Starting a Clothing Company

Have you ever dreamed of designing clothes? Do you have a great idea for a business-casual womenswear line or an athleticwear brand? Are you looking to fill a gap in the clothing market? Starting a clothing business could be the path to explore.

If you’re wondering how to start a clothing company, we’ve got you covered. We’ve put together a complete guide to help you get started.

Whether you want to open a retail shop, set up an online store, or design clothes for wholesale, you’ll find all the necessary information here.

Step 1: Planning your clothing business

Create a plan for your business

You’ll need a business plan. It doesn’t have to be elaborate, especially if you’re not seeking bank or investor funding. A lean business plan should suffice.

For more info on writing a clothing company business plan:

• How to Write a Business Plan in Under an Hour
• How to Write a Business Plan
• A Standard Business Plan Outline
• Free Clothing Sample Business Plans

Determine funding options

When starting a clothing company, you’ll likely be dealing with bank loans, investment from friends or family, crowdfunding, and bootstrapping.

Crowdfunding is a great option if your product targets a niche or solves a problem. Bootstrapping or using personal income is another option. Venture capital funding and angel investment are unlikely, and small business loans are not common for new clothing companies.

For more information on funding a clothing company:

• How to Get Your Business Funded
• The 10 Best Side Businesses to Fund Your Startup (Plus One Unexpected Suggestion)
• My 13 Favorite Alternative Funding Options
• How to Ask Family and Friends to Fund Your Business
• Costs of Starting a Clothing Company

Conduct market research

Who is your target market? Define your customers and your line. Where will your line hang in department stores or boutiques? Consider your customer’s price point threshold and the style of your line.

For more information on doing market research for a clothing company:

• How to Do Market Research
• Practical Market Research Resources for Entrepreneurs
• How a Buyer (or User) Persona Can Improve Your Business
• What Is Target Marketing?

Develop your brand

Articulating your brand is crucial for starting a clothing company. Make sure your branding is solid from the start.

For more information on branding your clothing company:

• Who Are You: Day 1 of the Big Brand Challenge
• The Definitive Guide to Building a Brand
• 4 Reasons to Brand Your Business
• Your Brand’s Tone of Voice: Why It Matters and How to Craft It

Decide retail or wholesale

Will you open up your own shop or sell wholesale? Consider your goals and what you want to achieve with your clothing line.

For more information on deciding between retail and wholesale for your clothing line:

• How the Clothing Wholesale and Retail Markets Work
• Ask an Expert: Better to Sell Retail or Wholesale?
• How to Decide Between Wholesale and Retail Sales
• Pricing Your Clothing Line: What to Charge Online Versus at a Boutique

Step 2: Making it legal

Select your business structure

Decide on the business structure for your clothing company. Consider a sole proprietorship, LLC, or partnership.

For more information on choosing the business structure for a clothing company:

• The Complete Guide to Choosing Your Business Structure
• Sole Proprietorship Basics
• Partnership Basics
• LLC Business Basics

Pick a name for your clothing company

Choose a name for your business. Take your time and brainstorm if needed.

For more resources on how to choose a name for a clothing company:

• How to Name Your Company
• Resources and Tools to Help You Name Your Business
• The Complete Guide to Registering Your Business Name

Apply for necessary permits and licenses

Determine which permits and licenses you need for your clothing company. Requirements will vary by state.

For more information on the permit and licensing process:

• How to Apply for a Federal Tax ID Number
• How and Where to Obtain Business Licenses and Permits
• What Is the Difference Between a State Sales Tax ID Number and a Wholesale Account Number?
• How to Get a Business Tax Wholesale Number
• How to Get a Reseller Wholesale License

Handle intellectual property concerns

Determine if you need to trademark your business name and logo. Look into intellectual property rights and file for trademarks or copyrights if necessary.

Step 3: Choosing manufacturers and suppliers

Decide on local or overseas manufacturing

Consider the advantages and disadvantages of local versus overseas manufacturing. Supporting local manufacturing can have positive impacts, but overseas manufacturing may be more cost-effective.

Attend trade shows

Attend trade shows like MAGIC sourcing to find manufacturers for your clothing line.

Do thorough research

Research extensively to find the right manufacturer for your clothing line. Consider the type of line, location preferences, and price range.

Step 4: Finding a location

If you plan to open a physical retail location, research and find a suitable location that fits your target market and budget.

Step 5: Picking a payment system

Set up a merchant bank account

Set up a merchant bank account to handle customer payments. Consider using services like PayPal if a merchant bank account is not necessary.

Choose a POS system and/or an online shopping cart

Select a physical POS system for retail stores and an online shopping cart for online sales. Research different options based on price and transaction processing.

Step 6: Choosing a shipping solution

Select a shipping carrier for your online store. Consider factors such as price, international shipping, and size/weight of products.

Step 7: Hiring employees

If needed, hire employees for your clothing retail business.

Step 8: Marketing your business and establishing an online presence

Focus on building a website, establishing social media accounts, and utilizing social media marketing to promote your clothing company.

Andrew Brooks

Hello!

I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.

My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.

Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!