How to Start My Own Clothing Business

Sunday, May 4, 2014

How to Start My Own Clothing Business

If you have a passion for fashion as well as knowledge and experience in business management, accounting, merchandising and public relations, starting your own clothing store is a creative way to put all of these talents into play. Like any start up business in today's economy, selling apparel is a venture that's not without risks. The good news, however, is that if you fill a niche that's missing from the big box stores and that couples affordability with unique designs and personal service, the clients who love what you have to offer will not only bring repeat business but serve as an excellent source for referrals as well.

Opening a clothing retail store is a serious business. This is one industry that can help you earn a steady income every month with ample scope for advancement. As there are many options in the clothing business, it is important to invest in a clothing retail business that matches your interests and meet the needs of your specific customers. There are important tasks you must accomplish before starting a retail business and this how to guide will help you reach your goal effectively. See Step 1 below to get started.

Step 1

Identify your target demographic as well as the market vendor gap that your competition isn't filling, says Charlene Davis, author of "Start Your Own Clothing Store." Let's say you want to design and sell a custom sportswear line for female basketball players who are taller than 6 feet or perhaps evening gowns for women who are shorter than 4 feet. Because department stores aren't likely to carry off-the-rack merchandise for these two extremes, a clothing business specializing in these sizes would have its own unique clientele.

Step 2

Determine the nature and scope of your clothing business and how you plan to operate it based on your financial resources. If, for example, you plan to sell handknit sweaters that you make yourself, it's probably more practical to strictly be an online entity rather than commit to the high overhead costs of a brick and mortar boutique. If you envision a consignment shop, a used clothing store or a retail facility, you need to take into consideration the space requirements for displays and storage, how you'll acquire your merchandise from designers and wholesalers, and whether you'll need to hire employees to help you.

Step 3

Choose a location that is convenient for your customers and affordable for you. Unless a home-based clothing business is strictly mail order, it's not only subject to your city and county's zoning regulations but requires review of your homeowner's liability insurance if clients are on the premises for consultations and fittings. For a brick and mortar store, you need to consider issues, such as visibility, convenient parking and proximity to public transportation, says James Dion, author of "The Complete Idiot's Guide to Starting and Running a Retail Store." If you have your eye on the neighborhood mall, Davis points out that the square-foot lease in high rent metropolitan areas might not only going to be cost-prohibitive but you will have add-on charges for maintenance, a possible percentage taken of your monthly gross and be restricted from operating during hours outside the mall's norm.

Step 4

Create a detailed business plan that identifies your projected expenses for workspace, utilities, office equipment, telecommunications, insurance, licenses, transportation, payroll and benefits, pricing strategies and advertising. The more comprehensive your plan, the higher likelihood of securing a business startup loan. If you're a minority or female small business owner, you may be eligible for federal financial assistance through the U.S. Office of Small Business Administration.

Step 5

Choose a name for your clothing business. If it hasn't already been taken, commence the paperwork with your state registrar's filing agency. Whether your clothing business is home-based or in an actual store, you'll need to acquire a business license, pay the filing fees and place a doing business as notice in your local newspaper. Open a merchant checking account at whichever commercial bank gives you the best rate.

Step 6

Design a professional website that describes the line of clothing you're selling, lets prospective customers know where the store is located, how to contact you and displays high quality digital images along with sample prices. Use online print services, such as VistaPrint, to design and order business cards, postcards and brochures. Join your local Chamber of Commerce as a way to network with other business owners. Advertise your clothing store in the local media, purchase address lists for residential ZIP codes where household incomes correlate to your pricing, and post fliers in high-traffic areas. Dorothy Finell, author of "The Specialty Shop: How to Create Your Own Unique and Profitable Retail Business," also recommends establishing yourself as an expert through blogs, articles and interviews as well as participating in charity events.

Things Needed

Startup capital
Business license
Merchandise
Digital camera
Website
Business cards

References (4)

Resources (3)

About the Author

Ghostwriter and film consultant Christina Hamlett has written professionally since 1970. Her credits include many books, plays, optioned features, articles and interviews. Publishers include HarperCollins, Michael Wiese Productions, "PLAYS," "Writer's Digest" and "The Writer." She holds a B.A. in communications (emphasis on audience analysis and message design) from California State University, Sacramento. She also travels extensively and is a gourmet chef.

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Sunday, May 4, 2014