Finding fashion industry clients

Dear Karen: My mom and I are setting up a small business providing patterns, samples and manufacturing services for the garment industry. What is the best way for us to find customers on a low budget?

Answer: You should join Fashion Business Inc. (Fashionbizinc.org), a nonprofit organization that provides resources for Los Angeles apparel firms. “This would be a perfect group for you because you’ll get services and support, and you can also do networking,” said Paul Ratoff, a consultant with the Strategy Development Group in Placentia.

The annual membership fee of $250 will give you training opportunities and a chance to meet local fashion designers who will be looking to outsource their sample- and pattern-making jobs, Ratoff said. Once you get established, you might conduct a seminar on manufacturing, which would give you an opportunity to demonstrate your expertise for potential clients.

Concentrating in tough times

Dear Karen: How can I stay focused on running my business when I’m being distracted by all the turbulence in the economy?

Answer: Gather key employees and start meeting once or twice a month to discuss areas that need special focus. Brainstorm about your products, customers and employees. Come up with areas where you can cut costs, said Holly Green, a management consultant and author of “More Than a Minute,” a new book on business leadership.

“Determine the products that require immediate attention. What development can be sped up to produce revenue sooner? Reevaluate whether some products or upgrades need to go into a holding pattern,” Green said. Identify essential accounts that must be retained and assign executive sponsors for each.

Consequences of staff reductions

Dear Karen: Our company is considering layoffs because of the economy. What repercussions will we face if we eliminate staff?

Answer: There are negative consequences of staff reductions, not the least being the loss of talented employees and the cost of recruiting and training new workers when revenue picks up.

“Layoffs significantly impact the staff members who aren’t targeted,” said David Weiman, a management psychologist based in Wynnewood, Pa. “They can become so concerned with their own financial and job security that they stop focusing on the job at hand.” The sense of worry that follows a layoff often decreases productivity. Many staffers begin looking for jobs at companies that they perceive are more stable.

Another cost is increased exposure to discrimination lawsuits, Weiman said. Age discrimination claims are already on the rise, and this trend is likely to continue. In 2009, revisions to the Americans With Disabilities Act will take effect, he said. Those are likely to make it easier for fired employees to bring legal claims.

If you can find an alternative to layoffs, do so. You might engage employees in finding ways to cut costs and boost revenue. “You’ll be surprised that the people targeted for layoffs may have the solutions to surviving,” Weiman said.

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