So you want to start a trendy fashion business? To be successful, you must learn how to run your business, market your products, and keep your customers happy. The following are some basics on how to start a business in the clothing and fashion sector.
Step
Part 1 of 4: Getting Ready
Step 1. Create a strong and clear business plan
Your business plan needs to outline the goals for managing your clothing business. Try to be realistic as you write this. Remember that it is better to underestimate your profits and then be surprised by the results than to overestimate your abilities and end up being disappointed. Think about this aspect in particular:
- Executive summary – an executive summary explaining the company's vision and mission, also to attract potential investors. Important for all businesses, but especially important for clothing businesses, which often require funding from other parties.
- Company description. The company description provides an overview of your clothing business. What sets you apart from other competitors, the market you want to enter.
Step 2. Prioritize your company's financial projections
Your funds are the lifeblood of the company in its early days. If you haven't got any outside funding, it's very important to get a finance vehicle and master some basic knowledge. Here are the things you need to know to get started:
- How much money do you need to run this clothing business? Do you have the money to run this business, or do you need a loan from the bank? Consider taking out a loan for SMEs, or another type of loan to start your business. To get a loan, you may need collateral.
- How much will it cost? Read the rest of this article, then make a list of all the costs that need to be anticipated (raw materials, production, inventory, equipment, advertising, marketing, etc.). Calculate the cost you need for a year. Can the profit earned cover these costs?
Step 3. Just imagine how long you can do this without getting paid
Do you want to do this clothing business full-time? If so, how long are you willing to wait for this company to make a profit, which will allow you to earn a salary? Or do you just want to do it as a side job? Which if it makes money then it is a bonus, but you value expression more than profit. Try to increase your engagement. At the same time, expect not to give yourself a salary during the first year unless you are really lucky.
You may end up spending more than you earned in the first year. Once the company is established, you can seek funding from investors, artists, and pre-order with a store account
Step 4. Research the market
Who are the current and future competitors? Who is your target market? How much clothing estimates can you sell to retail and wholesale levels? Ask around you. Get feedback. Talk to shop owners and potential customers.
- It's a good idea to be able to get a part-time job in a store that is your target market. Pay attention to what the store is buying and what its customers are buying.
- Look for examples of clothes that are similar to the one you are going to design, learn where and how much they sell. This will help when you are about to sell your clothes.
Step 5. Reinforce your legal obligations
First, determine your business structure (CV, PT, etc.). In the United States, you'll need a tax ID number, business license, and a business license form at your local bank so you can receive checks written in your company name. You may consider hiring an attorney to act as a consultant or to assist in times of need.
Part 2 of 4: Strengthening the Foundation
Step 1. Consider whether you need employees
Do you need help working on your fashion line? Consider what help you need, how many hours per week you need, and how much you can pay.
- If your production is at the boutique level, you may be able to do all the cutting, sewing, and hemming yourself. If you have plans to start a larger business, you will definitely need help with production.
- Do you want your clothes to be locally produced? Organically? Are you willing to manufacture overseas for less money (and lower quality)? These questions will influence who you will hire.
- Do you want a retail location? If so, then you need to hire help.
Step 2. Start building your brand
Now it's time to make an aesthetic-related decision! How you set up your brand will determine what people associate with your fashion line, so choose wisely.
- Choose a name. What name will represent your fashion line. You can use your own name (such as Ralph Lauren, Calvin Klein and Marc Jacobs), a word of your own creation (such as Rodarte or Marchesa), a word from a foreign language (for example, Escada means ladder in Portuguese), or a word something you like (such as Iceberg, Mulberry or Imitation of Christ). Whatever you choose, make sure the name is unique and easily recognizable.
- Brands and company names can and should be different. The name of your company, for example, could be your initials or a variation of your name, while the name of a fashion collection should be given a more creative name and represent the style you carry.
Step 3. Create a logo
Create several different logos, but reduce the selection to one and make sure you are sure of the logo of your choice. People will recognize you by your logo and if you change the logo all the time it will confuse people. Make sure the name you choose is still available and not registered as a trademark (most jurisdictions allow and encourage this).
Part 3 of 4: Making Outfits
Step 1. Make a shirt design
This is the fun part for some people, but it's only 10-15% of the whole process! Sketch, get feedback, and decide which will be your first fashion collection. Choose fabrics and materials that are affordable and have the latest models.
