‘Almost didn’t survive’: Fashion designer Poppy Lissiman reveals early business mistake

A succesful business owner has revealed the tax reality that used to fill her with “anxiety” and the lesson she’s learned.

Fashion designer Poppy Lissiman has detailed the mistake she made two years into her business that almost cost her everything.

Ms Lissiman, 36, is an accessory designer, known for her playful and trendy designs. She started a fashion brand in 2008 but pivoted from apparel to accessories in 2014.

From the very beginning the designer threw everything into her business. Success felt like the only option.

“I worked multiple jobs to fund the business, while friends finished university or went travelling,” she said.

“The first time I could pay myself a wage and focus solely on my brand felt huge.”

She started off by opening a brick-and-mortar store but eventually realised that the e-commerce space suited her brand better.

What Ms Lissiman prides herself on is the ability to switch things up and not just stay doing the same thing.

“It’s been a journey of highs and lows. A big part of our success has been adapting like pivoting to accessories. During Covid, our nylon bags went viral and sold out within seconds of each drop,” she said.

The fashion designer worked multiple jobs to start her brand. Picture: Instagram/PoppyLissiman

Poppy Lissiman threw everything into her fashion label from the very beginning. Picture: Instagram/PoppyLissiman

The 36-year-old’s e-commerce business is thriving now, and inarguably very cool, but in the early days, she almost lost everything.

“My business almost didn’t survive past my second year after an entire collection of dresses I had ordered, worth tens of thousands, came back from the manufactures completely wrong,” she told news.com.au.

“The patterns hadn’t been graded properly, and the only things we could salvage were the custom YKK zippers.”

Ms Lissiman said that, ultimately, it was a teaching moment because she learned that sometimes the cheaper options can cost you more in the long run.

“That experience taught me the hard way not to cut corners. I’d tried to save money by going with someone cheaper, but it ended up costing me far more,” she said.

She started her business when she was still a teenager and built it up. Picture: Instagram/PoppyLissiman

The 36-year-old had ‘absolutely no idea’ about tax when she started her business. Picture: Instagram/PoppyLissiman

Ms Lissiman said that starting her business at 19 meant there were a lot of growing pains; she always knew who she was creatively, but working out how to run the business was a whole other thing.

“I had absolutely no idea about tax when I started — I was a teenager. Thankfully, my dad is meticulous with finances and taxes and guided me from the beginning, which helped me stay on top of it,” she said.

“I’m creative at heart. I dropped out of mathematics in Year 10, taxes were always something which automatically broke my brain and filled me with anxiety.”

The designer explained that even just wrapping her head around doing tax returns as a business rather than as an individual was tough at the beginning.

“I’ll never forget the stress of trying to wrap my head around business activity statements (BAS) statements. Now I leave it to the tax professionals. It’s one of those areas where asking for help makes all the difference; whether that’s your accountant (or) your dad,” she said.

“As much as figuring things out as I go and upskilling in different areas has been a huge part of how I have grown with the business, there is one thing I know I need to work with the experts on; and that’s my taxes.”

Ms Lissiman said tax time used to make her anxious. Picture: Instagram/PoppyLissiman

The brand has grown considerably over the years. Picture: Instagram/PoppyLissiman

Something Ms Lissiman has learned throughout her business journey is that if you can’t do something, pay someone who can.

“Know your strengths and outsource the rest. If something is vital and not in your wheelhouse — hire someone who knows what they’re doing,” she said.

Director of tax communications at H&R Block, Mark Chapman, said that the most common mistake he sees with businesses during tax time is not outsourcing to an expert and subsequently ending up in a mess.

“Let’s be clear: to claim items like bags or sunglasses, they must be used in the course of earning income; and if there’s any personal use, only the work-related portion can be claimed. And as always, records are essential,” he said.

“While a lack of cash flow is indeed the number one business killer, there are simple ways to get on top of it. The first is to understand your tax obligations, and I recommend engaging a professional to do so.

“Use a tax or BAS agent to complete your BAS. Not only will they make the process of lodging a BAS easier, but you’ll also have more time to lodge.”

Originally published as ‘Almost didn’t survive’: Fashion designer Poppy Lissiman reveals early business mistake