Tuesday, January 17, 2012

How to Start an Online Clothing Store in 12 Steps

!9#: How to Start an Online Clothing Store in 12 Steps

This article is meant to be a very rough outline in the process of starting up an e-commerce based clothing store or boutique. In the high-paced and competitive world of fashion retail setting up your store is just the first step and quite honestly has little bearing on how successful your store will actually be. For example, Bluefly.com has an estimated monthly traffic of 840K, but since going public in 1998 has never made a single year of profit. As of December 31, 2009, Bluefly has an accumulated deficit of 7,468,000. Your guess on how they remain in business is as good as mine, but think of it this way. Even if you only make .00 of profit your first year of business, then you are technically doing better than Bluefly.

Please note, many of these steps can be done concurrently. For example, while you are filing your legal forms, you can work on your web design. This is especially true if you are depending on a third-party to design and set-up your website. They may work on a longer time frame than you initially anticipated. I do highly suggest that you just focus on the business plan initially. For example, if you decide that you are going to design your website with a specific concept while you write your business plan, then you just might find after researching that your concept is not what you're going to move forward with. In this case, you probably spent 40-60 hours on non-productive output.

1. Write a business plan.

To be honest with you, when my girlfriend and I launched our website, we did not have a business plan, but we did write one eventually. The simple fact is that if you are planning for success, then you must write a business plan sooner or later. In business school, you write it sooner than later. The business plan is important because it forces you to do research about the industry, your competitors, and your resources. Additionally, it forces you to think deeply about how you are going to succeed in this highly competitive industry. If you think that you are going to be just like Modcloth, then why would you expect to be successful compared to Modcloth when they are working with millions of dollars of venture capitalist funds for a workforce, marketing, inventory, etc. I don't have an answer for you, but my point is that you have to come up with a plan before investing your life's savings into this new venture. Also, the business plan is important because it also forces you to estimate how much money you will need and where that many is coming from. The reality is that unless you have real background in finance, you will not be able to build a 5-10 year projected Discounted Cash Flow Model and figure out your WACC, but having some kind of rough idea of your cash flow is better than nothing.

You should also include a plan on how you are going to initially set-up your website. For example, using a subscription-based shopping cart will change your budget than if you decide to use an open-source shopping cart. Also, you should also do your initial research on web hosting companies since they can range from /month to over 0/month. My only suggestion is that you get the fastest and most reliable that your budget will allow. Please note, that all I'm suggesting is that you plan what you are going to do as far as web design and hosting is concerned, not that you go out and pay for these services right now. The only expense that you may want to consider at this moment is that for registering a domain name. That's because they are relatively inexpensive to register and you don't want to possibly miss out on registering your wanted domain.

You should come up with a budget and plan for marketing, public relations, and search engine optimization. These will most likely be your largest expense heading into the future. Remember, buying inventory is not an expense, it is an asset.

Last, but not least, you also want to plan on order fulfillment. This is just a fancy way of saying how you are going to pack and send your product, as well as what return procedure and policy you will have in place. Will you use USPS, UPS, FedEx, or DHL? Will you have free shipping, returns, and/or exchanges? These are all things that should be planned for, though will change over time.

2. Apply for a Employer Identification Number with the IRS

Once again, if you are planning for success in the future, then you are going to have to run your business legally. You will need an EIN to open a bank account, apply for a business license, and get a seller's permit. Just search "EIN" in the google search engine and the IRS website should be the first result. When applying for your EIN, you will need to know the legal structure of your business. For example, if your business is going to be a one man or woman show, then you are going to apply as a sole proprietor. If it turns out that you and your mom are going to run the business, then you may choose partnership or decide to incorporate.

Pick your fictitious business name, "Doing Business As," and file it with your county clerk

One of the more exciting step in setting up your business will always be picking a name. My girlfriend and chose T.I.L. Darling because before we were officially a couple, she would tell me that in Thailand, her home country, that she and I could never go out alone as even friends. I told her, "This is London, Darling." So, I guess our business name should technically be T.I.L., Darling, to be more grammatically correct. Once you have your fictitious business name, you need to make a pretty good attempt to make sure no one else is using that same name. Otherwise, years down the line when you are making money, you can expect a letter from a lawyer saying how they are going to sue the designer pants off of you.

