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How to Start a Clothing Line: The Ultimate 12-Step Guide

Caroline Goldstein

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Maybe you’ve been sketching designs since you were a kid, have been making your own award-winning Halloween costumes for decades, and have already sold out of the custom T-shirts you’re making out of your garage. Or maybe you’re just intensely entrepreneurial (and obsessed with style) and want a piece of the trillion-plus dollars floating around the retail industry. Regardless of your drive, knowing how to start a clothing line is very different from just wanting to start a clothing line.

Luckily, many scrappy clothing entrepreneurs before you have launched their lines to great success, and they’re willing to share their tips with you.

We’ve interviewed a few of those business owners to put together this guide on how to start your own clothing line, from product idea generation to funding your business through a small-business loan (and some words of much-needed wisdom to power you through your pursuit).

online clothing line business plan

How to start a clothing line

With the competition, complexities and even intimidation associated with the fashion industry, you may be concerned that as an entrepreneur with no experience, you won't be able to start our own clothing line.

When it comes down to it, however, unlike, say, becoming a doctor, starting a clothing line doesn’t necessarily require special training or a degree. In fact, most of the designers we spoke with had no formal experience in the fashion industry before starting their businesses.

That said, you do need to completely dedicate your time and energy into launching your clothing brand.

Bianca Dabney is the founder of BIDA, a sustainable, minimalistic streetwear line. Her modeling and acting career instilled in her a love for the fashion industry and an understanding of how garments are presented and marketed. Still, she says:

"The most challenging part of starting my own business was actually gaining the confidence and self-assurance that I could and should start it."

Like many of us, Dabney knew college was the clear path laid out before her. "I was raised thinking that going to school and working a corporate job was really the only option, and I was nervous to finally let go of that mentality and see that there were other paths," she says.

She founded her business without any formal training and used her experiences working as an actress and model in the industry instead:

"I’m also a self-taught designer, so finding the resources to create the brand was rewarding yet challenging. Self-motivation, determination and my passion helped me to become an expert in my field."

Like Dabney, you might find that the hardest part of the process, at least psychologically, is committing yourself to actually starting your clothing line. But if you understand that the process will require long hours, impeccable organizational skills and a potentially steep learning curve, you’re fully capable of teaching yourself how to do it — no fashion MFA required.

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1. Write a business plan

It’s always useful to write and implement a business plan at the start of your venture. This plan will act as a roadmap outlining how you’ll reach your goals over the next couple of years. But also know that your business plan isn’t necessarily set in stone.

“Before launching BIDA, I created a business plan that included brand, sales strategy and marketing elements,” Dabney says.

“However, I’ve had to make changes and adjustments based on my customers and the environment. Running a business is an ongoing evolution. It’s important to have a clear plan of action, but it’s equally important to be flexible and be able to adapt.”

That adaptability is especially important in the retail business, which undergoes trend changes all the time.

“It’s both a very exciting time in fashion and a very unpredictable time,” says Ariel Mehrban, founder of True Vision LA, a streetwear clothing line based in Los Angeles.

“The market is seeing new influences every day, and there are always new technologies and new ways for customers to find products. I don’t think anyone knows where it will settle, or if it will ever stabilize. All in all, I think the best strategy for a fashion startup is to stay nimble and adaptable.”

As Mehrban suggests, the constant turnover in the fashion industry can be both a blessing and a curse — and keeping up with the market might mean tweaking your original plan. But having the strong foundation of a business plan can make navigating those changes feel a lot less overwhelming.

2. Find your niche

After you've created your business plan, the next step to learning how to start a clothing line will be to find your niche in the market and in the industry.

Generally, the most successful businesses identify a problem within the market and then design a product expressly to fix that problem. This being said, you don’t necessarily need to dive too deeply into researching the market at this stage. It’s likely that an idea for a unique clothing item will reveal itself as you’re living your everyday life.

Jordan Sack is the founder and CEO of Tillinger, a technical apparel line that specializes in men’s golf-inspired shirts. The idea for his streamlined, sweat-wicking shirts arose when he was interning in Manhattan one summer after college:

“I looked forward to summer Fridays because I finally got to wear short sleeves — but that was still your typical, thick, cotton knit polo shirt. And on the weekends, I would always play golf with my friends and loved wearing the uniform of technical performance polo shirts. But you couldn't really wear those to work because they were brightly colored, heavily logoed and just plain ugly. The idea for creating my own golf shirts didn't arise as an ‘aha!’ moment, but I gradually became more and more interested in making an everyday, work-appropriate polo that had the properties of your typical golf shirt.”

Here’s another approach: If you’re intent upon designing something but you don’t quite know what that “something” is, start by identifying the audience you’d be passionate about serving — whether that’s your peers or a demographic that’s currently underserved in mainstream retail — and think about what they need from their clothing.

For example, Sherri Dombi is the founder of Bee Yourself Apparel, an adaptive clothing line whose design features allow elderly folks to easily dress themselves.

“First you need to have a passion for what you are doing,” Dombi says. “Mine was helping a friend’s dad dress like he used to but allow him to dress independently.”

3. Understand your market

Once you’ve hit upon your business idea, now you need to truly understand the consumer you’re designing for. Your designs, fabric choices, sourcing and production budget and retail outlets all have to cater to your target demographic’s spending behaviors, lifestyle and aesthetic preferences — so don’t get started on any of the above before diving deep into understanding your base.

Part of that research should involve competitor research: studying the companies whose product, marketing and branding strategies you admire, and whose target demographics you share.

“The first step is really to just absorb information,” says Mehrban.

“You need to learn everything that your would-be competitors already know. Part of that time should be spent studying how they are engaging with their customers. What is the value they are offering their customers? It’s usually something much deeper than the garments themselves.

Luckily, this research doesn’t necessarily need to involve special skills or resources: If you have an internet connection and social media profiles, you can garner valuable information about your customers and how to design toward and market your product to them.

“The great thing about our time is that we have access to almost the entire world with social media and various web-based platforms,” says Mehrban.

“If you’re passionate about design, chances are you have a product that people will appreciate. The tough part is finding those people. I don’t subscribe to the ‘build it and they will come’ myth. The short answer? Scour the web. Find the areas that your customers frequent and get your product in front of them.”

Dabney echoes the value of using social media and basic analytic tools to define your audience’s behaviors and needs:

“To pin down my target demographic and their spending behaviors, I executed a pre-launch campaign, which I then analyzed through Google Analytics. Online marketing, such as Facebook and Instagram ads, allows for target demographic analysis, too.”

In addition to their aesthetic preferences and lifestyle, you’ll want to understand how and where your audience spends on clothing, too. That way, you can plan whether to open a brick-and-mortar store, sell on an e-commerce platform, or both. Even if that physical location is a two- or three-year goal, incorporate plans for its launch in your initial business plan.

» MORE: How to start an online boutique

4. Register your clothing business

Now that you've done the necessary background research about your product, target demographic and even startup costs, you'll want to take care of the appropriate paperwork before diving into the actual production of your clothing line.

