business plan
Woven in your first memories of picking up a needle and thread and a sketchbook and pencil was probably the dream of having your own design label. And now that you have the designing part down pat, you’re considering the leap to launching and growing your own business. In other words, becoming a fashion entrepreneur.
Here’s what you need to consider. Find your focus The first thing to help you move from emerging designer to successful entrepreneur is to establish your focus, says Silvia Jacinto, tax partner at chartered professional accountant firm Crowe Soberman in Toronto and a self-professed style aficionado.
“I really love fashion,” she says, and counts the Torontonians at the helm of Pink Tartan (Kimberley Newport-Mimran) and Smythe (Christie Smythe and Andrea Lenczner) as among her favourite designers. As a business tax expert, she focuses on private companies including a growing roster of clients in the fashion industry.
“It’s such a big market. You have to focus on the type of business you want and your market and go from there. Is it accessories, or is it apparel only? Do you want to do high-end fashion? Do you want a business partner? There are lots of things to consider, and you can’t do all things at the same time,” she says.
That said, the great thing about merging the worlds of entrepreneurship and fashion is there are brilliant resources out there for Canada’s design talent that will not only help you identify your niche, but also offer mentorship, advice and more. Tap into industry resources If you’re a designer in the GTA, you should take advantage of the great organizations that exist at the local and even Canada-wide level.
“Toronto Fashion Incubator is an organization that helps support and nurture fashion designers,” says Jacinto.
“It’s a great venue to meet others and get a sense of the markets in Toronto and beyond, and get mentorship,” she says. Other resources that may help you gain entry into the world of fashion-meets-business are the Design Industry Advisory Committee and the Canadian Apparel Federation, she notes. Create a business plan Dazzling designs aren’t the only thing you need to create on the road to becoming an entrepreneur; you also need to draw up a well-thoughtout business plan, Jacinto says. In it, you’ll need to cover budgeting, upfront costs, expenses, revenues and other details.
“Where you are going to be located, who your target market is, how long it’s going to take to be profitable,” are not only the granular considerations, but details a business plan will cover, she says. Of course, it’s also realistic that you’ll need some professional help to do so.
“Again, Toronto Fashion Incubator is a great resource,” she says. “They’ll have a list of resources in terms of people who can assist with fashion-specific business plans,” she adds. Get funding With a solid business plan in your portfolio, you’re going to need capital to launch your new small business. And the place to look is to financial institutions such as banks and credit unions. “There are always possibilities for small business loans and lines of credit,” says Jacinto. “You can also look into the Business Development Bank of Canada. Some research is required to find the right funding opportunity.” Be prepared for hurdles Becoming an entrepreneur means taking a financial risk. It’s possible your business will run at a loss in the beginning, because of your start-up costs. You should know your tax and personal finance implications.
For example, as you get started you’ll determine whether to run a sole proprietorship or a corporation, and other tax considerations such as whether to take part in income splitting for family members involved in your business. You’ll have to know how to keep track of your work-related expenses. This is something you can begin to research by contacting Canada Revenue Agency or hiring a tax professional to help you. And with that underway, you can finally concentrate on all that immensely hard but gratifying design work that you always dreamed of.