Start a Successful Clothing Business

What else do I need to think about in order to start my clothing business?

• How will you stand out? This is sometimes referred to as your “unique selling proposition” or “value proposition.” After you’ve decided that you are starting a t-shirt business, fashion line, or apparel company, you can start brainstorming about possible ideas for your products. Write down as many ideas as you can. Some things to think about are: What is hot right now and what is everyone wearing and buying? Do you want to create something mainstream or more unique? Or, maybe you want to try dropshipping or print-on-demand. The more questions you ask yourself, the more ideas you will come up with during your brainstorming session.

• Who will be your target market? After you’ve brainstormed your ideas for starting your clothing business, it’s time to start thinking about your target market. Who are your products for? Women, men, babies? Who will buy your products and how do you know? Be as specific as possible. “Women between the ages of 18-45” is not a specific target market. Some examples of target markets are teenage girls who skateboard, or 40+ men who play golf, etc. The more specific you can get with your niche market, the easier it will be to sell your shirts.

• How will you structure your business? Most people start out as a sole proprietor, but as their company and sales grow, they change their company structure to an LLC, LLP or corporation. Think about how big you want your business to be and then consult with an expert on what the ideal business structure would be for you. Another thing you might want to consider is what type of sales you want to focus on: retail (selling directly to consumers), wholesale (selling to other stores) or both. This might help you decide what business structure is best for you.

• How will you find the best quality supplier? One of the most important factors for the success of your business is quality. You can disappoint someone once, but they won't let you disappoint them twice. A pattern that fades and cracks or a t-shirt that shrinks and rips won’t create repeat customers. Higher quality apparel might cost more to produce but will also allow you to charge higher prices. We recommend starting with a print-on-demand service to test ideas, and once you know a design will sell, you can invest in inventory to lower the product costs and increase your potential profit.

• How will you manufacture your clothing? If your plan is to start a t-shirt business, you might start out by purchasing the t-shirt ‘blanks’ from other manufacturers. This will allow you to offer a variety of sizes, colors, and styles, but keep costs to a minimum. Many t-shirt blank manufacturers have really low minimums, so you can test a few different styles to see what will sell best for your target market.

How Do I Register My Clothing Business?

Decide how you want to register your business. Popular options include a limited liability company (LLC), a partnership or sole proprietorship. You could start with an LLC and change it to an “S” business enterprise or a “C” company later. That way, you can compete with big industry brands and grow your production.

Next, get a trade name certificate. If you’re going to create your own line of skincare products, contact the FDA to find out what licenses you need. Whether you sell online or in a store, a business permit may be necessary depending on the laws in your state. You also need to apply for an Employer Identification Number (EIN) if you hire employees. Even if you don’t hire employees, it may make sense to get an EIN. It’s free and easy to get online through the IRS. If you operate your business from a store, you will also need to get property and liability insurance. 

How Do I Make a Business Plan and Promote My Clothing or Fashion Business?

Your business plan and marketing strategy will be based on how you decide to sell your products. 

ONLINE 

Your costs will typically be lower if you sell your products online exclusively. You’ll most likely want to create a professional-looking website that is easy to navigate. There are lots of inexpensive programs that are easy to use, such as Wix, Shopify and Squarespace. Create simple, but engaging descriptions of your skincare products and show high-resolution photos of your products. If you can afford it, hire someone to shoot photos of models wearing your skincare products. Set up social media accounts and start posting with the goal of building a following. Make sure to link mentions on your social media accounts back to your website.  

STOREFRONT

If you decide to open a store, think about the set-up costs, such as displays, decor, and testers, as well as rent, utilities, and employees. You will also need to focus on ways to advertise your business. Even if you open a brick-and-mortar store, it’s a good idea to have a website and promote your product on social media. Consider getting involved with your local community and business organizations, and don't be afraid to collaborate with other nearby businesses to help cross-promote your products and services.

One of the best things you can do to help start or grow your own skin care line is sign up at skysthelimit.org to get access to business mentors, tools and other support you need.