If your county registrar/clerk has a website with downloadable forms, then search for the DBA filing form, fill it out, and bring it to the county clerk. Otherwise, you will just have to do everything in person. There, you will probably have your first business expense with the filing fee. Your second expense will be the requirement that you advertise your new business name in an approved newspaper or public publication so that if anyone has a problem with your DBA then they can step forward. The county clerk will be able to point you in the right direction for this step.

3. Open a business bank account

Again, planning for future success, you will want to open up a separate bank account for your business. This way, you can track and easily separate business expenses from your personal expenses, write checks or have transactions under your business name, and just generally feel like a real business.

4. Start designing and setting up your website

There are actually a few methods of going forward with your website. I will explore a few options starting from the most costly to the least costly. Even though I would have to question whether or not running an online business if for you, but if you have extremely limited experience with web design or are just not internet savvy, then you may need to do everything third-party. If you realize that you're going to need someone to design your website, initially set-up your domain and site, then you will probably need to find some kind of subscription based shopping cart. For example, if you have money to spend, then search "boutiquecommerce" in the google search engine. This company will do just about everything for you, from web design, domain registration, web hosting, to ongoing support. There are many third-party shopping carts fitting almost any budget. To be honest, I have no experience with any paid or subscription based shopping cart and so I will limit any opinion I have on them.

Another alternative is to buy a website template designed on top of an open-source (free) shopping-cart platform. Search "templatemonster" in the Google search engine. Filter your search to include E-Commerce templates and choose "fashion" as your category, though you can customize any template to your needs in reality.

On a side note, before you purchase your template, you should set-up your server. During your business plan research, you should have figured out what web host fits best for you, but now is the time to actually spend some money because you will not be able to test your template unless you have a server to upload it to. This also means that if you haven't done so already, then you will have to finally register your domain name, which is something you should have also figured out in your business plan. Most web hosts will actually register your domain for free, but feel free to use a service, such as godaddy, and you'll need to change the namerservers to point to your web host.

Once you have your template and web host, then you need to upload your template and start customizing it. You can either use a "template tuning" service or if you have enough html, php, and photoshop experience, then you can do it yourself. Unfortunately, this step can be pretty difficult even for somewhat internet savvy users because this is where you will need to learn a little bit about setting up a database, setting up a database user, and how to use an FTP program to upload your site. That's why some may opt to use a third-party shopping cart, but this option is by far the most flexible and cheapest if you have the time and are willing to learn.

You will also need to figure out how you will accept payment on your website. If you want to accept credit cards, which you should, then you will need a payment gateway. The most popular would be PayPal Pro and Authorize.net. You will need to apply for an account.

Of course, there is the ultimate DYI approach, where you can not only design your own website, but also code your own shopping cart. If this is the case, then I highly doubt you need to read this section of my tutorial.

5. Make Business Cards

Yes, I actually made this an individual step because you will need a business card to register for trade shows, as well as deal with suppliers. Since you are also working on your website design, it is also more efficient to work on a business card design. Additionally, you need some lead time because printers will charge you extra to expedite printing and shipping. So, if you plan ahead, you can save quite a bit of money.

6. Apply for a business license in your city

Once again, if your city has website dedicated to business, then you should be able to download an application for a business license. In some cities, you can even apply for a home-based business license. Of course, only fill out a home-based business license if that is your case. Bring or even possibly mail your completed application and filing fee to the appropriate location. The reason I put this step after designing your website is because the business license fee is a yearly fee and so why pay when you are not even close to launching your website.

7. Apply for a Seller's Permit

At this point, you should be fairly proficient at filing out forms. The last application you should have to file is for your seller's permit, sometimes mistakenly called a resale license. The seller's permit will allow you to buy from your wholesalers without paying sales tax, but it also requires you to pay the sales tax on any items sold, within your state, every quarter. Of course, in modern commerce, you are allowed to collect the sales tax from your customers.

8. Figure out how you are going to display your products

Before you actually source your products, I believe it is wise to first figure out how you are going to display your products on your website. Are you going to use a mannequin, model, or just lay it flat. Will you outsource your product photography or do it right in your bedroom, which is how we first started. If you are going to do it yourself, then you still need to make sure it fits your budget and business plan as far as purchasing equipment. If you are going to need equipment, then now is the time to either jump online or go out and start making a real investment in your business.

