When you realize cash flow is a real issue.
Lets talk about building a luxury brand with limited money.
With Calvin Butts Bespoke and its steady growth I have quickly learnt my cash flow limits. As my brand grows and my clients begin to request more expensive goods I am finding myself turning away immediate work, and not because I want to but because I do not have the cash flow to accommodate the request.
Building a luxury brand with luxury goods on a very limited supply of money requires quite a bit of advanced planning, from purchasing and maintaining proper stock of materials and supplies, to individual purchases for clients, currency exchange as well as customs and duties. It seems that the additional costs on top of the customers purchase can add up very quickly.
It may be one thing to have the skill set and the knowledge of running a small business but if the money is not in the account, good luck with quick expansion. As a business owner you have to be able to manage the money coming in both short term and long term. Often clients will leave a deposit on their garments and pay the remaining balance when they are happy with the finished garment(s), and being able to handle the money exchange is quite important. Often business owners have a hard time breaching the topic of balances or money owing, as money is often a soft spot for most people.
On top of all of this you have to be aware of the time spent on each individual garment, as time is money. There will always be the odd remake on goods, these remakes can happen for many reasons. When a garment has to be remade it could be because of poor measurements, flaws in cloth, client weight gain or loss. There are a plethora of elements that can cause a company to lose out on profits from a particular sale.
“Slow and steady” that’s what they say apparently ... and in this case it is no exception to the rule. Or at least until I find a wealthy person to invest in the brand ;)