The importance of business ideas cannot be overemphasized. It is as a general rule, the starting point for an entrepreneur. It can be conceived from anywhere; from what you are passionate about, work experience, exposure from experts or business owners, or solutions to your previous problem or another person’s problem.
Generating a business idea might seem challenging as it is usually out of a number of proposed ideas that the most valuable and promising one is selected.
In a vast economy where there are quite a number of business ideas that can be conceived, such as; setting up an eatery, cassava farming, fashion designing, importation of used clothes, etc., a potential entrepreneur will have to weigh options critically in order to materialize an idea within his capacity and competency.
For the purpose of this scheme, fashion design is my preference.
Why Fashion Design?
- Creativity: Fashion designing is art. The truth is you can start a fashion design business with little knowledge and still earn sales which usually works when a few individuals want to give you a chance to impress them. However, adequate training and exposure to better designs will yield sustainability.
- Niche (the particular group of people you want to satisfy with your product): The point is, that everyone wears a fabric, so choosing a target age bracket of the population will not pose much difficulty. Most importantly, the bracket that is perceived to yield more turnovers.
- Location: A fashion design business can be launched almost anywhere; water supply, climactic factors, and some other geographical factors that affect some other businesses do not affect it. However, it is best situated where the shop rent is favorable.
In the real world, there are a lot more substantial reasons to venture into fashion design.
STARTING UP A FASHION DESIGN BUSINESS AS A SOLE PROPRIETOR – YEAR ONE
Why Sole Proprietorship?
- Capital requirements: Fashion design does not require much capital to generate returns. Setting up some equipment and materials is proper for a startup. On a happier note, the capital outlay is deemed favorable for an individual to raise.
- Cordial relationship: In the first year of a business, a sole proprietor tends to build closeness with his customers since business negotiations are done face-to-face. This will yield long-term patronage.
- Branding: As a sole proprietor, a spot-on brand is most likely not just your business identity but your individual identity which tends to create more customer recognition.
- Profits: As a general term, profit is essential for the survival of a business. In this regard, all profits solely belong to the sole proprietor. As such, effective management of the revenues will be necessary for expansion.
In essence, there are lots of benefits that accrue to starting up a fashion design business as a sole proprietor, notwithstanding the drawbacks.
BUSINESS REVIEW OVER TIME – YEAR TWO AND BEYOND
Truth be told, fashion is dynamic. Quality is key in this facet. Humans, by rationality, will want to go for a better taste, so a fashion designer must possess a wide range of skills, adaptability, as well as knowledge of fabrics. Hence, this is a requirement for expansion.
However, a larger business means exposure to bigger risks. So, as a sole proprietorship expands, it is advisable to incorporate it into a legal entity, such as a limited liability company (LLC)
Why LLC?
The single biggest advantage of an LLC on this detail is personal liability protection i.e, your personal assets such as your car, house, and personal financial accounts are protected from business debt collection or, in the case where the business is sued, you are personally financially protected against legal claims against your LLC.
Conclusion
In conclusion, depending on your needs and comfort as a business owner, whether it is liability protection or ease and simplicity that you are craving, the choice may be clear as to which type of business structure you should choose. It is up to you to choose what is best for you and your business. You can always change your business structure later should your needs and desires as a business owner change.
About the Author
Daniel Kayode-Joseph is a CIAPS Graduate of Business Administration.