9. Plan your product mix and find suppliers

While you are figuring out how you will ultimate display your products, you will want to start researching where you will buy your products. If you haven't done so, then you will want to start thinking more about your product mix. Of course, it needs to fit perfectly with your business plan, concept, and budget you already established in step 1. Fashion buying is another topic completely and I highly suggest you read up on it if you can.

After you have some kind of buying plan, it's time to find suppliers. If you are lucky, then you will be able to catch the MAGIC Marketplace trade show in Las Vegas. They have vendors for vintage inspired clothing, juniors clothing, indie clothing, etc. It is essentially the largest fashion trade show in the USA and maybe the world. If you cannot find suppliers at MAGIC, then I would honestly be surprised. If you cannot wait for the bi-annual trade show, then you are most likely going to need to take a trip to the Los Angeles Fashion District. If you are looking for the glamorous world of designer labels, then you will be spending your time at "The Intersection." At this intersection you will find the California Market Center, Cooper Design Space, Gerry Building, and The New Mart. Here you can find brands such as A.B.S. By Allen Schwartz, BCBG, and Betsey Johnson. If you are in this market, then be sure to bring copies of your business license, business card, and seller's license. Also, as an online business, be prepared to be rejected by many showrooms. If you're like me though, then it should only inspire you to be more successful so that when the time comes you can reject them.

If your price point is a lot lower, then you are going to really want to spend time around the San Pedro Mart area. You will probably find that 80-90% of these wholesalers are not right for your target market, but that only means that you should find 10%-20% that is right and will be able to focus on building those relationships into the future.

Of course, you can always turn to the internet, registering with sites like fashiongo and lashowroom. Additionally, you can contact individual brand sales reps and they should send you line sheets and look books. In fact, this is how most business will be later in the future, but I suggest you visit trade shows and marts to get your feet a little wet.

10. Start product photography and adding content to your website

Since you should have planned earlier for product photography, this step should be self explanatory. You want to add the products to your website and get it ready for a more official launch.

11. Start your marketing campaign, Search Engine Optimization campaign, and PR campaign

Again, these campaigns should have already been planned in the first step. This step is pretty much a hundred different subjects on its own and so I will not really dive to deep into it. The most rudimentary start would be to submit your site to search engines, such as Google and Yahoo!, sign up for Google AdWords, and start a Facebook and Twitter account. There is probably a good chance that will have to depend on paid advertising to get decent traffic at the beginning, but I highly suggest you plan and budget appropriately.

It might take one day or a whole month, but you're going to get your first order and at that point you can finally say you really set-up your online clothing store.

12. Keep learning as much as you can

Like I said, setting up an online clothing store is just the first step. In reality, you are going to have to learn as much as you can about fashion buying, merchandising, marketing, search engine optimization, html, php, ajax, javascript, analytics, etc.


How to Start an Online Clothing Store in 12 Steps

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Friday, January 13, 2012

Profanity In The Workplace - Is It Acceptable?

!9#: Profanity In The Workplace - Is It Acceptable?

I've noticed lately that more and more executives and employees are resorting to profanity in the workplace. I remember when not only was it unacceptable but it was just plain unprofessional to use curse words. You know the ones I am talking about. They start with 's' and 'd' and the big heavy four letter bomb that starts with 'f'. Why has it become more and more acceptable for workplace language to deteriorate? Are we really producing limited vocabulary professionals or am I alone in this quest for order, discipline and professionalism. Well, I asked a couple of my colleagues to gather their opinions on the matter and really find out if I was the one from another planet. Here is what they had to say:

"It depends on the work environment and who you are working for. I mean, I would not use that language with my boss, but I see other people do."

"Profanity is just unprofessional in the workplace."

"I don't see a problem with it as long as it gets my point across."

"You've got to keep up with the times. In the old days it was unacceptable, but now it is okay."

Many organizations have standards and guidelines for professional behavior, dress code and etiquette. Some maintain the prohibition of profane and obscene language, including it in their employee handbooks, while others find it acceptable. As James O'Connor, owner of Cuss Control Academy shares, "People judge you by the way you speak. You can only go so far if you look good but sound bad."

