Keys To Starting Your Own Clothing Company
Starting your own clothing company might be the most rewarding thing you'll ever do, but it can also be the most daunting. It's a huge investment and requires hard work, persistence, and continual improvement. But if you're willing to put in that time and effort into building something that is truly yours, there are many significant advantages to doing so.
So how do you start? What are the pitfalls to look out for? First, let's talk about exactly what you're aiming to accomplish here.
You're not going after a large or broad audience, or even a very targeted one. You've chosen to focus on a specific niche market (e.g., skateboarding, tight-fitting athletic apparel, etc.) or even fewer market segments (e.g., denim, mesh wear, performance wear).
You don't have much of a budget for advertising and marketing. Your product isn't mass marketed; it's still being sold at your local boutiques and at your favorite shops by word of mouth and recommendation (web sales will be the major source of revenue).
The clothing is worn only outside the home, and these clothes are rarely replaced (rarely bought).
You're not seeking a quick profit; you've decided to keep the company in business by saving money from day to day. All money earned will go back into this business.
This clothing line is for a very limited demographic that you have identified through surveys, focus group and personal interviews, as well as customer feedback. You can't just put your name on whatever and hope it will sell. There has to be some thought put into what you're making, and what you're wearing (or wearing over other things) should be intentional and practical (not fashiony or trendy).
Many companies start out with high hopes but quickly realize that it is not an easy task to start one's own clothing line. Here are some helpful hints:
A source of finance is most crucial, but the amounts raised will vary from project to project. The more limited the market for your product, the more likely you'll need to put up the initial investment yourself. However, if you've done your research and have a solid concept in place, you may be able to attract a number of interested investors who might be willing to put up as little as $50,000 or even as much as $1 million. Alternatively, your initial investment might be topped up by investors. Say for example you've invested $300,000 into your project; later on you may find that you need another $50,000 to keep things going.
It's very difficult to get a large loan from a bank without collateral. Without collateral, it's unlikely that a bank is going to trust you with large sums of money. If you're an individual, it can be difficult to open a business account if the company is basically just an idea at that point.
Create and target as much awareness for your brand as possible by creating videos and images for your products and website through social media (e.g., YouTube , Facebook , Twitter ). In order for social media to be effective, it is crucial that you particularly choose the platform that is most effective for your product (for example, video-sharing sites are more effective at drawing attention to clothing lines than Facebook ).
The clothing line should be affordable and easily accessible. This will require that you keep overhead costs down and save money every step of the way by making sure your materials are as cheap as possible while still being good quality. Also make sure to price your items fairly in order to generate demand. You want customers to anticipate your next line; if you keep producing engaging products with low prices, customers will continue buying them.
Don't take out debt unless it's absolutely necessary because then you'll have interest payments (i.e., the money you didn't originally invest will be paid back to you over time) which puts a lot of pressure on your finances and means that every penny is crucial.
Make sure that all aspects of your business are in order before going public (e.g., website, contracts, legal documents, etc.).
And finally, don't get too attached to your idea or idea itself; notice if any of it becomes less compelling or important once the project actually begins.
No matter what kind of business you're planning to launch, there are certain steps that need to be taken before saying "yes" to the opportunity.
Conduct research into what kind of person you want your clothing line to attract. If you're trying to attract women, you should get in touch with a number of them and ask them what kind of clothing they would like to wear. You should also look towards the internet for inspiration and ideas about your particular project.
Consider what other companies are doing in your niche market or industry. Look at their websites, social media pages, and promotional material to see if any of it is particularly attractive or effective.
You will want to speak with an experienced clothing designer who can help you develop the right look for your company. Find out how much the design phase might cost; expect it to be somewhere between $10,000 and $20,000 (for a full-blown fashion line).
Find a reliable and reputable manufacturer who can produce your clothing in the quantities you need, at prices you're comfortable with. This may take some time, so be patient.
Once you've decided to make your clothing line a reality, you need to start putting together the pieces of the puzzle. The following are the steps that will get things running smoothly:
Create a company name and logo . If this is something you want to do yourself (rather than hiring an experienced professional), then it's worthwhile researching trends in fashion industry logos and colors (e.g., are they simple or ornate?) so that you can incorporate what's popular into your own design (especially if you're going for something high-end).
Search the internet for product suppliers . You'll want to make sure that you're getting high-quality materials from reliable and trustworthy vendors.
Create a database of potential customers who might be interested in buying your product. Contact these people and invite them to attend an information session where you will explain the concept behind your brand and offer them free samples.
Work on marketing your company. Be sure to create a PR plan with an aim toward generating media attention for your company/brand (things like press releases, social media posts, etc.).
Search for a reliable and reputable manufacturer who can produce your clothing in the quantities that you need, at prices that are comfortable with. This may take some time, so be patient. For example, you may want to start off with 1,000 pieces of clothing; you'll want to make this figure realistic (i.e., don't expect to get a 1% return on 10,000 items).
Find a place to store your products . You'll need shelf space or the ability to store your products via third-party storage facilities (for example, you could pay for warehouse space for a year in advance).
Start designing the packaging for your product.
Conclusion
Building a business from the ground up is both rewarding and challenging. The more research you do before officially launching your company, the better off you'll be.
Looking to build a clothing line? Start your research with a product creation guide .
Readers, what kind of tasks did you do in order to get ready for your own clothing line? Share your tips and ideas in the comments section below.
What's more, check out this video tutorial by Diggy Simmons that details steps to starting a fashion business .
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