If you are an aspiring entrepreneur with a creative vision, establishing a clothing line can be a great rewarding experience. Whether you are trying to forge a simple line of printed apparel or you desire to introduce a whole new level of sportswear collection featuring quirky pieces and seasonal additions, this guide will help you in understanding how to start a clothing line.
Based on the type of apparel line you are trying to create, there is going to be a variety of steps involved in the entire undertaking. The more involved you want to be in the manufacturing and designing process, the more money, time and effort you will be investing to it. In this guide, you will come to learn the step-by-step procedure of starting a clothing line regardless of what your budget is.
Create a Clear and Firm Business Plan
Your business plan needs to be formed with a clear vision in mind and must highlight how you are intending to managing your clothing line. While laying out the blueprint of your business plan, make sure that you are as realistic as possible regarding the objectives that you are trying to meet by starting your clothing line. Keep in mind that it is okay to often underestimate your profits and get pleasantly surprised that face disappointment by overestimating your abilities. Some of the aspects that you need to give a thought in particular includes:
- Executive Summary: This describes your company’s mission statement and the groundwork of your business venture along with the future plans. With a comprehensive executive summary, you will be able to attract prospective investors, making the executive summary a special need for clothing lines that often requires external funding.
- Company Description: The company description offers the audience an impression regarding what your apparel business is all about, how it is different from the competition and the niche you desire to gain a strong foothold in.
Prioritize Your Company’s Projected Financials
Funding is the basic lifeblood of any entrepreneurial venture, especially in the beginning stages. Even if you are unable to secure external funding until now, it is critically important to get your funding and financial reserves in line and gain a hold of certain basics. Here are some of the things that you need to understand prior to starting out:
- What is the amount of money you will be needing to establish your clothing line? Are you going to extract personal resources such as bootstrapping or will you be opting for a bank loan? Considering an SBA loan or any other different type of small lending is okay to get your clothing line started. Remember that you will need to have collateral if you are securing a loan.
- What are your expenses? Make a list of all your projected expenditures consisting of the materials, manufacturing, equipment, supplies, advertisement, overheads and marketing and so on. On top of that, add up how much would it cost to run your clothing line for the next one year in order to evaluate whether the revenue will be able to keep up with it or not.
Check How Long You Can Survive Without an Income
Analyze how long you can personally survive to wait to see how the company brings good profit, hence, offering you a chance to earn an income. If you are willing to carry on without pulling a salary, make sure whether you want your clothing line as a full-time business or a side thing. Try to imagine your level of involvement and at the same time think that you will be spending more money than generating a similar revenue in the first year of your clothing line business. Once you have established your business, you will be able to expand your company with financial assistance from venture capitalists, angel investors and pre-order coming from stores.
Run a Market Research
In order to ensure that you are meeting the needs of your targeted audience, you will have to conduct market research. This will help you in understanding who is your existing and future competition. Apart from that, definitive market competition will aid you in getting an insight into your target market, giving you an idea regarding how much you will be able to sell your designs at the wholesale and retail level. Moreover, this analysis of the current clothing market will help you in getting examples of apparel that are similar to your in design and how you can improvise to get the better deal.
Hopefully, this any budget guide will help you in developing your clothing line from scratch without much hassle. All you will be needing is conviction and passion to make a name for your business in the industry.