1. Fashion Entrepreneurs
Chapter 24

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

3. 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

4. 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

5. 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

6. 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

7. Global Marketplace
Chapter 25

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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