– A strategic management and lean startup template for developing new or existing business model.
– It gives you the structure of a business plan without the overhead.
Business Model Main Drivers
– Focus; Is the stripping away of so many pages of a traditional business plan.
– Flexibility; It’s a lot easier to tweak the model and try new things.
– Transparency; much easier to understand.
The first set of questions one must ask themselves when starting a business or launching a product is the cliche and obvious one:
What is your product?
Who is it for?
How do I get it out?
These questions when answered in all honesty and clarity is the blueprint to knowing what you want to produce and for whom.
Fashion startups have a tendency of multi-tasking, this saves finance, but the idea of really building a brand is to know when to seek help. One man cannot do it alone. In a situation where you can’t afford to hire, then contract.
As a designer one must create a niche and the best way to do so is to identify you signature. A way of cutting, layering or perhaps, colour. Most top designers all have a signature, a mood that comes to mind when a designer’s name is mentioned. You need to find a way to marry your signature to the trend at any particular time.
Mr Chigozie Amaraegbeni held the class on growth and the importance of branding.
Key factors in planning for growth:
Research into our market.
Segment your market.
Determine the customer acquisition cost of your customers.
How do your customer talk/want to be spoken to.
Develop a marketing strategy.
Learn quickly and adapt.
Three things to consider in general
Who is on your supply chain?
Who is our competitor?
Who is adjacent to your market?
Equity. Share holding. Ownership. Phantom stock. These are some business terms that has to do with finance. Fashion, like every other business thrives on finance. To really understand the legalities involved with owning and dividing a business, Mrs Jane Maguegbuna, a legal practitioner and the co-founder of Afrinolly was invited to share her personal story.
She began with the quote from Peter Drucker: “wherever you see a successful business, someone once made a courageous decision.”
Starting from when you wake up in the morning, you make a conscious decision to either get out of bed or remain in bed; workout or not; go to work or not. Every decision you make adds up to where you end up. So, it is very crucial that you make decisions that reflect where you see yourself and the goals you’ve set for yourself. Most times, these decisions are difficult and they’re not fun but they have to be made.
Equity and Share holding
Who holds what?
What percentage is fair?
How do you determine percentage?
Should you keep a reserve equity?
Equity is shared in a company as follows CEO – CTO – COO, where CEO gets the largest number of shares.
Mrs Jane Maduegbuna’s advice: at first 10% may not seem like a big deal but further down the line, you will come to see the benefit of just that amount of shares. Be careful how much shares you give away and to whom.
Types Of Employee Equity
Synthetic equity/Phantom stock: Stock Appreciation Right [SAR]. This case, you still own the stock but this helps create loyalty. As the stock value of the company rises, so those the equity share, gains more value.
Also contributing is Mr Oluwaseun Ajasa, Managing Partner ATC Legal.
Register your business name, trademark your products and always seek legal counsel on any document.
Chuks Ogene (Sunesis), is a creative entrepreneur (one who makes creative ideas profitable). He is known for his endeavours in design, fine art, brand communication, creative/art directing, fashion photography among others.
On the four brand quadrants to know where your business lies and how to effectively brand it are:
These are products that are highly needed like drugs, technology etc. Customers are drawn to these products because they need them and are willing to pay a lot of money for them.
These are products that are not really needed but wanted. The products are primarily luxurious and expen
sive. Examples include: Versace, Apple etc.
These are products that are needed but also not expensive like notepads, pen etc. Low emotional
These are products that are neither expensive nor needed, they include Limca drink, Zara brand etc.
To effectively brand your company, ask yourself these questions:
What is it about?
Why should you do it?
How do I make it happen?
Where/who will t impact?
You also need to keep in mind that to design you need to go through a series of processes beginning with learning, asking questions, thinking before finally applying.
The fashion industry is encompassed with glamour but beyond the red carpet, the five-minute runway shows and photo shoots is an industry that needs funds to run just like any other.
Taking a peak behind the curtain, one would see that a lot of fashion entrepreneurs sway towards the creative part of the industry and neglecting the business side of it – which is the most important if you want to have a sustainable business.
To educate the young fashion enthusiasts is Rufai Oseni; a broadcaster with over 15 years of experience, an author and an all-round business man.
“Entrepreneurship is moving from one venture to another, consistently failing but without losing your sense of enthusiasm,” Mr Oseni said. He emphasized on the importance of not being afraid to fail because failing when starting a business is almost a guarantee.
“Timing is everything.” Mr Oseni gave examples of some technology that would have been rejected if they actually came decades earlier. To break into your market, one must know when to do so.
On innovation, he gave a few sources where an entrepreneur can get one, with the primary focus being the customers. Watching trends, peer review and branding also being on the list.
After speaking extensively on the business side of fashion or any other business, he ended the session by giving a piece of advice: “business is a rational venture that needs an emotional fuel.”
In an earlier post, I talked about the perks of signing up for a Fashion Acceleration Program like I said it is not an alternative to fashion school. It is a program primarily focus on business and not design.
In light of this 360 Creative Hub would be hosting a specialized training aimed at Accelerating emerging fashion designers to becoming the next Valuable Brand and transform their fashion label into a sustainable business.
The program will welcome 30 fashion entrepreneurs that have existing businesses operating in Lagos, Nigeria. Fashion Acceleration Program is open to any entrepreneur within the fashion value chain; Fashion designers, Fashion Bloggers, Fashion illustrators, Fashion Retailers, Pattern makers, Jewelers, Shoe makers, Bag Makers, and every fashion-related field.
TRAINING COURSE OUTLINE
What will be taught in the program?
The Accelerator program is developed with your best business interest in mind and equip you with all knowledge needed to strengthen your business case.
The program will cover the following course material:
Business Model Design and Business Strategy
Competition & Positioning
Financial Literacy & Planning
Digital and e-commerce Strategies
The use of Social media to grow the Fashion Business.
Hands on Practical Sessions.
How it works
• Each Participant would be subjected to training for 12 hours per week (that is, 8 hours on Monday, 4 hours on Tuesday, including practical sessions)
• The 360 FAP Board will invite notable Fashion celebrities during weekends of the program to have a mentoring session with the designers,
• The designers would be given weekly assignments which would prepare them for a grand finale competition
• The graduation day will feature a competition where all the designers will showcase their designs that will be judged by Industry experts. Academic Backbone
The program has been specifically designed with a strong academic foundation in collaboration with Alan & Grant Business Solutions in order to deliver a comprehensive and instructional program that will equip the students with a global mindset. Industry Practical Know-How
The program has partnered with some international and the country’s top minds and companies as workshop instructors & guest lecturers, merging practicality and industry insights with academic backing.
Phase 1: Call to entry and opening applications
The program has a two-step application process. The first step is the online application which will evaluate the participants on basic business & financial understanding, as well as on the solidity of their business structure.
The 2nd step is a day-long boot camp, where the applicants will convey at 360 Creative Innovation Hub and embark on a day-long activity, designed to test them on key business skills such as financial literacy, sales negotiation, marketing and human interpersonal skills.
Phase 2: The Accelerator
During this period the accelerator will take place every week on Mondays (full day) and Tuesdays (half day).
Phase 3: Graduation + Announcement of 2018 Edition Winner
At the end of the program, the participants will be required to present a business case in front of the judges and review committee. All participants will graduate officially from the Fashion Acceleration Program; one participant will be nominated as the winner.
During the graduation event, our panel of judges will select the fashion entrepreneur who has demonstrated most business acumen and capabilities to become the first Fashion Acceleration Program Winner.