A Magic of Marketing. Business planning alongside Anyaberry series. Part 1: Market Research.

With launching the website, redesigning our logo, introducing a new project " "Made in Huntsville" and having 2 interactive exhibits here in Huntsville, AL I had my hands on the Marketing part of the Business plan! The value of Marketing plan for the new business is hard to underestimate. It is that important that SBA business planning tool has 2 separate tabs for it: Market Research and Marketing&Sales.
We will discuss Market research in this blog post.
SBA advise you on what to include in this section:
Industry Description and Outlook – Describe your industry, including its current size and historic growth rate as well as other trends and characteristics (e.g., life cycle stage, projected growth rate).
Information About Your Target Market – Narrow your target market to a manageable size. Describe your customer. Research and include the following information about your market:
     Distinguishing characteristics – What are the critical needs of your potential customers? Are those needs being met?  What are the demographics of the group and where are they located? Are there any seasonal or cyclical purchasing trends that may impact your business?
     Size of the primary target market – In addition to the size of your market, what data can you include about the annual purchases your market makes in your industry? What is the forecasted market growth for this group?  U.S. Bureau of Labor Statistics, trade organizations -are good sources of this kind of information.
     How much market share can you gain? – What is the market share percentage and number of customers you expect to obtain in a defined geographic area?
Pricing and gross margin targets – Define your pricing structure, gross margin levels, and any discount that you plan to use.
Competitive Analysis – Your competitive analysis should identify your competition by product line or service and market segment. Assess the following characteristics of the competitive landscape:

• Market share
• Strengths and weaknesses
• How important is your target market to your competitors?
• Are there any barriers that may hinder you as you enter the market?
• What is your window of opportunity to enter the market?
• Are there any indirect or secondary competitors who may impact your success?
• What barriers to market are there (e.g., changing technology, high investment cost, lack of quality personnel)?

Regulatory Restrictions –  Include any customer or governmental regulatory requirements affecting your business, and how you’ll comply. Also, cite any operational or cost impact the compliance process will have on your business.

If possible, enlist the help from the Business major student who could help you put this part together. With this said you need to understand the figures and the trends. It is very important.

If you feel lost, start with the SWOT analyses. SWOT stands for strengths, weaknesses, opportunities, threats. Organize them in this way:

Internal     1. Strengths         2. Weaknesses   
External    3.Opportunities   4. Threats

1- your skills, assets, knowledge, connections, etc.
2-   all the disadvantages you can determine that are internal: absence of the customers base, lack of the experience in the field, lack of financing, etc.
3 and 4 are the things that are outside your control that you determine doing your marketing research.
The are all the opportunities or threats that come from the outside (collaborations, legislation, economical trends, interest rate fluctuations, etc.)

Martha Pullen in her book "G.R.A.C.E. Keys to Entrepreneurship" recommends to conduct 2 types of the market research: primary and secondary. Primary research is about getting an objective opinion from you true potential customers. You can tap into your personal network, try to take advantage of the online forums, discussion groups and communities.
I may add that if you are planning to open a business in a certain location, go there and spend a day observing flows of the customers, engaging with them and taking mental notes about their habits. Make sure to learn as much as you can about your competitors in the desired location.
The secondary research is kind of in depth research that  we discussed earlier.

I can't not to mention Google. It offers wonderful tools for Marker research. This article helps navigate some of the Google's search options.

Marketing research is time consuming but it is invaluable for the understanding of the environment that you are going to operate you business in. Keep your motivation high!

As always: this article is just a blog post, not a legal advice

Belarusian apparel industry, style and fashion as seen on our summer 2016 trip

During our 3 weeks visit to Minsk, Belarus this year we have done our fair share of shopping :) And no wonder: the Belarussian apparel industry  has a lot to offer! With 500 enterprises in operation in the apparel industry Belarus produces practically anything you need to be nicely dressed! We made a point to have "made in Belarus" shoes, coats, t-shirts, dress shirts, socks, undergarments, bags, belts, towels, etc. Some garments where produced right there in Minsk! This fact  makes me even more enthusiastic about our project: "Made in Huntsville" !
A few enterprises for you to explore (if you are interested) are:"Mattioli" "Milavitsa", "Elema",  "Marko", "Lenta". Lots of manufactures have their own factory stores but also supply to the department stores such as "GUM", "ZUM", "Nemiga", etc. While passing one of them we were able to catch a street fashion show. Here are some pictures:

 

Most of the garments in this fashion show are made from linen- a traditional Belarusian fabric.
Another tradition that is being revived - the embroidered items in the traditional national colors (white and red). One can find them not only on towels and national clothing but on T-Shirts, dress shirts, shorts, socks, etc.

If you like to learn more about this trend, check this link out.

To give you an example of a factory store, here are some pictures from our trip to "Elema". Can you see the sign on the left? It says "Sale"! Yeah, looks universal :)

 The backpack on me is a join venture "Mattioli" that I mentioned earlier.

