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Garment Manufacturing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Fashion & Style

Garment Manufacturing is an Example of a Cottage Industry

Woman working in sewing industry on machine

Are you about starting a ready-made garment factory? If YES, here is a complete sample ready-made garment business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a ready-made garment company. We also took it further by analyzing and drafting a sample ready-made garment marketing plan template backed up by actionable guerrilla marketing ideas for ready-made garment factories. So let’s proceed to the business planning section .

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One very good business that is evergreen and remains profitable is the ready – made garment business. Ready-made garments are mass – produced finished textile products of the clothing industry. Ready-made garments are not custom tailored according to measurements, but rather generalized according to anthropometric studies. They are made from many different fabrics and yarns.

Players in the clothes manufacturing industry and related businesses thrive on creativity, branding (media hype) and good marketing. They ensure that they work with the comprehensive data/measurement of a specific region they intend marketing their garments.

No doubt, starting a ready-made garment factory business is capital intensive and you are going to be confronted with competition from all across the globe hence the need to carry out thorough market survey and feasibility studies before venturing into the business.

As a matter of fact, a good number of American investors who have stakes in the industry prefer to situate their production factory in Bangladesh or Thailand. This is due to the fact that they can easily access cheap raw materials and labor plus favorable government policies.

If you are interested in starting a ready-made garment factory, here is a sample ready-made garment factory business plan template that can help you to successfully write yours with little or no difficulty.

A Sample Ready-Made Garment Manufacturing Business Plan Template

1. industry overview.

Players in the Global Ready-Made Garment manufacturing industry produce men, women and children’s apparel. The industry includes manufacturers that purchase fabrics and those that manufacture the fabrics themselves and have fixed operational facilities.

If you observe trends in the Global Ready-Made Garment Manufacturing industry, you will agree that the industry has greatly benefited from an increasing number of consumers choosing to purchase more garments at lesser prices. In few of that, the revenue in this industry is expected rise going forward.

Rising disposable income levels across both developed and emerging economies are expected to be the main driving force behind the industry’s renewed growth. Continually improving global economic conditions are anticipated to benefit the industry over the five years to 2022.

Rising per capita disposable income, coupled with the steady upward trend in the global population, will give way to rising demand for ready-made garment.

The Global Ready-Made Garment Manufacturing industry is indeed a major sector of the economy of the world and the industry generates over $696 billion annually from more than 284,571 ready-made garment manufacturing companies scattered all around the world.

The industry is responsible for the employment of over 11.6 million people. Experts project the ready – made garment manufacturing industry to grow at a 4.5 percent annual rate. Please note that there is no single company that can boast of having a lion share of the available market in this industry.

Research shows that the hurdles to enter into the Global Ready-Made Garment Manufacturing industry are lower in countries like China, Bangladesh and Vietnam.

Governments and companies in these countries actively seek foreign investment to develop the industry and exploit the comparative advantage they have over more developed nations. Industry operators in these countries also have greater access to less costly labor.

On the other hand, it can be costly to acquire capital equipment and machinery to manufacture apparel on a large scale. Companies from developed countries looking to manufacture have to compete with low – cost countries and large multinational companies that have the capability to set up manufacturing operations overseas.

Over and above, the Global Ready-Made Garment Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you don’t necessarily need to situate your factory in the united states of America if the indices do not favor you. You can take your factory to Bangladesh or elsewhere in Asia or even Africa and South America.

2. Executive Summary

Harrison Cage™ Apparels, Inc. is an international ready-made garment manufacturing company with its administrative and marketing offices located in Austin – Texas and production factory located in Bangladesh. We have been able to secure a large warehouse in a strategic area in Bangladesh that will be converted to our factory. We were able to out rightly buy over the facility with the help of our bank.

Harrison Cage™ Apparels, Inc. will be involved in the mass – production of ready – made garments like Outer clothing (work wear and uniform, leisure wear, sportswear, suits, pants, dresses, ladies’ suits, blouse, blazers, jackets, cardigans, pullovers, coats, sports jackets, skirts, shirts (short- or long-sleeved), ties, jeans, shorts, T-shirts, polo shirts, sports shirts, tracksuits, bathing shorts, bathing suits, bikinis etc.) and Underclothing/Underwear – lingerie (e.g. underpants, undershirts, briefs, socks, stockings, and pantyhose).

Our business goal is to become one of the leading ready-made garment manufacturing companies in the United States and we will make sure that every apparel that leaves our factory can favorably compete with the best brands in the industry.

