In today’s article, I am going to tell you about How to Start a Fashion Business, so if you want to know about it, then keep reading this article. Because I am going to give you complete information about it, so let’s start.
Every supreme fashion brand has an inception story. A Fashion Brand that may dominate today’s clothing market may have started as a small business run out of a neophyte fashion designer’s living room. While launching your own Fashion Brand is challenging thanks to e-commerce and online marketing, it just might be possible to turn a brand that began in a small online store into a clothing brand that’s beloved nationwide.
How to start a clothing business. It can be an all-consuming process but with that first sample run and customer, the sale comes great satisfaction. Use our nine-step plan for starting a clothing line.
So let’s get complete information about How to Start a Fashion Business without wasting any time, come on.
Table of Contents
How to Start a Fashion Business:
The great brands of the clothing industry weren’t cobbled together in a piecemeal fashion. Even when trial and error were involved, these brands almost certainly followed a business plan and continued to scale at a sustainable pace. Use this step-by-step guide as a way to help structure your own business model.
Be prepared for peaks and valleys as you embark on your clothing business journey. Starting a new company from scratch is never easy, but it’s certainly possible. Remember that all of today’s iconic brands got their start somewhere.
1. Identify a need in the market
A successful clothing line won’t succeed on the vanity of its founding designer. Think about a niche in the market that isn’t currently being filled. Is it a T-shirt that can be worn on formal occasions? Is it a line of hoodies that flatteringly accents someone’s curves? Figure out what product should exist that isn’t currently being offered by a major clothing company.
2. Develop a business plan
This will guide your entire journey as a fashion designer and clothing manufacturer. Ask yourself: what is my ultimate goal for this product? Do I want to be a brand name sold in Nordstrom and Macy’s? Do I want to create a private label brand for a company like Target or H&M? Do I want to create a premium brand that’s sold in a boutique on Melrose Avenue in LA or SoHo in New York City? Identify your goal and keep it foremost in your mind as you build your brand.
3. Identify your target audience
This step is almost concurrent with number one. Your objective is not simply to identify a clothing item that should exist, but also the target market of consumers for that product. After all, brilliant design is of little use if it lacks potential customers. Consider the pros and cons of targeting certain demographics. For instance, young people tend to be style-conscious and may be more receptive to online marketing and word of mouth, but they also may have limited funds. Middle-aged customers may be able to afford a higher price point, but they may be less concerned with style and already loyal to the existing brand identity.
4. Start designing. Presumably
This is your forte, and so this is your chance to creatively shine. The first collection you release to the market will say a great deal about you as a designer, so make sure you are crafting something that you’d be happy to use as your calling card going forward. At the same time, think practically. Whatever you’re designing will have to be produced in a cost-effective manner. Being a successful fashion designer is always a blend between the ideal and the attainable.
5. Find a clothing manufacturer
Unless you plan to source, cut, and sew all your materials by yourself, you will need a manufacturing partner. This can mean any number of things. Perhaps you’re simply seeking colleagues who can help you make clothing in a home studio. Perhaps you’re looking for a fabric supplier. Perhaps you’re looking for a fully humming factory that can produce a limited supply of your boutique goods alongside mass-produced items from an established brand. For decades, clothing manufacturing has been based outside of the United States.
Therefore it’s quite possible that your search for a manufacturer will lead you to a country like China, Vietnam, Sri Lanka, or Bangladesh. You may want to travel to see the factory in person, but for new designers on a budget, the entire vetting process will have to be done via phone and email. If your fashion goals are less ambitious—such as a new logo printed atop existing streetwear or casual wear—you may be able to manufacture your goods locally, such as at a nearby print-on-demand screen printing facility.
6. Choose a brand name, logo, and market profile
If it looks as though your clothing items can be manufactured with reasonable production costs, you’re ready to start planning your public profile. This means picking a business name, a logo, and a slogan if necessary. It means designing a website with an eCommerce platform like Shopify or Etsy. Customers like brands with a compelling story, so weaving that into your brand name, logo, or website will also help. This work should be completed by the time the manufacturing process runs its course. This way you are ready to sell your goods as soon as they are made.
7. Choose a price point for your items
This step ties into identifying and understanding your target audience. Choose a price point that will cover your production cost but that doesn’t alienate the customers you will need to launch your fashion business.
8. Begin the marketing process
At this point, your new business needs brand awareness. Instagram has become a popular platform for this, and many Instagram influencers are happy to promote new fashion brands in exchange for products.
9. Set realistic sales and distribution goals
Don’t be afraid to partner with a business professional to embark on this step. Just because you have a fashion vision doesn’t mean that you know about clothing distribution. If you can hit your sales goals, you can continue to grow, as per your business plan.
