Money through production.
WHAT THE PATTERN IS
Fabric and labour paid before completion.
WHAT BESPOKE PROVIDES
Deposits, which fund materials.
WHAT READY-TO-WEAR REQUIRES
Full funding of production before any sale.
WHY THAT IS THE RISK
An unsold run is cash converted into stock that may not sell.
WHAT TO CALCULATE
The cash required for a production run, and when it returns.
WHAT TO AVOID
Producing more than you can fund.
WHAT SEASONAL PATTERNS PRODUCE
Concentrated demand, then quiet periods.
WHAT THAT REQUIRES
Reserves to cover the quiet months, and cash to fund the busy ones.
WHAT TO PLAN
Fabric purchasing ahead of the season.
WHY
Prices rise and availability falls as the season starts.
WHAT THAT REQUIRES
Cash, before revenue.
WHAT TO TRACK
Deposits received against work in progress Balances outstanding on completed garments Fabric stock value
WHY WORK IN PROGRESS
It is money spent and not yet earned.
WHAT TO DO ABOUT SLOW PAYMENT ON CORPORATE ORDERS
Agree terms in advance, and invoice immediately on delivery.
WHAT TO ESTABLISH
A payment stage structure on large orders.
WHY
Producing a large order entirely on your own cash is dangerous.
WHAT TO REVIEW MONTHLY
Orders, deposits, completions and collections.
