Financial terms for the fashion designer: Assets

This is why you’ve probably got more money than you think…

Continuing our series on financial terms everyone in the fashion sector should know, we’re focusing on everyone’s favorite thing ➡️ Assets. Assets are anything of value owned by a business. When it comes to the fashion world, we’re breaking down all the assets your company might have (and why your business probably has more value than you think).

Here are some of the most common assets for a fashion brand:

• Inventory: This includes any finished products and sample pieces (anything sold for money).

• Raw Materials: Fabric, buttons, zippers, thread, buckles, and anything else used to make your inventory.

• Equipment: Sewing machines, computers, software, and anything else needs to make the inventory (patterns, etc.).

• Real Estate: If you own a studio or store, the property is an asset for your business.

• Furniture and Fixtures: Anything inside your studio or store you bought is considered an asset. This includes tables, chairs, counters, dressing rooms, lighting, etc.

• Accounts Receivable: Any money owed to you by customers is an asset!

Remember: you should also include intangible assets! These assets include your branding, trademarks, copyright, designs, social media, website, and anything else with value.

Stay tuned for the next part of the series, where we talk about everyone’s least favorite part of business ➡️ Liabilities.