The recession has proved to be a catalyst for many start-ups' demise. However, some small businesses are battling its effects and CNN Money has highlighted the case of Proper Cloth; a retailer offering professionals fitted clothes for less.
The New York-based custom label specializes in dress shirts and has witnessed its operations grow, despite the global economic downturn directly affecting its most important market - bankers.
Set up in the autumn of 2008 for around $150,000 in the midst of the worst financial downturn in 80 years, Proper Cloth has rode out the recession by placing its products at consumers looking to buy cut-rate one-off pieces of clothing.
Featured in an article entitled Recession Buster: 90$ Custom Shirts, the company has so far not had to rely on any traditional marketing campaigns, as the quality of its shirts has generated significant word-of-mouth promotion.
Proper Cloth has a considerable online presence, which has undoubtedly been boosted by the press coverage created by this article. Having set up a Facebook earlier this year, the retailer has recently reacted to the current trend of micro blogging social networks by creating its own Twitter account. The tailor, which sources all of its fabrics from Italy, also regularly updates a blog on its website providing customers with fashion-related advice. This generates around 6,000 hits a month and includes titles that have been generated with search-engine optimization in mind.
Seph Skerritt, the entrepreneur behind the start-up, recently managed to secure investment from a venture capitalist worth $300,000 and has forecasted sales totalling 15,000 in 2009.
This would generate the company revenues of $1.3 million, which is not an entirely unreasonable figure considering that takings have increased by 40 per cent each month since its launch.
Mr Skerritt, who graduated with an MBA from the Massachusetts Institute of Technology's Sloan School of Business, told the news provider: "I didn't expect the economy to tank in September. But everybody still needs great business attire. You can get that here without declaring bankruptcy."
Having already appeared in the Financial Times earlier this year, Mr Skerritt, clearly has a good understanding of the benefits of appearing in the international press. As he told the British publication: "Once you have a custom-fit shirt, you will never go back to off the rack."
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