Off The Cuff: The Five Biggest Mistakes New Apparel Decorators Make

May 22, 2009

By Mark Venit, MBA

Beginner's luck has its place in the apparel graphics industry. Veterans can tell great stories about beginners who happened on our shores and made a big pile of money — fast. But for every such tale, there are scores of others where entrepreneurs' dreams of success were dashed upon the rocks of conventional wisdom, wrong assumptions, poorly researched solutions, shopworn strategies and poor execution.

So, for the rookies out there, this column is a not-so-happy look at five big reasons why so many beginners fail in our business.

Not Doing All Your Homework
The majority of newcomers focus on learning apparel decorating technology. But taking business from competitors and establishing your own account base requires considerably more brainpower, money, time and homework. Among the most difficult challenges are finding convincing, practical answers to fundamental non-technical issues such as pricing, margins and marketing to large corporate accounts.

Trying to Be All Things to All People
As a newcomer, you'll find a world of opportunities ahead of you and huge potential. But attempting to sell to too many audiences among the plethora of worthwhile markets will prove a waste of effort. Focus on one, two, or — at most — three from among businesses, schools, organizations, events, retail and professionals. Be advised that each, however, carries its own rules, cultures and baggage, and each sector has its unique advantages and limitations. Be selective about where and to whom you market to dramatically increase your chances of success.

Thinking Your Biggest Investment Will Be Equipment
Getting the right equipment is indeed critical to the success of an apparel decorating operation. But what will make or break you has more to do with your ability to sell. If you think your investment in equipment is the most important capital you'll spend, you're mistaken. Equipment is certainly a key issue in start-up costs, but it'll prove to be just a small part of what you need to run a business. Operating costs will dwarf whatever you spend on equipment.

The single greatest factor in business failures is lack of capital, and this business won't change that fact.

Once you've got a handle on the capital investment you'll require, it's time to learn about labor and overhead. People, rent, utilities, telephones, supplies and other necessities will cost a lot more than you imagine. Tally all the operating costs listed in your start-up phase, then double that figure. If you think you can get away with less, you're wrong. Ask any veteran.

Whatever your marketing assumptions and revenue expectations, assume they'll prove overoptimistic and that your expenses will prove greater than whatever you anticipate. The only question here will be by how much.

Not Attending Trade Shows and Seminars
As an industry consultant to decorators, I get a lot of calls from newcomers. When I ask if they've attended or plan to attend an upcoming trade event, I'm forever disappointed to hear how few answer in the affirmative.

You're spending very precious capital to launch your venture or buying an existing business. The small investment you'll make to attend a trade show and to avail yourself of a broad range of industry-specific technical, management and marketing courses there can make a massive difference in your chances of success. And your return isn't just in education, it's in "context" and understanding.

Your first show will be an eye-opener. You'll find tons of vendors who want to meet you and build long-term relationships with you. You'll be able to attend courses and meet experts on virtually any technology or business subject you wish to explore. You'll discover that whatever you've learned before attending your first trade show is just the tip of the iceberg about what you'll need to learn to survive and succeed in the world of decorated apparel.

Show me a newcomer who isn't planning to attend a trade show and I'll show you someone who's likely to flunk out of this industry. Visit the Imprinted Sportswear Show Web site to plan your travel.

Failing to Properly Market
How will you market your business? How much time and money will you devote to advertising, selling, networking and generating accounts? Do you know which advertising media work best? And which don't work at all? Learning technologies is important, but what good is it if you don't have orders to run? That's where marketing comes in.

Establishing a market position for your products and services isn't a luxury, it's absolutely critical to success. Will your company's name help attract business or become an obstacle to your marketing effort?

If you can't address all these questions with reasonably sound answers, revisit your business plan and timelines. Marketing a new business in any industry is a challenge. But in decorated apparel, this is compounded by the maturity and dynamics of the marketplace. You will face entrenched competitors who have a lot to offer clients in the ways of services and capabilities.

Why should buyers buy from you instead of the other guys? You'll need a compelling explanation to convince buyers that your company is a better choice.

Relying on Passive Marketing
I've observed many entrepreneurs in this industry who rely on a faith-based marketing model — that's what I call sitting by the telephone and waiting for it to ring. Or building a Web site and waiting for it to generates orders. Prayer might well play a role in realizing your future, but you should start by following Ben Franklin's famous advice: "The Lord helps those who help themselves."

The five newcomer mistakes I've cited here are just the biggest ones — and by no means the only ones. Among other challenges you'll face are keeping on top of your accounting and staying current on Federal tax payments.

On a positive note, if you can get through the developmental period, there's a good chance for a great future in an exciting, dynamic and downright fun industry.

Recommended Reading for Newcomers
• Any book by Al Ries and Jack Trout, including: "Positioning: The Battle for Your Mind,"
• "Marketing Warfare," "The New Positioning" and "The 22 Immutable Laws of Marketing."
• Anything by Jay Conrad Levinson, especially any in the series entitled "Guerrilla Marketing.'
 
Mark L. Venit, MBA, president of Apparel Graphics Institute, Ltd., provides management and marketing consulting and proprietary research to apparel graphics companies throughout the Americas and Europe. Author of several books and nearly 400 articles on management and marketing, he also serves as chairman of the board of ShopWorks Software.

Hirsch Video Demonstrates Oversize Shirt Printing
A new video from Hirsch Intl. shows how to print oversize designs on the Mimaki inkjet garment printer the company distributes. To see the video, visit hirschinternational.com . Click on “Direct To Garment Printer” and search the right navigation bar for available videos.
September 28, 2009

Diversifying Your Customer Base  
Learn to evaluate and adjust your mix of clientele for optimum profitability and stability.
While the economic lows that many American markets have been experiencing for the past year are certainly painful, they’re also nothing new. Historically, the tide of business success continually ebbs and flows, with one market experiencing a rush of good fortune while another watches its revenue all but dry up. This cyclical nature of business is precisely why decorators must have a diverse customer base that allows them to weather slowdowns — or even meltdowns — in parts of the economy.
September 02, 2009

Decorators Open Up on DTG Workflow, Profits
Impressions interviewed apparel decorators from all corners of the industry to discuss the promise and the real-world results of investing in digital inkjet-to-garment printers. 
Since its introduction to the decorated apparel industry several years ago, direct-to-garment printing has been heralded as a game-changer — a disruptive technology that would dramatically change the way shops conduct business. It would allow decorators to tackle small orders, suppliers said. It would let shops offer personalization and print photographs with amazing detail, they promised. And it would dramatically reduce set-up time, they’ve claimed.
September 01, 2009