The Fashion Designer Survival Guide: Start and Run Your Own Fashion Business

The Fashion Designer Survival Guide provides the necessary tools to get a fashion line or label up and moving on the right track, including: How to create a viable business plan Figuring out how much money you need, where and how to get it, and how to make it last, including the latest on private equity The best sources for fabric and materials Navigating the pitfalls of production both at home and abroad Marketing, branding, and getting the product into the stores and into the customer’s closets Romancing the press, dressing celebrities, and creative publicity techniques Producing a runway show that will get results

The Fashion Designer Survival GuideRevised and Expanded Edition

Start and Run YourOwn fashion Business

Mary Gehlhar

Foreword

Preface

One Piece of Advice

1 • Before You Start

The Reality

You Survived the Bad News

2 • The Fundamentals

The Plan

Elements of the Plan

Setting up the Business, by Melanie Jones

3 • The Money

How Much Do You Need?

Where to Find Money

Factoring, by Tim Moore

4 • Product Development

Know Your Customer

Have a Point of View

The Trends

The Collection

Signature Items

The Quality Standard

It Must Look the Price

Commerciality and Show

5 • Fabric and Materials

7 • Marketing and Branding Materials

Be Your Brand

Logos

Press and Sales Kits

Other Marketing Materials

8 • Sales

The Financial Realities of Selling

Where to Sell

Selling to the Stores

Cold Calling, by Rachel Shechtman

9 • Press and Public Relations

Good News/Bad News

The PR Strategy

Dressing Celebrities, by Roger Padilha

Who Should Handle PR?

10 • The Runway

To Show or Not to Show

Producing a Runway Show

Sponsorship

11 • Copyrights and Knockoffs

Fashion Design and the Copyright Laws by Jason Gabbard

12 • Expanding the Business

Index

When I began my business in 1972, I wish a

book like The Fashion Designer’s Survival Guide

had existed that I could have turned to for advice

on how to launch a fashion business Fortunately,Mary Gehlhar has provided such an invaluabletool for today’s generation of designers Readingthis guide brought me back to my first days as adesigner and my own journey

New designers often ask me what the key tosuccess is when starting a business in fashion Myresponse is simple: you must first understand who

or what you want to be What is your vision? Forwhom are you designing clothes? It may takeseveral months to figure this out, but once you do,the rest should come naturally

Secondly, work with an experienced designer.Many of today’s most successful designers worked

as apprentices or assistants to establisheddesigners, which serves as a great opportunity forgaining exposure to the business of fashion andestablishing industry contacts with suppliers,factories, editors, and retailers I, myself, worked

in a printing factory in Italy before I decided todesign and launch my dresses

Finally, never hesitate to seek help.Organizations such as the Council of FashionDesigners of America (CFDA) off er support andassistance, scholarships to design students,mentoring of emerging talent through the CFDA/Vogue Fashion Fund and other programs, andongoing panels with industry experts on thebusiness of fashion The CFDA is committed toworking hard on behalf of the fashion industry tohelp designers succeed As president of theCouncil of Fashion Designers of America, Irepresent all designers, new and experienced, andbelieve in sharing all I have learned with emergingtalent

I leave you with this: a good designer must

recognize that there will be ups and downs inone’s career and must be prepared for constructivecriticism by press, buyers, peers, and so on.Always remain confident yet grounded, embraceadvice and criticism, learn from your mistakes, and

do not hesitate to ask for help

I did not know the mechanics of how to start acompany, but I managed to do so because I was notafraid to ask You should always ask and seekanswers for what you do not know Many of these

answers lie within the pages of The Fashion Designer’s Survival Guide , a great resource for

new and established designers

Fear is not an option…Go for it!

