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  • Danielle Oliveira

Having a positive cash flow

Launching a fashion brand, takes a lot of effort; you must pay attention to every detail, determine a marketing strategy, find the right supplier, and so on. Having a positive cash flow, especially now that countries' economies are suffering from the pandemic, is extremely important. We know that pre-launch sometimes (almost always) has a limited amount of funding, so managing cash flow and making it positive will be essential for the health of the business.


1. Prioritize what's important. In the early days of your business, you will have to take care of almost everything on your own. Sometimes it is hard to pay attention to tasks that are not as enjoyable as designing your items, but putting together information that will show your profits and losses at the beginning of the business is crucial in order to achieve a clear understanding of where your business is.


2. Don't overspend. It is essential to keep focused on what's most important and the most cost-effective options. Finding the supplier and materials might seem easy, but sometimes it can be tricky as you can spend far more than necessary if you don't research right. To keep your finances in order, make sure you research and plan every step of the way at the beginning, before spending begins.


3. Pay attention to stocking. As we've already discussed in this post, predicting how much stock is needed for each season can be challenging for a small fashion brand. However, this prediction is essential for your cash flow, and managing inventory can avoid many problems around cash flow.


4. Price your product right. We know that it might seem complicated to set the right price for your product in the beginning. But in those early days, finding the right balance between selling and spending is crucial, and pricing the product right will make this easier.


5. Find an investor. Finding someone that can put money into your company is crucial for fashion entrepreneurs who are just starting. Most businesses need some outside source of funding, so seeking investors and showing them how you are working to generate profit is crucial. Being aware of how you will make your business profitable will help a lot in finding those investors.


6. Make sure you start small. Spending all of your money at once is tempting. There are many ideas to put into motion, but there is no better way to begin than small. When launching your business, start with homemade editorials, keep the workforce small, and try not to overspend. It will help you understand more about the company and the market without spending too much, and help you find a balance to keep your business profitable.