Setting Up Your Clothing Line
Being passionate about design and business
A lot of successful clothing brands are founded by people who have a genuine interest and passion for fashion and textiles. However, the success of a clothing line rests on more than just the aesthetics of the garments it produces.
Most people don't realize how closely the worlds of fashion and business are intertwined. Many of the same factors apply to launching a clothing line as they do to starting any other business. Exactly how much does it take to get going? When is the best time to look for startup funding? What kind of assistance will you need to deal with the financial, legal, distribution and production aspects of your business?
To be successful in the clothing industry, you must have a thorough understanding of everything from marketing to production to distribution. You'll be able to produce items that appeal to your target audience if you have a creative streak, while your business acumen will help get you through the early stages of your start-up, assisting you in building a successful business from the ground up.
Your business plan
A business plan is the practical side of your business, and it can help you determine if your ideas are feasible. To increase your chances of success with your clothing line, you need to have a solid business plan in place.
Business plans include an overview of the current state of your clothing line, as well as a five-year vision for its future expansion and development. It defines your business objectives and how you plan to achieve them. In addition, market research is included to back your goals. Consider your target market, the amount of capital that is required, and whether or not you will need to employ staff or other resources.
Here are a few things to consider when writing your business plan:
- What kind of clothing line do you wish to run?
- What does your timeline look like?
- Indicate who your immediate competitors are.
- Give a general outline of your target audience.
- Provide a brief overview of your marketing strategy.
- Provide a summary of your financial goals.
Calculate a realistic timeline for your start-up
When planning a project, it is critical to know how long it will take to complete. When it comes to starting a clothing company, many people underestimate the amount of time it takes, especially if they are unfamiliar with the work involved.
Realistic timetables will help you understand how long it will take to get your products into the hands of consumers. At the heart of any business plan should be a startup schedule. It reflects what you want to achieve and how you want to get there.
The following details should be included in any timeline you create for your project:
- Tasks that must be done before the launch
- The deadlines for completing the tasks
- How long do you anticipate each task will take?
Register your business
To begin, you'll need to decide whether you wish to operate as a sole proprietorship, a partnership, an LLC, or a corporation.
You should weigh the advantages and disadvantages of each type to determine which is most appropriate for your objectives.
It's possible to start out as a sole proprietorship and then incorporate or form an LLC or corporation. In some cases, you may be required to register your business with the state in which you plan to conduct business. Although it is not required to register with the state, you may choose to file a DBA (doing business as) to register your business name. You can find out how to register your business in Canada here.
The costs involved
Having a clear picture of your start-up costs is a vital aspect of company planning, and it eliminates the risk of running out of money.
Failure to secure sufficient early funding is by far the most common reason for new companies failing. A clothing company's start-up costs include design, manufacturing, distribution, branding, renting or purchasing a store, recruitment and marketing fees. Be prepared for high start-up costs if you want your business to make a waves in a very competitive industry.
Depending on the size of your clothing line, launch costs in Canada might range anywhere from $500 to $5,000. For a major clothing line, startup costs can range anywhere from $25,000 to $50,000 or even more.
Find out more: Need funding? Check out our guide on small business grants.
Securing funding for your clothing line
The inability to raise initial funding is the primary cause of failure for most new businesses. When it comes to financing, the most common types of finance option for a clothing line are business loans from financial institutions and investments from angel investors.
Angel investors are one of the most popular sources of investment for a fashion line. An angel investor is a wealthy person who will give you a financial boost. They'll either grant you a loan or take a stake in your company in exchange for capital.
Grants are an alternative source of funding that don’t require repayment. Getting a grant in Canada to fund your clothing startup will need a bit of effort and its not a financing option you can consistently rely on. You can read our guide on small business grants in Canada for more information.
Your pricing structures
Identifying your cost per unit (also known as CPU) is the first step in developing an efficient and reliable pricing plan for your garments. It's necessary to take into account the costs of running and maintaining your clothing brand.
Consider your competition's pricing too. If you don't know what your competitors are charging, you run the risk of undercharging and losing out on profits, or overcharging and losing out on customers.
Adhering to clothing line regulations
Your brand could be shut down or fined if you don't have the required permissions and licenses in place. Operating a clothing line may necessitate getting a state license and following clothing regulations. As a business owner, you should understand all regulations, licenses and permits that apply in Canada.
Also, having a distinctive merchandise, idea, design, or branding means that you should file for trademarks and copyrights designed to safeguard your intellectual property.
Clothing Design and Manufacturing Process
Sourcing from manufacturers
Finding a reliable clothing manufacturer is important as you make plans to launch a clothing company. To find an apparel manufacturer, you can use online directories, social media, and forums to search for a suitable one.