Sincerely,

Diane von Furstenberg

This book was originally published in 2005 andnow, three years later, the proposition of being anindependent fashion designer is as exhilarating asever Few industries move as fast as fashion, andopportunity abounds as the competition increasesand the playing field changes daily

Driven by celebrity obsession, fashiontelevision, and the Internet, fashion is in hotdemand New designers are benefiting from anincreased interest by retailers, editors, stylists, andeven investors wanting to discover fashion’sgreatest new hidden talent and off er shoppers adiverse selection Consumers are more interested

in what’s new than in big brands

Economic forces are also at play The deflation

of the dollar against the euro is leading Americanbuyers to cut their European purchases and seek

new, U.S.-based sources, and Europe is becoming

a viable market Accessories are booming asconsumers willingly invest in high-end bags andshoes that don’t fluctuate with their weight Newmarkets are available to designers as massmarketing and low-end design gigs at large chains,such as Gap and Target, have gained acceptability

At the same time, the market is more saturated,more sophisticated, and more challenging.Fashion’s increasing role as part of pop culture hasput more pressure on designers to be a personality

or star and to differentiate their products tocompete against the inexpensive, trend-driven fastfashion from chains such as H&M Morecelebrities are launching their own labels,scooping up shelf space and licensingopportunities Stores are less loyal to theirdesigners as they look over their shoulder towelcome the next new name with buzz The jadedsay that starting your own label is really just ashort-term strategy to getting a high-profile designjob at an established label

At the end of day, there is still a great need anddesire for true innovation and creativity mixedwith strong business acumen.

Few resources are available to help preparedesigners for having their own labels Fashionschool will teach you about patterns, draping, andtrend forecasts It can prepare you for a successfulcareer as head designer and even off er classes onbookkeeping and business plans But running yourown business is another matter

This book is designed to help new designerssuccessfully set up and run a business, benefitingfrom the pitfalls, mistakes, and triumphs of otherdesigners who are doing it themselves Thissecond edition includes new sections on financingand private equity, sales and cold calling, andpartnerships and consulting opportunities; anupdate on the extensive efforts to protect fashiondesigns legally; photo examples for branding andproduct development; as well as extended sections

of quotes from entrepreneurial designers who are

in the trenches facing these challenges every day

Through the course of writing the book, I’vespoken with more than 100 designers and industryprofessionals about their specific areas ofexpertise I have gained valuable insight from theinnovative thinkers and great business minds whohave generously shared their experiences Amongthe buying offices, editorial departments, fabricmills, factories, and financial institutions, there is apassionate crowd rooting for the next generation ofdesigners.

These pages will demystify the world of youngdesigners and reveal the tough parts whileproviding the knowledge and tools to carry on It is

a collective summary of what it takes to survive.The advice is not sugar coated, and it’s not alwayswhat you want to hear But knowledge is powerand should not discourage you

The book is intended to help designers in theirfirst few years and lend guidance to those whohave been operating for much longer It waswritten to increase the odds of success Here’s tothe next generation

One Piece of Advice

If you could give today’s young designers onepiece of advice what would it be?

John Bartlett

“If you want to start your own line I would doone of two things I would commit myself

to working for another designer company for

at least four years to really learn from theirmistakes or I would concentrate on oneproduct category, like t-shirts or shoes, andfocus all of my energy developing the bestpossible product Too many designers getcaught up in doing a whole collection anddoing shows Shows are for ego, product isfor survival.”

Tommy Hilfiger

“Being a successful fashion designer is aboutmore than just making great clothes It’s aboutrunning a business, and that means having acombination of diverse skills—you needcreativity, business acumen, social skills,management skills, and most importantly, youneed dedication I started out in this businesswith $150 and a dream there were manyyears, challenges, and lessons learned beforegetting to where I am today The best piece ofadvice I’d give to a young designer is to firstdream big and believe in yourself, and thenapproach fashion from a holistic point ofview You have to start with a great product,but you also need the right vehicle to get thatgreat product into your customer’s hands Th

at means planning, researching,merchandising, building great relationships,having a great marketing plan, and being able

to execute all of those things in a carefully

thought out way.”

