A growing Kasuti brand sells in more places: its own website, stores in other cities, marketplaces, larger gifting orders and collaborations. More channels bring more buyers – and more ways to run short of cash, because hand work ties up money for weeks. This lesson covers both.
What you’ll learn
- Five channels for a growing brand, and what each gives you.
- The difference between wholesale and consignment.
- How to run collaborations that credit the makers.
- How to watch cash flow so growth doesn’t sink you.
Five channels
- Your own website with a shop. Your story, your margins, your customers’ contact details (with their permission). It needs good photos, a payment gateway, shipping and someone to answer messages. It grows slowly but it is yours.
- Concept and design stores in other cities, on wholesale or consignment (see below).
- Online marketplaces. A large audience, but fees, rules and competition. See Module 6, Where to sell online.
- Corporate gifting at a larger scale, always with an advance and a written delivery schedule.
- Collaborations with fashion designers, other crafts (a handloom weaver, a block printer) and institutions. Designers who work with Kasuti have helped bring it to wider audiences (ebook ch. 17). Credit the artisans by name.
Wholesale or consignment?
| Wholesale | Consignment | |
|---|---|---|
| Who owns the stock | The store, once it buys | You, until it sells |
| When you are paid | On agreed terms after delivery | After each piece sells |
| Your risk | Lower | Higher: unsold or damaged stock |
| Your share | Wholesale price | Agreed share of the selling price |
Consignment can open a door to a store that won’t risk buying yet, but keep careful records of every piece left there.
Watch cash flow
Cash flow is the timing of money in and money out. A Kasuti brand pays for thread and makers’ hours now, and is paid weeks or months later. Many small businesses that sell well still fail because they run out of cash.
- Ask for advances on custom and bulk orders.
- Don’t overstock. Every unsold piece is cash sitting on a shelf.
- Agree payment terms with stores before delivering, and follow them up.
- Keep a simple cash plan: for the next three months, the money you expect in and out each week.
- Pay makers on time even when buyers are late; plan for it.
Worked examples
Example 1: a cash plan. Make a table with a row for each week and three columns: money in (sales, advances, store payments), money out (thread, cloth, makers’ pay, rent, fees), and the balance. If the balance goes below zero in any week, act now: chase payments, ask for larger advances, or delay buying stock.
Example 2: a consignment record. For each store: date left, product code, number of pieces, agreed selling price, your share, pieces sold, pieces returned, payments received. Count the stock with the store every month.
Example 3: a collaboration. A designer wants a Kasuti border on a saree collection. Agree in writing: the designs (whose, and who may reuse them), the quantity, the price method, the timeline, the credit line (“Kasuti hand-embroidered by [makers / group]”) and how photos will be used.
Tips, tricks and hacks
- Start your website small: a few products, your story and a clear way to order.
- Collect emails or WhatsApp opt-ins from buyers; this list is worth more than followers.
- Visit a store before stocking it; see who shops there.
- Send stores a small display card about Kasuti and the back.
- Stagger deliveries on big orders, with part-payments at each stage.
- Use the same product codes on every channel.
- Keep one channel as your “home” – usually your own site – and point everything else to it.
- Review channels every six months: what each earns after fees and time.
- Agree a minimum stock level with each store so your best sellers never run out.
- Send stores good photos and the three-line story so their staff can sell your work well.
- Plan festive and wedding seasons months ahead; hand work can’t be rushed at the last minute.
Problems and how to fix them
Sales are good but the bank account is empty.
- Make a cash plan for the next few weeks and chase money owed.
- Pause buying stock until the balance recovers.
- Prevention: advances on custom work and payment terms with stores.
A consignment store loses or damages pieces.
- Check your record and the agreement, and ask for payment for lost pieces.
- Collect remaining stock if it happens again.
- Prevention: a written agreement that covers loss and damage.
Your website gets visits but no orders.
- Check the photos show the back, and that prices, delivery times and policies are clear.
- Test the checkout yourself on a phone.
- Prevention: ask a friend to buy something and tell you where they hesitated.
A collaborator uses your designs without credit.
- Raise it politely, with the written agreement.
- Ask a lawyer if it isn’t resolved.
- Prevention: credit and design-use terms in writing before work starts.
Too many channels, too little time.
- Compare what each channel earns after fees and hours.
- Drop the weakest.
- Prevention: add channels one at a time.
Mistakes to avoid
- Different prices on different channels that undercut your stores.
- Delivering big orders without an advance.
- Consignment without records.
- Collaborations without written credit.
- Growing stock faster than sales.
What to ask your CA, lawyer or the office
- CA: “How are consignment sales recorded and taxed compared with wholesale?”
- CA: “What do I need to sell from my own website to buyers in other states?”
- CA or bank: “What should I know before choosing a payment gateway?”
- Lawyer: “What should my website’s terms, privacy and returns pages say?” (Online consumer-protection rules: check current.)
- Lawyer: “What should consignment and collaboration agreements include?”
Note: rules on tax, registration and export change. Check the current position with a chartered accountant or the office named before you act – this lesson tells you what to ask, not the answer.
Check yourself
- Do you know what each channel earns after fees and time?
- Can you explain wholesale and consignment?
- Do you have a cash plan for the next three months?
- Do you take advances on custom and bulk orders?
- Are artisans credited in every collaboration?