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See what's available in Digital FORUM! » September 2009 Signature Story - An Eye on Design Featuring The Chicagoland Chamber of Commerce
When Chicago-area resident and fashion fanatic Lyn Burgess heard about a Chicago designer sale event to be held at a wine and cheese bar, she thought, "Fashion, food and friends? Great idea … and I know I'll buy something!" And, she did – which was exactly what designers Lara Miller, Erin Gallagher and Kate Boggiano counted on when they brainstormed the unique affair several months ago. They chose Chicago's hip Wicker Park neighborhood for the Thursday evening event that was designed (pun intended!) to draw something of a "girls night out" crowd and showcase clothing and jewelry lines. "This was the first time I put on anything in such a venue," says Lara Miller, designer of her own line of clothing. "It was meant to be more intimate than a typical exhibit hall. I hoped to sell a few things, but more importantly, I wanted to get a better sense of and put a face on my customer." Miller explains this event is part and parcel of her company's business plan, a plan she developed with the help of a program called Stitches Fashion Program. Stitches is a strategic assistance program developed for Chicago fashion entrepreneurs by the Chicagoland Entrepreneurial Center (CEC), a nonprofit affiliate of the Chicagoland Chamber of Commerce. "Entrepreneurship and innovation are crucial to the Chicago economy," says Gerald R. Roper, president and CEO of the Chicagoland Chamber of Commerce. "If we want to succeed in our ever-transforming global economy, the ability to adapt to and embrace change is essential, and that means innovation." Since 1904, the Chamber's mission has been "to make Chicagoland the most business-friendly region in America and enhance member success through aggressive programs in advocacy, member benefits, services and actionable information." One aspect upon which the Chamber focuses heavily is innovation and entrepreneurialism, according to Roper. Therefore, it seemed appropriate that some entity should exist under the Chamber umbrella to deal solely with local entrepreneurs. Thus, the CEC was created in 1999. A study conducted on behalf of the Chamber at that time revealed that 90 percent of Chicagoland businesses were small- to mid-sized firms, many of which were seeking support and mentoring to facilitate their growth. The CEC became the answer: It provided local entrepreneurs with consistent information and quality; offered practical and educational forums; and helped those starting out or already in business. While the CEC assists a wide variety of entrepreneur industries, from food service to technology to various retail and consumer products, it recognized that entrepreneurs in the fashion industry face unique challenges. According to XX , some of the difficulties fashion entrepreneurs confront include:
A Need takes Shape Jason Felger serves as executive vice president for the CEC and also has held the co-chair position on Mayor Richard M. Daley's Fashion Council for several years. In this role, Felger meets with many fashion entrepreneurs, and learned that many needed help with business and entrepreneurial services. Designer Lara Miller also served on that same Fashion Council in 2005 and continues to hold a position today. "We were beginning to see that fashion entrepreneurs needed business advice," Felger says. "Fashion is huge in Chicago , and there are plenty of fashion designers. We already knew this industry is a little different; there are nuances here that do not apply across all industries. Initially, the fashion entrepreneurs wanted help with business planning and financial assistance. And, we were able to help them; that's what the CEC does." But it became larger than helping just a few individuals. Chicago was trying to build a fashion and apparel community, to keep local designers in Chicago . "Many fashion entrepreneurs start out in Chicago where we have lots of design schools," says Elise Moran, program coordinator for Stitches. "But, some then graduate and either go to New York or Los Angeles to work for an already established designer and learn about the business. We wanted them to stay here and do business here—and be successful on their own." "Personally, I had been doing whatever I could to get my name out there, but it wasn't enough," Miller says. "In 2005, I was working with Greater State Street Alliance and had my clothing line in what was then Marshall Field's through the first initiatives of what was then the Mayor's Fashion Advisory Board, which became the Mayor's Fashion Council. Mayor Daley was trying to create a fashion focus and was interested in re-energizing State Street and also helping local designers." At several fashion council meetings, Miller connected with Felger to discuss business in general and how the CEC could potentially help her. "I was at the point where I needed financial help," Miller says. "My orders were growing, but I was privately funded through friends and family. I initially talked to Jason about how I could raise some capital." That conversation shed much light