Benefits of starting a clothing line

Consider these benefits of starting an apparel business:

• Creativity: Designing and selling clothing is a fantastic pursuit for creative entrepreneurs. You can combine your business abilities and creative sensibilities.

• Simplicity: The business model is relatively straightforward.

• Growth: You can scale a clothing line from a part-time to a full-time operation as you gain customers and capital.

• Niche: Customers have a range of preferred styles and designs. You can find a specific niche that satisfies underserved buyers.

Step-by-step guide to starting a clothing line

Here’s how to start a clothing line in five simple steps.

1. Find your niche

To help your clothing line stand apart from competitors, identify what makes your designs unique. Consider looking for gaps in the market and establishing your brand there. Some examples of clothing line niches include:

• Sustainable and eco-friendly fashion

• Athleisure and activewear

• Luxury and high-end fashion

• Size-inclusive or adaptive fashion

• Vintage and retro fashion

• Kidswear or baby clothes

From there, consider specialty items or designs within your chosen categories. Finding an uncommon niche may help you build a customer base that values your innovative approach.

Related: Planning for Business Success: An Overview

2. Create a business plan

After defining your niche and the clothing you want to design, consider these steps when writing your business plan.

1. Explain the need your company fills. Describe how your clothing line may help solve customers’ problems. You might include a competitive analysis from other companies in the same niche to show why your brand is better suited for the market. Also, include information about your target market’s size and primary characteristics.

2. Establish your marketing and sales plan. This might include how you intend to promote and sell your clothing.

3. Describe the team. Provide information about each employee. If you have a large company, focus on providing bios and backgrounds on management with executive titles.

4. Provide financial details. List loans, investments or other income sources you’ve received. Create a detailed budget, including projected profits and how you intend to spend the money.

5. Write an executive summary. The executive summary is a succinct outline of your business plan. It briefs readers on the plan’s key elements.

Related: How to Write a Business Description for a Business Plan

3. Design and manufacture the clothing line

Your clothing line likely falls into one of the four basic categories of clothing design. The category may impact how you manufacture your clothes.

• Print-on-demand: Print-on-demand clothing lines entail printing designs onto pre-made, wholesale clothing. You can manage the printing yourself or outsource to a manufacturer. Print-on-demand clothing lines are typically the least expensive and quickest to start since you only need a design. You partner with a clothing wholesaler and a manufacturer to produce the clothing.

• Custom wholesale: Custom wholesale involves purchasing clothing from a third party. The wholesaler tailors and embellishes the items to create custom designs. Custom wholesaling is generally more expensive than print-on-demand since you need to stock inventory and perform the customization in-house. However, you typically only partner with one manufacturer, potentially reducing costs.

• Cut-and-sew: With a cut-and-sew design model, you order the fabric and materials, design the clothing and create sample pieces. Cut-and-sew operations usually outsource bulk production to a manufacturing company to get the product to market quickly. However, some companies manufacture the clothing in-house. Cut-and-sew often has steep upfront costs and can take months to get up and running.

• Custom couture: Custom couture is a niche, high-end industry. It involves creating one-of-a-kind bespoke items for specific clients. You don’t keep merchandise on hand. Instead, you design and manufacture single pieces for customers. You source the materials and handle all aspects of the manufacturing process.

4. Decide on a distribution strategy

How you distribute products can impact the number of customers you reach. There are generally three distribution options.

1. Ship directly from your shop. If you’re operating a custom wholesale or cut-and-sew clothing line, shipping from your workplace might be a viable option. Your products are already there, so you can easily pack and ship them using branded materials for your customers. Shipping can be expensive, so consider several vendors and determine whether to build the shipping cost into the price or apply a flat shipping rate to each order.

2. Ship directly from the manufacturer. If you’re running a print-on-demand or cut-and-sew clothing line, shipping products directly from the manufacturer to the customer can save time and money.

3. Ship from a fulfillment warehouse. These companies manage packaging, shipping and returns, letting you focus on production. However, this shipping style can be expensive, so it’s best used if you have many orders and need full-time support.

5. Hire employees

If you need to add employees to your team, these steps may help you find quality candidates.

1. Write a job description. Begin by writing a job description. It may include key responsibilities and preferred skills. Some job descriptions also include compensation and benefit information, which may help you attract more applicants in a competitive hiring market.

2. Post a job. After writing your job description, post it on a job site like Indeed to reach job seekers with the skills you’re looking for. You might also list the open position on your website. Consider sending a copy of the job listing to professional organizations or industry contacts to connect with candidates.