Kids were bored, adults where excited :)
My husband declared he buys mainly Belarusian apparel from now on. Let me assure you, he means it :)

New York City- inspiration is everywhere

     First of all let me say: I heart NY 😍 We really enjoyed visiting New York City during this spring break. The opportunities for inspiration are everywhere: in museums, on the streets, in the architecture, you name it! I think I haven't been inspired by any city as much as I was by New York. Due in part for the several fashion exhibitions that were free or almost free to visit!
    The FIT museum was displaying the collection of  denim items: both vintage  and modern. This pants, for example, are hand-stitched.

The museum also displayed The Women of Harper’s Bazaar, 1936–1958.

 

   This exhibition focuses on a pivotal time in the history of Harper's Bazaar magazine. This gorgeous exhibition is also available online. How cool is that?!
     But if you really want to be amazed you have to see their "Fashion Fairytale" exhibit. The installation created a mood of almost being in the fairytale and helped the presentation of the garments. Visitors were introduced to garments created to illustrate different scenes from many beloved classic fairytales. Here are just a few of them.

 

     The Metropolitan Museum of Art (THE MET) has a whole division for the costumes. Unfortunately, it was closed and nothing was on display. The museum though has a good selection of the fashion books in their store.
    Just as I was recovering from the set back of the closed division of the costumes in THE MET we stumbled upon the exhibition of  designs by Isaac Mizrahi: An Unruly History, This exhibition included sketches, swatches, accessories in addition to his garments.

 

     I am sure there are more fashion exhibits in this amazing city. If you know about any, leave a comment!
     The visit to NYC wouldn't be complete for me without visiting the Garment district. Particularly, "The Mood" - designer's fabric store. I found a broad selection of fabrics there and was able to buy some for my new collection :)

    Talking about collections. I had to wear something from Anyaberry Spring 2016. Even though it was cold when we visited NYC I managed to do it by pairing a fax suede dress by Anyaberry with the leggings and a jacket.

    Also Macy's is holding its annual Flower show currently which draws crowds and brings a wonderful aroma to its location on the 34th street in Manhattan.

    Finally I wanted to say that we were so impressed how native New Yorkers were friendly to us! Despite the crowds of tourists we had people stopping to ask if they could help us! Now, how amazing is that!

Business planning alongside Anyaberry: Company description

   The Executive Summary part of the business plan that we have started to work on last time is something that we most likely will come back and edit when we finish other parts. Today we begin  working on the next part: Company description.

 SBA recommends to include in your company description the following:

•     the nature of your business and list the marketplace needs that you are trying to satisfy.
•     explanation of how your products and services meet these needs.
•     list the specific consumers, organizations or businesses that your company serves or will serve.
•     explanation the competitive advantages that you believe will make your business a success such as your location, expert personnel, efficient operations, or ability to bring value to your customers.

   The SBA business planning tool offers 3 sections to be completed: Mission Statement, Principal members, and Legal Structure.

   According to the Small Business Encyclopedia Mission Statement is "a short written statement of your business goals and philosophies. A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate".

     It  could be tricky to define a mission sometimes. I have been thinking about Anyaberry's mission statement for some time and couldn't wrap my mind around it. I wrote a letter to an entrepreneur whom I admire in hopes of an advice. Even though I didn't receive the answer the process of writing made me realize what exactly is near and dear to my heart. With a help of a dear friend of mine who shared her opinion I drafted Anyaberry's mission and here it is:

To create a made in the USA company, that produces high quality children's clothing. To teach children through different community events to appreciate the quality and beauty of the clothing they put on and to value the clothing produced in an ethical environment. To educate children in the timeless art of needlework so it will continue through future generations.

    Mission statement can change when company grows and evolves. But it is a good idea for all the employees to be in sync about the mission.  Here is another example of the mission statement. Alabama Chanin's "zero waist" mission is "to preserve traditions of community, design, producing and living arts by examining work and life through the act of storytelling, photography, education and marketing" (source:http://bittersoutherner.com/). So what is yours? Share, please!

    Next section of the Company Description is the list of the employees that you plan to hire. If you just starting out, it may be a good idea to ask a mentor or to look at the examples of the business plans in your industry.

  To help you complete the next section,  here is a link to the article about the  legal structure of your business. If you have an opportunity it is a good idea to consult with a lawyer before making a final selection.

   Next time we will start working on a Marketing Research part of the business plan.

   Cheers!

   

And as always:

this is just a blog post not a legal advice :)

Business Planning along Anyaberry. Cover Page and Executive Summary.

