Starting your own clothing business doesn’t have to be complicated, especially when you decide to open it out of your own home. Selling online is the newest way to create your business, and can be much less expensive than purchasing or renting a building—but how do you start?
To start an online clothing business from home:
- Know the industry and your product.
- Make your business plan.
- Get any licenses and insurance you may need.
- Create your point-of-sale system and online store.
- Create your inventory.
- Market your inventory.
How can you easily start your new clothing business? As long as you know your product and can market it online, you it’s easy! Read on to find out more about how to make your process even easier.
Know the industry and your product
The clothing industry can be considered a fairly saturated market, but that doesn’t mean you can’t start selling. What makes your clothing unique? What is your niche? Find what people are looking for by doing market research before you do anything. If you find that there is an underserved part of the community, you can latch onto that and market directly to that demographic. And don’t worry about oversaturation—everyone needs clothing at a decent price.
Make your business plan
No matter what kind of business you’re starting, you have to create a business plan. Even if you’re at home, this plan can help to outline your entire business, including how you plan to operate, your finances, how you plan to manage your business, and if needed, any staff choices you need to make. Don’t think that any information you include in this plan isn’t unnecessary—if you decide down the road that your company needs to grow, you’ll be happy to have this information.
There are many things to include in your business plan, and one of the most important is your business structure. Most businesses, especially at home businesses, work best if they are registered as a limited liability company. Legal help may be necessary as you go through this process, so make sure to talk to a lawyer to set up your LLC status.
Within this plan, you should also consider getting insurance. Even if you are just selling items out of your home, protecting yourself, your home, and your business is key. Talk to your existing home insurance provider for more information.
Within your business plan, you should also consider the name of your business. This can also be something you decide at the end of the process, but make sure that it is not already being used by searching online.
Define your business within your business plan. What do you want to do? What is your business? What are your goals? Write these down, no matter how small or large. Having them within your plan will make them feel more real and therefore achievable.
Your finances should also be included in your business plan. Since you will not have the expenses of a physical location, you will not have to pay for rent, utilities, etc. outside of your home. But, note that you may have to budget for additional utilities depending on what you’re doing—if you’re using more electricity or need faster internet, that may be something to include in your business plan. You should also include finances for your inventory and your website and point-of-sale system.
Additional information on how to create your business plan can be found at the Small Business Administration’s website in their guide.
Traits You Need Before You Start a Clothing Line for FREE
Get any licenses and insurance you may need
This is important before you even start your business creation. Your home insurance provider will be able to help you in this respect; get in touch with them with some of your business information to make sure you’re covered in case of emergency.
As you start your business, you will learn that you need some business licenses. No matter what or how you plan to sell your clothing, you should make sure you are in compliance with your local, state, and federal government. You will need an employer’s identification number, because that allows the Internal Revenue Service to collect tax on your products. You will also need a business license before you start to sell.
Create your point-of-sale system and online store
You have many choices when it comes to putting together your point-of-sale system. Since you are selling at home, everything will be online, and therefore you do not have to worry about cash transactions. That being said, you should set up your shop’s online presence first, as many websites or selling platforms actually include a point-of-sale system in their business model.
Sometimes, your point-of-sale system is your website. Find the best way to sell your items online before you create your inventory—getting familiar with the process before you start will make things that much easier. Some of the best places to sell your products online include:
- Amazon
- Big Cartel
- eBay
- Etsy
- Magento/Adobe Commerce
- Shopify
- WooCommerce
Before you create your online store, note that some websites have a cost upfront or a monthly cost to creating your store. Determine how much you want to spend on your online store before you make a decision. When it comes to your website, too, make sure it matches your branding—your logo, fonts, colors, etc.—consistency is key when it comes to marketing, and people want to purchase their clothing from a professional and reputable seller.
How to Start a Small Fashion Business
Create your inventory
This is both the hardest part and most fun part of creating your own clothing business. You cannot make a single sale without inventory, and this is how you decide how you’re going to develop it. Is this the point where you start making your items? Are they handmade, or are you getting them from a wholesaler? Are you printing graphic tees, or are you crocheting sweaters by hand?
If you decide to go with a wholesaler, make sure you do your research before deciding. Check on the quality of the items and their customer service—if you plan on working with them for a long time, you want to make sure they work well with you. This is also the point to ask whether they will ship items themselves. If you’re looking into this process, make sure you can customize the shipping material, as that is part of your branding.
No matter how you get your inventory, this is the time to start creating it. If they do not take long to create, make enough to photograph and put online—too much inventory can tax your home and if they do not sell right away, hurt your confidence.
Market your inventory
Now that you have your inventory and your way to sell them, it’s time to start marketing your items. If people don’t know about your products, they can’t purchase them, and one of the hard parts about working at home is that people cannot just walk into your business—they have to find you online.
If you’re working off a website, make sure you link everything back to it, regardless of what social media you’re advertising or posting on. You should also make sure you have a consistent brand—developing it and making sure your logo, fonts, and colors are all consistent among your social media pages is important not only for you, but for your customers. This also includes your packaging—since you’re selling online, make sure that the way you package your items displays who you are as a shop. You don’t want their first physical impression of you to be a bad one.
You can advertise online for free through your chosen social media pages—make sure you set up a post schedule so people know what to expect and when to expect your posts.
No matter what choices you make as you develop your clothing business, stay true to the reason you started it in the first place. What made you love it, and what made you want to take the plunge in starting your own? If you keep that belief to the forefront of every business decision you make, you will find success.
RELATED QUESTIONS
Where do clothing stores by their merchandise?
Most larger clothing stores purchase their merchandise through wholesalers. Currently, not many retail stores make their products themselves. For smaller online stores, some of the best places to find merchandise is through wholesalers, whether they are websites or boutique clothing trade shows, the actual manufacturers, or other boutiques.
How do I sell products online without an inventory?
While some turn to multi-level marketing businesses for this, there are other ways to go. Selling print on demand helps if you are creating graphic clothing—you can print your items only when there is a sale made. Third-party fulfillment centers will stock and ship your products for you, while drop shipping allows you to sell items and make a commission on the sale.
To learn more about how to start your own fashion clothing line check out my startup documents here
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Meet Shawn Chun: Entrepreneur and Fashion Business Fan.
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a designer or boutique owner at a craft fair, farmers market, retail location or anywhere else I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Fashion Business Boss: I want to help fashion business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.