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The Fashion Design Reference & Specification Book by Laura Volpintesta, Jay Calderin

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Job:02-30034 Title:RP-Fashion Design Ref and Spec Book
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9 6 THE FASHION DESIGN REFERENCE + SPECIFICATION BOOK
(Text)
Chapter 9: Budget, Time, and Money
A budget is a communication tool that makes it possible to translate creative
ideas into numbers. Numbers are the language of business. Investors and
lenders are more apt to take any idea seriously if it is viable when evaluated
in nancial terms and if it can be built into a strategic timeline. Budgets allow
the fashion designer to estimate costs and predict pro ts. To make the most
of a budget, a designer must be an educated consumer and will want to get
multiple quotes on services and products to compare the value and impact
that these transactions will have. Simple math will calculate the pluses and mi-
nuses when expenses are compared with revenue. Many services and software
programs are available to help the designer keep up with the management of
dollars and cents, not to mention hours and minutes. In essence, these tools
are about formatting tables or keeping ledgers into which data can be plugged
and be accounted for. As the process progresses, designers should regularly
revisit their budget to be sure they are meeting their bottom line.
TIME
Time plays into a budget as much as, if not more than, money does because well-estab-
lished deadlines are designed to coordinate with many other systems. Many billing cycles
are structured on a monthly schedule, which makes it a sensible time pattern to emulate.
In planning the long-term  ow of operations, a designer wants to start with the end goal
and work backward, determining how pockets of time will be allocated and whether or not
there will be suf cient time to accomplish any given task. Moreover, the amount of time
involved in the production of a garment  gures prominently in the equation a designer
would develop to price the product at a level where a pro t can be made without pricing it
out of the game.
COSTS
Breaking down the cost of doing business into line items helps designers review their
data, decide on priorities, and target where they need to edit. The start-up budget must
involve the cost of organization (legal and accounting fees, remodeling costs) and acqui-
sition of capital (tools, machinery, furniture, and signage). Both areas are investments in
the future of the endeavor. An operations budget comprises regularly scheduled expens-
es such as rent or mortgage, payroll (salaries and freelance fees), utilities, maintenance,
of ce supplies, telephone, travel, transportation, insurance, interest, and taxes. A block
of the budget should allow for promotional efforts (advertising), as well as the unexpect-
ed (repairs). Production costs may be grouped under this category to cover the expense
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Job:02-30034 Title:RP-Fashion Design Ref and Spec Book
#175 Dtp:225 Page:96
096-107_30034.indd 96 3/5/13 6:26 PM

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