To this end, there are a handful of tasks you'll want to accomplish:

Choose a business entity type: First, you'll want to select your business entity type — sole proprietorship, LLC, S corp, etc. There are pros and cons to every type, so you'll want to think about which best suits your plans and goals. If you're planning on starting small, you might opt for a sole proprietorship and then create an LLC or corporation at a later time.

Register your business: Depending on the entity type you choose, you may have to officially register your business with the state where you'll be operating. Even if you're not required to register with the state, you might decide to file a DBA, or doing business as, to officially register your chosen business name.

Get business licenses and permits: At the very least, you'll likely need a general business operating license to officially start your clothing line business. If you're going to be operating from your home and starting your clothing line online, you may need specific permits — like a sales tax license and home occupation permit — as well. You'll want to consult your state and local governing agency to ensure that you have all of the proper licenses and permits.

Get an employer identification number: Part of starting a clothing line, or any business for that matter, is registering for and paying business taxes. Therefore, you'll want to apply for an EIN with the IRS. Although an EIN isn't required for all businesses, getting one can help you file your taxes, open a business bank account, as well as access business financing.

» MORE: What you need to open a business bank account

5. Design and source the clothes for your line

After you've gone through all of the steps necessary to make your business official, it's time to get into the meat of learning how to start a clothing line: designing your clothing and sourcing your material.

This can be the most challenging part of the process for many entrepreneurs starting a clothing line, especially those who haven’t worked in the fashion industry before. Here’s how the designers we interviewed went about the process.

Finding the right materials

You might have a clear idea of what kinds of materials you want to create your products with, or you might need to do some exploring first.

Before formulating his polo shirts’ polyester-and-lycra blend, Tillinger’s Jordan Sack conducted his own, self-directed research into the production process:

“I bought a lot of competitor golf shirts and studied the materials they used. Then, I reached out to old friends who worked in the industry and bought them dinner in exchange for their time. It was a lot of serendipitous moments all coming together. One friend led me to a pattern maker, who led me to a grader/marker who knew a cutter. The friend also had a connection to a sample factory in the Garment District. It was pretty scrappy. There's not an easy-to-follow online tutorial. You just have to be resourceful.”

And then, of course, there’s the cost question. A major challenge every designer will face is reconciling the cost and the quality of your materials, though Mehrban says that this decision will be highly individual to every designer’s budget and values.

For their part, Mehrban says, “We’ve found that compromising on quality just doesn’t work. Cost-cutting is an important part of any business model, but we don’t ever work with inferior manufacturers or materials. If we can find something better, that’s what we’ll use.”

Erum Ilyas, the founder of AmberNoon, also decided to leave extra room in her budget to ensure that she was manufacturing her clothing with the most effective textiles available and, as a result, pricing her clothing higher than expected.

That was especially important because AmberNoon’s unique value proposition depends on the quality of its sun-protective materials — Ilyas is a board-certified dermatologist who has run her own practice for a decade. Despite comprehensive public knowledge about skin cancer prevention, it’s still the most common type of cancer today. That inspired her to launch her line of sun-protective clothing that women can wear every day.

“Given the quality of the textiles, the design elements and low minimum order quantities I started with, I do have a higher price point than I would like long term,” Ilyas says. “After all, I want to make sure anyone can access this amazing product for their benefit.”

Depending on your particular goals and mission for your clothing line, you might also find that it’s worth sacrificing your target price-point in favor of lasting, quality materials. When you’re first rolling out your line, you especially want your product to impress your consumer as the best quality product possible.

6. Partner with a manufacturer

Finding the right manufacturer to produce your clothing is crucial to bringing your vision and goal for your brand to life. After all, if you don’t have a reliable manufacturer, your clothing line can’t exist at all.

“You can have a great idea, great concept — covered all of your bases,” says Ilyas. “But if your manufacturer can’t produce to your specifications, and maintain the quality and stay true to your concept, then your message is just lost.”

When seeking a manufacturer, consider factors like your manufacturer’s minimum order quantity, cost, quality and trustworthiness. You might also want to find a manufacturer with in-house pattern makers to streamline your processes.

“The manufacturer I’ve partnered with is a local Bali factory, which specializes in knit and stretch production,” Dabney says. “The factory provides services in development, pattern making and production, so all the elements are under one roof, which is important for quality control.”

To cut down on costs and to maintain your product's affordability, you might consider exporting your manufacturing processes overseas, as Dabney did. Whether you produce your clothing domestically or abroad, it’s worth taking a hands-on approach to searching for your materials and manufacturers.

“There was plenty of trial and error, and we did lose a decent amount of money trying to find the right partners,” Mehrban says about tracking down the right manufacturers to produce True Vision LA’s clothes.

“It’s very hard to tell how a garment will fit, or to guess the hand feel based on a picture. We made the mistake of relying on photo representations before placing wholesale orders initially, and it cost us. One thing I’ve found is that the integrity of the product tends to match the integrity level of the manufacturer, and when that’s missing, you run into problems. It’s very important to work with partners that have the same ideals as you do.”

And don’t feel pressured to produce a full, 10-plus clothing line right from the start, especially if you’re feeling the strain on your budget (or your sanity) — Donna Karan, for one, built her eponymous label off her now-classic “Seven Easy Pieces” collection. So, start by perfecting just a few items, gauge how your market responds, and build up your brand from there.

7. Price your products

To this end, before you can actually launch your clothing line, you'll need to price your products. Once you've found your materials and manufacture, you'll have a better sense of how much it costs to start your clothing line, and therefore, you can price your items accordingly.

With your pricing, you'll want to strike a balance between making a profit and setting a price that customers are willing to pay. This being said, your market research will come into play with pricing — you already should have a sense of who your demographic is, what their spending habits look like and how much they'd be willing to spend on your items.

Of course, you're not married to any initial pricing you choose — just like the items you decide to create, you can always decide to edit or change your pricing as you launch your clothing line.

8. Decide where to sell your clothing line

After you've created your clothing line and decided on a pricing strategy, you're ready to actually start selling. However, before you can launch your line, you need to determine where you're going to be selling.

As we mentioned above, this is something you should have thought about as part of your business plan and research — and now it's time to execute.

Therefore, if you think that starting your clothing online is the best avenue, you'll want to set up the platform to launch your products and your brand. You'll likely want to start by creating your own e-commerce website, as well as social media accounts.

Once you've launched your clothing line, you might decide to diversify your sales channels by actually selling your clothing through your social media channels, or even joining a marketplace like Amazon, eBay or Etsy .

Overall, selling your clothing line online will be much more affordable and manageable than creating your own brick-and-mortar store. Again, if you find success selling online, you might later decide to launch a physical location, or even consider selling your line to larger resellers, like department stores.

In any case, when you first start online, you'll want to choose an e-commerce platform to create and manage your store. You'll want to look for platforms with creative templates — as the design of your online store will be important to customers and to your brand.

You'll also want to look for platforms that can accommodate product variations — in other words, the same piece in multiple sizes or colors — so that you can list your clothing line the way you want. To this end, some top platforms you might consider are Shopify, BigCommerce or WooCommerce.

9. Market your clothing line

After you've set up where you're going to sell your clothing line — whether your own online store, a marketplace or somewhere else, you'll need to actually get eyes on your products.