3. Select quality candidates. Review the job applications you receive to find candidates who meet your company’s needs. Compare their experience and skills to those listed in the job description. You may select several candidates to move forward in the job application process.

4. Hold interviews. Interview candidates to determine whether their backgrounds match your open position. It can help to make a list of interview questions in advance to get the most out of each conversation.

5. Negotiate offers. Once you’ve selected a candidate, make a job offer with a compensation package. Prepare to negotiate, as they may have a counteroffer.

How much money do you need to start a clothing line?

You typically need money upfront to start a clothing line, but the exact amount can vary. Consider these primary expenses that are typically involved in starting a clothing line.

• Branding: A good logo is an important part of developing brand recognition. After creating a logo, create a website, order business cards and design other branded accessories for your company.

• Licenses and permits: Licenses and permits are typically state-based, so check with your local government about the requirements for registering your business. You likely need to obtain a permit to sell goods and collect taxes.

• Rent and utilities: If your operation is small, you may work out of your home. To accommodate the manufacturing process, you may need a larger workspace. Consider the cost of rent for a local commercial space and building utilities.

• Office supplies: You may need office supplies, such as a computer, internet access and budgeting programs. Factor in the monthly cost of maintaining your website and reordering frequently used supplies.

• Equipment: If you’re starting a cut-and-sew line, you may construct the clothing in-house. You need sewing machines, templates and dress forms to structure your garments. If you’re doing screen printing, you likely don’t need as much equipment.

• Marketing: Think about how to market your line and the costs involved. If you don’t have a marketing department on staff, consider hiring an external team to handle advertising. Even without hiring a separate firm to manage your marketing, you should still set aside money for advertising.

• Materials: The cost of your materials depends on whether you print on pre-made garments or design original clothing. Bulk ordering T-shirts or hoodies for screen printing typically costs less than ordering fabrics for original pieces.

• Labor: You also need to factor in employee salaries. According to the Bureau of Labor Statistics, sewing machine operators earn a median income of $33,400 per year while managerial workers in the fashion industry earn a median of $48,810.

How to set prices

Determining how much to charge for your clothes may help you establish profit projections. Here are several steps to help you set reasonable product rates.

1. Consider costs. When pricing your clothing, consider the cost of making each garment, including materials, shipping, labor and production. The total illustrates the cost of production. You should run this calculation for each piece you sell since materials, labor and production costs may vary.

2. Factor in profits. To make a profit, you have to sell your clothing at a higher price than the production cost. Think about the margin you hope to maintain with each sale. Profit margins vary considerably in the fashion industry, from 4% to over 15%.

3. Establish pricing. Apply that profit margin to each item of clothing. For example, if it costs $15 to make a pair of pants and you hope to earn a 10% profit, add 10% of $15 to the price tag, bringing the retail price to $16.50.

Best ways to market your clothing line

Marketing can help you turn a promising clothing line into a successful business. A good marketing strategy lets customers discover your brand and make purchases. You can use traditional and digital marketing to promote your new clothing line.

Traditional marketing refers to any offline advertising, including television, radio, print and mail. For clothing lines, traditional marketing strategies may include print ads, television commercials, catalog mailers and billboards. Digital marketing strategies include influencer affiliates, social media ads, email lists and blog posts.

Frequently asked questions about starting your own clothing line

How do I start a clothing line with no experience?

If you’re interested in fashion but have no experience making or designing clothes, you might:

1. Team up with someone who has a background in design.

2. Start a print-on-demand business.

With the first option, your partner’s experience can guide the creative side of the company while you manage the business side. If you choose the second option, you only have to create designs to go on pre-made items, eliminating the need for technical sewing skills.

How do I make a high-end brand?

To create a high-end brand, consider these steps:

1. Find a gap in the luxury space. Create a product that fills the need in the marketplace.

2. Curate the experience. One of the hallmarks of a luxury brand is the shopping experience. Find a way to make shopping for your clothing a luxury endeavor.

3. Create symbolic value. The value to customers is the perceived value from others. Build a brand that people associate with luxury.

4. Keep it exclusive. Ensure the entry point for your product is high to preserve its high-end status.

How do I design a logo?

If you want to create a logo for your brand, you have several options:

1. Design it yourself. If you have hand or computer drawing expertise, you can create a logo.

2. Use a website. Many websites help create an original logo with predesigned elements and fonts.

3. Hire a professional. Hire a professional graphic designer to make a logo for you.