SMALL BUSINESS : SMALL TALK: Advice From Small-Business Experts : Game Plan Is Required to Start Sportswear Line
Q: I am starting my own sportswear company. I have copyrighted my sportswear name and am having it trademarked. I have information on manufacturers, but I need to know about licensing and getting my line into stores.
--Barrett Miller, Los Angeles
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A: For your product line to succeed, you need a distribution channel. Sales agents can be instrumental here. Traditionally, they take a commission that works out to a percentage of their sales. But when they are working with a start-up product line and company, they have to spend a great deal of time making initial sales calls on retailers and wholesalers. To make this pioneering effort worthwhile, they are likely to ask for some seed money upfront.
Be prepared to answer plenty of questions from prospective sales agents who will be seeking some level of credibility from you and your company. An agent has only his or her reputation to sell. Your ability to deliver as promised will affect that agent’s relationships with customers across all the other lines he or she represents.
The salesperson will be looking for assurances from you that you can continue filling orders even when your customers are slow to pay. The apparel business is not for those without strong cash reserves, because payment may lag up to six months after delivery. A relationship with a good factoring company may also be something you want to pursue. For general information on sales agents, contact the Manufacturers’ Agents National Assn. (https://www.manaonline.org), based in Laguna Hills, at (949) 859-4040.
Before you look at licensing options for your sportswear line, I would recommend that you contact a good business attorney to develop a confidentiality agreement. This document should be signed by anyone you meet with regarding your clothing line. It will provide you with some legal protection in the event that your idea is “borrowed” by another entity. Most legitimate companies will not look at your idea unless it is legally protected.
For background information on the West Coast apparel industry and its manufacturers, vendors and suppliers, contact the Textile Assn. of Los Angeles at 110 E. 9th St., Suite C-765, Los Angeles 90079, or at (213) 627-6173 or on the Web at https://www.textileassociation.org. TALA publishes an annual directory of apparel industry resources, including a glossary of terms and listing of companies, that is available for $75. The group also co-sponsors a semiannual trade show, the Los Angeles International Textile Show, that may provide a great learning experience for you. The next show is scheduled for Oct. 25-27 at the California Mart.
Another source of information is the California Apparel News, https://www.apparelnews.net, a weekly industry publication available for $58 annually.
--Ken Keller, Keller & Associates,
marketing consultants for small
and growing businesses, Valencia
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Q: I am working on a type of car wax that may revolutionize the industry. I need a chemist or manufacturer to help in the development process to ensure that the compounds work well with automotive finishes. How can I start to find a good individual or company?
--Jeff Core, Columbus, Ohio
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A: Search out companies that are in the car wax formulating business (you can search the Thomas Register of American Manufacturers online at https://www.thomasregister.com) and contact several to see if they are interested in discussing your concept. Most of these companies will have in-house chemists who are familiar with the unique demands of the automotive industry. List some of your product’s features without giving away your exact formula or methodology. If they are not interested, ask them to refer you to someone who might be.
For those companies willing to meet with you, ask them to sign a confidentiality agreement, a legal document that protects your idea, and then visit in person with some samples and a good demonstration of the potential for your formula.
A company truly interested in your product might want to license your concept and then test-market and produce the wax. If you’d prefer not to give up your idea, you could pay the company a fee to help you develop the formula and test it, without giving it a proprietary interest in your company.
Taking an idea from concept into viable product and then manufacturing and marketing it successfully is typically a costly and time-consuming process. Plan on a minimum of six months to one year before you have a product ready to sell, and expect to put $10,000 to $50,000 into design, marketing, sales and inventory.
--Warren M. Haussler,
president, Keck-Craig Inc.,
industrial design/product
engineering, Pasadena
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If you have a question about how to start or operate a small business, mail it to Karen E. Klein, Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016, or e-mail it to kklein6349@aol.com. Include your name, address and telephone number. This column is designed to answer questions of general interest. It should not be construed as legal advice.