Words are tools that are used to express emotion and convey meaning. I believe there are many ways of self expression without resorting to profane and obscene language in the workplace. It is simply not good for business and damages internal communications within the workplace. Can you imagine the President of the United States being interviewed and resorting to profane language to make his point? How would your image of him change?

When an organization focuses on improving the lines of communication at work, gaining feedback and increasing employee engagement, language and the use of inappropriate language must be addressed.

As a personal example, one of my managers held a staff meeting the other day and on three separate occasions the curse word folks use when they do number 2 in the bathroom along with others was used. The respect I had for him as a manager quickly dwindled with each occurrence as I sat and wondered, 'is your vocabulary really that limited?' Were there any other words available that could convey the same meaning? Apparently, he did not seem to think so. So what did I do? Did I stop him in mid-sentence and yell COULD YOU PLEASE NOT USE THAT WORD? Or did I take him aside after the meeting and tell him what he said offended me? No. I could have, but I did not. Did I really want to risk him insulting me even more? I was already intimidated and feared retaliation. So, I did what I felt would be a safe approach- I sent him an email that went something like, "You may not be aware of this but when you use words like s***in your meetings, it really takes focus from your main point." Do you know what I got in return? I was shocked to even get a response.


Profanity In The Workplace - Is It Acceptable?

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Saturday, December 31, 2011

How to Travel With Suit and Tie

!9#: How to Travel With Suit and Tie

Weather you are a frequent business traveler, or are going on business trip that requires you to bring a suit and tie for the first time, below are some helpful tips that will help you protect your expensive suits and ties.

The right way to pack
Packing your business clothes the right way isn't an easy task. How can you prevent wrinkles in your suit, dress shirts, and ties, and still manage to pack everything in a tiny carry-on bag? Be realistic with what you need on your trip. If you are going on a business trip abroad for a two-week time period, you might want to think about checking your bag instead. The key to prevent wrinkles in your suit and dress shirts is by not over stuffing your suitcase. Also, create a cushion for your most delicate clothes such as suit, dress shirts, and ties. This will help you prevent wrinkles. Especially tricky are dress shoes. Keep them as far away from your garment as possible. Some carry-on bags have a second pocket especially designed to store your shoes.

Garment Bags
The best way to prevent wrinkles in your suit is by using a garment bag. This is especially recommended if you are going straight from the airplane to the event. If you do have time before wearing your suit and tie, and if you are staying in a hotel, it is less critical. Chances are the hotel offers a dry-cleaning service. Before leaving your clothes at the Hotel's dry-cleaner, make sure to check on their turn-around time. If there isn't enough time, try the following trick: Hang your suit and shirt in the bathroom while taking a hot shower. The steam of the shower will help straighten out the fabric. If this still doesn't work, look for an iron. Most hotels have irons and ironing board in each room. Keep in mind that suits should not be ironed. Dress pants can be ironed, but depending on the fabric, it is recommended to use a lower heat setting. Most dress shirts are made from cotton or linen. They can be ironed with no problem -even at high heat. When ironing your dress shirts, sprinkle some water on the fabric. The heat of the iron will steam-off the water causing even the toughest wrinkles to disappear.

Traveling with Neckties
Neckties are your most delicate pieces of clothes. They are usually made from finest silk, and cannot be ironed and should never be dry-cleaned. This means that preventing any wrinkles in first place is a must. To do this, fold your ties in half and store them between some soft clothes. Keep any sharp edges away from your neckties as this can damage the fabric and can cause wrinkles. Rolling up your ties is another option. Start by rolling up the tie at the skinny end. Once rolled up, store the tie in one of your dress shoes.

Unpacking
Keep the time your clothes are in your suitcase to the minimum. No matter how tired you are from your travel, unpack your suit, dress shirts and ties as soon as you arrive. Hang them onto a hanger in a well-ventilated room. Chances are the clothes will look perfectly straight when you wake up in the morning.


How to Travel With Suit and Tie

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Monday, November 7, 2011

"WHO'S GOT SOLUTIONS FOR THE PROBLEMS IN BLACK AMERICA - PART I"

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Tuesday, October 18, 2011

A Definition of Ethically Responsible Clothing

!9# A Definition of Ethically Responsible Clothing

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It is the category of ethical consumerism that defines the central theme of ethically responsible clothing. As far as the elaboration of the central idea regarding ethically responsible clothing is concerned, it revolves around the expense in buying all those kinds of clothing that either have been manufactured in accordance with the ethical norms of the society in which it is manufactured or it adheres to the basic moral code that applies on an international level in the absence of a society code of ethics.

