In this episode of The Lat Chat, we sat down with Britney Wheeler, the visionary founder of One Wardrobe. What started as a “social experiment” to avoid the post-university corporate grind has evolved into a thriving luxury fashion marketplace that is tackling the global fast fashion crisis head-on.

At Latitude Accountants, we believe small business owners are the heroes of our community. Britney’s journey from making sandwiches for $7.70 an hour to managing a sophisticated tech platform is a masterclass in entrepreneurship, sustainability, and strategic pivoting.

The Rise of the Circular Economy

The traditional fashion model is “linear”: buy, wear, and eventually, discard. However, the environmental toll of this “fast fashion” cycle is staggering. Globally, the fashion industry creates more CO2 emissions than the entire aviation and shipping industries combined.

Circular fashion offers a solution by extending the lifespan of high-quality garments. Instead of a dress sitting idle in your cupboard after one event, One Wardrobe allows it to be leased out multiple times, keeping it in use and out of landfill.

Why Luxury Fashion?

Britney notes that fashion is often an extension of our personality and a vehicle for confidence. However, social media has created a “double standard” where many feel they cannot be seen in the same outfit twice. By renting, consumers can access premium, high-status labels—like Chanel or Camila—at a fraction of the retail price (typically 10-25%) without the long-term waste.

Turning Your Wardrobe into a Revenue Stream

One of the most exciting aspects of One Wardrobe is how it empowers individuals to monetise their existing assets.

How the Marketplace Works:

• The $300 Rule: To maintain a premium experience, items listed must have a minimum retail value of $300. This ensures the marketplace remains focused on quality over fast fashion.
• Lender Control: As a “lender,” you create an account and list your items—including dresses, bags, shoes, and even fascinators. You have the power to accept or decline bookings based on your own schedule.
• Seamless Logistics: One Wardrobe handles the marketing. When a booking is accepted, the lender posts the item to the borrower. Return satchels and dry cleaning are typically integrated into the process to make it as easy as possible for both parties.

From “Accidental” Business to Scalable Tech

Britney’s first iteration, One Wear Only Hire, was an ownership model where she bought and maintained all the stock herself. While successful, it wasn’t scalable—it required massive amounts of storage and constant capital for new sizes.

Recognising this, she pivoted to a Marketplace Model. This shift moved the business from a logistics-heavy retail operation to a sophisticated tech platform.

The Entrepreneurial Mindset

Pivoting requires courage and a willingness to embrace the “hard yards”. Britney and our own Client Director, John, discussed the reality of the business owner mindset:

1. Work-Life Harmony: Rather than a perfect 50/50 balance, successful entrepreneurs often find a “harmony” where their business and life integrate.
2. Short-term Sacrifice for Long-term Gain: Starting a business often means earning less than a corporate salary initially. However, as John points out, “profits are better than wages” when you are building a long-term vision.
3. Managing Self-Doubt: Even successful founders experience moments of doubt. The key is staying anchored to your passion and the value you provide to your customers.

Navigating Business Growth in Australia

For Australians looking to follow in Britney’s footsteps, understanding the structural side of your business is vital. Whether you are starting a side hustle or launching a tech marketplace, your “propensity to earn” is your greatest wealth-creation tool.

Key Considerations for Aussie Entrepreneurs:

• GST and ABN: Once your side hustle turnover exceeds $75,000, you must register for GST.
• Business Structure: Are you a sole trader, or is it time to organise a company or trust structure to protect your assets and optimise tax?
• State-Based Taxes: Remember that certain costs, such as Payroll Tax or Land Tax, vary significantly between Australian states and territories. Always check the specific regulations in your region to avoid surprises.

Frequently Asked Questions

What is the “Circular Economy” in fashion?

It is a model focused on extending the lifespan of clothing through sharing, leasing, and recycling. By keeping high-quality items in use for longer, we reduce the demand for new production and minimize the environmental impact of textile waste in landfills.

How much can I earn by renting out my clothes?

Earnings depend on the item’s brand and demand. Generally, rental prices are set at 10% to 25% of the original retail price. For high-end luxury items like Chanel bags, a single hire can generate hundreds of dollars in passive income for the lender.

Do I need a business plan to start a side hustle?

While you don’t need a 50-page document, having a clear strategy is essential. Consider your “Minimum Viable Product”—like Britney’s initial $1,000 investment—to test the market before committing significant capital to sophisticated tech or large amounts of inventory.

Take the Next Step with Latitude Accountants

Building a business—whether it’s a marketplace or a local service—requires more than just a great idea; it requires a solid financial foundation. At Latitude Accountants, we specialise in helping small business heroes navigate the complexities of Australian tax law, business structuring, and strategic growth.

If you’re ready to turn your passion into a profitable, scalable venture, don’t do it alone. Contact the expert team at Latitude Accountants today for strategic advice tailored to your unique business journey.

• Phone: 1300706597
• Email: info@latitudeaccountants.com.au
• Book online via our website.
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Disclaimer

The information provided in this blog post is general in nature and does not constitute personal financial or tax advice. Tax laws and business regulations are subject to change and may vary based on your individual circumstances. You should seek professional advice from a qualified accountant or financial advisor before making any decisions regarding your specific situation.