Donna Karan

“There are three things you absolutely mustkeep in mind: Realize that in the end, it’s allabout the customer—your customer You need

to decide who she is and then really get toknow what she’s about That single-mindedfocus is the way you create a strong,consistent message Make sure the peoplebehind you are better than you and that you’reall on the same page Lastly, never believe thegood press because that means you have tobelieve the bad Be true to yourself.”

Richard Lambertson of

Lambertson Truex

“Stay true to your design ethics and try to bedifferent, but don’t follow the trends You

can’t be everything to everybody I also can’tstress enough that the more practicalexperience you have the better Everyonewants to work for the big names but you canget even more experience working for a smallhouse.”

Christian Louboutin

“As a supposedly established designer, Iregret to say that I have very few words ofadvice to give to the emerging talent Thereality is that I continue to learn every dayabout my work But, if I may give one word ofadvice, it would be this: leave, and alwaysleave, your imagination above everythingelse; technique should always serveimagination, and not the opposite To be agood technician is only a help, but shouldnever be a priority Why? Because techniquecan shrink your creation, and creation iseverything, and the rest should gravitate

around this The more you are free, the moreyour design will reflect this sense of liberty,which is after all, one of the essences offashion Fashion tends to represent differentpoints of view and meaning, and at its bestshould reflect individuality, eccentricity, andwit.”

Cynthia Rowley

“Coming from a free-thinking art school thatencouraged creativity, I very quickly learnedabout the constant battle between art andcommerce and had to find the balance tosurvive There are many ways to find yourown balance and to learn both sides of thebusiness Once you learn the rules, I think it isvery important to take chances and push theenvelope as a designer—sometimes ideaswork; sometimes they don’t, but the mostimportant thing is that you roll the dice Thefashion industry is forever evolving and so

much of being successful is changing andadapting while remaining true to your visionand maintaining your integrity.”

Richard Tyler

“I started when I was 18 by opening my ownstore There’s nothing like it for finding yourown niche and it ensures your survival Youshow your clothing to the world the way youenvision it It’s healthy to see what peopleadmire and what they can truly wear Whenyou get to know your client, they keep youbalanced between designing what drives andinterests you and designing for the personwho is wearing your clothes.”

Diane Von Furstenberg

“The important thing is to believe in what you

do Have a big dream and take small steps.”

“One piece of advice from the

up and coming labels.”

“Be passionate and have a vision that you stick to Always be humble—In fashion, success can be short-lived.”—Jane Ko, Nervenkitt,

jewelry

“Start with a very focused niche, just one product such as a very special jacket or shirt, and off er just 10 styles Use just one fabric, one factory, do it from home, and with as little cost as possible to maintain a 30 percent margin then grow slowly, very slowly.”

—Robert Geller, menswear

“Be true to yourself—you will get a thousands comments on what you should do—if you take them all into account you will be too scattered.”—Kristen Lee, shoes

“Be ready to work—A LOT! Build a good team around yourself.”—Tina Hernaiz and Nike

Clausing, Ingwa; Melero, womenswear

“Do it however you can there are many different ways to start and they all can work It’s important that you do it in a way that suits you,

or you may never do it at all.”—Lily Raskind,

Sunshine and Shadow, womenswear

“Focus on what you really love to do—not what you see in the street or in the industry”—Gustavo Cadile, eveningwear

“Know exactly what you are doing and who you are doing it for.”— Ana Beatriz, Lerario

Kelly, womenswear

“Learn your market Analyze your product Be

clear in your brand, perform to your best, and reach for the sky.”—Diego Binetti, womenswear

“Learn patternmaking You can save a lot of money”— Annie Lewis and Helen Cho, Lewis