10. Start a soft launch
And then look for more investment and partnerships. Once you have a proof of concept—clothing that you can sell in limited quantities—you’re ready to loop in potential business partners and co-investors. Yes, it would be nice to own your business outright and keep all of your future profits. But as most business owners start to scale up, they need access to capital. Taking on a business partner who can provide that capital in exchange for a cut of future proceeds is the most traditional way to do this.
How to start your own clothing line
You’re at the beginning of your journey and the to-dos can seem overwhelming. So whether you’re thinking of how to start a clothing line from home, or have your own workshop, here are our top nine bases to cover.
1. Decide on your niche
Starting a clothing business is a very personal journey. You’re probably a creative person, with something different to offer in a fast-moving industry. It’s likely that you’ve spotted a gap in the market, or have a unique design in mind for a specific customer group.
Whatever your inspiration for starting up, it’s important to define your niche from the outset. Are you looking for information on how to start a fitness clothing brand or a sports clothing line, for example? Maybe you’re planning to build a fanbase for one specific item, like the world-famous Fred Perry shirt.
Or it could be a particular style that you have in mind for your clothing line – like the pared-back, design-focused children’s products sold by lifestyle brand Scandiborn, or menswear that nods to your own unique heritage.
It could also be a clothing business that’s born out of a particular need or ethos, from cruelty-free clothing to premature baby accessories.
Know your niche, and bear it in mind. Even if you branch out and introduce lots of other designs as time goes by, your original idea gives you heritage, a guiding principle, and a reason to be remembered.
2. Build your budget or business plan
If this is really just a shoestring idea, and you’re testing your designs on a small scale, you might not need a full-on business plan to get started. Watch out though, if your idea takes off you’ll want to scale pretty quickly, so it makes sense to keep even a rough plan in the background.
A common question is ‘How much does it cost to start a clothing line?’, and while it may be possible to do it for just a few hundred pounds, it’s far more likely to cost thousands. According to Make it British, 50 percent of startups spent over £15,000 launching their UK-made brands.
Bear in mind, that the fashion industry is notoriously difficult to predict. Plans will need to be flexible and there are no guarantees, so you’ll need to be up for the challenge.
Creating a budget…
For the first few months at least, it pays to keep things simple. Starting with one design that you love, know how to manufacture (or buy), and have had great feedback on may be much easier than launching with a lengthy product catalog.
It helps to have a fixed figure in mind and decide how you’re going to spend your funding, along with what you want to achieve. Try to allow room for flexibility – you may not know the price of specific materials yet, for example, or manufacturing costs – but having that original budget in mind will help you make the decisions that drive your first sales.
Your budget will also depend on whether you plan to design and make the clothes yourself (or with a manufacturer) or buy clothes from designers at wholesale price. Either way, start small. Invest in smaller designers and/or basic equipment to start off with and as demand grows, you can review your key outgoings.
Read our guide on how to budget and download a free budget template.
… and/or a clothing line business plan
If you need a business plan – perhaps to secure funding or other support – start off by nailing the basics. You’ll need to give an overview of your business, including an executive summary, and a clear outline of how your clothing line is going to start, grow, and prepare to scale.
You’ll also need to include the analysis you’ve done, to understand your target market and any competitors. Remember, this does need to be data-oriented, concrete, and preferably something you’ve done with external sources. It can’t just be your personal view of what’s wrong with the current market options (although there’s a place for this too!).
Your plan should also outline who’s involved in your business and what they do, whether it’s just you, or you’re working with anyone else. You’ll need to leave room for the product(s), of course, and talk about any plans you have for branding, sales, and marketing, as well as operations.
Finally, whoever’s reading your plan will be most concerned with one thing, and that’s the money. You’ll need to finish off with a solid section clearly outlining your business’s current financial position (even if this is very initial), priorities for growth, and how their investment will help things to fly.
3. Organize your business
Even if you’re not writing a full-on business plan, the same principles apply when organizing your startup. You may be planning just to buy a sewing machine and get straight to work, but even this is a time and resource commitment.
If you’re investing effort and have goals for the future, put down in writing how your business will take shape, including plans and ideas for:
1. Your location
Are you working from your bedroom but aiming to move into a small studio? Remember, certain rules apply to online businesses or market stall traders.
- How it works
Is it going to be you selling pieces on a stall for now? Or are you going to be an online retailer? Could Facebook Marketplace or Instagram be a good place to start? If so, check out our guide on how to sell on Facebook Marketplace and how to sell on Instagram before you get started.
- Read more about online retailer insurance.
Maybe you’re even planning to open a brick-and-mortar shop. Whatever option you go for, most businesses will need to get set up with HMRC for tax purposes, and factor in time to sort out any licenses or permits (especially if you’re planning to trade on the street or at a market).
You’ll also need to research the rules you must follow before selling clothes online, buying from or selling abroad, or storing personal details from your customers, fanbase, or even your suppliers.
