Getting help when you need it.
By Jennifer Bonn
Celtic Cloths
It’s a wonderful feeling when your work at home sewing business starts to get busy. Finally the long hours, hard work, and smart marketing has paid off! But with success comes new concerns. Seemingly overnight, you are overwhelmed. Orders come in faster than you can fill them and you realize you need help.
There are a few different ways to approach this issue. The first is to simply limit the amount of orders you will accept. This business model works very well for many people, including some of the most popular brands on the market. It may seem contrary, but limiting the availability of your items can sometimes increase the demand for them. Raising your prices may also decrease the amount of orders you receive. This has the added benefit of increasing your profit at the same time that it decreases your workload.
Another option to consider is hiring help. Hiring help can be as simple as having a neighborhood teen watch your children so you can work uninterrupted. Although many moms feel this is counter to the reason they stay home, which is to spend more time with their children. You might consider hiring that same person to assist with portions of your business that don’t require technical skills. Things such as cutting fabric, addressing packages, and trimming threads are all easy projects for a teen.
If you decide to hire someone to help you with sewing, there are many more considerations. You will be required to comply with Department of Labor employment laws and IRS tax laws. It is your responsibility to withhold taxes and pay employer taxes for your employees. You can also hire contractors to perform this role, but it is important to understand the difference between an employee and a contractor. A good guide can be found here http://www.ftmn.com/Employee.html While it may seem simplest to have an informal contractor relationship with a friend or neighbor, it is extremely important that you protect yourself. Relationships can go bad, and if you are reported to the labor board or the IRS for violating employment or tax laws it can be costly to resolve. This website- http://www.dol.gov/elaws/firststep/ has in interactive tool to help you decide which laws apply to you. If you have any questions about whether the person you’ve selected is a contractor or an employee, find a good tax advisor familiar with employment laws. Your local small business association is also a good source of free or low cost advice on this topic.
Hiring a contractor can be confusing and difficult if you are unfamiliar with the sewing industry. Small contractors who work out of their home can be very useful to a small business that just needs occasional help when overloaded. Check your phone book, or place an ad in the local paper. When interviewing prospects, bring with you a copy of your pattern and a sample of your items. Don’t worry that they will “steal” your design or ideas. These people are sewing contractors for other people because they choose this work. They don’t have any interest in stealing your idea. This would mean they would have to find a way to sell the item, market it, ship it, and do many other things that they don’t want to do. If they did, they would already be doing it instead of doing contract sewing.
A good contractor should be able to give you a price quote for their labor just by looking at your item. If they seem unsure about this, or their price is significantly higher or lower than others you’ve talked to it’s likely they are not very experienced. This could cause problems later when they realize they quoted you too low or underestimated the amount of time they will need to complete a project. The result can be shoddy work, missed deadlines, or unexpected cost increases. Also be wary of contractors who don’t return your calls or seem too busy to answer your questions. You will likely need to talk to this person on an almost daily basis at first and if you can’t get them on the phone then you won’t get your items back on time.
But perhaps your business has grown beyond what a home seamstress can help you with. Congratulations! You’ve made some smart decisions to get to this point. This is a good time to reevaluate your business plan if you haven’t done so already. Hiring a manufacturer will be a major investment, and if you aren’t prepared properly it can be a financial disaster. Be sure you are familiar with the costs of your goods, and don’t forget to figure in 5% for waste. Ask a professional to review your business plan if you are unsure.
Finding a manufacturer is much like finding a contractor. Check your phone book, or ask your suppliers for good recommendations. Be sure to visit any facility, and take a good look around. Talk to the workers if possible. You don’t need to interview workers on their sewing skills, but it is important to know that they are happy and well treated. Unhappy workers produce inferior quality products, and can quit unexpectedly; leaving you with a delivery date you can no longer meet. The facility should be clean and well organized. The cutting tables should be very long, at least 20 feet to reduce waste. The equipment can be old, but should appear in good working order. Observe any safety hazards, and don’t be afraid to ask your contact person about them. It may not seem important, but these things are indications of what kind of company you are hiring. Well managed facilities generally produce better quality work with fewer seconds and waste.
A good contact person is a must. This person should return your calls or emails in a timely manner, and answer your questions openly and honestly. Often they can assist you in finding sources for fabric and notions you may need. They may be unfamiliar with your particular product, but that does not mean they are not a good choice. Be sure to go over your item with this person carefully and verify they have the equipment needed or are willing to procure it. Ultimately, you should trust this person and feel comfortable with them. You will work closely with them, and talk to them often. They should be able knowledgeable in their field, and be able to help you understand the process and their needs and expectations of you.
Finally, be sure that you talk to several different companies or contractors. You will learn a lot in the interviewing process, and quickly realize what is important to both you and your business. A good contractor or manufacturer is worth their weight in gold to your growing business. A bad one can be the end of your business.
