Thursday, May 5, 2011

Insight on the How To Think Innovatively and Stay Alive in the Fashion Industry

Kimora gives some great advice in this video about staying afloat in the current economy state. First of all, she points out how selling your business once you've built it up is a great way to bank some serious dough. And how right she is. Some people get super attached to their brands, which I can understand as I am attached to my own. You raise it almost like a child, and when someone offers to buy it, it may feel like they want to take away your baby. But please- let's not be selfish here. Considering the fact that this person or company even has the resources to set a decent price on your company that even has you contemplating the idea is proof in itself that they have even more means to run the company. No one is going to spend tons on a company that they plan to lose money on. So by not selling, you are really just holding your company back from its full potential, and wasn't that your dream in the first place, to take it all the way to the top?? Kimora also mentions that with the money you have now made on the sale, you can go and start another business. They didn't buy your talent- you still have that. So if you're really attached to the idea that you want to run your own company again, you now have the means to do it, and probably even better this time since you have a ton more capitol to play with, not to mention all the experience and contacts you probably have from the first business you started. Or, make it part of the contract that you stay onboard with your company as a director or chairperon as Kimora did. That way you are still a part of what you started and don't have to fully detach.

Kimora also talks about having flexibility in dealing with the current economy. This is vital for survival  in any business. If your product is simply not selling because the price point is too high... or the item is not a necessity for consumers, reworking a plan to regain attention is key. Creating an affordable version of the product gives consumers the experience of the brand at a lower price point and builds revenue for you to stay alive until the economy allows you to reintroduce your higher priced items back in the main focus.
Great tips to consider!