- Who’s running things?
Even if it’s just you managing the business, are there any other key people involved who you’re going to rely on? For example, a designer, online accountants, people to help you with setting up a stall, storage, etc.
2. Your product catalog
This might just be one hero product, or you could have a long list of items. Be aware of your product list and think about how you plan to manufacture, stock, and store pieces, along with particular packaging needs.
3. Sales and marketing
We’ll cover this in more detail below, but it’s a good idea to think through your marketing plans and how you’re going to create some buzz around your clothes and designs.
You’ll want to think about how you might use social media and whether you need a business website, blog, or print marketing materials.
And when it comes to sales, pricing your product properly is important. It’s not as simple as deciding how much profit you want to make.
If you want to be a luxury fashion brand, then you need a price point that reflects that ambition. If you’re going for simplicity, then the price should show your no-frills attitude.
Read our guide on how to price a product for more on pricing strategies.
4. Insurance
You might just be planning to sell items online, straight from your sewing machine, but if you’re investing time and funds, it’s worth protecting your small business from the outset, ideally with tailored business insurance or clothing/fashion shop insurance policy.
This can include things like online retailer insurance, product liability insurance, and stock cover.
5. Funding
You’ll need some idea of what money you already have, to get your business up and running, and where you can look for additional support. From government-backed Start Up Loans to crowdfunding, our small business finance guide is a great place to start.
When it comes to managing your finances, you might find it helpful to read our guide on the best business bank accounts and the best accounting software for small businesses.
4. Create your designs
For any clothing business, one of the most exciting stages in product development. Even if you only have a design concept for one product in these early days, start getting it on paper or screen, as a sketch. Once you’re ready, turn rough ideas into nailed-down digital sketches. Programs like Adobe Illustrator can do a lot of the hard work for you.
Sketches are done, you’ll need to think about your ‘tech pack’, which is the essential information you’ll give to your manufacturer. It’ll need to include your product’s details and technical specifications, from design and measurements to materials and any extra accessories or features.
From there, you’ll need to get started on pattern making and grading, ahead of sourcing your manufacturer.
5. Create your brand
As a fashion or clothing pro, you’re likely to be creative. And this will stand you in good stead for developing a brand for your startup clothing company.
Pick a brand name that appeals to your target audience. For instance, you might choose a brand name based on the age of your target audience, like Fish & Kids. And if your store features your own unique designs, you could always use your name as your brand’s name (just like Tommy Hilfiger and Hugo Boss).
Your logo will be an important part of your brand. You might end up incorporating it into your designs or featuring it prominently on your social media channels.
For tips on making sure your logo is memorable, read our guide to developing a brand identity (from choosing colors to a typeface).
6. Start manufacturing
Go back to your design work and get everything together. It’s time to take your product to the manufacturers. This is the point where you’ll be sourcing the person (or team) who’s going to take your designs and make them a reality.
Of course, if you intend to make everything yourself for now, or with your own hand-picked team, you can skip this step! This also applies if you’re simply looking to buy ready-made products wholesale and sell them on.
To start your search for the right manufacturer, ask around amongst any contacts you have and get a feel for your priorities. Is it artisan craftsmanship you’re looking to source or a commercial supplier with an emphasis on speed and dependability? Manufacturing is a crucial part of any clothing business, no matter the size, so spend time finding, speaking to, and vetting a good list of potentials.
Once you’ve decided, it’s time to have a sample made. Get your chosen manufacturer to run a small batch of your designs and maybe test them against those from another manufacturer. Factor in time to discuss adjustments and improvements, before you pull the trigger on a full product run.
If you want to get more hands-on, you can print the items yourself. Consider getting a Mutoh direct-to-film printer, which will let you make small batches of your designs and play around with them. This way, you can perfect your creations before making a bunch of them for real.
Along with your own aims and reasons for starting a clothing line, think about your potential customers. Who are you looking to sell to? Are they likely to prefer a certain look and feel? Are you designing for people who care a lot about the overall experience of buying from your brand (from a website or shop floor to label, packaging, and email newsletter), or is there a risk of alienating people with fancy packaging or a millennial look and feel?
Whatever you decide, base your brand on your instincts and a bit of research. As far as your budget allows, factor in cash for packaging and your customer communications, and above all, try to be consistent. It’s no good using beautiful packaging one month and a battered jiffy bag the next.
7. Test your product
Looking to use up those sample run designs? Taking them to market can be a great way to test your product without committing to the full product run. Market trading spaces, school fairs, and online platforms like Facebook Marketplace can be great places to start, taking notes and asking your customers all the time for their feedback on the product, and anything else they’re looking for.
You’ll find that the market research stage never quite ends, as you’ll forever be adding new products to your line, and working out what sells and what’s less popular.