Our workers are going to be selected from a pool of talented clothes designers, and garment factory workers in and around Austin – Texas, Bangladesh and also from any part of the world as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading ready-made garment manufacturing companies in the United States.

We have put plans in place to build a state of the art factory in Bangladesh, which is why we have entered into agreement with some manufacturers of sewing machines to produce customized sewing machines for us that will give us the quality of garments that we want to be known for. Our factory will be well equipped and we will ensure that we follow the trend in the industry.

Harrison Cage™ Apparels, Inc. will manufacture high quality garments for both the high – end customers and also for low income earners; we want to become one of the people’s choice where ever our clothes are put up for sale. Apart from mass production of ready-made garments, we will also be engaged in the customized production of clothes for customers based on their demands.

We are quite aware that there are some clients such as sporting clubs, political parties, schools, churches and organizations that would need quality customized T – shirts for specific purposes and we are well prepared to deliver as requested.

Harrison Cage™ Apparels, Inc. is owned by Harrison Cage and his immediate family members. He is an American fashion enthusiast with over one and half decades worth of experience in the fashion industry. He will occupy the position of the chief executive officer (CEO)/President of the organization.

Harrison Cage has a Degree in Fashion Designing from New York School of Fashion and also an MBA from Harvard Business School. He is a well – respected figure in the fashion industry. Prior to starting Harrison Cage™ Apparels, he was the creative director of one of the world’s leading fashion labels that is based in Paris – France.

3. Our Products and Services

Harrison Cage™ Apparels, Inc. is established with the aim of producing high quality and highly fashionable ready – made garments for men, women, young adults and children. We know that quality is a key factor that will help us sell our brand which is why we have put in place a competent quality assurance team that will ensure that all our clothes meet and even surpass our customers’ expectations.

We will work hard to ensure that Harrison Cage™ Apparels, Inc. is not just accepted nationally in the United States of America, but also in other parts of the world. Here are the products we will be manufacturing;

  • Coats and winter clothes
  • Suits for men and women
  • Leisure clothes
  • Children’s and baby clothes
  • Work and ethnic clothes

4. Our Mission and Vision Statement

  • Our vision is to establish a ready-made garment manufacturing company whose products will not only be sold in the United States of America, but all across the globe.
  • Our mission is to build a ready-made garment manufacturing company that will design and mass – produce high quality ready-made garments for male, female, young adults and children; a ready – made garment factory that will grow to command a good percentage of the available market share in the globe.

Our Business Structure

Harrison Cage™ Apparels intends competing favorably with leading ready-made garment manufacturing companies both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hiring the best hands within our area of operations.

At Harrison Cage™ Apparels, Inc., we will ensure that we hire people that are qualified, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner), General Manager, Human Resources and Admin Manager, Sales and Marketing Executive, Accountant, Fashion Designers (With Bias in corporate and casual clothes), Quality Control Officer, Tailors, and Factory Workers.

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Accountable for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

General Manager:

  • Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Responsible for supervising all the employees
  • Ensures that the organization operates within stipulated budget.

Human Resources and Admin Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

  • Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyzes the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Helps to increase sales and growth for the company

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Fashion Designers

  • Responsible for designing clothes to meet the latest trend
  • Stays abreast of the dynamics in the fashion industry with key interest in corporate and casual clothes
  • Researches and advice the organization on style, size, anthropometric studies and other trendy fashion statements.

Quality Control Officer

  • Ensures that all the corporate and casual ready – made garments in our production line meets the required quality before they are released in the market
  • Makes certain that production and manufacturing lines perform efficiently, coordinate employee efforts, and facilitate communication between management and production departments.
  • Devises ways of improving the manufacturing process to ensure higher-quality and durable garments
  • Ensures that manufacturing production lines run smoothly and generate a consistently suitable output for their employers
  • Ensures that the organization work in line with international best practices
  • Handles any other responsibility as assigned by the general manager

Tailors (Industrial Sewing Machine Operators)

  • Responsible for sewing corporate and casual clothes as instructed by the supervisor / fashion designer
  • Handles any other duty as assigned by the general manager

Factory Workers:

  • Responsible for ironing and packaging apparels
  • Responsible for movement of equipment and raw materials as required
  • Cleans both the interior and exterior of the factory, machines and other equipment
  • Handle any other duty as assigned by the general/floor manager.

