How To Start a Clothing Line: Opening a Clothing Business

Whether you want to be the next Levi’s or Skechers, or just want to start a local boutique, any of those businesses have to start at the same place—from the beginning. You’ve already decided to create your own clothing line for your clothing business, but how do you get from idea to reality?

Table of Contents

To Start a Clothing Business:

Find out more about the industry and decide what you want to sell.
Create your business plan, including decisions on your name, structure, and finances.
Determine what licenses and insurance you may need to start your clothing line.
If selling online, create your website and point-of-sale system. If selling physically, find your location.
Start creating or purchasing your inventory.
Market your business and inventory to your target demographic.
Make changes as needed.

So how can you easily start your clothing line? What are the advantages or disadvantages? Read on to find out more about the step-by-step process of starting a successful clothing business.

Find out more about the industry and decide what you want to sell

An advantage to the clothing business is that all people need clothing to function. A disadvantage, though, is that everyone has different tastes—so how can you tap into that niche that you’re looking for? While it can be considered a very saturated market with thousands of choices, you need to start brainstorming very early about who you want to sell to, or your target demographic. What makes you unique? What makes you stand out?

One thing to consider is if there is a community that is underserved. If that is the case and that becomes your niche, that community can come flocking to you in droves—when one person finds it, they share with others.

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Create your business plan, including decisions on your name, structure, and finances

Your business plan is the bedrock on which your clothing company is built. Before you even start buying up your inventory, you need a plan from beginning to end. Now that you’ve determined what kind of clothing you want to sell, you can start creating your plan.

This business plan will help you to determine all your operating procedures, your management, staffing, finances, etc. and it is very important, no matter how small your business, that you consider each of these items. Whether you think you’ll need it or not, it doesn’t matter—things change very quickly for small businesses, and it may not be relevant now, but it could be in the future.

Whether you start your business out of your home or do so in a physical location, you should consider insurance and additional licenses. All businesses, regardless of where they’re housed, need to be registered as a business entity. For your safety, becoming a limited liability company is your best option. This separates your personal finances from your professional ones, meaning in times of trouble, your personal assets cannot be seized. Talk to a lawyer for more information.

You should also consider insurance

If you are selling out of your home or online, this is as simple as talking to your current insurance provider. If you are purchasing a location, you should save this step until after making the purchase, as it depends on your location and type of building that you are moving into. Regardless, protecting you, your customers, and your assets is the priority.

You should also name your business in your business plan. While it can be an ongoing process, start making a list of potential business names now, so you can add it to your business plan later.

You should also define exactly what you want out of your business and what your goals are. What do you

want to do, and what are your goals? Regardless of size, it is important to have these goals recorded for the future.

One of the most important parts of your business plan is your finances. If you’re working out of your home, include potential utilities you would use. If you’re looking at a physical location, you will need to budget for rent, licenses, utilities, etc. Both types of businesses should also have budgeted money for your website and social media pages for advertising.

Determine what licenses and insurance you may need to start your clothing line

Mentioned previously when considering your business plan, you should start looking into licensure. If you are working out of your home, you do not need a certificate of occupancy, but if you decide to purchase or rent a building, you will need that and other compliance licenses.

Both types of business require you to have an employer’s identification number and business license before you start.

If selling online, create your website and point-of-sale system. If selling physically, find your location

No matter how you decide to sell your clothing line, you need a way or place to do so. If you are selling online, you can simply create your own website to sell your items, but make sure you have the ability to link up to an existing shop provider to do so. Places like Amazon are great to hit a larger group of people, but the Shopify can be added to your existing website and you have much more control over what it looks like.

If you are selling in a physical store, this is when you need to investigate your options. Where do you want to have your business? Are there better communities to serve your chosen demographic?

Also look for your competition at this point in your process. If there are several clothing stores around a potential building, can you work with that competition, or will it hurt your business? Can people walk in off the street, or is there not enough parking? Make sure you do the proper research before you move forward with this.

Once you do find a physical location, you will need certain permits. A certificate of occupancy is required, along with permits for any utilities like electricity, plumbing, signage, anything outdoors, etc. While each area is different, consult with your local and state governments to make sure you are compliant. A lawyer can help you in making sure you meet all of the requirements before and after you renovate your space, along with making sure that you have all of the permits you need before you open your doors.

Start creating or purchasing your inventory

Whether you’re sewing your clothes by hand or purchasing them from a wholesaler, once you have your location and your business set up, you can start collecting inventory. Do your research on potential wholesalers before you purchase your inventory and make sure they are committed to your success as a new small business.

Market your business and inventory to your target demographic

Remember that target demographic discussed early in the business process? This is the time to start talking to them. Once you’ve set up your store, online or physically, and displayed your inventory, start showing them what you’ve got.

Marketing online is your best option in our modern age, and there are ways to do so that are free. You can work off your website—and in many cases, it’s part of your shop—and make sure everything is linked back to it. If you’re posting on social media, make sure to keep things on a schedule. Whatever you do, stick with marketing where you find your target demographic and make sure your branding is consistent.

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Make changes as needed

When you open your business, it’s important to not only stay consistent with your business, but also make changes if you find things not going the way you want. The longer you spend in the business, the more likely it is you will figure out what you like and don’t like—and don’t be afraid to adjust! If you find yourself struggling, ask for help. There are plenty of people who have gone through the same process and would be willing to share their experiences. The only way you are guaranteed to fail is if you don’t learn from your mistakes and your successes. Make sure you learn to grow as you go, and you too will find success.