Category: Unit 2

Intro: 

How can one build a successful Company? That sounds like a loaded question, I know. More specifically, I would ask; What are the steps you have to take to build said business? How are these steps accomplished? How do they differ based on the type of business being built? What is the same throughout all of them? I am interested in this question because it is something that I really need to learn. Right now, I know very little about the topic, and feel kind of lost. I think this assignment is the perfect opportunity for me. The research process will be guided and structured, thus increasing the capacity for learning. It is also something that I would research on my own time. It would probably just take way too long, and most likely wouldn’t be a priority. The difference here is that I will have set due dates, and a required amount of work that I need to produce.  Essentially, I actually need to get it done, and do so in a timely manner. I am worried that if I take this upon myself it may take years. Obviously, there will probably be years of learning to be done for years to come, but what I will initially learn here is the most important, and will guide those years to come. From this project, I hope to develop some type of roadmap, or a game plan. I hope to be wrong a lot, because it will mean I am really learning. There are lots of components that I don’t even know exist, and this would be great to at least build a broad understanding of everything, and a detailed understanding of the most important topics. Obviously, businesses come in many forms. I assume, each form has its own particularities. Maybe additional steps are required for some, and less are required for others. My focus is in retail, specifically clothing retail. Is the process of learning to create a retail company the same as any other business? Does the difference lie in how you apply said knowledge or are there completely different topics that need to be discovered? I want to study it all, and decide that answer for myself. Right now, I think it is somewhere in between- generally I should learn everything. Afterwards, I can focus on components that are particular to my line of interest. If I am wrong that process can change. 

 

Source entry #1

Bloomberg, (Oct 5, 2011) Building the Company vs. Building the Business. https://startupceo.com/2011/10/building-the-company-vs-building-the-business

 

Summary: 

“Building The Company VS. Building the Business”. The author of this article discusses the difference between “obsessing over things like product features, getting traction with early clients, competition, and generating buzz” versus “things like HR policies, company values and culture, long-term strategy, and investor reporting”. Learning how to build a company is different from building a business; they require asking different questions. Building a business is a very different thing compared to building a company. However, “a good CEO and management team must be concerned about getting both elements right if they want to build an enduring stand-alone company”. Building the Business = building the product. “The classic entrepreneur builds the business — quite frankly, he or she probably just builds the product for a long time first, then the business”. While having good business is important for success, it almost never can be sustained without an equally good company. “ I realized that I’ve spent at least as much energy over the years building the company concurrently with the product/business;  In fact, in many ways, I probably spent more time building the company in the early years than the business warranted given its size and stage”. It may be a waste of time to focus on bigger picture company elements in the beginning, but without it the business cannot be sustained. “Without a strong company, we wouldn’t be here 12 years later.  Of course, you could always argue that if I’d spent more time building the business and less time building the company, we might have succeeded sooner”. However, just being successful faster doesn’t mean that it would be successful for a long period of time. You have to build the business and the company in conjunction with each other for long term success and / or expansion. “ Now that those two things are in sync, we are zooming forward at an amazing pace”. Doing it more gracefully than if we had not built them together. 

Rhetorical analysis: 

My question was how does one build a business? However, I didn’t really know what that question really meant. I think what I really wanted to know is how to create a company. This article taught me about the difference between the two. While what I really wanted to know was how to create a company, I now know that it is vital to be well versed in both equally. This article does not teach you how to create a company nor a business. It doesn’t go into detail about the steps one must make. However, it does give an overall view. It is simply informing its readers about the different parts of entrepreneurship. It is informing people like me- people who want to accomplish something similar to what the writer has accomplished. Not just people who want to build a company / business, but those who are complete beginners. If you don’t even know how to go about what to learn, it will be much more perplexing. For instance, if I was only trying to build a business but doing research about company building, there may be some helpful aspects, however most of it would be counterproductive. This article gives those new ambitious entrepreneurs a broken down version of my original question; emphasizing that while they may be different, they are equally important. 

 

Quotes:

• “Building the business means obsessing over things like product features, getting traction with early clients, competition, and generating buzz
• Building the company means obsessing over things like HR policies, company values and culture, long-term strategy, and investor reporting”
•  “ Now that those two things are in sync, we are zooming forward at an amazing pace,” 
•   “a good CEO and management team must be concerned about getting both elements right if they want to build an enduring stand-alone company”
•   “The classic entrepreneur builds the business — quite frankly, he or she probably just builds the product for a long time first, then the business”. 
•   “ I realized that I’ve spent at least as much energy over the years building the company concurrently with the product/business;  In fact, in many ways, I probably spent more time building the company in the early years than the business warranted given its size and stage”
•  “ I realized that I’ve spent at least as much energy over the years building the company concurrently with the product/business;  In fact, in many ways, I probably spent more time building the company in the early years than the business warranted given its size and stage”
•  “Without a strong company, we wouldn’t be here 12 years later.  Of course, you could always argue that if I’d spent more time building the business and less time building the company, we might have succeeded sooner”