To this end, without a plan to publicize your product, all the work you’ve done tracking down your producers will be for naught. And if you’re not a natural marketer, know that this is a skill you’ll need to nail in order to keep your clothing line’s doors open (either physically or digitally) — as Mehrban says, “Building a fashion startup is four parts sales and marketing to one part design.”

You don’t need a huge marketing budget or even previous business marketing experience to effectively spotlight your brand; in fact, many entrepreneurs simply use their (free) social media accounts as their main marketing channels. Other than their low cost, platforms like Instagram and Facebook allow for greater transparency and connection with your customer base, which modern consumers value.

“From the very beginning of the process, I did my best to document my journey of starting a company,” Sack says. “That was pretty much my content strategy. I didn't have this huge, creative marketing department. If I was going to pick out buttons, I would take a picture and put it up on Instagram and share that button story for the day.”

Beyond leveraging social media, there are tons of free marketing ideas you can implement to disseminate your brand. The key is consistency and cohesion; ensure that every piece of marketing material or campaign aligns with your brand’s voice, aesthetic, and goals. A disjointed branding strategy is confusing for your customer base, which doesn’t bode well for loyalty — which is key for turning leads into sales over the long term.

Also know that, even if you’ve started your clothing line with a clear understanding of how to market to your customers, customers are fickle. So don’t stop communicating with your customers once your initial research is through. Pay special attention to their aesthetic and buying preferences and adapt your marketing materials and product to suit.

“We started out with a clear vision of the design and branding,” says Mehrban.

“We knew we wanted to sell ‘highly wearable’ clothing, or others may call staples. The challenge was — and in my opinion will forever be — finding what motivates customers to buy. All brands grapple with motivating customers, and it’s something that never ends, even for the most established brands. Once you’ve discovered your segments, you’ll have to continue researching them. Their motivations will change with time, and even the demographics of those segments may change. What worked last season won’t necessarily work this season. The brands that survive are the ones prepared to adapt to highly volatile environment.”

10. Work with an expert

Although your clothing line idea may have been purely your own, you can’t be expected to fully launch your business without some help here and there. This is especially true if you don’t have experience in the fashion industry. Tapping an expert or a community of fellow fashion entrepreneurs may spell the difference between the success and failure of your startup.

Marianna Sachse is the founder of Jackalo, a line of durable and sustainable children’s wear. She didn’t have any design experience, but hiring a consultant and joining StartUp Fashion, an online community of independent designers, armed her with the information and support she needed to get her company off the ground:

“For new designers, I'd highly recommend surrounding yourself with experts. I found a consultant who had worked with majorly successful brands through a design friend, and I did an intensive four-week jumpstart program to get a sense of the competition and what my brand positioning would be. And StartUp Fashion helped me ensure that I had all the materials I needed to effectively communicate with factories, and connected me with a community of fashion entrepreneurs who are a fabulous resource.”

However, don’t simply settle for a mentor just because they have extensive experience in the industry. As is the case with any other individual you let in on an important aspect of your life — whether it’s your significant other, your business lawyer or your business mentor — do a gut check before heeding your consultant’s advice.

“If you don't have a willing friend in the industry who can help,” says Sack, “I'd recommend a consultant, but it’s super important to be able to trust him or her. I've made that mistake. Go with your gut. If it doesn't feel right, it isn't.”

Sachse, too, warns that some consultants claim to be more experienced than they truly are. You’ll find the most trustworthy consultants via word-of-mouth, so start your search by scouring your network (LinkedIn is a great resource for this).

11. Figure out how to manage your finances

You took the first step to managing your finances when you registered your business for an EIN. However, as you've launched your clothing line and started actually getting into the day-to-day of running a business, there are a few other steps that are essential to properly managing your finances and setting up your business for success.

This being said, you'll want to consider the following:

Open a business bank account: Even if you started your clothing line as a sole proprietor, having a dedicated business checking account is important. Opening an account specific to your business will help you separate your business and personal finances — saving you from potential bookkeeping, tax and legal headaches in the future. Plus, like applying for an EIN, having a business bank account will help you when you apply for financing for your clothing business.

Get a business credit card: With all of the startup costs associated with starting a clothing line, a business credit card can be particularly useful — not only as a way to finance your operations, but also to help you start building credit, as well as benefiting from any rewards the card offers. For a credit card that can immediately put money back into your business, you'll want to consider the best cash-back business credit cards.

Set up your accounting: In order to manage your suppliers, manufactures, sales and any costs associated with starting your clothing line, you'll want to set up an accounting system to manage everything in one place. There are a variety of accounting software options on the market.

12. Get funding for your clothing line

Getting your finances situated will help you with the final step in this how to start a clothing line guide — finding financing.

Like most entrepreneurs in any industry, the clothing designers we interviewed mostly bootstrapped, or self-financed, their ventures, using a combination of their own savings and contributions from friends and family. That makes sense, as securing a business loan as a very young startup — without the necessary evidence of a financial track history to show your lenders — can be very difficult.

Other than bootstrapping, there are a few other options for financing a startup you can explore to help you launch your clothing line. Crowdfunding can be a surprisingly lucrative way to raise funds at the very start of your venture; plus, crowdfunding can double as a method of vetting your market and gauging customer interest in your product.

It’s unlikely that you can fund 100% of your operational costs purely through Kickstarter, Indiegogo or a similar platform. You might also consider seeking equity financing, such as an angel investor or even a private equity firm.

These investors will contribute large amounts of cash to help promising startups get off the ground, in exchange for a stake in the business. But only approach private investors if you’re okay with sacrificing a portion of your business’s control.

Frequently asked questions

1. how much does it cost to start a clothing line.

Startup costs can vary greatly across different clothing lines, but in general, a small-sized clothing line will need a minimum of $500 to get started, a medium-sized line should have between $1,000 to $5,000 for startup costs and a large line will need approximately $25,000 to $50,000 upfront.

Before you start planning your clothing line, you'll want to estimate and anticipate startup costs like:

Manufacturing costs.

Product sourcing and material costs.

Designing and delivery costs.

Website and marketing costs (which may include product photography).

Distribution costs.

2. How much do clothing lines make a year?

The national average earnings for clothing line owners is approximately $51,000 per year. Clothing line profits can average between $23,751 and $140,935, depending on your location, line specifics, expenses, marketing efforts and company size.

3. Do you need to trademark a clothing line?

Although you do not have to legally trademark your clothing line, it is highly recommended. Trademarking your brand(s) can protect your creative work and products.

4. How do you source material for a clothing line?

You can choose to source your clothing line materials online via e-commerce fabric suppliers or in-person from a brick-and-mortar retailer. While online stores might offer more affordable prices or bulk discounts, visiting a store in-person will allow you to see, feel and fully experience the fabric before you commit.

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The bottom line

Across the board, the entrepreneurs we interviewed said that patience, adaptability and dedication are crucial traits for learning how to start and run your own clothing line.

Whether you have experience starting your own small business or not, expect to overcome serious learning curves. Starting a clothing line from scratch isn’t always a walk in the park and it involves different challenges than other small businesses.

