Sewing Incubator

Sewing Incubator Testimonial Final 061421


Rocio Evenett was gifted a sewing machine when she was 3 years old. Little did she know that small gift would provide the spark that would fuel her lifelong ambition for fashion design, sewing, and garment manufacturing. Rocio’s strong work ethic, instilled in her by her grandmother, led her to a fashion design internship at the age of 15 and later to the London College of Fashion. Rocio recognized that many up-and-coming garment makers didn’t understand garment manufacturing or pattern-making using computer design, which led her to start Sewing Incubator with a partner in December 2019. Sewing Incubator provides PPE manufacturing, wholesale specialty product design and manufacturing for direct to consumer brands, and education for individuals interested in garment design and manufacturing using more efficient techniques, including a digital learning platform in conjunction with direct support for startup brands and entrepreneurs to launch their own product lines for the first time.


Challenge

When the COVID-19 pandemic hit the U.S. in March 2020, Sewing Incubator had just begun operations. Faced with product cancellations, Sewing Incubator quickly realized the need to diversify manufacturing and establish sound financial reporting systems in order to survive. The owners knew they had the ability to provide Personal Protective Equipment (PPE), particularly face masks, to essential workers but weren’t sure how to enter the market. They also realized they needed to find and implement a formal financial accounting system. Sewing Incubator needed a system with strong reporting capabilities to give them visibility into their profitability and to inform them of how they should price their products in this new market.

Solution

Sewing Incubator’s owners engaged CMTC in March 2020 to help them register with the System for Award Management (SAM), obtain a CAGE Code, and connect with government PPE purchasers. By being able to supply PPE to essential workers, they not only generated $750,000 in sales during the pandemic, but were able to play a significant role in protecting those on the front lines.

In June 2020, Sewing Incubator re-engaged CMTC to help them create a formal accounting system for the company and evaluate a comprehensive list of the company’s existing accounting practices to identify opportunities for process improvement. CMTC helped Sewing Incubator select and set up QuickBooks Online, create charts of accounts and a structure for the program, import existing accounting data into the program, train company leaders on the program’s use, and suggest an accounting routine for reporting. By implementing QuickBooks Online, Sewing Incubator was able to identify and execute operational upgrades based on improved cash flow as well as allocate funds to internal upgrades to increase return on investment. The accounting system implementation also saves labor time by automating previously manual processes, generating investment in new processes and offerings due to greater financial visibility and understanding, and helping avoid unnecessary investments by allowing more in-depth analysis of the investment’s impact on profitability and cash flow.

Impact

Sewing Incubator credits its survival through the pandemic to CMTC, and estimates $1,000,000 in sales revenue based on CMTC’s assistance. Sewing Incubator expects to save $50,000 in labor from the implementation of the new accounting system and related processes. In addition, they expect to invest $100,000 in new products – $85,000 in equipment, $5,000 in software, and $10,000 in other areas of its business. The increased visibility due to increased financial reporting is expected to lead to $50,000 in avoided investments.

 “We owe our business survival through the closures to CMTC!”

— Rocio Evenett, Chief Orchestrator

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