Fashion Entrepreneurs Chapter 24

Entrepreneur Someone who organizes and manages his or her own business Millions of entrepreneur positions possible in the fashion world

Entrepreneur Must Haves To be successful: Self-motivation – able to set goals and work independently Organization and management skills – of your own work and your employees Willingness to take risks – 9/10 small business will fail in the first year Physical stamina – 9-5 business hours is NOT to be expected Ability to handle stress – sense of perspective and humor, anchored by clear values and priorities Ability to get along with others – good communication, leadership, management, and motivation

Opportunities Galore Buying a business – franchise may be best answer Starting a new business – product, service, location, customers In-Home business – 20% operate from home Store or Shop – location is key Mail order – smaller advertising in other stores to magazine advertising Websites – offers world wide sales and 24 hour business

Responsibilities Market Research – information needed to start and maintain a business (identify target audience) Financing – generally it’s the owner’s savings, sometimes they can get a loan from a bank Regulations – zoning, permits and licenses, name registration Setting Prices – cost of goods or supplies, operating expenses, consumer demand, competitors prices, profit Keeping records – inventory, income and expenses, taxes Advertising and promotion – finding the spots that will show to the target audience

Importance of a Business Plan Business plan is like the blueprint (page 415) Organizes allows for goal setting watching for potential problems gives a sense of direction for the business

Global Marketplace Chapter 25

Global Issues Imports and Exports Import – anything coming into a country from another country Export – anything sent out from one country to another Balance of trade – compares the values of a country’s exports vs imports (international trade) Domestic – products that originate in the country or the companies in the country the U.S. imports three times the amount of textiles and apparel than it exports Some groups throughout the US have promoted “made in the USA” labels to support US companies

Sourcing and Off-shore production Offshore can provide lower costs for goods Labor costs are the major reason for sourcing decisions Some domestic companies own or lease their facilities overseas Retailers struggle with purchasing foreign products, decisions must be made 8-9 months ahead of time, very little option for re-order

Sweatshops Working conditions in the 19th century  low wages, excessive hours, unsanitary conditions National and international laws prohibiting, but still a reality even in the US US govt sends inspectors into plants and factories International minimum age for children is 14

Making black market goods or bootlegging goods Industrial Piracy Counterfeit – made with unauthorized use of registered trade names or trademarks Lower quality, lower price Making black market goods or bootlegging goods Trademark Counterfeiting Act of 1984 – criminal sanctions against domestic manufacturing of counterfeit goods

Laws and Regulations Regulation of Imports – quotas are set (# of units) Only set for those things not grown in the US (such as silk) Tariffs – tax on imported goods Trade agreements – Most Favored Nation status, North American Free Trade Agreement, Caribbean Basin Initiative International Trade Laws World Trade Organization – trade between nations  goal to increase international trade by lowering trade barriers, handling trade disputes and monitoring trade policies

Fashion Industry Trends Advancing Technology Computer aided everything Business Growth Mergers/acquisitions, expansions Safer working conditions Fair Labor Standards Act – minimum wage, 40 hour work week, age vs hazards Occupational Safety and Health Act – establishes, revises, and enforces job safety and health hazards Environmental Efforts Caring for our environment, avoiding major pollution