But if you’re unrelenting in your dedication, you’ll find no better satisfaction than seeing your customers live their lives in your creations — and doing it on your own terms.

“The most rewarding part of starting my own business is that I get to work with clothes I’m obsessed with every single day," Dabney says. "On top of that, I have the freedom to run my business how I like, so I know what I’m doing is a direct reflection of my vision. After starting my own business, I really can relate to the quote, ‘Choose a job you love, and you will never have to work a day in your life.’”

On a similar note...

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Clothing Line Business Plan Template

Written by Dave Lavinsky

Clothing Line Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their clothing line businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a clothing line business plan template step-by-step so you can create your plan today.

Download our Ultimate Clothing Line Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your clothing line as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Clothing Line Business Plan

If you’re looking to start a clothing line or grow your existing clothing line business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your clothing line in order to improve your chances of success. Your clothing brand business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Clothing Line Businesses

With regards to funding, the main sources of funding for a clothing line are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a clothing line is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will generally not fund a clothing line.

Finish Your Business Plan Today!

How to write a business plan for a clothing line business.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of clothing line business you are operating and the status; for example, are you a startup, do you have a clothing line that you would like to grow, or are you operating multiple clothing lines.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the apparel industry. Discuss the type of clothing line you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of clothing line you are operating.

Generally, you will describe your clothing line based on the 1) intended buyer (e.g., women’s, young men’s, etc.) and the type of clothing (jackets, shirts, dresses, etc.).

In addition to explaining the type of clothing line you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the apparel business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the apparel and clothing line industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards looser-fitting clothing, it would be helpful to ensure your plan calls for offering such products.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your clothing line business plan:

  • How big is the clothing line business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your clothing line?

Customer Analysis

The customer analysis section of your clothing brand business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of clothing line you operate and vice versa.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Clothing Line Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Clothing Line Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your Clothing Line business plan today.

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other clothing line businesses targeting the same products and customers as you. Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. For example, an indirect competitor to a sweatpants manufacturer is a company that manufactures jeans as the two are substitute products.

With regards to direct competition, you want to detail the other clothing line businesses with which you compete. For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What products do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. Looking at online reviews of your competitors can provide great insight here.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior clothing line products?
  • Will you provide clothing line products that your competitors don’t offer?
  • Will you make it easier or faster for customers to acquire your products?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a clothing line business plan, your marketing plan should include the following:

Product: in the product section you should reiterate the type of clothing line that you documented in your Company Analysis. Then, detail the specific products you will be offering.

Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu of apparel items you offer and their prices.

Place: Place refers to the location of your clothing line. Document your location and mention how the location will impact your success particularly if you are targeting a specific geographic region.

Promotions: the final part of your clothing line marketing plan is the promotions section. Here you will document how you will drive customers to purchase your clothing. The following are some promotional methods you might consider:

  • Operating a retail store and/or online store
  • Advertising in local papers and magazines
  • Reaching out to bloggers and websites
  • Partnerships with other companies
  • Radio or TV advertising
  • Event marketing
  • Social media marketing
  • Pay Per Click advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your clothing line such as designing clothing, manufacturing, procuring supplies, managing inventory, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th item, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new clothing line.

Management Team

To demonstrate your clothing line’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in the clothing line business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in clothing line businesses and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements. The graph below is an example of the financial projections for a clothing line business.

Projected Sales, Gross Profit & Net Income

Clothing Line Financial Projections

In developing your income statement, you need to devise assumptions. For example, will you sell 100 items per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Example 5 Year Annual Income Statement

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your clothing line design shop, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Example 5 Year Annual Balance Sheet

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a retailer approached you with a massive $100,000 contract to design and manufacture apparel for them. And that doing so would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

Example 5 Year Annual Cash Flow Statement

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a clothing line:

  • Design house and/or manufacturing facility build-out including design fees, construction, etc.
  • Cost of equipment like sewing machines, etc.
  • Cost of supplies/inventory
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include some of your apparel designs.

Clothing Line Business Plan Summary

Putting together a business plan for your clothing line is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the clothing line business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful clothing line.

Download Our Clothing Line Business Plan PDF

You can download our clothing line business plan PDF here. This is a business plan template you can use in PDF format.

Clothing Line Business Plan FAQs

What is the easiest way to complete my clothing line business plan.

clothing line business plan template

Where Can I Download a Clothing Line Business Plan PDF?

You can download our clothing line business plan PDF template here . This is a clothing line business plan example you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Clothing Line business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business plan writer can create your business plan for you.

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How to create a clothing line business plan

  • Nirit Braun
  • Oct 29, 2023
  • 10 min read

How to write a clothing line business plan

A clothing line business plan is a strategic and detailed document that outlines the essential elements of launching and operating a clothing-related venture. It encompasses crucial aspects such as brand identity, the target market, product offerings, marketing strategies, operational procedures and financial projections. Essentially, it serves as a roadmap that guides entrepreneurs through the process of starting a business as well as managing it.

In the current business landscape, having a strong online presence is crucial, making the inclusion of a business website within the plan particularly important. A well-designed and user-friendly website becomes the digital storefront for a clothing business . It showcases the products, communicates the brand's identity and provides essential information such as pricing, sizing and contact details. It can also act as an online store , if necessary.

Looking to take your clothing line online by building a website ? Wix’s website builder has you covered.

What is a business plan?

A business plan is a formal document that outlines a company's goals and how it plans to achieve them. It is used to attract investors, secure loans and guide the company's development. If you are serious about starting a business, it's important to develop a comprehensive business plan. This will help you set realistic goals and increase your chances of success and profitability.

It can also make it very clear what type of business you plan to create, whether that's starting an LLC , corporation or something else.

How to create a clothing line business plan in 6 steps

Now, we'll break down the key elements that go into crafting an effective clothing business plan in six critical steps. Following this process will provide clarity as you define your company mission, understand resource needs, assess the competitive landscape and project growth.

Executive summary

Business and domain name selection

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary serves as the introductory section of a clothing business plan, providing a concise overview of the entire document. It encapsulates the essence of the clothing business idea , highlighting its key components and objectives. A well-crafted executive summary should be clear, engaging and succinct, offering a glimpse into the business's vision, target market, competitive advantage, business type ( eCommerce or other) and financial projections.

Example of an executive summary for a clothing line business

“ChicWardrobe Boutique is a visionary clothing brand poised to redefine urban fashion for the modern woman. With a focus on empowering self-expression and embracing individuality, our boutique curates an exclusive collection of trend-setting apparel that resonates with confident, fashion-forward women seeking unique style statements. By merging timeless elegance with contemporary trends, ChicWardrobe aims to become the go-to destination for individuals who embrace fashion as a form of self-expression.

Our boutique stands out in a crowded market by offering limited-edition, curated pieces that blend quality craftsmanship with innovative designs. Our commitment to sustainability and ethical sourcing further sets us apart, resonating with conscious consumers who value both style and social responsibility.

