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Business ICU

 
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Fledgling
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PostPosted: Mon Dec 15, 2008 10:59 pm    Post subject: Business ICU Reply with quote

What are the patient's vital signs? I'd like to start a thread with your potential P&L. Some of you have probably run a couple of spreadsheets or thrown some darts. Since this might be considered a bit personal, you are welcome to post anonymously. Please perhaps also consider that the recession might decrease sales 20-30% anyway. And I'd say limit investments to material inventory, contractual obligations and so forth. Let's keep the student loans out for the moment Wink

Thank you in advance for offering to give this situation some basis for quantification.

-Nancy
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Kathleen F.
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Joined: 08 Sep 2005
Posts: 11557
Location: NM Albuquerque

PostPosted: Tue Dec 16, 2008 9:50 am    Post subject: Reply with quote

I'll be posting a survey monkey later. We intend to use the results for demonstration purposes.
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ramona1166
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PostPosted: Wed Dec 17, 2008 7:17 am    Post subject: Reply with quote

We design, manufacture and sell children's special occasion clothing online, OneSmallChild.com. That is Christening, Communion dresses and Flower girl dresses. We carry well over 100 styles now. If we survive at all, we will probably have to cut back to just Christening apparel and only offer 2-3 styles (down from 50). We've been in business over 20 years and weathered numerous hard times...this is a 'Katrina' to us and could very well be the end of the line. Sad after all those years of valient effort, and we don't even produce a hazardous product.
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PostPosted: Wed Dec 17, 2008 9:46 am    Post subject: Reply with quote

I have been in business for about 3 years now. I consider myself a very small business, working out of a spare bedroom. This (2008) will be our first year showing a profit. Last year was -$260. Smile This year should be around $5,000 bottom-line. I have a significant amount of fabric inventory, as my business grew rapidly this year I obviously reinvested a lot of funds to keep up appropriately. In the past I have been able to purchase remnants and such to really keep a nice line of unique or OOAK items going. Now that does not look like a possibility at all. My business, if it continues, will need to undergo a complete restructuring as far as how I manufacture my items and what I have to offer. This will certainly have some negative effects, as one of the main attributes of my business has been the custom OOAK items I have to offer. What I am struggling the most with right now is what to do with the current fabric/raw material inventory I have. Most of this will be a "loss" to my business as I need to remove it. Since it is mostly remnants, and some has already been "prepped" for manufacture, I doubt I will be able to recoup value by selling the fabric. So, it looks like I either need to cut my inventory now before 12/31/08 and show the loss on this year's taxes, or for sure do it in 2009. I still need to talk to my accountant (who has no idea what the CPSIA even is). All this is before taking into account if I am able to enter a "reasonable testing program" or seek 3rd party testing for my products to even continue to stay in business, and the cost impact of that. At this point, it looks very much like I am out for the count.
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Teresia Adams
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PostPosted: Thu Dec 18, 2008 10:37 am    Post subject: New Plan in Motion... ICU Reply with quote

Well, I was planning to launch a line of clothing for children with sensory sensitivities sizes 4 to 16. After a lot of thought and having to go back to work as a special education teacher (due to economic difficulties due to my husband's business) I am going to focus on the middle school and high school aged kids, which is 12 and above. I currently teach in a high school and I see the need is there as much as it is for small kids. It will be a different type of marketing strategy because all kids at that age want to be "cool" even if they have Autism. Many people disregard that fact but my Autistic son is quite aware of what clothes look and I quote "dorky or nerdy".

When I tried a proto-type weighted Hoody jacket on a 15 year old ADHD he loved it and was able to articulate that he liked the weight placement however, he said 2 more pounds of weight would be more soothing. I am definitely in the ICU, however I can see my business plan with a lot of tweaking making it out of this.

Creativity is an asset in this problem and since I am at the beginning I can change easily. I truly feel for all of those people who have found the niche and are successful, now this comes along.
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PostPosted: Thu Dec 18, 2008 9:36 pm    Post subject: Reply with quote

Vital signs....hmmm
Professional vs. hack....hmmm....is there room for something in between?

I'm one of those eBay/Etsy sellers who make their products out of a spare room and who buys most of my raw materials retail, although always on sale. I do consider myself a very skilled sewer having spent about 18 years as a professional dressmaker and alterations person. But, my products look professional mostly because I'm extraordinarily picky and retentive....and having worked primarily w/high end customers back in my alterations days, I learned the difference between home-made and professionally made. I also know a few things about QAQC.

Now for my true confessions....I have been working for the past year trying to get the business end of my business squared away because no matter how well you can sew, you gotta understand the business if you want to succeed. So, I've been reading everything I can get my hands on and working on a business plan (I'm not planning on looking for funding. I just think that a BP keeps you honest about the realities of business).

Anyway, I built a business model that I thought might work for me based on realistic a pricing strategy that factors in all the direct and indirect costs, as well as market research. I was planning to launch a web store in June 2009....then the CPSIA yanked the rug out from under me.

Barely a pulse now....
I think I'm beyond even intensive care because my business model is not nearly lean enough to survive this testing requirement. Unfortunately for me, I stumbled across Kathleen's wonderful book after I'd already broken one of the fundamental rules of apparel manufacturing - buy only what you need to fill orders.
So, I'm sitting on about $5K in materials and supplies funded by another part time gig I had for a time to help build funds for my clothing line. Stupid, I know. But, like I said, I didn't get the book until after the damage was done.