Do you know that January is a Mentoring Month? Perhaps, it is time to thank the people who shared their wisdom with us, helping us to become better at certain skills. Perhaps, it is time to mentor somebody yourself. Perhaps, it is time to take a leap and contact somebody you admire in hopes that she/he can become your mentor. Why not? I challenge you to take this leap in January. You can even start by writing: January is a Mentoring Month...
 I myself plan to write a letter and send it  together with my short portfolio by the snail mail  to the entrepreneur whom I admire. The advantages of having a mentor are almost countless. You can show your mentor a business plan that you are about to start writing.
Talking about writing a business plan. You can use several online programs to write one. I chose the on-line version from the Small Business Administration (SBA) https://www.sba.gov/tools/business-plan. It is a free tool and a good one. All you need to do is to create an account.
Business plan begins with a Cover page. Cover page has Company name, Name of Owner, City, State, Zip Code and Logo fields.
Company name is very important for you business. I went through several names: Anyaberry, Bareshna, Bareshna&Bool'bash, asked friends and conducted mini-questionnaires on different social networks before settled on Anyaberry. Whatever you choose, it should reflect the nature of your company. Here is a good article about choosing a business name..
Logo design is also important. Mine was designed by Alexandra Pickle. She designed several logos for me and they were all unique and beautiful. Alexandra is proficient in graphic design and web development. Another graphic designer that I can recommend is Barbara Upshaw-Mayers from Aura Graphics and Design.. We met through Alabama Fashion Alliance. Barbara does all the graphics for this organization.
Next part of the business plan  is an Executive Summary. It is an introduction to your business. This section should be clear, concise and to the point. SBA recommends that you revisit this section to review your work after completing the other sections of the business plan. To fill out this part we need to answer to following questions:
1) What product or service will your business provide?
2)Who are your target customers?
3) What goals do you have for your company?

Lets spend several days thinking about these questions, scribbling down the ideas and filling this section with the answers.
Till next time!

And as always:
this is just a blog post not a legal advice :)

Business Planning along Anyaberry in 2016

It is a good old tradition to set up goals and plan to achieve them at the beginning of the New Year. It seams to be the best time to start writing the business plan for the company you own or plan to own. That is why I offer you to join me in business planning beginning 2016.
In case you are not completely committed to the business planning just yet, I will tell you about a few wonderful possibilities that business plans can offer:
1) If you own a small business you can use the information from your records  to plan for the long term ( next 3-5 years) so that you have an idea where your business is going. You  should also work on a short-term business plan and look at the business processes on the monthly basis.
2) If you are thinking about making an investment in your business (new piece of equipment for example) you can calculate your Pay-Back-Period and other indexes. This kind of plan will be indispensable when you present your idea it to the financial institution or your business partners.
3) If your business is struggling you can work on a business plan of the "revitalization" and try as many ways as you can come up with to bring the income up and the expenses down.
4) If you starting a new small business it goes without saying that you need a business plan. You can read my previous blog post for more inspiration :)

Starting new year 2016 we will set up deadlines, plans of actions and report our results. We will share difficulties along the road and find solutions together.
If you are interested in certain industry ( as an example to talk about), please, leave a comment. Otherwise you will be "stuck" with the industry I am planning for: the Apparel Industry.

If you know somebody who is an entrepreneur or plans to become one, please, encourage that person to start planning along Anyaberry.

Fashion Business Plan

Recently I am seeing quite a few articles here and there that mention business planning in the Fashion industry. One of my favorite entrepreneurs Martha Pullen wrote in her interview:
"... I made almost no money for the first 10 years I was in business. The main reason is that I had no written plan" (1).
 As a former "business planner" I am a great proponent for writing a business plan before you open any business. It might not be easy but it will make you think like a business owner and rise the questions you haven't even thought of.
Kris Van Assche - a creative director of Dior Homme- describes his struggles writing a business plan for  his independent label:
“My first reaction was, ‘I don't know how to do a business plan, I am not going to do it. You're the business people, you take care of it, I'll make the clothes.’ But they said 'No, you want your company, you come up with a business plan.’ It was one of the best things that ever happened to me, because it made me take responsibility and learn.” (2)
I completely understand that the idea of writing a business plan could be quite intimidating especially for the business owners who don't have any business training. There are several online resources, tools and templates to help you get started. Small Business Administration offers great tools for writing a business plan. You can contact your local SBA chapter and check if they offer training on business planning.
Check out tutorials. In this video you can learn about the basic elements of a fashion business plan
 Reach out to the business school at your local university, they may be able to pair you with a business student who can help.
Find out if there is a fashion organization in your area that can help you with the information and connect you with the specialists. Here in Huntsville, AL, for example,  Alabama Fashion Alliance (AFA) can be a valuable resource.
Think of a business plan as a calendar. You can't imagine living without a calendar, right? You need to know where and when you should be and plan accordingly. Same here. You need to get to know your competition, to plan your sales, to estimate your operational costs, to get the idea what kind of  resources and when need to be allocated to certain spheres of the business and finally to realize when your business should start bringing a return on your investments.
With such a plan you can start approaching potential investors.
Good luck! And get planning :)


1) "A visit with Martha Pullen". The ribbon in my journal. http://www.theribboninmyjournal.com/visit-martha-pullen/
2)"Kris Van Assche Says Do What You Are Good At". Business Of Fashion.
http://www.businessoffashion.com/articles/first-person/kris-van-assche-says-do-what-you-are-good-at-krisvanassche-dior-home