Seeking an initial investment of $200,000, ChicWardrobe Boutique intends to launch its first brick-and-mortar store in a high-traffic urban district. Our online presence, represented by the domain www.ChicWardrobeBoutique.com, will serve as a seamless extension of our brand, allowing customers to explore and purchase our curated collections with ease.

With a strong foundation, a keen understanding of market trends and a passion for creativity, ChicWardrobe Boutique is poised to become a trailblazing force in the world of contemporary fashion."

02. Business and domain name selection

Knowing how to name a business is a critical step in establishing your clothing business' identity and registering your business . The name should be memorable, reflective of your brand's values and resonate with your target audience. A business name generator or clothing business name generator can offer inspiration and help you brainstorm creative options.

Similarly, selecting a domain name is essential for your online business presence. Your domain should ideally match your company name and be easy to remember. Check its availability and secure it early to ensure consistency across your brand.

Be inspired:

Clothing brand names

Boutique business names

03. Market analysis and research

This type of business plan must incorporate thorough market analysis and research. This section delves into your target audience's preferences, shopping behavior and the broader competitive landscape. Analyze competitors, identify gaps in the market and leverage insights to tailor your business strategies for maximum impact.

04. Operations plan

The operations plan outlines practical aspects of running your clothing business. Detail the proposed location, explaining how it aligns with your target audience and brand image. Describe the interior design and ambiance of your store, as well as any eCommerce website you might need to run it online. Address equipment needs, from garment racks to point-of-sale systems and discuss staffing requirements, emphasizing customer service and product knowledge. You might also want to consider what type of business and how it will be run, for example a clothing dropshipping business is run very differently from a retail store.

05. Marketing and advertising plan

A marketing and advertising plan details how you will promote your clothing business to your target audience. Outline a mix of strategies, including social media marketing, influencer collaborations, fashion shows and pop-up events. Highlight the significance of your online presence, your website and engaging content that showcases your products' style and quality.

You should have a professional logo before embarking on this step as well, as it’s a key element of your branding assets. You can use a free logo maker or clothing logo maker to find the perfect option for your business.

Learn more: How to make a clothing logo

06. Financial plan

The financial plan projects the financial health of your clothing business. It includes startup costs, revenue projections, profit margins and funding sources. Detail your initial investment, anticipated sales growth and the timeline to reach profitability. Outline a comprehensive budget covering all expenses, from inventory and marketing to store maintenance. Keep in mind that the average cost to start a clothing brand can vary widely from $500 for newcomers to $50,000 for more high-end brands.

steps to developing a business plan

Clothing line business plan examples

We’ve put together two clothing line business plan examples in order to show how such a plan might be crafted for hypothetical businesses, each incorporating the key sections discussed earlier.

Clothing line business plan template 1: StreetVibe Apparel

StreetVibe Apparel is an urban streetwear brand that caters to the dynamic lifestyle of modern city dwellers. Our brand encapsulates the spirit of urban culture, offering a diverse range of stylish and comfortable apparel that celebrates self-expression. With a focus on quality, affordability and trendsetting designs, StreetVibe aims to become a prominent player in the streetwear fashion scene.

Company and domain name selection

Company name: StreetVibe Apparel

Domain name: www.streetvibeapparel.com

Marketing analysis and research

Target audience: Millennials and Gen Z who resonate with urban culture and streetwear fashion.

Competitive landscape : Identifying gaps in streetwear options for affordable, quality apparel.

Market trends: Growing demand for streetwear fashion as a form of self-expression.

Location: High-foot-traffic urban district with a strong youth presence.

Premises: Contemporary and minimalist store design, creating an inviting shopping environment.

Equipment: High-quality garment racks, fitting rooms and checkout systems.

Staffing: Enthusiastic and fashion-forward sales staff who connect with the brand's target audience.

Online engagement: Active presence on social media platforms like Instagram, TikTok and Snapchat.

Limited edition drops: Strategically planned product releases to generate buzz and excitement.

Website: A user-friendly business website showcasing the latest collections, allowing online shopping and offering style inspiration through blog posts.

Initial funding: Seeking $150,000 for inventory, store setup and initial marketing efforts.

Projected revenue: Targeting 25% revenue growth within the first year, aiming for profitability in the second year.

Budget: Comprehensive budget covering product sourcing, marketing campaigns and store maintenance.

Clothing line business plan template 2: EcoChic Boutique

EcoChic Boutique is a sustainable fashion brand dedicated to providing environmentally conscious consumers with stylish and ethically produced apparel. Our boutique curates a collection of eco-friendly clothing that blends fashion with sustainability, catering to individuals who seek to make mindful fashion choices. By prioritizing ethical practices and offering a diverse range of clothing options, EcoChic aims to contribute to a greener and more sustainable fashion industry.

Company name: EcoChic Boutique

Domain name: www.ecochicboutique.com

Target audience: Eco-conscious consumers who value sustainable and ethically produced fashion.

Competitive landscape: Identifying gaps in the market for accessible and stylish eco-friendly apparel.

Market trends: Growing demand for sustainable fashion and increased consumer awareness.

Location: Eco-friendly district with a community committed to sustainable practices.

Premises: Earthy and minimalist store design to reflect the brand's values.

Equipment: Recycled materials for displays and eco-friendly lighting.

Staffing: Knowledgeable and passionate staff who align with the brand's sustainability mission.

Educational campaigns: Hosting workshops and seminars to raise awareness about sustainable fashion.

Collaborations: Partnering with local artisans and eco-conscious brands to amplify impact.

Website: A visually appealing website showcasing the brand's commitment to sustainability, offering detailed information about materials, production processes and a seamless online shopping experience.

Initial funding: Seeking $200,000 for sourcing sustainable materials, setting up the store and initiating marketing efforts.

Projected revenue: Aiming for 20% revenue growth within the first year, with profitability anticipated in the third year.

Budget: Comprehensive budget covering sustainable material sourcing, marketing campaigns and ongoing brand initiatives.

Why write a clothing line business plan? Benefits to consider

Creating a comprehensive business plan is crucial when starting a clothing line business, offering a multitude of benefits that can significantly enhance the chances of success. In a lucrative industry that’s expected to reach sales of $494.89 billion by the end of 2023, having a plan of action gives you a leg up on success. Here are some key advantages of writing a business plan for a clothing line business:

Attracts investors and funding: Investors and lenders require a well-structured business plan to assess the viability and potential returns of the clothing business. A thorough plan showcases your understanding of the market, your unique value proposition and your strategies for success. This instills confidence in potential backers and increases the likelihood of raising money for a business .

Organizes your resources: Starting a clothing business entails coordinating various resources, from fabric suppliers to production facilities and skilled personnel. A comprehensive business plan compels you to analyze these needs in detail, ensuring that all elements are in place for a smooth launch and operation. This includes understanding production timelines, material sourcing and the expertise required within your team.

Provides operational clarity: The operational aspects of a clothing business are intricate, involving design, production, inventory management and more. A well-crafted business plan outlines these processes, minimizing confusion, streamlining operations and contributing to efficient resource allocation. It ensures that everyone involved is aligned with the business' operational goals.

Outlines market research: A clothing line business plan prompts you to conduct thorough market research to identify your target audience, their preferences and buying behaviors. Analyzing competitors and industry trends helps you position your brand effectively and tailor your products to meet customer demands.