Cho, womenswear

“Never lose site of you! No matter what successes or downfalls come your way stay true

to yourself.”—Jessica Alpert-Goldman, World

According to Jess, accessories

“Planning is the most important thing for anyone starting a clothing line Specifically, I would focus on design and vision, sales and financial planning Problems in any one of these areas will inevitably lead to problems in the other areas as well Although you can’t avoid all problems, you will save yourself a lot of headaches down the road by doing your homework in the beginning.”—Romain Kapadia,

menswear

“Work in the industry, network, gain experience and knowledge When you decide to establish your company partner up with someone

who has a strong background in business.”—Brian Wood, menswear

“Use amazing fabrics there are a lot of fantastic, gorgeous fabrics out there and it’s important that your clothing feels great on and off.”—Chloe, Samantha and CaillianneBeckerman, womenswear

“Be humble the fashion world is very small and you should treat everybody nicely and equally with respect.”—Grace Sun, womenswear

“Surround yourself with smart, dedicated people, they make all of the difference Oh, and if you have a partner, make sure and have a partnership agreement!”—Jada Simons, Marie

Marie, womenswear

“It doesn’t happen overnight You have to love

it enough to keep going when it’s not glamour and designer-y all the time You have to have tenacity and patience of a doorknob Like fishing, you have to work hard and throw as many hooks out as possible and some of them will work out It’s a process and the one that sticks around will

see results sooner or later Hopefully sooner.”—Jane Ivanov, Eve Alexander, maternity

lingerie

“Make a business plan Try and create as much of an infrastructure before you begin to build your company.”—Cheyenne Morris,Tashkent, shoes

“Surround yourself in business with people you trust”—Corinne Grassini, Society for

Rational Dress, womenswear

“This isn’t really fair for me to say since I didn’t do it this way, but work for someone else first, make your mistakes on someone else’s dollar and learn as much as you possibly can about the industry Build your name and your resume When you’ve worked for nota- ble designers before you launch, you have a huge amount of credibility behind you Let’s say you

do it like me then make sure you know what you’re doing, do as much research as you can, know your product and how to produce it Having

an education in design Knowing pattern making

and sewing has been crucial I made all of my product the first year, so when I grew, I knew exactly how it needed to be manufactured If you’re more business based and you have the ideas but not these skills, make sure you hire someone who does.”—Lara Miller, womenswear

“Expect long working hours, requiring endless dedication, many degrees of extreme satisfaction

as well as compromise Never let go of the dream because your desire will take you there.”—Nicole Romano, womenswear,accessories

“Start now — design Design like there is no tomorrow because once the business starts to roll, you’ ll find yourself dealing with contractors, stores and handling problems long before you have any time to be creative with your pencil and paper Most of the creativity that follows in the business is how to survive.”—Christine Alcalay, womenswear

Before You Start

Now is the time People are eager for youngdesigners Each year, there is growing interest,buzz, and support for new talent Stores andmagazines compete aggressively to discover thebest new designer first Around the world, industryorganizations have created awards and financialassistance to recognize and support new names.Consumers are tired of the sameness offered by thebig brands and seek something special to set themapart The Internet has made new fashionaccessible to all corners of the world, with manynew sites dedicated to selling emerging labels andprofiling the designers behind them Even reality

TV has jumped on the bandwagon to feed thecuriosity about life as an aspiring fashion star

All of this offers more opportunity to reach

people and new ways to succeed However, this isalso one of the most challenging times for newdesigners The competition is growing as morepeople are drawn to the perceived glamour andstar power of the field While the big brands aregetting bigger, the department stores areconsolidating, celebrities from Kate Moss andVictoria Beckham to Mary Kate and Ashley Olsenare continuing to jump on the designer bandwagon,and fast fashion—from H&M, Uniqlo, and Forever21—is claiming chunks of the fashion-forwardmarket The press and buyers send mixed messagesand put extraordinary pressure on designers tobecome instant household names Ron Frasch,chief merchant at Saks Fifth Avenue, said, “Ourindustry does have a tendency to overhype the fewwho are the rising stars We can destroy youprobably faster than you can destroy yourself.”1It’s tempting, but dangerous, to succumb to thehype and unrealistic expectations of the fashionworld.

