So you want to start your own clothing line.
Maybe you’ve always dreamed of designing and producing your own clothes, or you see
an opportunity in the U.S. apparel industry—which is worth over $300 billion at this point.
Either way, I get it.
I’m Eric Goldschein, editor at Fundera, and today we’re going to run through the
basics of starting your own clothing line.
As always, we recommend some steps that are the same no matter what kind of business you’re
starting, as well as a few tips that are specific to the industry.
Let’s get started.
Step 1: Develop your background
So, Step 1 isn’t really a step as much as it’s confirming that you have the skills,
knowledge, and passion for the business.
Most people will tell you that you don’t necessarily need a degree from the Fashion
Institute of Technology to start your own clothing line, but I wouldn’t advise walking
into an industry you have no concept of and trying to start a business.
An understanding of the effort and costs to produce a piece of clothing is very helpful.
Let’s say you have a basic background in the world of fashion.
You’re familiar with top brands, you enjoy sketching designs in your notebook, you know
some people in the industry, etc.
What else do you need to know?
Some kind of formal education, even if it’s online, will help you get a sense of industry
standards, what kinds of resources and inventory you’ll need to source, how to price your
products, and so on.
Check out online courses through Parsons Continuing Education or BurdaStyle Academy to develop
your knowhow and skills.
Time spent working in the industry for another brand, to learn the business of clothing,
is another track you can take.
I’m not saying you need to know how to sew and stitch to start your clothing business—not
everyone does.
But it definitely doesn’t hurt.
Step 2: Write a business plan
No matter what kind of business you want to start, a business plan is an essential piece
of the puzzle.
This is a strategic roadmap that outlines how you plan to start and grow your business.
It covers marketing, branding, sourcing, hiring, etc.
Writing a long, detailed business plan can seem a little daunting, but it’s invaluable
for keeping your business on track in the early stages.
You can also share it with investors, lenders, potential partners, and others interested
in seeing your business develop.
We actually have a step-by-step guide on writing a business plan that you can read by clicking
the link in the description, but I’ll give you some of the high-level stuff here.
Your business plan should include:
An executive summary that sums up your business, including your mission, your products, your
financial plans, and general company information like name and address.
A market analysis with an industry description, an overview of your target market, market
pricing, competitor research, and potential barriers to success.
Your organization and management structure, outlining your business’s legal structure
and who the main stakeholders are.
Product descriptions that highlight what makes your clothing line stand out, how you’ll
source and fulfill orders, and the current status of your products.
Your marketing and sales plan, covering the positioning and promotion of your line and
your selling strategies.
Your financial plan and projections, including statements of projected income, cash flow
forecasts, and budgets.
Remember, your business plan is a living document, which you can adjust as your business grows
and changes.
Nothing is set in stone, but it’s important to get the details down on paper rather than
just in your head.
Step 3: Follow trends and/or find your niche
When starting out, you’re probably not going to design and produce socks and scarves and
tops and tights and streetwear and formalwear.
You’re going to have a style and a lane and stick to it.
You can grow from there if and when you find success.
The first part of this is watching trends in the clothing industry and society at large
to see what’s hot and what’s selling.
Maybe it’s in the design of your clothes, or how you’ll source your materials, but
what you’re making should probably in some way reflect market trends.
The other part is finding gaps in the market that you feel you could fill.
That’s your niche.
It could mean designing for a particular audience (noting what that audience is missing), or
designing around a particular product.
This is part of how you’ll stand out from the competition.
Combining a knowledge of current trends with an understanding of what’s missing from
the market is how you’ll find the most success.
Step 4: Understand your market
We already talked a bit about doing market research and knowing who your target market
is, but this is a major part of building a successful clothing line.
As we write in our article on this topic: “Your designs, fabric choices, budget, and
retail outlets all have to cater toward your target demographic’s spending behaviors,
lifestyle, and aesthetic preferences.”
A good way to do this is by studying your potential competitors, the people who sell
products similar to yours, or to a market you want to sell to as well.
How do they market themselves?
How do they brand themselves?
What could they do better that you can do instead?
This part is actually pretty easy, because you probably have an internet-connected device
(if not, how are you watching this video?) that can connect you to the websites and social
media channels of those brands.
How these brands sell will also be instructive.
Do they sell exclusively online, via an ecommerce platform?
Do they also have a brick-and-mortar presence?
And would those channels work best for you, too?
Ask yourself these questions before you go into business, not after.
Step 5: Design, Source, and Produce Your Products
Here’s where we get into the part where you actually create clothing.
If you’ve got your designs ready to go, how do you get started producing them?
There are a few steps here, and they don’t necessarily go smoothly or in chronological
order.
You may need to meet with a number of industry professionals, peers, and experts before you
get this part down.
Here’s where to start:
Find the right materials: If you already know what you want your clothing made out of, great.
If not, seeing what your competitors use, talking to pattern makers, and comparing different
qualities of textiles and price points will help you pinpoint exactly what your clothing
should be made of.
Partner with the right manufacturer: You’re not going to sew and produce all of your clothing
yourself—though, again, knowing how to do it will help you understand the work involved.
You’ll need a manufacturer who can produce to your specifications while maintaining quality.
They’ll also need to match your price point.
It might be a good idea to start with just one product and seeing how your chosen manufacturer
matches your ideals before you move ahead to produce other products.
We’ll include a link in the description to A Better Lemonade Stand, which has information
on how to find the right manufacturer for you.
Step 6: Build Your Team
Whether you need to hire people to promote and market your business or handle your accounting,
or you want insights from experts who have walked this path before, make sure you build
a team that can help you reach your goals.
If it’s in your budget, hire a consultant who can help you navigate the beginning stages
of starting a clothing line.
Their experience can be invaluable in overcoming obstacles to success, spending your money
in the right ways, and avoiding financial hiccups.
Step 7: Find your funding
The last step is to make sure you have the capital on hand to make all the right investments
at the right time.
There’s no doubt that a major source of investment is going to be your own savings
and earnings.
That’s called bootstrapping, and it’s how a lot of these businesses get started.
If the time comes that you need a little outside help, look into financial resources like grants
and loans.
That could mean using crowdfunding platforms like Indiegogo, receiving funding from an
angel investor, or seeing what your alternative lending options are if you haven’t been
in business long enough to get a bank loan.
Cash flow issues can sink a business rather quickly—so don’t let that potential problem
sneak up on you.
That does it for the basics of starting a clothing line.
There are a ton of other little steps and and tips for ensuring success along the way,
so be sure to check out our write-up on this topic on the Fundera Ledger blog.
You can find information for starting virtually any kind of business or tackling any kind
of small business problem on the Ledger as well.
Make sure to subscribe to our channel, let us know what questions you have in the comments
below, and thanks for watching.