Guides marketing and branding strategies: A comprehensive plan guides your marketing efforts by outlining marketing strategie s to reach and engage your target audience. This includes establishing your brand identity, designing a unique brand story and creating a consistent visual presence. It also emphasizes the importance of utilizing a business website as a central platform for showcasing your products and interacting with customers.

Allows for risk mitigation and contingency planning: Anticipating challenges and developing contingency plans are essential for any business. A well-structured clothing business plan allows you to identify potential obstacles and devise strategies to mitigate risks. This proactive approach enhances your ability to navigate challenges effectively.

Informs financial projections: The financial section of your business plan provides a clear projection of startup costs, ongoing expenses, revenue forecasts and potential profit margins. This data assists in making informed decisions, securing funding and creating a realistic timeline for profitability.

Fosters long-term success : Beyond the initial startup phase, a business plan provides a strategic framework for the clothing business' long-term success. It outlines growth strategies, expansion plans and the steps needed to maintain your brand's competitive edge.

By leveraging these benefits, you can navigate the complexities of the clothing industry with a well-informed and strategic approach, increasing your chances of starting a business that is successful and sustainable.

Can clothing lines be profitable?

Yes, clothing lines can be profitable. In fact, some of the most successful businesses in the world are clothing brands. Nike, Adidas, and Lululemon are all multi-billion dollar companies that started as small clothing lines.

However, it's important to note that the clothing industry is very competitive. There are many new clothing brands launching all the time, and it can be difficult to stand out from the crowd. In order to be successful, clothing brands need to offer high-quality products that people want to buy. They also need to market their brands effectively and build a strong customer base.

Here are some tips for making a clothing line profitable:

Focus on a specific niche. Don't try to be everything to everyone. Instead, focus on a specific niche market, such as sportswear, streetwear or luxury fashion.

Create high-quality products. Use high-quality materials and construction methods. Your products should also be stylish and on-trend.

Market your brand effectively. Use online and offline marketing channels to reach potential customers. You can also partner with influencers and celebrities to promote your brand.

Provide excellent customer service. Make sure your customers are happy with their purchases and that they have a positive experience with your brand.

Clothing line business plan FAQ

How much does it cost to start a clothing line.

The cost of starting a clothing line varies depending on the size and scope of your business. However, some of the common costs associated with starting a clothing line include:

Product development: This includes the cost of designing, sampling and prototyping your clothing.

Production: This includes the cost of manufacturing your clothing, including the cost of materials, labor and overhead.

Marketing and advertising: This includes the cost of promoting your clothing line to potential customers.

Operating expenses: This includes the cost of rent, utilities and other general business expenses.

How do I start a good clothing line?

How much does having your own clothing line make, is it hard starting a clothing line, how many pieces do you need to start a clothing line, want to create another type of business plan.

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How to Start a Clothing Line Brand Step By Step 2023 Starting a clothing business can be simple with a good plan and idea. Discover how to start a clothing line step-by-step in this detailed guide.

By Haseeb Tariq • Apr 26, 2023

Opinions expressed by Entrepreneur contributors are their own.

Many entrepreneurs, business moguls, and pop stars have achieved great success by starting their own clothing lines. Good news: you don't have to be famous to reap the benefits of a clothing line business or eCommerce platform.

That said, there are a lot of ways in which launching a clothing line can go wrong. Read on for a step-by-step guide covering everything you need to know about starting a successful clothing line.

Understand your audience and competitors

To start a new clothing business , you first need to research what people want in your niche. What is your target market looking for? What styles and colors will be in demand this season? Where can these products be found currently (both online and offline)?

When starting a clothing small business, it is important to do some research. Work your way through the following questions:

  • What are my competitors doing?
  • Who am I targeting with my product and advertising strategies?

Understanding this information will help you define your fashion brand, choose the right clothing items/clothing manufacturer, and determine how to price your products for your potential customers. It may even help you choose your brand name!

Create a business plan for your clothing brand

You need to create a business plan that covers your financials, business model and marketing strategy. This will be the framework for everything you do in the future. It's important to have both short-term goals and long-term goals written out on paper so you can work towards them every day.

It's natural to want to start your business with a sole proprietorship. But it is worth considering an LLC or corporation to create long-term stability and avoid potential complications later on when it comes time to file taxes and open bank accounts, among other things.

Choose your niche or target audience

When beginning a clothing store, the most important decision is what niche your business should cover. Your brand can cover one or two different markets, such as clothes for certain seasons, like winter or swimsuits.

It can be more difficult to find success when designing for the entire spectrum of gender instead of just men or women. Narrowing down your target demographic or customer base will help you create a more focused brand identity and business model.

Plus, new business owners can pick clothing designs based on what's cost-effective (i.e., what makes sense given production costs) and what the clothing industry currently lacks. A successful business will make high-quality clothes that other fashion businesses don't yet provide to customers.

Analyze fashion trends

You'll also need to analyze current fashion trends so you can choose what clothes to provide. After all, your new clothing line won't be as successful if you offer fabrics and articles that aren't in style.

Take a long, hard look at current fashion trends and decide which trends you want to emulate. Market research about sales channels and profit margins will help you decide how and where to sell your products, and studying fashion designers' popular lines (anything from high-quality hoodies to cutting-edge jean styles) should influence new products from your own brand.

Related: 4 Industry Trends Every Fashion Designer Should Know

If you already have some experience in the fashion industry, you can even try to set your own trends or break out of the current boxes the industry is in. That could be one of the best ways to make your clothing line stand out from the competition.

Design your collection of clothing or accessories

Designing your first collection is daunting, but it doesn't have to be. You can start by sourcing and buying existing popular designs or creating a few original print designs for t-shirts. It's important to consider what customers want and how you will scale up the production of the design, if needed.

Find suppliers and manufacturers for your clothing line

It's not enough to have a business idea and some designs. It would be best if you had suppliers and manufacturers who can produce the clothing or accessories in your collection based on specific budgets, timelines, quantity requirements (minimums), quality specifications and more. A good place to look for clothing suppliers and manufacturers is Alibaba.

Related: She Created the Tinder for Clothing. Then a $30 Million Competitor Came Along.

Choose a name for your clothing line and create social media accounts.

It's time to get your clothing line off the ground. One of the first steps is choosing a name for your online store and creating social media accounts, such as Instagram and Tiktok pages, that can help promote products in your collection. These are ways you'll reach customers who may not know about what you're selling yet.

Social media is a great way to get your business name out there. You can also use it as an avenue for customer feedback, which will help you improve customer satisfaction and business operations.

Pick your price point for products.

Starting a clothing line can be difficult, and pricing your items is one of the most important choices you'll make to be successful. You will need to think about how your business will be profitable and what customers are willing to pay to purchase products from you.

There are various ways you can sell clothing, including online or at brick-and-mortar stores like department stores. Promotions and sales are common within the clothing retail industry, so be ready for them.

Reach out to creators, influencers and brands

It's important to build relationships with influencers and creators who have a large following and can be potential business partners. They can help you grow your business by giving their followers some insight into what it is like operating a clothing company or even mention your products on social media for exposure.