Feedback is an important form of business currency and a way to fast-track your growth, so take it on board and refine your fantastic products.
8. Launch your product
You’ve tested out your product, it’s selling and you’re ready to order your first full production run. It’s time to get serious about selling your product, and you’ll have a few decisions to make before you launch properly.
Take the time to consider how you’ll:
- price your products
- market your brand
- create an online clothing store, if this is your plan
- organize any deals or promotions
- package up your products
- ship your products (if working on an order basis)
- deal with any returns or customer issues
- plan ahead with your manufacturer for new seasons and busy periods
- manage stock levels and make sure the ordering process is efficient
This may all be in your business plan, but it’s a good idea to refine the details before you go into full-scale production.
Will you join the boom in eCommerce fashion?
With customers enjoying the convenience of having their items delivered (as well as hassle-free returns when something doesn’t fit), online clothing stores have grown rapidly over the last decade.
Starting an eCommerce store can be a lower risk than opening a physical shop, with less investment needed upfront.
It gives you the opportunity to experiment with different products and styles quickly. But you’ll also be joining a very competitive market, which means you’ll need digital know-how to stand out.
This includes:
- building your website (either from scratch or by using eCommerce platforms like Shopify or BigCommerce)
- search engine optimization (SEO)
- social media advertising
- giving excellent customer service remotely
9. Scale up
You’ve done it. Your clothing company is launched, you’ve made your first sales and you’re ironing out the creases. Scaling may well be on your mind as an ambitious business owner, with plans for new products or bigger orders.
Take some time to reflect on how your business is going, before committing to any big next steps. In fact, it pays to keep things small and simple for your first couple of seasons, getting to know the reality of production, supply chain optimization, and fulfillment before taking on the next challenge. Your business plan may reflect your growth timeline, but again, be flexible.
Your first job may well be to hire your first employee, to help you with all of the above, giving you some much-needed breathing room to take stock of the clothing business you’ve created.
Tips on How to Start a Fashion Business
Are you a fashion lover and thinking of starting a business? Starting any business requires doing a lot of learning, and what better way to learn than from others who have done it. We’ve rounded up some experts to share their tips on how to start a fashion business.
1. Luke Li – CEO (Palaleather)
If you’re thinking about starting a fashion business, there are a few things you need to know. You must first have a thorough understanding of the fashion industry. You need to understand your target market’s demographics, the kinds of clothes or accessories they prefer, and the best ways to reach them. Knowing your product and whether consumers will genuinely want to purchase it are also important.
If you can find a niche market for your product, that’s even better. The next step is to create a business plan. Here, you will establish a clear vision for your business. This should incorporate a market analysis, a marketing plan, financial forecasts, and a production plan. Once you have your business plan, you need to find funding. You can either look for investors and partners or apply for loans from banks.
And finally, once your business is up and running, you need to make sure you’re staying on top of trends and keeping your customers happy. Starting a fashion business is no easy task, but it can be extremely rewarding. You can create a successful company that will last the test of time with proper planning and execution.
2. Ellie Shippey – eCommerce Growth Specialist (EZContacts)
I would believe that nowadays, an internet presence is crucial. Utilize your entire creative capacity to design a fashion website that is both user-friendly and aesthetically pleasing. Include high-resolution images to showcase your products. Also, be sure to give a great deal of information regarding your goods, as customers will want to know precisely what they are purchasing.
The pricing information will also be included on your website. Determine what other retailers are charging for comparable products. Compute and estimate your production costs. Go for a price that is midway between the production cost and the maximum limit. No matter how many fashion ideas your mind might generate, you should start slowly and small.
3. Adam Wood – Co-Founder (RevenueGeeks)
Plan Your Objectives – I would say that this may seem like a no-brainer, but it is the first and most important step that every business entrepreneur must take. Plan your short- and long-term objectives and keep them in mind, as they will propel you ahead. A few months from now, when the tiniest bit of doubt enters your mind, you will have your goals to motivate you to continue.
Plan out all the processes beginning with marketing, funding, finances, and manufacturing, and break your long-term goals into tiny, achievable tasks that you can begin executing immediately. No human interpretation or analysis of the findings is required.
4. Ricardo Pina – Founder (The Modest Wallet)
You must start off thinking like an entrepreneur if you want to create a successful label. This entails comprehending how a firm operates and creating a plan that outlines short-, medium–, and long-term objectives. Once your business is up and running, cultivate trusting connections with suppliers, customers, and investors by always being dependable and forthright in your dealings.
5. Nely Mihaylova – Content Executive (Scooter Guide)
Starting a fashion business involves range planning, collection design/development, fit and pattern development, sample production, and fabric and trim selection. Establish a budget right away to avoid overbuilding your collection. You will have to spend money on developing each style.
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