- Ask the department that manufactures your garment if there are any restrictions, such as they cannot print certain colors,. If you are making a t-shirt design, get the following information: the size specifications of the design (how big it can be), the type of t-shirt to be printed, and the weight/quality of the material (for example, choose a thinner and cheaper material for summer wear).).
- Details are everything. As you work on your sketch, create a layout that shows every detail clearly and uses the right terms. If you don't know the term, look for a picture, give it to the manufacturer and ask them the name. Study the jargon and be prepared to identify the ingredients you want to use by weight, content, and arrangement.
Step 2. Design your fashion collection by season
Fashion collections are usually designed based on the season. Most large stores buy at least the next two seasons, while smaller stores buy one or two seasons ahead. You need to design, produce, and ship correctly.
Step 3. Producing from the shirt design
Take your sketch to a tailor, manufacturer, or printer. Usually a sample is made beforehand so you can be sure that the garment is made to your liking. Whatever happens, be sure to ask lots of questions, and always make arrangements in writing.
Step 4. Search for your manufacturer
Do an internet search with the keyword "clothing manufacturer". Many people use the services of garment manufacturers from abroad because the costs are lower. Please note that overseas manufacturers only accept orders in bulk, so ask about the minimum order before you proceed. Shop around, and ask about the timeframe and how soon you can get samples shipped to you. (they must provide samples before your design is finalized for production.
- Please keep in mind that consumers today are more aware of “low-paid labour” than in the past and will penalize clothing companies that use them.
- If you can sew, you can make your own patterns and samples. Consultation with an expert in sewing clothes is also an option.
Part 4 of 4: Marketing and Selling Your Clothing
Step 1. Create a website to promote your fashion line
Make sure it looks very professional and displays your clothes with the best appearance. Provide a telephone number that can be contacted, to anticipate if there are shops or merchants who want to contact you. If you want to provide the functionality to make purchases from the website, you will need to set up a merchant account so that you can accept credit card payments.
Step 2. Create relationships with websites and blogs that can bring people's attention to your brand and website
This includes selling your clothing line through auction websites as well as arts and crafts websites that allow selling clothes. Relationships drive sales, whether it's through word of mouth or helpful exchanges. Don't forget about it!
Step 3. Promote your fashion line
These costs can reach tens of millions in a year. Here's what you can do to introduce your brand:
- Write an article, send it to local newspapers and magazines.
- Buy advertisements in newspapers and websites that are read by your target audience.
- Sponsor an event attended by your target marketer.
- Get endorsements from artists, or get famous people to wear your clothes by giving them away for free.
- Use social media, such as Twitter, Facebook, and your own blog, to spread the word. Make sure you have a good LinkedIn profile too.
Step 4. Use yourself as a walking billboard
Put on the clothes you made and ask people what they think and record; this will help you to create product designs that people like. Take all suggestions from people; it's like having a marketing and design team without spending a dime. When starting out, finances will be tight, so take every opportunity you can get.
Step 5. Take the order
Sell at festivals, markets and to everyone you know. Make an appointment with a local shop and convince them to sell your clothes. Offer your fashion over the internet. Print out the catalog and send it to clothing stores and potential customers.
Step 6. Go to a fashion exhibition if you have the funds
Paying for a booth can be very expensive, but well worth it, in terms of sales and publicity. For example, the MAGIC fashion show held in Las Vegas, or Bread and Butter held in Europe, are good places for your reference.
Tips
- Sometimes joining a friend or acquaintance who is also a designer can help your fashion line with more help and ideas than doing it yourself. But make sure you're compatible - just because you're friends doesn't mean you'll be successful when you run a business together!
- Just think of a catchy name! It really helps lift your business!
- Make sure your fashion line represents your own principles. If you care about fairness to employees, a healthy and sustainable environment, find ways for your clothing line to live up to these principles and explain them to your customers as well.
- Make sure what you do or bring to the outside is something that can help and introduce your brand.
- Try to find investors who are willing to fund your brand. You might be able to participate in television shows to attract investors and showcase your fashion collection at the same time.
Warning
- Always make sure you can fill the existing orders. You'll get a bad reputation if you can't deliver what you promised.
- Once you get into the fashion industry and start hanging out with artists, you'll start to think you've made it, don't do that. Keep looking for ways to make improvements. Continue to revamp your fashion line and look for ways to move forward. Don't stay in your comfort zone or your brand will become unattractive!