The Reality

To help you succeed, right up front we have tostrip away the glamorous image of runway shows,celebrities on red carpets, and designers yachting

in St Barts I don’t want to rain on the parade, butfashion is a business It’s the business of makingand selling clothing and accessories

Aspiring designers enter the fashion world to becreative, but regardless of creative genius, fashion

is nothing without commerce Even designer KarlLagerfeld has said, “Fashion is something youwear It’s not something you put on the runway toshow how creative you are There’s nothing badabout selling dresses.”2

Designer Isaac Mizrahi has said of his owncareer, “I used to think my job was about coming

up with a new, bold, crazy look every six months,making something fabulous and pretty for myfriends and the models.” But as journalist TeriAgins wrote, “Now he gets giddy over how wellhis clothes sell to masses of ordinary women.”3

Designers need to balance the business andcreative sides—one allows the other to live Tosay you are a creative person who can’t do theother side is nonsense Surviving day to day inbusiness is creative in itself Designers find uniqueways to solve problems and promote their productwithout the proper resources or experience EvenAndy Warhol said, “Good business is the best art.”

Where’s the Glamour?

If you are doing this just to be famous, forget it.The fashion world requires hard work, discipline,perseverance, and passion There is no magicformula or secret to success, and while designerscan learn from others, they each must find theirown path

It’s easy to romanticize the freedom of havingyour own business, but it’s not as easy as it looks.According to the Small Business Administration,more than 50 percent of small businesses fail intheir first year, and 95 percent are gone by the fifth

Gilbert Harrison, chairman of Financo, a NewYork invest ment bank, says starting a smallfashion business is even harder and less than 1percent make it He compares fashion to acting:

“How many people go to Hollywood to be a starand end up waitressing?”4

Several designers, including Darryl K, JohnBartlett, and Isaac Mizrahi, who were consideredestablished at one time, had to return to square oneand restart their businesses John Galliano andMichael Kors are two of many designers who haveexperienced bankruptcy

Don’t be discouraged but realizeentrepreneurship is the hard road, not the easy one.When asked what surprised them the most abouthaving their own businesses, designers MatthewMorgan and Allessandro Poddie replied “that it’s

so hard Every bit from the fabric, production, andsales, to cash flow.”5 Be honest so hard Every bitfrom the fabric, production, and sales, to cashflow.”5 Be honest with yourself and assesswhether self-employment is the right path for you

Not everyone is happy as an entrepreneur, andthere are realities to brace yourself for up front.

It takes more money than you think When

asked, ” What is the hardest part of runningyour own business?” the majority of designersanswered “the money.” In fact, designerKeanan Duff ty says, “No matter how muchyou think it will cost, multiply that by ten.”6

Up front, you must determine if you can afford

to start your own business and whether youare willing and able to work potentially forseveral years, stretching cash and struggling,

to pay everyone but yourself

You will live, eat, and breathe your business Designers work 7 days a week, 12

or more hours per day, and have little time forfriends, exercise, or vacation DesignerDaniel Silver of Duckie Brown confirms, “Ithas to become a lifestyle.”7 A designer needsphysical and mental stamina and must be

absolutely, passionately in love with what she

is doing Designer Micheal Spaulding ofGunmetal shoes says, “the hardest part is theendless hours you put into it You are alwaystired and every morning you have to get up,and not be tired, and do your work.”8

It could take years Getting your business on

its feet can easily take five or more years.Many designers who get significant pressattention, grow their sales each season, andare cited as models of success are in fact stillnot making money Ralph Lauren did not gofrom tie salesman to fashion emperorovernight

You will design less than 10 percent of the time A designer takes on many roles and

spends significant time on paperwork,managing people, shipping, spending time infactories, servicing customers, mailinglookbooks, sourcing, and chasing money.Most young designers do everything

themselves, and while many learn to love theother aspects of the business, they generallyspend only 5 to 10 percent of their timedesigning.

