Fashion Unraveled - Second Edition - How to Start and Manage Your Own Fashion (or Craft) Design Business

One way to acquire professional photos is to enter into a TFP (Time for Prints) or TFCD (Time for CDs) arrangement.

Candice Gwinn owns and operates Trashy Diva

Fixed costs can be separated into two categories: direct and indirect. Direct fixed expenses include product development, photography and trade show expenses. Indirect fixed expenses are your monthly expenses, or overhead.

In the finance world, start-up costs are also referred to as a “Goodwill Investment.” Even though these expenses occur in the start of your business, the actual expense is usually amortized over 30 years, meaning the expense is spread out equally over 30 years. A similar process occurs with your contributed assets. Your assets

What is the break even point? It is the point where your sales match your expenses. “Breaking even” does not mean you are making a profit, only that you’re not losing any money. To figure your break even point, calculate how much it costs for you to be in business each month (your direct and indirect fixed costs).

Direct fixed costs are linked to your production cycles.

you need to calculate the business’ total expenses incurred for the month and then calculate the income received.

All expenses need to be considered in determining your pricing. This will ensure that your profits won’t be eaten by that ink-sucking printer.

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