You can use print-on-demand services, outsource to local factories, freelancers, or have it shipped from overseas, depending on your needs.
Recognize the capabilities of your garment manufacturer - quality, time to produce, specialization and minimum orders. Make sure to examine the advantages and disadvantages of each manufacturer before making a final decision.
As your business grows, a manufacturing partner will allow you to focus on other parts of the business and design, freeing you up for other tasks. There are some exceptions to this rule. If your business model has a handmade element, there will always be an element of handcrafted quality in your products even if your business grows tremendously.
When working with a clothing manufacturer, a minimum order quantity (MOQ) must be met for each item to be produced.
Designers develop a garment technical pack, which contains all of the information a clothes manufacturer needs to make the design a reality. Front and back images are included, as well as measurements, color references, fabric composition, printing, logos, and size. Stitching color, for example, is one of the many small components that make up this pack.
To ensure that your production runs smoothly, you should provide your manufacturer with as much information as possible. If you do not provide a garment pack, it may be challenging for a manufacturer to turn your idea into a working prototype.
You have the option of buying your clothing line's materials online from e-commerce fabric providers or in person from a physical store. While online retailers may offer lower prices or wholesale discounts, exploring a physical store will enable you to have a feel of the fabric before making a purchase. Importing fabrics to Canada is generally duty free except in a few instances.
Marketing Your Clothing Line
Establish your brand identity
Your brand’s identity will have an impact on how customers view it, and it will distinguish you from competitors. You can use your brand identity as a guide for developing your clothing line, setting up an online store, and promoting your business. To build client trust and loyalty, having a strong brand reputation is essential.
A good logo design is all about making a positive impression on your target audience. As a result, you'll ensure that you're the first choice over market rivals. Prospective clients should have an opinion of professionalism when they see your logo for the first time. Customers may be intrigued by a company's logo if it is eye-catching and piques their interest to learn more about what your brand offers.
The importance of an online (and offline) presence for a clothing line
Last but not least, if you want to create a clothing line, you'll need to focus on marketing. Customers are more likely to make a purchase at your store if they can see your designs in motion. To reach your target audience, you'll need to do some major photography sessions and print full-page advertising in fashion-related magazines. Social media has a significant impact in this area.
Following the debut of your clothing line, you'll want to explore other avenues for selling your products, such as marketing them on your social media pages or on online marketplaces like Etsy, eBay or Amazon.
To bring your vision to life, you can consider building your website on Wix, BigCommerce, WordPress, or Squarespace.
Also, consider marketing your product in department stores and boutiques as this would increase the visibility of your brand and drive more sales your way.
Attending trade shows for the fashion and textile industry is another exciting way to diversify sales and get your brand out there. There are multiple apparel and fashion trades shows in Canada that you should consider attending.
Make your brand more trustworthy by creating social proof. To begin creating social proof, ensure you ask your customers for a review after they make a purchase. Reviews help alleviate any concerns that future customers may have about shopping at your new establishment. Keep your branding consistent throughout your website. Increase customer confidence by requesting or adding social proof such as user ratings and reviews to your webpage or sites.
Find out more: Need more advice on this sector? Read our sector-specific articles.
Conclusion
It takes a lot of effort to start your own business. As a result, a large number of entrepreneurs prefer to buy an existing company rather than build from the ground up.
Buying an established company rather than launching a new one has numerous advantages. You save time, of course, but you can also save money.
The potential of an existing business is perhaps the most compelling reason to buy rather than create one from scratch. Alternatively, you may have a better business idea than the present owner. Your passion and zest for the enterprise can rejuvenate it and help it thrive, and making simple adjustments to marketing, staff, or sales strategies can have a significant impact.
Launching a start-up is an exciting but tedious process that takes a huge amount time, effort, finances and many trial and errors. Consider browsing through some clothing line businesses for sale before you make your final decision.
While buying a business has many advantages, you should still understand the process of buying a business, as it still requires research, funding and other considerations.
It's important to weigh the pros and cons of taking over someone else's vision and investing in an existing firm. Will you be content with building on someone's vision? Or would you rather start your own clothing line, and take charge right from the outset?
Whether you decide to start a clothing line or buy an existing one, it’s crucial to educate yourself on how to run a clothing business.
Your clothing line's creation process will include a number of stages, depending on the type of clothing line you intend to launch, so you should be prepared to put in additional resources (in terms of time, effort, and money). There are also possibilities if you want to start something quick and simple. If you’d like more support on your journey to business ownership, feel free to contact us.