How to Start My Own Sewing Business

Tuesday, April 1, 2014

How to Start My Own Sewing Business

Sewing is the craft of fastening or attaching objects using stitches made with a needle and thread. Sewing is one of the oldest of the textile arts, arising in the Paleolithic era. Before the invention of spinning yarn or weaving fabric, archaeologists believe Stone Age people across Europe and Asia sewed fur and skin clothing using bone, antler or ivory needles and "thread" made of various animal body parts including sinew, catgut, and veins.

Although usually associated with clothing and household linens, sewing is used in a variety of crafts and industries, including shoemaking, upholstery, sailmaking, bookbinding and the manufacturing of some kinds of sporting goods. Sewing is the fundamental process underlying a variety of textile arts and crafts, including embroidery, tapestry, quilting, appliqué and patchwork.

Many people, especially stay-at-home moms, dream of being able to begin their own business from home. Those that already have a trade or skill are one step above the rest when it comes to determining what type of business to operate. Many moms have a skill, such as sewing, that they deem only as a hobby. Consider turning that hobby into profit and beginning a home sewing business.

If you enjoy sewing, creating interesting clothing patterns or performing alterations and tailoring, starting a sewing business may be the perfect business opportunity for you. Depending on your skills, there are many different types of sewing projects available including dressmaking, costume design, special occasion clothing, embroidery and clothing repair. Keeping up with fashion and sewing trends is the best way to attract a variety of customers and maintain regular clients. Referrals from these clients help you build an even larger customer base.

Step 1

Write a business plan to guide you through each stage of business development when starting a sewing business. List the types of sewing services you plan to offer in the first section. List start-up costs, such as sewing machines, thread, patterns, computer equipment and software, in the second section. Outline a marketing plan to attract customers in the third section. List owner and employee responsibilities in the fourth section.

Step 2

Register your sewing business if forming a limited liability company, corporation or partnership with your state's secretary of state office. Contact your local small business administration or county clerk's office to apply for a business license. Purchase home-based business insurance if running the business from your home or general business insurance to cover the costs of a lawsuit, settlement or damage to sewing equipment. Contact the Internal Revenue Service to apply for an employer identification number to use on business documents and tax forms.

Step 3

Create a studio in your home to meet with clients, complete sewing projects and to store equipment and supplies. Contact the local small business administration office or home zoning commission office to inquire about the rules concerning home-based businesses, as some regions do not permit business owners to meet with clients in residential areas. Lease commercial retail space to meet with clients. Contact a commercial real estate agent to locate available space.

Step 4

Purchase start-up equipment such as a sewing machine, thread, needles, embroidery supplies, ready-made patterns, computer software for creating and printing patterns, invoicing and bookkeeping software.

Step 5

Market sewing services in local newspapers and magazines. Display flyers in local dress shops, grocery stores, dry cleaners, wedding shops and other local businesses. List your business in online and print business directories. Create a website to highlight your best work. Include photos, customer testimonials, sewing services, contact information and hours of operation.

Tip

Create sample pieces to show potential clients that demonstrate your creativity and sewing expertise.

Warning

Always present clients with your best work. Substandard work may result in lost business and lack of referrals.

References (3)

Resources (2)

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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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Tuesday, April 1, 2014