Every entrepreneur had to start from scratch at some point before they can to make a name for themselves. So, if you have that fire within you that keeps burning with passion, pushing to make those entrepreneurial visions come true, go ahead and do it.
You have made it beyond the first step, which is finding the motivation to do so. This is very important to have, as it’s what will keep you going on in the days when running your business may seem overwhelming.
There are many kinds of businesses that have made their way toward success, but one that you can venture into is retail, specifically fashion or clothing. If this is your hobby or passion, then the more reason to make money out of it. It’s inspiring enough to have that desire to succeed in your pursuit, simply because you’re passionate about clothing.
Every day in your workplace will not feel like work at all, simply because you’re happy with what you’re doing.
To help you out, here are tips to kickstart your plan so you can turn those dreams of owning a clothing business into a reality:
1. Develop Your Brand
If there is anything that would help you make it well in the clothing line industry, it’s developing your brand. You need to have a brand name, label, logo, image, and a business model you think will identify you and set you apart from the competition.
When there are already so many existing clothing line businesses, you need to be able to make your mark. And this begins with putting your label as tags on the clothes. Whether you’re re-branding or sewing everything from scratch, taking in Development Workshop’s sewing services put your new brand name on it.
Doing so will help inform the clothing industry and your target audience that you’re present, and that you exist.
As you develop your brand, you may want to ask yourself the following questions as well:
- What image and identity are your clothes trying to project?
- What’s the most important part of the customer experience are you trying to give your target customers?
- Who will wear your clothes?
Your answers to those questions can help you form the very core of your brand so that you stand out among all other clothing businesses within your niche or your geographical location.
2. Decide On Your Specific Niche
If you thought starting a business in the clothing line or fashion industry is already specific enough of a niche, you may be wrong. You have to go even further than that. In the clothing business, there are different niches that you can penetrate. However, the choice now typically boils down to your preference.
Are you more inclined toward sportswear or casual wear? Or perhaps children’s clothing? Or do you find happiness designing and creating summer and formal dresses?
Deciding on the niche will give you a sense of focus. With that, your boutique or store, be it brick-and-mortar or online, will have more sense of order. Your target market will be able to immediately associate your business with the niche you belong to. This makes for a more memorable brand. They will remember you more when they hear the word ‘sportswear’ or ‘casual wear’. Your brand can become a household name.
3. Compute The Numbers
Here comes the crunch time! Of course, just like any other business, you’ll need to have a budget to operate solidly. You’ll have to take stock of the figures before you start so you’ll know if the budget you have is enough to come up with at least a few pieces of clothing. Of course, you just can’t have one style and one size.
Hence the need to calculate your start-up costs. At least be sure you’ve got enough to cover for these before you can expect a profit. You’re still new in the industry, so it’s just fair to expect that making a profit might be harder than if you were already a well-known name.
Along with this, it’s beneficial for you also to have a financial plan as a part of your business plan. Think about the return-on-investment rate, as obviously, you’re going to need to make a profit and continue expanding your business operations and clothing line.
To start your clothing line, typically the costs are going to include:
- Your brand design, like your tag and your logo
- Wages of your employees
- Business license, permit and legal fees
- Materials for your first line, like zippers, thread, fabric, beads, among others
- Deposits and rent, if you’re renting out a physical location
If you find the financial projections are weak, then as early as now, it’s important as well to strategize on what you can do to make this financial outlook better.
4. Organize Your Business
Fourth, you’ll have to create a sense of structure with your business. This is more than just buying a sewing machine and getting to work, as this isn’t a personal hobby anymore. This is a business. It means you need to earn a profit and there are so many inherent risks involved.
Organizing your business can be likened to having a well-defined business plan, where you have an outlook for your goals and efforts in the future. You need to decide on how your business will operate, and these include the following:
Your location
If you’re going to set up a physical store, you have to find a location that’s attractive to your market. For instance, you’re selling children’s clothes. So, you’ll obviously want to be accessible to parents. When they pass by your store on the way to their jobs or to bring their kids to school, they will see that you exist and they’ll make it a point to see what you have to offer.
Your product catalog
Remember that you’re starting a clothing line business. Having a catalog is a major plus, so your target market will know what you have to offer. Typically, this catalog should be released once every new season.
A catalog is also all the more important if you have an online shop as this will shape the design of your website. Note that in e-commerce, your website serves as your e-catalog, so these two have to go hand-in-hand.
Your funding
Yes, you may have savings prepared for this pursuit. But, if the numbers look ambitious and you know you need a little push with the finances, then you need to look for credit institutions to help you out, a lender that will offer a small business loan.
If you’re going for this route, keep the amount minimal, only to what you’ll need for your business. You need to aim for the lowest debt possible, as this could tie you up for many years and hurt your profit-earning potential.
Be very careful also with the interest rate. Before signing up for funding, take the time to compare the offers of different credit institutions. You should aim for the credit institution that offers the most generous rates which mean good terms and low interest.
Your management team
Who is managing your business? Is it you as the owner? Or do you plan on hiring a manager or an accountant? How many employees do you intend to hire as part of your production team? These are important questions to address early on, as they can also shape the decision on how much you’re going to need for your start-up.
5. Set Your Price
Now here’s another part. Once you have the designs of your first clothing release and the sizes, you’ll be able to compute the cost for each piece of clothing. This amount should include not just the cost to produce the clothing, but also all other extras like the utility, labor, wage, tags, packaging, and of course, the profit percentage.
Be very competitive with your pricing, especially because you’re still new in the business. You can’t expect your clothes to sell for a very high price when you’re still making yourself known. Do a market study, too, of the average cost of the clothing choices bought by your target market. This will give you a fact-based estimate as to how much your target market can afford to spend for each clothing piece.
6. Create Your Designs
Perhaps you already have designs you’ve long worked on that are just waiting to move from sketch to fabric. Or you feel you need to create more, so you can come up with more variety. If you’re rebranding, then you’ll also have to look for a supplier that has the fabric textures and quality you want for your clothing line.
Be particular about this process, as the design and quality can make or break your chance of success.
Conclusion
Many clothing brands have soared to success, simply because the visionaries behind these businesses were passionate about it. So, if you have that already in you, then that’s more than enough reason to turn that hobby into a business.
You can always start from scratch, or with what you have now. You don’t need the fortune to come up with funding for your clothing business. The tips above should be more than enough to convince you of that fact. Now, how difficult can it really be? Get started now.