#2

Haan, (2023) How to Start a Business in 11 Steps (2023 Guide). https://www.forbes.com/advisor/business/start-a-clothing-business/

 

Summary:

Reading Forbes articles about starting a company was really helpful. They talked about knowing your customer, like where they shop and how to reach them. I learned about branding, like picking a name and colors for the business. They said, “a slogan (optional), a brand color scheme” are important, too. Marketing is a big part, not just selling stuff but also figuring out how to get it to people and advertise. This can really change how much you sell. The legal stuff is important as well, like registering your business and getting an “Employer Identification Number (EIN) to accept payments for your products.” This helps with taxes and working with other businesses. They also talked about different kinds of businesses, like LLCs and sole proprietorships, and each has its own pros and cons. For money stuff, they advised, “One of the most important things to do when starting a small business is to start planning for taxes.” They also said to keep business and personal money separate, and using accounting software can help. The articles were really detailed and helpful for anyone wanting to start a business in fashion. 

Rhetorical Analysis 

I know I am supposed to be surprised if I do my research well. I knew starting a business would be incredibly tedious and time consuming. By that, I am not surprised. However, I did not know exactly what would be so tedious and time consuming. This article does a really great job going into detail about every little aspect. If it doesn’t have the information, usually there is a link provided in which that information can be found. People who already have some idea of what they want to bring into this world really should be reading this article. Not only people who have something to offer, but those who have the time and resources to bring it to life. If you used this article as a playbook, would you have the desired outcome? That is my new question. My hypothesis being- probably not. My second question being- what else needs to be filled in between the lines of this playbook to get that result? 

 

Quotes: 

• “One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax.”…”also be required to pay other taxes, such as payroll tax or unemployment tax.”
• “As your small business grows, it’s important to have a scalable business model”
• “Keep your business and personal finances separate.”
• “Hire a Bookkeeper or Get Accounting Software” “Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.”
• “When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.”
• “ Two categories of funding exist: internal and external.”

Internal = self/ friends/ family. 

• “External funding includes: Small business loans, Small business grants, Angel investors, Venture capital, Crowdfunding”
• “ Consider how much money is needed, how long it will take before the company can repay it and how risk-tolerant you are. No matter which source you use, plan for profit. It’s far better to take home six figures than make seven figures and only keep $80,000 of it.”
• “You need to have insurance for your business, even if it’s a home-based business or you don’t have any employees. “
• “In most states, workers’ compensation insurance is required by law if you have employees.”
• “Business tools can help make your life easier and make your business run more smoothly. The right tools can help you save time, automate tasks and make better decisions.”

• For example: 
• Credit card processors 
• Customer relationship management (CRM) software

• “Many business owners spend so much money creating their products that there isn’t a marketing budget by the time they’ve launched. Alternatively, they’ve spent so much time developing the product that marketing is an afterthought.”
• “Even if you’re a brick-and-mortar business, a web presence is essential. Creating a website doesn’t take long, either—you can have one done in as little as a weekend. You can make a standard informational website or an e-commerce site where you sell products online. If you sell products or services offline, include a page on your site where customers can find your locations and hours. Other pages to add include an “About Us” page, product or service pages, frequently asked questions (FAQs), a blog and contact information.”
• “After getting a website or e-commerce store, focus on optimizing it for search engines (SEO).”
• “To scale your business, you need to grow your customer base and revenue. “

 

#2.5

 

Fast Company, (2019) How to start a successful fashion business 

https://www.youtube.com/watch?v=SIXndxpmCHo

 

Intro: 

 

This Video began the discussion on the topic of business partners. “One of the things that struck me is that we both have partners. I am on the business  side and it is my creative director that is the fashion force behind my brand… know that you work with your brother. You are the creative director, he’s the CEO”. The hosts of this video explained the difficulties of running any type of business by yourself, while highlighting that being a designer trying to run a business by yourself is even more difficult. If someone is a solo designer, and isn’t comfortable doing technical/ business oriented work, “They need to find someone whose happy place is the excel spreadsheet.’ In today’s world you could not exist by just being creative. You have to either have a great business sense or find that partner”. While there should be subjective roles; a creative, and a business role, neither is mutually exclusive. In fact, focusing on only one aspect and not the other can prove to be disadvantageous. A team with distinct strengths is  necessary. What becomes increasingly necessary is the team working as one. A designer can have business opinions, just as a business person can have creative opinions. Simply- you need both. 

 

Rhetorical analysis: 

 

This youtube video is hosted by two female fashion brand owners/ CEO’s. Its genre most resembles that of an interview, and perhaps a podcast. The two hosts are on opposite sides of the fashion business spectrum; Creativity and Business. The video begins by explaining that one is not possible without the other. They ask personal questions and give equally personal answers that shed light into their experiences and practices in a way that can be replicated. While the subject matter was limited, they delve very far into it. 