6. SWOT Analysis

Harrison Cage™ Apparels, Inc. plans to build a world class ready – made garments factory that will manufacture a wide range of garments for men, women, young adult and children. We will be based in Austin Texas with our factory located in Bangladesh, but we will not restrict the sale of our clothes to the U.S market alone, we will sell our ready – made garments in other parts of the world.

In other to achieve this in a highly competitive industry like this, we must ensure that we look through our strengths, weaknesses, the opportunities available in the industry and the threats that we will are likely going to face.

Because of the nature of the business we are involved in and the brand we want to build, we hired the services of an HR and Business consultant with bias in fashion and retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

Here is the summary of the SWOT analysis that was conducted for Harrison Cage™ Apparels, Inc.;

Our strength lies in the high quality of our finished garments, the power of our team and our state of the art and well – equipped factory.

We have a team of highly trained tailors and support staff members that can produce top notch ready – made garments. We are well positioned in the heart of Austin – Texas and we know we will attract loads of clients from the first day we push our ready – made garments into the market.

A major weakness that may count against us is the fact that we are a new garments manufacturing company and we don’t have the financial capacity to compete with multi – billion dollar garment manufacturing companies when it comes to manufacturing at rock bottom prices.

So also, we may not have enough cash reserve to promote our ready – made garments manufacturing company the way we would want to, especially when it comes to signing first – class celebrities to model for us.

  • Opportunities:

One thing is certain, whether good or bad, people will always look for clothes to wear and they usually go for casual clothes because it is cheap. So, the opportunity for ready – made garment manufacturers to sell their apparels is massive and we hope to leverage on these opportunities to sell our ready – made apparels.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new ready – made garments manufacturing company in same location where our target market exists who may want to adopt same business model like us.

7. MARKET ANALYSIS

  • Market Trends

In recent time, the clothing industry relies more on mass market sales for them to make the kind of income that will sustain the business. The mass market takes care of a wide range of customers that cuts across both the rich and the poor.

Most of the new clothing lines that are trying to catch up with the market ensures that they produce ready-to-wear clothes using trends set by leading fashion labels.

What they do is that they try to see the direction of the trend as established by renowned fashion brands before producing their own versions of the original look by making use of cheaper fabrics and simpler production processes which can easily be done by machines.

They can comfortably sell such product at a cheaper price to the masses who can’t afford to buy the original which is often way too expensive.

Clothes manufacturers now leverage on the runway – fashion expo to promote and attract market for their products. Any fashion designer who is recognized in Paris, Milan, New York City, or London can comfortably become a global recognized fashion label.

Small startup garment manufacturing companies leverage on small markets such as companies, churches, schools, organized groups and sport fans to sell their clothes. These group of people can order large quantities of customized clothes for special purposes.

For example, a political party may enter into a business deal with a ready – made garments manufacturing company to help them mass – produce shirts to be used by their supporters during political rallies and campaigns.

8. Our Target Market

When it comes to selling ready – made garments, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in the locations where we intend retailing our ready – made apparels.

Despite the fact that Harrison Cage™ Apparels, Inc. will start operation from a single factory in Bangladesh, we have a holistic view of the kind of business we want to build; we want to grow to the level where we will build factories in Thailand and China.

Our clothes is going to be designed to penetrate not just the United States market, but also the world’s clothing industry.

We want people from all walks of life across the globe to someday put on our garments; we want to see our clothes being worn in Paris, in London, in Tokyo, in Lagos, in Madrid, in Johannesburg, in Bueno Aries, in Sao Paulo, in Port Elizabeth, in Dubai and all over the world. We are in business to retail our ready – made garments to the following groups of people;

  • Businesses and Corporate Organizations
  • Every adult that resides within the locations where our clothes will be retailed

Our Competitive Advantage

A close study of the global ready – made garment manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the competition and we are prepared to compete favorably with other garment manufacturing companies both in the United States of America and other part of the world.

Another competitive advantage for Harrison Cage™ Apparels, Inc. is the quality and robust wealth of experience of its management team. Our management team comprises of professionals who have worked with some of the leading international brands in the ready – made garments industry.

Our latest machines and equipment also count towards our advantage especially when it comes to competing with other clothes manufacturing companies within the same category that we operate. The quality of every apparel that comes out of our production line must be certified OK before they are released to the market.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Harrison Cage™ Apparels, Inc. is in business to retail a wide range of ready – made garments in the United States and other countries of the world. We are in the industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. Our source of income will be the manufacturing and retailing of a wide range of;

  • Outer clothing (work wear and uniform, leisure wear, sportswear, suits, pants, dresses, ladies’ suits, blouse, blazers, jackets, cardigans, pullovers, coats, sports jackets, skirts, shirts (short- or long-sleeved), ties, jeans, shorts, T-shirts, polo shirts, sports shirts, tracksuits, bathing shorts, bathing suits, bikinis etc.)
  • Underclothing/Underwear – lingerie (e.g. underpants, undershirts, briefs, socks, stockings, and pantyhose).

