cfi-The Look and The Law Aug 09:The Look, The Law & The Knowledge 2009 07/09/2009 13:55 Pag
Back to Matthew Williamson. It is obvious that keeping it in the family is the safest
way of being funded. Matthew’s parents had such faith in him that they relocated
to London in order to help him and his partner, Joseph Velosa, get their start without
having to unnecessarily pay wages to others. Remember, if your Mum and Dad are
1
4
working for you there is no such thing as a minimum wage.
Matthew’s family were not rich – anymore than Alexander McQueen’s was, and he
also kept the firm under his control by looking after the money himself, although a
OOK
business tie-in with American Express helped him develop his aesthetic to it’s full
L
stretch. Other designers came from backgrounds where family money could be
relied on but it should be remembered that you have to accept that if things go
THE
badly wrong and you fail, it is then your money that is lost forever.
So, what about your friendly local bank manager? Whereas with family money, the
person who lends it to you is the one who makes all subsequent decisions, a bank
manager is normally merely a cipher. Whilst the nice man or woman sitting on the
other side of the desk may fully believe in your ability to make money they are,
usually told what to do by others who have no interest in or idea of the degree of
your talent. When the bottom line fails to tie up, the people who will control your
fate and their business decisions are just that: about business, not talent. And
also, they charge interest on money loaned – at punitive rates if you are overdrawn.
But of course, there are many people who have found banks benign,
accommodating and understanding and owe the success of their business to them.
Tread carefully and hope; you could be one of the lucky ones.
THE BUSINESS MANAGER
A lot of your problems will be solved by having a business manager but, in your
early days – when, arguably, you need their services most – you probably cannot
afford one, unless he/she is a friend or a lover. Many of the great designers have
had the help of a partner or friend who looks after the money side. But the name
on the label is your name and it is the most important collateral you have. It
depends for its survival on the money as much as the design, so do not be tempted
to think that the financial side is too boring or depressing for you to become
involved.
THE ACCOUNTANT
Remember, if you do not have a partner or friend who is interested in business and
you are rubbish with money, there are always accountants who, quite apart from
doing your books, can give you a lot of general advice about business – and often
free. They can also help you with cash flow, payments and staff wages but, most
vitally, they can do the books for you i.e. keep all your finances clearly documented
and ready for the tax man and, (surprisingly quickly once you start making a little
profit) the VAT inspectors, who work to very strict rules and are, by law, able to give
very few favours. Be afraid… be very afraid… and keep every receipt ready for their scrutiny!
www.davenportlyons.com
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