Sources
http://www.business.gov/
http://www.irs.gov/businesses/small/index.html
http://www.sba.gov/
Fasanella, C (1998). The Entrepreneur’s Guide to Sewn Product Manufacturing. Apparel Technical Svcs
Celtic Cloths
It’s a wonderful feeling when your work at home sewing business starts to get busy. Finally the long hours, hard work, and smart marketing has paid off! But with success comes new concerns. Seemingly overnight, you are overwhelmed. Orders come in faster than you can fill them and you realize you need help.
There are a few different ways to approach this issue. The first is to simply limit the amount of orders you will accept. This business model works very well for many people, including some of the most popular brands on the market. It may seem contrary, but limiting the availability of your items can sometimes increase the demand for them. Raising your prices may also decrease the amount of orders you receive. This has the added benefit of increasing your profit at the same time that it decreases your workload.
Another option to consider is hiring help. Hiring help can be as simple as having a neighborhood teen watch your children so you can work uninterrupted. Although many moms feel this is counter to the reason they stay home, which is to spend more time with their children. You might consider hiring that same person to assist with portions of your business that don’t require technical skills. Things such as cutting fabric, addressing packages, and trimming threads are all easy projects for a teen.
If you decide to hire someone to help you with sewing, there are many more considerations. You will be required to comply with Department of Labor employment laws and IRS tax laws. It is your responsibility to withhold taxes and pay employer taxes for your employees. You can also hire contractors to perform this role, but it is important to understand the difference between an employee and a contractor. A good guide can be found here http://www.ftmn.com/Employee.html While it may seem simplest to have an informal contractor relationship with a friend or neighbor, it is extremely important that you protect yourself. Relationships can go bad, and if you are reported to the labor board or the IRS for violating employment or tax laws it can be costly to resolve. This website- http://www.dol.gov/elaws/firststep/ has in interactive tool to help you decide which laws apply to you. If you have any questions about whether the person you’ve selected is a contractor or an employee, find a good tax advisor familiar with employment laws. Your local small business association is also a good source of free or low cost advice on this topic.
Hiring a contractor can be confusing and difficult if you are unfamiliar with the sewing industry. Small contractors who work out of their home can be very useful to a small business that just needs occasional help when overloaded. Check your phone book, or place an ad in the local paper. When interviewing prospects, bring with you a copy of your pattern and a sample of your items. Don’t worry that they will “steal” your design or ideas. These people are sewing contractors for other people because they choose this work. They don’t have any interest in stealing your idea. This would mean they would have to find a way to sell the item, market it, ship it, and do many other things that they don’t want to do. If they did, they would already be doing it instead of doing contract sewing.
A good contractor should be able to give you a price quote for their labor just by looking at your item. If they seem unsure about this, or their price is significantly higher or lower than others you’ve talked to it’s likely they are not very experienced. This could cause problems later when they realize they quoted you too low or underestimated the amount of time they will need to complete a project. The result can be shoddy work, missed deadlines, or unexpected cost increases. Also be wary of contractors who don’t return your calls or seem too busy to answer your questions. You will likely need to talk to this person on an almost daily basis at first and if you can’t get them on the phone then you won’t get your items back on time.
But perhaps your business has grown beyond what a home seamstress can help you with. Congratulations! You’ve made some smart decisions to get to this point. This is a good time to reevaluate your business plan if you haven’t done so already. Hiring a manufacturer will be a major investment, and if you aren’t prepared properly it can be a financial disaster. Be sure you are familiar with the costs of your goods, and don’t forget to figure in 5% for waste. Ask a professional to review your business plan if you are unsure.
Finding a manufacturer is much like finding a contractor. Check your phone book, or ask your suppliers for good recommendations. Be sure to visit any facility, and take a good look around. Talk to the workers if possible. You don’t need to interview workers on their sewing skills, but it is important to know that they are happy and well treated. Unhappy workers produce inferior quality products, and can quit unexpectedly; leaving you with a delivery date you can no longer meet. The facility should be clean and well organized. The cutting tables should be very long, at least 20 feet to reduce waste. The equipment can be old, but should appear in good working order. Observe any safety hazards, and don’t be afraid to ask your contact person about them. It may not seem important, but these things are indications of what kind of company you are hiring. Well managed facilities generally produce better quality work with fewer seconds and waste.
A good contact person is a must. This person should return your calls or emails in a timely manner, and answer your questions openly and honestly. Often they can assist you in finding sources for fabric and notions you may need. They may be unfamiliar with your particular product, but that does not mean they are not a good choice. Be sure to go over your item with this person carefully and verify they have the equipment needed or are willing to procure it. Ultimately, you should trust this person and feel comfortable with them. You will work closely with them, and talk to them often. They should be able knowledgeable in their field, and be able to help you understand the process and their needs and expectations of you.
Finally, be sure that you talk to several different companies or contractors. You will learn a lot in the interviewing process, and quickly realize what is important to both you and your business. A good contractor or manufacturer is worth their weight in gold to your growing business. A bad one can be the end of your business.
Sources
http://www.business.gov/
http://www.irs.gov/businesses/small/index.html
http://www.sba.gov/
Fasanella, C (1998). The Entrepreneur’s Guide to Sewn Product Manufacturing. Apparel Technical Svcs