It demands militant self-discipline When

you work for yourself, no one is there to makeyou get out of bed each morning, meet yourdeadlines, or prioritize your time Anentrepreneur must create his own structureand set daily goals to stay focused and ensureeverything is organized and on schedule thebuck stops with you, and when problemsarise, you can’t run and hide

You need to be tough and assertive this is

business, and a designer can’t be timid or take

it personally Designer Louis Verdad says,

“the hardest part of being an entrepreneur ishaving a split personality When running yourbusiness, you have to be hard, but the creativemind has to remain emotional and

sensitive.”9 Business owners must dealaggressively with factory supervisors, storeowners, and collections people who bully,intimidate, and try to rip them off You willhave to call people who owe you money,make tough decisions that can upset others,and learn to say no.

You are on your own Being independent

means facing the daily stress of not having asteady income, benefits, or any guarantees.Despite how nice it sounds to not have a boss,working alone can be lonely Independentdesigners spend hours by themselves andoften feel isolated

Business can be shady People will steal

from you, stores won’t pay, and others willcopy your designs One well-known youngdesigner recently saw his $1,500 dress in astore next to the store’s own $300 polyesterknock-off Unfortunately, this is part of the

business At times, you have to fight foryourself, but at other times, you have to justmake the best of it, like the designer whowalked into the offices of a large, well-known clothing brand and saw photos of hiscollection on their design board Rather thanexplode with anger, he offered to consult forthem and ended up making enough money tofund his next runway show.

Or You Could Be Tom Ford

Having your own business is not the only way to

go Too many designers get hung up on the idea ofbeing independent and lose sight of other amazingopportunities Tom Ford, Nicolas Ghesquiere, andHedi Slimane each made their name designing foranother label without having to manage thebusiness issues Even Karl Lagerfeld, though hehas his own label, is famous for designing atChanel

Paige’s Story

Paige Novick had a handbag line for ten yearscalled Frou She sold her product into the storesshe wanted and created a well-known, respectedbrand But despite landing the success many hope

to achieve, Paige closed her business to becomethe creative director of a multibrand licensing firm,where she was responsible for two well-knownfashion brands She says the hardest part of being

an independent designer is the financial pressure.Even with ten years in the business, she broke evensome seasons—and didn’t in others “The burden

is so great when it’s your company because whenyou wear so many hats, design becomes anafterthought” she said “In this new position, I amable to focus my eff orts and attention on thecreative without the outside distractions, and my

design skills have flourished.”10.

While she admits there are times when it’s hard

to have a boss, the imposed structure has its goodpoints She can design a lot more product and do itquickly, whereas with Frou, she would labor overtiny details “I was a prisoner before,” she says

“With Frou I had so much anxiety about the otheraspects of the business that I often played it safe.Psychologically, it has been very liberating todesign under someone else’s label and ultimatelymore creatively fulfilling.”

There Is No Rush

Many young designers start their own businessestoo soon without the resources to survive theirmistakes or the experience to avoid them Bepatient and realize there is no rush Showroomowner Denise Williamson said, “Too manydesigners want immediate gratification You have

to build it over time and be smart about it.”11Favors are a limited resource that you don’t

want to use up too soon Putting yourself out theretoo early, building up debt, and making mistakeswill slow you down rather than get you therefaster Don’t strike until you are ready Build yourresume and put in the time If you aren’t ready now,you can be later If you are talented, that will neverleave you.

Realize that you have more than just one shot.Designers do take time off and come back stronger.they survive bad experiences with the stores andmagazines Everyone makes mistakes, and theindustry will still be there when you come back, ifyou have the product, energy, and drive

The Most Important Advice in this Book

Work for someone else first Regardless of how

many times I say it, or quote others who agree, itwon’t be said enough Designers need to work forother designers, and work for them for a few years,before heading out on their own This is the single