The context further broadens in the perspective, referring to the nature of manufacturing procedure for the clothing, thus confirming the fact that the process of production did not involve anything that had to do with the abuse of humans, animal or any other aspects of nature. These aspects of nature involve the principle of no abuse of plants, trees, minerals and all other natural elements in the surroundings.

Reflecting back on the theme of ethical consumerism, it involves manufacturing in a healthier perspective (according to this school of thought) and deals with the series of purchases of those products and services (on an intentional basis) that the consumer (both current and potential) is assured are made whilst having taken care of all the ethical principles.

This refers to the nature of the process of production that involves little or no harm and/or exploitation to human beings or any other species of animals. Not only that but also the welfare and safety of the environment are worth consideration when it comes to the moral code of ethically-responsible clothing, or more precisely and in a broader sense, ethical consumerism on its own.

Another term to describe the purchase of ethically-responsible clothing, or more specifically, any other ethically-responsible product, is referred to as 'positive buying'. The crux of positive buying is inclusive of not only advocating ethical consumerism with their purchases of ethically-responsible goods and services but also encouraging the sales of these products and services by giving them a clear preference and exhibiting a favorable attitude towards the ethically-responsible products and services.

In addition to that, ethical consumerism (or in this precise case, ethically-responsible clothing) also goes a step further in showing disapproval towards products the manufacture of which involves exploitation of human beings and/or animals and/or any elements of nature on some level.

The brands that represent themselves as ethically-responsible ones, deliver pride in their association with the title of green brands. This has also drawn the mass market towards the manufacture of ethically responsible products and services and have motivated marketers and organizations to choose a more thorough and wholesome path of production and marketing.

This was made possible in attribution to the efforts of the advocates and supporters of ethical consumerism who played a vital role in providing awareness and understanding about their beliefs, thus, creating a unique market niche for the environmental lovers as well as the theme of ethical consumerism.


A Definition of Ethically Responsible Clothing

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Saturday, October 8, 2011

Casual Style - Pros and Cons

!9# Casual Style - Pros and Cons

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After one too many disastrous consequences, offices around the world are banishing dress down Fridays. Corporate casual is the one style that is too often misunderstood, so how can you make sure that you get it right?

The pros and cons of casual style are many, especially in an office environment. Remember the flip flops and Hawaiian shirt, you may choose to wear them at the weekend as they are not always appropriate for work, casual does not mean unprofessional and you don't want to look like a tourist. If you're not sure then put it away, being at the centre of attention is not a bad thing, as long as it's for the right reasons. The key is to find a happy medium opting for an outfit that is casual but also crisp and well-presented so be sure to steer clear of any garments that are creased, torn or look unwashed.

A must for any casual outfit is a pair of jeans. Yes, you can wear them but try not to go for the latest rip and torn look, opt instead for a dark rinse with minimal detail and combine with a crisp shirt with cufflinks, a loose fitting tie and cardigan. Make sure your jeans fit, not too snug so you can breathe and sit at your desk comfortably but not so loose that your colleagues think your other job is working on a building site.

It is ok to wear khakis and polos as long as they are well pressed and absent of any outlandish logos that you feel make a statement about you. Do not wear shorts, the chances are your legs haven't seen the sun since last summer, so put them away!

Don't wear scruffy shoes, trainers or flip flops; it's not appropriate and often leads people to make unwarranted comments about your appearance, remember we don't all want to see your toes! Opt instead for dark colored casual loafers, smart but comfortable shoes.

If you are scheduled to have a meeting with a client and it is on a dress down day do not dress down. What might be company policy for you does not always apply to the person you are meeting with.

The key to dressing casual is to remember that you need to dress in a way that makes you and everyone else around you feel comfortable. In line with company policy casual Fridays do not mean that you can expose otherwise hidden piercings or tattoos. Don't wear bright colors or tight fitting garments. Your appearance is an incredibly powerful thing and can give or take away your credibility in an instant. You don't get a second chance to make a good impression so remember dressing casual does not mean that you need to make a statement about who you are outside of the office.


Casual Style - Pros and Cons

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