for Miller. She quickly realized that she did not know much about the business side of her fashion business. She did not have a well-organized business plan or marketing plan. "I look back now and wonder how I was even in business," Miller says. "Jason was so helpful and I was able to get great feedback from him through CEC." Felger and the CEC noted the gap that existed then in the local marketplace. "No one locally was providing business assistance specific to fashion industry," Felger says. "Ultimately, that's the best validation for any initiative. We saw a demand and we knew we could fill it. Seems logical!" So, in May 2007, Felger and fellow staff at the CEC turned back to the designers who had asked for assistance and worked with them to create a program that would have all the necessary ingredients to help them start successful businesses. Through Threads of Research They began by researching other cities with similar programs to what was envisioned for Chicago , namely Toronto , Los Angeles and Dallas . In those three cities, fashion designers had access to "Fashion Incubators," groups that brought like-minded fashion designers together for learning and networking. Toronto was the first to launch such a group in 1987. " Toronto 's Fashion Incubator was the closest organization we found with which to benchmark," Felger says. "However, there were slight differences. For instance, in Toronto , the incubator was based around a physical space that provided design services. For Chicago , we felt the focus should be the business side of consulting and advising to apparel and fashion companies, not necessarily a physical space to visit." A major component that the CEC admired in the Toronto model was, essentially, a how-to guide of starting a fashion business. That was what Chicago fashion entrepreneurs needed most: how to actually get started in business. Rather than a "click-here-to- download-a-PDF-now-order-it" type of document, the CEC transformed that traditional format to the next step and created what is now known as the Fashion First Steps packet. Moran explains that the Fashion First Steps book is the first step she directs an interested fashion entrepreneur to take. "The guide is online and it's free to download quickly. It covers a variety of topics including financing, sales, branding and online development as well as pertinent sections for new designers," she says. Sophia Reyes, a newer member of the Stitches Fashion Program, found this to be one of the most important resources as she began her business about a year ago. "The First Steps packet was a great tool to get my feet wet," she says. "I would recommend the packet to new designers; it is one of the best introductions to the industry I have seen." "Our research of other cities reinforced that it was the entry into the marketplace that we needed help with in Chicago," Felger says. "In Dallas, they did a lot of work to promote the designers into the consumer market and they did it in literal sense again. They had a storefront in downtown Dallas, a sort of rotating boutique of designers." Again, Chicago was able to tweak the concept to make it work in order to meet the local need. A number of events were planned to provide venues for the Chicago designers to showcase in a direct-to-consumer manner. Connecting with other designers at the various events is a huge benefit of being part of the Stitches program, Miller says. "The CEC also hosts educational seminars and events that encourage the community to grow and stay in touch," she adds. "For our industry, that is so important. The CEC staff saw the need for this type of talking and mingling, and so they made these events happen." And, while the CEC has a board of directors, Felger says his staff received universal support from that group. "We told our board what we were doing and informed them of successes along the way," he says. "We have moved Stitches forward in a cost-effective way. We do hold quarterly board meetings and our ideas and concepts were vetted out, but there were no formal subcommittees or presentations. Really, we weren't asking for funds and the board liked what they were seeing." Pattern of Resources Following the First Steps packet introduction, fashion entrepreneurs have a variety of other resources and assistance available to them through the Stitches program. From mentoring to education to networking to outreach, it all depends upon the stage of business a designer is in or with what aspect of running a business they most need assistance. They can create their own framework and path by combining the tools the CEC has packaged for them through the Stitches program. In order to get started, typically, the CEC will work with an individual who already has set up a company. "We like to bring in designers who have finished a couple collections, who sort of know who their customers are and who are trying to grow their companies," Moran says. To ascertain a good fit, the CEC has a survey that designers interested in Stitches are required to fill out. "If we can help them, we will. It's not really a formal selective process, just a matter of good fit. However, even if we determine