Common Problems Fashion Business must be Aware of

What are some specific issues faced by fashion entrepreneurs?
Creative people often have too many ideas, which is a curse as well as a blessing. They just don't know what to do first, and they're really lacking knowledge of the business side of things. Ninety percent of my clients are designers who have not been to design school. They have an idea, and they try to figure things out on their own from there. I teach with step-by-step instructions and real-life examples, because that's what works for me. I say, "Here's a script, here's how you should talk, here's an example of a good e-mail and a bad e-mail."

How can small designers take their business to the next level? 
It's all about knowing where to find the right resources. I have videos about where to find fabric in small quantities, about pricing their lines. Lots of designers would rather have a root canal than admit to how long it took to sew something. I used to be the same way. I go over how to get a product made by a sewing contractor or a jewelry contractor, and what guidelines to provide to get a good product back.

Does working with high-end goods present particular challenges? 
Absolutely, because you don't get many impulse purchases. I work with clients to find and keep customers who like what they're selling and can afford to buy it. We work on constant marketing, on establishing a relationship that doesn't revolve only around "please buy my product." We talk about engaging customers, creating a sense of community, even encouraging a little voyeurism--say, posting a video of the process behind how you made that shirt.

How can designers set themselves apart? 
I helped one client who wanted to do trunk shows. Rather than just mention in her marketing material that she offers trunk shows, we worked on a packet that spelled everything out: Here's what I'll do at a show; here are the dates I'm available; here are postcards you can mail to your customers. It's all about making things as easy as possible for the retailer. "Contact me for more information" is the kiss of death.

That's not what any busy person wants to hear or has time for.

7 Ways to Talk Less and Get More from Customers.

1. Be distinct from the competition. 

When prospects perceive you as similar to other salespeople, you are in trouble. As a result, your goal is to be perceived as totally distinct from the competition. The next time a prospect asks you why he should do business with you, you should reply, “I’m not sure that you should. Would it be okay if I asked you a few questions to better understand your situation?”

This approach is different, more credible, and immediately separates you from other salespeople. 

2. Understand your prospect’s challenges. 

Most salespeople spend their time trying to persuade prospects rather than taking the time to understand the problem that the prospect is facing. Remember: Prospects are looking to solve certain challenges; they are not looking to be sold. Take the time to learn about their key problems first.

3. Understand their goals. 

When a prospect solves his challenges, he can then achieve his goals. Once you’ve fully understood the prospect’s challenges, it’s time to understand what he’s looking to accomplish. Whether you sell to consumers or businesses, all prospects are looking to accomplish specific goals with your product or service. Understand what those goals are.

4. Develop a workable budget. 

Many salespeople simply quote a price to their prospect without ever having a good conversation about money conversation. This approach is costing you thousands -- maybe even millions -- of dollars in lost sales. From now on, help prospective customers develop a budget to solve their challenges and accomplish their goals. It doesn’t have to be an exact number. A range will do. This will help you determine whether someone is qualified for your service or product before you present your solution.

5. Understand their decision-making process. 

Many entrepreneurs and sales people feel stuck when potential customers tell them they need to "run it by a committee” before committing to anything. In most cases, the salespeople had no idea that a committee was even involved in making the decision. Well, whose fault is that? Salespeople rarely ask what the prospect’s decision making process is -- but they should. Here are two examples of good questions to ask: “Who else is involved in this decision?” and “How do you typically make decisions like this?”

6. Make sure they're committed to their goals. 

Before you get to a presentation of your product or service, you want to be sure that the prospect is committed to solving her challenges and achieving her goals. If they aren't, you're wasting your time by even presenting a solution. Your time will be better spent with other prospects who are committed to solving their challenges and achieving their goals. Before you present your solution, ask, “How committed are you to actually solving these challenges right now?”

7. Keep it short. 

Most salespeople spend most of their sales meetings presenting. That’s why they’re doing all of the talking in the first place. Rather than spending most of your time presenting, spend the majority of your time doing steps one through six. Get to really understand the prospect’s situation and decide whether he's invested in finding a solution. Then give a presentation based on solving his challenges and achieving his goals. Don’t present anything else. The prospect doesn’t care about every single feature and benefit of your product or service. He only cares about accomplishing his goals. So keep it short.

Putting all of these ideas into practice requires that you actually talk less. A great salesperson will talk no more than 20 percent of the time in a selling situation. Close your mouth a little more and you might just find you'll close many more deals as a result.

Entrepreneurial Freedom comes with Responsibility

One of the major reasons why entrepreneurs decide to start their own business is the freedom that this lifestyle offers. They want to make their own decisions and are prepared to suffer the consequences.
 
Entrepreneurs are by nature risk takers and they realise that it may culminate in serious or negative results, but they always see the positive and remain forever optimistic. If the decision was the right one, the benefits and results offer a great deal of personal satisfaction and a wonderful sense of achievement.

If entrepreneurs only realised the extent of the risks they take on a daily basis, they would probably not take these decisions, or be much more cautious or research the matter to a larger extent before making the call. But, a call needs to be made. Unlike in the corporate environment where a team, commissions and task groups of specialist disciplines debate a solution, running your own business means making decisions by yourself. It may be tough, but it is also great, exciting and satisfying. You make the decisions; the buck stops with you. No reporting. No writing of motivations. Complete freedom to do what your gut tells you.

Freedom also comes with responsibility. The decisions taken will influence the position or situation not only for yourself but also for others around you. You have to understand how your decisions will affect you, your business, your staff, your clients and also the community.

Entrepreneurs are free to make decisions but are they really free? Not really. You may not have to report to a line manager, but you have other bosses. The most important boss in the life of an entrepreneur is his or her customer. They dictate. If you do not satisfy their needs you have no business, so they are your boss. They call the shots. They have options. They have the money in their pockets and as they say, “the customer is king”. Other bosses include the government (think of tax revenue services or the laws by which you need to abide), your family responsibilities and those who work for you. Your suppliers are also bosses.

Yes, entrepreneurs are the masters of their own destiny. They make the decisions. They have the freedom to do what they want and when they want to do it. But it comes with a great level of responsibility and like all things in life, freedom comes at a price.

Source: Business Partners