 

Quotes: (Verbatim)

 

• “One of the things that struck me is that we both have partners. I am on the business  side and it is my creative director that is the fashion force behind my brand.” “I know that you work with your brother. You are the creative director, he’s the CEO” 
• Splitting responsibilities- “In the beginning we have had separate lanes with firm lines in between our roles. Over the years the lines have gotten very blurred.” “Crossing over, crashing into each other” 
• “I think that I didn’t pay attention to the business part of it for so long, and I was purely creative, and I should have, and could have been a lot better. My decision making process could have been a lot better, had I really paid attention to the business needs.”
• “My creative directors just say stuff like ‘well I’m just the designer, I don’t look at the numbers, I don’t understand business, don’t talk to me about business’ but she’s actually probably one of the shrewdest business women I know. I was always saying that’s how you let people think you dont know it when you reality understand it the entire time. “
• “My creative director and I really do keep separate lanes. This is my first job in fashion.”
• “We relied on our customers to spread the word. We actually started with trunk shows in hotel rooms” 
• “Where are you in 10 years? “ “we want American professional women to be the most creative women in the world?” 
• For those who are coming from the fashion side- coming from a more creative background- who want to start their own business, would you recommend they find a business partner? ‘Yes. For sure. They need to find someone whose happy place is the excel spreadsheet.’ In today’s world you could not exist by just being creative. You have to either have a great business sense or find that partner. “ 

 

#3

The Business of Fashion (2015) Do you really want to start a fashion business? 

https://www.youtube.com/watch?v=U8p7Gll0HNE&list=TLPQMTYxMTIwMjO3egd829APQw&index=4

 

Summary: 

 

Watching “Do You Even Want to Start a Fashion Brand?” on YouTube really opened my eyes to what starting a fashion business is like. It’s more than just designs and runway shows; it’s about being ready for a commitment that’s 24/7, often taking more money and time than you expect, and being a ‘CEO’ first – with a lot of self-discipline, toughness, and assertiveness. The video broke down the fashion value chain: from ‘Design & Development’ (like patternmaking and fabric research), to ‘Production & Supply Chain’ (involving sourcing and logistics), then ‘Marketing & Communications’ (covering brand development and PR), and finally ‘Sales & Distribution’ (including wholesale and online stores). Critical to success are bringing something unique to the market, finding a business partner or advisor, using your network, and managing your cash tightly. It’s not just about fashion – it’s about the business of fashion.

 

Rhetorical analysis: 

 

Another Youtube Video. However, this one looked more like it was actually a college lecture given by a professor. He was very blunt and didn’t care about hurting feelings or discouraging people. The purpose of the video was just to make people aware of what is in store for them if they really want to start a fashion business. He gave brief overviews of all sections, and then went into depth about what achieving all of them really meant. Just like the previous video, he made clear that working without a good business partner is incredibly difficult. It is good to know what you are getting yourself into before putting in all the hours. He does of good job of spreading that knowledge. I am exited to watch some more of his videos. 

 

Quotes: 

• “Before Setting up a Fashion Business, You Should Know…

-It will take more money than you think

-It is a 24 hour/7 day a week commitment It could take years to build your business Think of -yourself as a ‘CEO’ first

-It requires militant self-discipline You need to be tough and assertive

-Being an entrepreneur can be lonely”

• “Fashion Value Chain:

Design & Development:

Collection design

Patternmaking

Sample development

Research fabrics”

• “Production & Supply Chain:

Fabric & materials sourcing

Production

Logistics & supply chain

Delivery”

• “Marketing & Communications:

Brand development

PR

Fashion shows & presentations”

• “Sales & Distribution:

Wholesale

Multi Brand stores.

Online stores

Retail

Online

Store

Trunk shows”

Critical Success Factors-

• “Bring something unique to market”

• “Find a business partner or advisor”

• “Use your network of contacts”

• “Manage your cash tightly”

 

Conclusion:

 

After diving deep into this research, my eyes have been truly opened. I have focused more specifically on the complexities of building a successful fashion business, instead of business in general. The world of general business creation is boundless and too great for 3 source entries. Initially, I believed it was mainly about creative design, appealing to customers, and some logistics like filing taxes and building a website. Now I see it’s so much more. It’s about balancing the intricacies of running a business with the art of fashion, from managing finances and understanding legalities to mastering marketing and distribution. Key takeaways like the importance of having a clear business plan, being prepared for the financial and time commitments, and the necessity of finding a reliable business partner have reshaped my understanding. The journey of building a business is not just about the glitz of the fashion world; it’s about the grit behind the scenes – the strategic planning, the relentless dedication, and the smart decision-making. My initial vision of just stepping into the world of fashion retail has now evolved into a more rounded perspective, recognizing the equal importance of the business acumen needed alongside the creative flair. This research hasn’t just answered my questions; it’s opened up a whole new realm of understanding, one that goes beyond what I initially thought was necessary to succeed in the fashion industry. More importantly, its opened up a whole realm of understanding just how much I still do not understand.