So, I designed my business model in a way that I thought might remedy this mistake: I would use up all these materials by making designs in very small runs and selling them online direct to the consumer. If this sounds a bit crazy to some of you, please keep in mind that I have a day job that I love. My business was never intended to be more than a very busy part time endeavor. (Trust me, I'm not a fashion starlet wannabe waiting to be discovered.) I just needed to make a second income for my family and this is how I chose to do it. Small works for me.

I suspect there are a lot of others in the same boat as I am, which is why I'm "coming clean" here tonight. Until now, I have been reluctant to share my business processes on this forum because there are some (albeit very few) members who appear to have a very narrow definition of what constitutes a professional and whose comments would seem to imply that businesses like mine don’t belong on this forum. I have read everything I can get my hands on about this business (Kathleen’s book is getting pretty dog-eared now), and devoted a huge amount of time to learn and implement the professional practices necessary to succeed at this small scale. I consider myself and my business professional despite its small scale. This, of course, is probably moot for me now. I just think that we should all remember that there are a lot of different business models in our world and that we should take care not to disenfranchise those of us who are at different points along the curve. We all want to be professionals….we all bought the book for a reason, after all…..

At any rate, it looks like I won't be making any products for awhile – at least not for 2009 and maybe for good. I've done the math and so far, it doesn't look like it's going to work for me. Too many unanswered questions and not enough $$$. I simply can't afford component testing at the prices I'm seeing quoted on this forum and elsewhere. Because I only have enough fabric to produce between 6-12 units of any given design, having to test every fabric and thread will drive the cost of my products up well beyond what the market will bear or I will have to take a loss. Either way, I’m not going to be in business very long.

I’ll be honest...like many other really small manufacturers, I've considered just continuing with my plan and banking on never getting caught. I honestly thought that lead was not a legitimate concern with regard to textiles, which made these thoughts slightly (but only slightly) easier to rationalize. But, now I'm reading about what appears to be some real issues regarding lead in fabrics. Besides, the idea of knowingly disregarding regulation was causing me great heartburn, regardless of how I was trying in my mind to rationalize it. I confess that I still vacillate on this, but I keep coming back to the idea that I want to do this business right...I guess for me, it’s a matter of pride, integrity.

So I have decided to put my biz plans on the shelf for now and just work to get some common sense injected into the rules that will be written to implement the CPSIA. It's really all I can do for now.

Tomorrow, I will officially close my business with my state's Dept. of Revenue. I'm a little sad about this, but I more concerned for the others of us who depend on their businesses more than I do mine and have way more to lose. I'll keep plugging away for them, and yes, for me...it's hard to let go of a dream after all, especially one you've invested so much of your heart and soul in.

Hopefully, by the end of the summer and in response to the many many many comments we all send into the CPSC about the third party testing requirement due by January 30, the resulting rule will be something that will allow me to find an affordable way to comply.

So, for the purposes of this thread, while I'm closing the doors it will hopefully be only temporary...consider my business in a coma.
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Wacky Hermit
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PostPosted: Mon Dec 22, 2008 2:29 pm    Post subject: Reply with quote

I'm months behind on my accounting, with no sign of catching up anytime soon. I will NOT go out of business. I will fight this thing tooth and nail, pray for answers, come up with a different plan, even go "underground" if need be. I WILL SURVIVE!
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Rochelle Price
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PostPosted: Fri Dec 26, 2008 8:04 pm    Post subject: icu? Reply with quote

Our products are notions not fabrics, and already tested compliant, though not in one of the approved labs.
For us it's about what will happen to our customers. It's been awhile since I tried to work with that particular spreadsheet, but I think that about 25% of our customers are overseas, and will not be directly affected, 25% of our sales are direct to people who are just sewing for themselves and for gifts, and are also not directly affected (I think! if I understand correctly). Another 25% of our customers are here in this forum, or similarly sized and inclined. They will try and comply, but may be forced out depending on how things come out in the wash (what a bad pun!). The last 25% of our customers sell approximately 50-250 pieces per year and will probably endeavor to operate under the radar and hopefully will not give all the rest a bad name. When I know for sure where this is going I will try and educate them some more. I guess it's time to try blogging again, though I failed miserably at it the first time.
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mamaslittlemonkeys
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PostPosted: Sat Dec 27, 2008 12:39 pm    Post subject: Im sorta in ICU Reply with quote

Hi. Im in the waiting room of ICU,not sure what IM doing. Many of my items would probably have to be tested and I cant afford the risk of selling them. I am in the wait and see mode..but I am already planning on making adult items and older childrens items just in case.

In the meantime some of my items that may go:
sensory blankets
sensory bibs (bibs with ribbons attached for baby to chew on--big time CPSIA one)
regular bibs and blankets (not sure if they'll have to go)
stuffed animals--may turn those into 'collectibles'
Smile

CPSIA protest video I made is up!
http://www.youtube.com/watch?v=MHa3C9EU_Uo
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lance t
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PostPosted: Wed Jan 07, 2009 12:55 pm    Post subject: Reply with quote

all the consingment and resale childres stores in our area are preparing to liquidate and close here in feb.
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