they are not a good fit, we provide resources or are able to point them in the right direction," Moran says. "The Stitches program is a unique resource blending entrepreneurial and financial advice and information for fashion designers. It provides invaluable tools for designers to gain practical information about their businesses, network and locate other resources in the Chicago industry," says Melissa Gamble, director of fashion arts and events for the City of Chicago's Department of Cultural Affairs. For start-up entrepreneurs, educational seminars are held throughout the year on a variety of topic areas, including legal advice for fashion entrepreneurs, sales representatives and showrooms, financing a fashion business and more. Mentoring is conducted through workshops at the CEC. The mentoring sessions are by invitation-only, and the CEC staff chooses clients whom they feel would benefit from a one-time, face-to-face, mentoring session. The entrepreneur is matched up with experts based on a particular need. One example is the designer-buyer match up session: Emerging designers are paired with local retailers to offer general business guidance. The designers can also practice and develop a solid sales pitch to the buyers. "Chicago's creative industry is fueled by innovation and this innovation is having a lasting impact on the area," says Karen Lennon, director and founder of SomerCor 504 and mentor to clients of the Stitches program. "Entrepreneurship in the creative industries is vital to the region." For high-growth entrepreneurs, one-on-one consulting has proven to be the most impactful. The CEC meets one-on-one with emerging fashion designers and boutique owners to assist them in areas such as financing/raising capital, business strategies, and public relations/marketing. In fact, over the past few years, the CEC has provided counsel to more than 150 fashion entrepreneurs. The CEC also created and hosts Special Interest Groups (SIG) with the goal of providing top clients year-long professional development and peer-to-peer mentoring. Each SIG is a series of four sessions, with each session focusing on a specific business issue. The SIG group consists of three entrepreneurs facing similar issues. In each session, entrepreneurs are matched with two to three experts (chosen based on the topic of that particular session). "In my most recent special interest group, the CEC brought in a sales expert," says Sophia Reyes. "They discussed what to look for in a salesperson, since many designers are looking for independent sales reps and sources to increase sales growth. It was really helpful." Finally, Stitches provides valuable consumer outreach, which means gathering consumers interested in fashion together with the entrepreneurs and other industry professionals. This is accomplished through face-to-face gatherings and the Stitches fashion blog. The blog is written by the CEC staff and offers consumers and industry professionals a daily dose of industry happenings, focusing primarily on Chicagoland. From a calendar of Chicago fashion events to updates on specific designers' lines, the blog informs, educates and offers another means for entrepreneurs to network. Lara Miller believes that the interaction the CEC provides through Stitches has strengthened the Chicago fashion industry. From being able to collaborate on unique style shows like the one Lyn Burgess attended to exposure in a variety of media outlets, Miller and many other designers have enhanced and elevated the skills necessary to succeed in the industry. "There has always been design and fashion in Chicago, but there has never been this type of outreach and community," Miller says. "We know each other, learn from one another and support one another. One person's success means another person's success. And, I'd say, it's thanks to Stitches." Suzi Wirtz, CAE, is a freelance writer and also serves as director of marketing for The Learning Studio, Inc. She may be reached at smwirtz@sbcglobal.net. [SIDEBAR] Well-Designed Businesses The Chicagoland Entrepreneurial Center (CEC) identifies the region's most promising entrepreneurs and helps them build high-growth, sustainable businesses. These businesses, in turn, serve as platforms for both economic development and civic leadership, fuel the entrepreneurial ecosystem by mentoring young talent and advising their peers, and joining the CEC "movement" to inspire entrepreneurship in Chicagoland. Since 2003, the CEC has helped client entrepreneurs secure $160 million in revenue, raise $105 million in financing, award $1.2 million in grants and create or retain nearly 4,500 jobs. For more information about the Stitches Fashion Program, visit www.stitchesfashionprogram.com . [SIDEBAR] Services Offered by the CEC Counsel and review of financial statements Financial modeling Preparing for and raising capital Assistance in identifying appropriate outside resources Company position and messaging Channel and market analysis Marketing and Public Relations assistance Retail and wholesale strategies Manufacturing resources Mentoring through the Special Interest Group program |
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