Fashion business budgeting

Overview

Budgeting isn't glamorous, but it's the difference between a brand that lasts and one that runs out of cash six months in. Split your budget into startup costs, monthly costs, and cost per Order.

Startup costs (one-off)

Registration — CAC business name (₦10,000–₦20,000) or Ltd (₦20,000+).
Branding — logo, brand kit, initial photography (₦20,000–₦200,000 depending on approach).
First production run — depends on your product; keep it small first.
Packaging — bags, boxes, stickers, tissue paper (~₦10,000–₦50,000).
Photography and content — one solid shoot for the launch drop.
Initial marketing — collaborations, a small launch coupon, maybe a small paid test.
Working capital — cash to cover the gap between orders coming in and paying suppliers.

Monthly running costs

Rent / workspace (if applicable).
Utilities and internet.
Subscriptions — design tools, storage, project tools.
Marketing spend — paid ads, collaborations, content.
Restocking — reordering fast-moving items.
Packaging — replenishing supplies.
Personal draw — pay yourself; you're not a charity.

Cost per Order (variable)

For every Order on Javern:

Cost of goods sold (the item's true cost).
Packaging.
Javern fees — 5% commission on product subtotal + ₦500 flat service fee.
Withdrawal fee — ₦10 per Javern Wallet withdrawal.
Shipping cost — usually passed to buyer, but check.

See How are my earnings calculated?.

Basic budgeting framework

List every startup cost and total it. That's your launch budget.
List every monthly cost — that's your minimum monthly revenue target.
Work out your average margin per Order — after Javern fees and cost of goods.
Divide (2) by (3) — that's how many Orders per month you need to break even.
Set targets above break-even so you have profit and buffer.

Common budgeting mistakes

Ignoring your own labour. If you're not paying yourself, the business isn't viable.
Underestimating packaging and marketing costs.
Forgetting the ₦500 flat fee — small orders take a bigger relative hit.
Reinvesting 100% of revenue and never paying yourself.
No buffer for slow months, returns, or restock timing.

Tools

A simple spreadsheet is enough for most brands under ₦500k/month revenue.
Move to proper accounting software (Xero, Wave, Sage) as revenue grows.
Separate business and personal accounts from day one.

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