Related: Dany Garcia Wanted Clothing That's "Between Athleisure and Power Dressing," So She Launched A New Brand Called GSTQ

Understand how much you need in sales to stay afloat

It's important to know how much business you will need for your clothing company to stay afloat. After all, this is a business, and it needs to turn a profit at some point or else it won't be sustainable. Some retailers use customer lifetime value (CLV) as their metric for success.

The DTC subscription is another business model that could work, where customers sign up for recurring deliveries of products. You might already be buying things using the DTC model. Some of the more prominent DTC companies today include Casper, Dollar Shave Club, and The Honest Company.

Build your online storefront

To launch your clothing line, you'll need to have a place to showcase your products. That means building an eCommerce store for your new offerings, like starting your own business in any niche.

Use a free website builder like SquareSpace or Shopify, or alternatively, hire a web developer and web designer to make a stellar online clothing shop from scratch. You could even run a shop from a third-party eCommerce platform like Etsy.

The right choice will depend upon the startup costs you're comfortable with. Keep in mind that you'd rather spend money on graphic design, clothing fonts, screen printing, and the manufacturing process than on your website.

In any case, take plenty of great photos of your clothing line items so prospective purchasers can see your offerings in as much detail as possible. Having a great content marketing strategy with a clean website will help more than you think.

Related: 8 Ways to Get Your Online Store Making Money Fast

Begin with a soft launch

Soft launches are ideal for clothing business startups because they're low cost and allow you to see how your business will do before investing a lot of time or money. You can also use the feedback from customers and social media reactions, which could be positive or negative depending on what you produce.

In conclusion

Starting a clothing line can be challenging, but it's also rewarding. Successful entrepreneurs know that success in any industry is about more than just the product or service you offer. They understand their audience and competitors, formulate an actionable plan to achieve what they want to accomplish with their company, work hard on marketing themselves and their products effectively and keep learning from mistakes along the way.

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How to Start a Successful Online Clothing Business

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Richard Meadow

11 min. read

Updated November 13, 2023

Free Download:  Sample Online Clothing Business Plan Templates

You’re stylish, passionate, and talented—and you’ve decided you don’t want to work for the man for the rest of your life. You’re going to become an entrepreneur and start your very own clothing line!

This journey is undoubtedly going to be challenging and exciting, so you need to get yourself prepared properly.  Here’s the “checklist” for starting your own clothing line, starting right at the very beginning.

  • Do you have the right skills?

What is your background? Having creative ideas for stunning clothing is a great start. But in most instances, it will be somewhere between ideal and mandatory to have some training or education in design, textiles, and garment creation—sewing or altering.

Although you can have clothes manufactured in a factory on a mass scale, you’ll need to be able to sew and draw initially so you can produce concepts for the factories to adhere to. Plus, it’s always a good idea to test your ideas with an MVP (minimum viable product), meaning that you test your designs by creating a small run before you invest in large-scale production. If no one buys a run of thirty skirts, for example, you’ve lost significantly less than if you finance a run of 20,000 without verifying that people will buy or that retailers will be interested.

Taking classes in marketing, design, textiles, or business is always a benefit in the clothing industry. But studying on your own time is also a good option to consider if you’re not interested in or don’t need formal education. University training will almost always help you expand your knowledge base and give you access to feedback from professionals and peers, but ultimately, developing creative designs is personal—it’s about your own style and ability.

  • Are you suited to having a clothing line?

Do you have the artistic expertise, a strong design ethic, and a real passion for creating a brand?

Yes? Great, you’re probably pretty suited to running your own clothing line. The term “clothing line” refers to designing and producing your own clothing, controlling and directing the process from start to finish. There’s really only one thing that you will 100 percent need if you want to be successful in the industry.

It really doesn’t matter which way you decide to go with your line, this is an industry were passionless people stand out. While everyone says that no matter what your company, you need passion regardless, that simply isn’t the case these days. To be frank, there are actually a number of sectors that allow you start a perfectly successful business without ever having any real passion for the sector or business model itself.

When it comes to clothing, however, you really do need to have a genuine passion for what you are producing. Without it, you simply won’t stand out and enjoy any real success.  

It also goes without saying that you need to be an imaginative person. Having a creative eye is essential.

There is simply no point trying to copy what others are doing in the fashion industry— it simply will not cut it. Your brand’s rep is everything—never forget this.

So, if you’re creative, passionate and original—then you are suited to having a clothing line.

How’s it that we’re sure on that, where do you start?

The first thing you need is a plan, and the first question you need to answer is:

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  • What is your brand?

In any business, branding is important. But for a clothing line, it’s absolutely imperative. Without a strong brand identity, affable story, and admirable ethos, your business will be overlooked for your competition.

Most brands have a great origin story, even the bottom line is that they were started simply to earn more money. Rather than just aimlessly choosing a style without reason, think about what you want to add to what’s already available in the marketplace: luxury, quality, cheap alternatives, additional sizes, or even a completely new style, it’s worth thinking through to create a foundation for your brand which will also serve as a guide in future.

When working out what you want your brand to be, draw on your own experiences and personality as a base. Your entire brand should, ideally, be a reflection of yourself. Consumers are cleverer than you think, and will immediately see through any generic, insincere branding attempts.

  • What is your goal?

Your goal can be as big or small as you want, but while having a big goal is good for the distant future, you should also create some shorter-term, realistic goal for your business plan. Think about how much profit you want to make, or the level of public awareness of your brand you want to generate. The end goal doesn’t have to be for the label to become a global giant. Your line can exist as a side passion project to help you earn extra cash. The key is to figure out what you want.

A lot of new brands attracted the larger companies to buy the name from the owner and encourage a quick turn around in revenue rather than playing the long game, it varies on your passion and investment in your brand.

  • How will you sell?

Next up, you need to work out how you plan to sell your clothing. These days, ecommerce is the best place to start. It keeps startup costs right down, and core retailers and distributors are more likely to talk to you with at least some sales and brand recognition under your belt.

Building a functioning ecommerce website can be ridiculously easy these days—and cheap. You can build a basic Shopify site for as little as $29 per month, and it’s you’re good at the design side of things, you can make it look pretty epic with very little effort.  Remember that your website will need to reflect your brand, which means conforming strictly to your brand guidelines strictly. Nothing puts consumers off faster than a poorly-designed website.

Another platform to consider is an independent listing on a fashion marketplace like ASOS marketplace or Amazon, alongside your own ecommerce offering. This can really help to boost much-needed exposure in the early days, and setting up a “boutique” style hub on ASOS in particular—which costs just £20 a month in addition to a 20 percent commission on sales—has added benefits. People trust platforms like this, and so these sales ultimately build your brand organically.

Selling directly to consumers isn’t the only option either. Depending on your goals and personal investment in the company you could consider selling to retailers as a wholesaler. The demand will be much higher and profits per individual garment lower.  But it also makes the sales side easier, not needing to deliver to consumers or market to individual consumers.

  • How to market it right

I cannot stress how important market research is to any company. When you have settled on the brand, the next step should be market research.

Use (your best friend) Google to research the clothing brands out that are creating similar work or targeting a similar customer demographic. Pay attention to details about competitors, like their size, branding, geographic reach, price, and unique selling points. Use what you learn to work out how you can offer consumers something new, different, and ultimately better .

Marketing starts with testing the product on your target market , it’s a poor move to manufacture 300 garments without having first sought feedback on your prototype from customers in your target market. Creating a minimum viable product will help identify any improvements your garments need. Whether it’s the fit, size, or color, you’ll be able to make changes without investing a lot into an imperfect product.

Asking family and friends to try out your line might work if they are part of your target demographic, but making sure you’re getting unbiased feedback is key. So try to find some people you don’t know to give you feedback. Doing all of this reduces your risk—if your product isn’t viable, you will be out a minimal investment of time and money, but if it’s received well, you might yield repeat purchases from happy customers.

Identifying the right target market is also important—it can make or break your clothing line. Research on how much people are willing to pay for your product, and how much they pay for similar products, will help define your quality standards and pricing.

Online marketing

It’s important to do the basics right. When you’re designing your online presence don’t be afraid to invest in it. If a potential customer likes your clothing but doesn’t trust (or can’t navigate) your websites they probably won’t order. Invest in quality product photography—your images need to look professional and be properly lit. Hiring a photographer for a day or two is worth the investment.

Secondly, it goes without saying that you will need a full and thorough marketing strategy that makes you stand out. The clothing market is unbelievably congested and extremely competitive. In general terms, it is always a good idea to build a strong social media presence through Facebook and Instagram. Via these channels, you can interact with brand advocates directly and develop a clear “voice” for your clothing line.

Putting initial budgets into paid advertising on these platforms is probably most worthwhile for ecommerce sites. You target audience, nine times out of ten, will spend their lives on these channels. Facebook’s model for ad targeting is so specific and niche these days that you can really reach the best audience for your brand.

Also, before you set up profiles on every single social media platform, make sure your target market actually uses them. Instagram, for example, isn’t as widely adopted by people over age 40, so if your range of garments targets that age group, it might be best to stick to Facebook rather than attempting Instagram too.

One way to increase sales and brand awareness is through  celebrity endorsement .  Most “instafamous” or “Z listers” social profiles will list an email address for PR inquiries. Getting celebrities to wear your brand increases follows massively and has the potential increasing your followers. But, be realistic. Don’t depend on celebrity endorsements as your primary marketing strategy, but it doesn’t hurt to try.

  • Keep your startup costs low

One of the main advantages of starting a clothing line business is that it is relatively easy to keep costs low initially.

As you get started, put together a business plan . It will help you decide on and maintain your key areas of focus and should help you put together your initial budgets and financial forecasts, based on your startup costs . It’s a good idea to write down ways you can minimize your initial costs—look at your list of startup costs and define them as either essential from the very beginning, or something that can wait until you’ve started generating some revenue.

Your largest overhead at the very beginning will probably be the clothes themselves, and as you will likely be producing the clothes yourself, you’ll only need the most basic of equipment. Only invest in more professional equipment once demand has increased and you have more capital.

Until you’re dealing with a high level of stock, it’s a good idea to avoid renting space and just manufacture from home. This allows you to be more flexible with working times and keep your day job until you really take off.

One expenditure you should consider is insurance , including basic business insurance, freelance insurance, or professional indemnity insurance. When you’re small and the risk is low, you’ll be able to find policies that cost next to nothing—but should the worst ever happen, it could save you.

If another company claimed that your design, logo or branding was copying theirs, having professional indemnity (liability) insurance would give you the financial backing to battle the claim. It also offers some protection from dissatisfied clients.

From the outset, you should also consider setting up some key financial performances indicators to help you thrive—it’s critical to be able to keep track of how your business is actually performing , versus your financial projections. Think about number of sales, the total profit made per order,  and the revenue you hope to generate within a set time frame.

When you start your clothing line, you’ll need to find the balance between your quality standards, costs of production, and making money.

Almost no one is born with the full stack set of skills to start and run a successful business, so take the time to learn about the parts you don’t know as much much about, whether that’s how to network in the fashion industry, or how to develop a business plan that’s designed for growth.

Be passionate, know your brand, and keep your set up costs low! Good luck!

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Content Author: Richard Meadow

Richard Meadow is a writer that works on topics related to freelancing, ecommerce, and small business advice. He uses Caunce O'Hara as a reference in his work. He is always interested in new subjects and articles to read and enjoys writing about them. He has previously worked closely with ecommerce companies and has found a lot of insight with his experience.

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COMMENTS

  1. How to start a clothing business in 10 steps in 2024 - Wix.com">How to start a clothing business in 10 steps in 2024 - Wix.com

    Write a business plan. Gather funding. Design and create prototypes. Get your marketing campaign up and running. 01. Choose your brand strategy. Before starting an online clothing business you need to ask yourself the following questions that will help to develop your brand strategy: What is your mission?

  2. Online Clothing Store – Forbes Advisor">How To Start An Online Clothing Store – Forbes Advisor

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  3. Clothing BusinessForbes Advisor">How To Start A Clothing BusinessForbes Advisor

    1. Find Your Niche. 2. Know Your Audience. 3. Create a Marketing Plan. 4. Name Your Brand and Create Brand Assets. 5. Register Your Business. 6. Design and Source Your Products. 7. Price Your...

  4. Clothing Line Business Plan in 9 Steps - Shopify">Create a Clothing Line Business Plan in 9 Steps - Shopify

    blog | Starting Up. Create a Clothing Line Business Plan in 9 Steps. The process of business planning for your startup clothing line helps set you up for success. Learn how to create a thorough and effective business plan. by Shopify Staff. Jul 31, 2023. What is a business plan? Why you need a business plan for your clothing line.

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  6. Clothing Line Business Plan Template & Guide [Updated 2024] - Growthink">Clothing Line Business Plan Template & Guide [Updated 2024] -...

    A business plan provides a snapshot of your clothing line as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans. Why You Need a Clothing Line Business Plan

  7. Clothing Line Business Plan In 6 Simple Steps - Wix.com">How To Create a Clothing Line Business Plan In 6 Simple Steps - ...

    Looking to take your clothing line online by building a website? Wix’s website builder has you covered. What is a business plan? A business plan is a formal document that outlines a company's goals and how it plans to achieve them. It is used to attract investors, secure loans and guide the company's development.

  8. Online Boutique Clothing Store Business Plan + Example ...">How to Write an Online Boutique Clothing Store Business Plan +...

    In your business plan, document how you will create a unique brand identity that sets your online boutique apart from competitors. This includes developing a memorable brand name, logo, and tagline, as well as defining your brand’s values, voice, and visual style. Many stores offer customer retention incentives like loyalty programs.

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  10. Online Clothing Business - Bplans">How to Start a Successful Online Clothing Business - Bplans

    Free Download: Sample Online Clothing Business Plan Templates. You’re stylish, passionate, and talented—and you’ve decided you don’t want to work for the man for the rest of your life. You’re going to become an entrepreneur and start your very own clothing line!