10. Sales Forecast

One thing is certain when it comes to the ready – made garments manufacturing business, if you manufacture a wide range of garments, you will always attract customers cum sales and that will sure translate to increase in revenue for the business.

We are well positioned to take on the available market in and around Austin – Texas and we are quite optimistic that we will meet our set target of generating enough income from the first six month of operations. Below is the sales projection for Harrison Cage™ Apparels, Inc., it is based on the location of our business and other factors as it relates to garments manufacturing company startups in the United States;

  • First Fiscal Year: $550,000
  • Second Fiscal Year: $950,000
  • Third Fiscal Year: $1.5 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor producing same designs as we do within same location where our market exists. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Harrison Cage™ Apparels, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available and become the preferred garment choice. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the ready – made garments manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in the United States of America and the world.

In summary, Harrison Cage™ Apparels, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our clothing label by sending introductory letters to schools, corporate organizations, political parties, groups, and other establishments.
  • Attend fashion expos in the U.S and in other parts of the world
  • Organize our own fashion show in order for us to display our designs
  • Advertise our clothing label in newspapers, TV and radio stations
  • Canvass celebrities to wear and help us promote our clothing label
  • List our business on yellow pages ads
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Leverage on word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Beyond every reasonable doubt, the media plays a very big role when it comes to helping a clothing labels gain international significance.

The social media also plays an important role in modern day fashion advertisement; it gives clothing labels the ability to reach out to a wide range of customers all over the world within a short period of time and of course at a very cheaper price when compared to other advertising platforms.

Any player in the global garment manufacturing industry that wants to take on the market must be deliberate when it comes to building brand awareness and credibility. Most often than not, big clothing labels ensure that they create great hype whenever they are about to release any design from their stable.

Social media such as blogs, podcasts, photo and video sharing sites are some of the tools fashion designers leverage on to promote their labels.

Some of the preferred social media platforms that are used in the fashion industry are Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites. Here are the platforms we intend leveraging on to promote and advertise Harrison Cage™ Apparels, Inc.;

  • Place adverts on both print (newspapers and fashion magazines) and electronic (radio and TV) media platforms
  • Sponsor relevant community programs like school fashion shows et al
  • Leverage on the internet and social media platforms like Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites to promote our brand
  • Attend local and intentional fashion expos
  • Organize our own fashion show
  • Promote our clothing label on our own official websites and online fashion community
  • Build relationship with celebrities especially in the entertainment industry

12. Our Pricing Strategy

The prices for all our corporate and casual ready – made apparels will be affordable and at the same time competitive with what is obtainable in the global ready – made garments manufacturing industry.

  • Payment Options

The payment policy adopted by Harrison Cage™ Apparels, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harrison Cage™ Apparels, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards/Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for ready – made garments purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfers.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be productive.

The machines and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a cloth manufacturing business; it might differ in other countries due to the value of their money.

These are the key areas where we will spend our startup capital;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Harrison Cage™ Apparels, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring business consultant – $2,500.
  • The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of lease for manufacturing factory for 24 months – $350,000
  • Factory remodeling (construction of racks and shelves) – $20,000
  • The amount required for the purchase of industrial sewing machines and clothes making tools – $200,000
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $250,000
  • The cost for start-up inventory – $100,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of launching a website – $600
  • The cost for our opening party – $5,000
  • Miscellaneous – $5,000

We would need an estimate of $2.5 million to successfully set up our ready-made garment manufacturing factory.

Generating Startup Capital for Harrison Cage™ Apparels, Inc.

Harrison Cage™ Apparels, Inc. is a family business that is solely owned and financed by Harrison Cage and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $500,000 ( Personal savings $400,000 and soft loan from family members $100,000 ) and we are at the final stages of obtaining a loan facility of $2 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

One of our major goals of starting Harrison Cage™ Apparels, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our ready – made garments a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harrison Cage™ Apparels, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the factory and office: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of industrial sewing machines and sewing equipment / tools: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party/launching party planning: In Progress
  • Compilation of our list of ready – made garments that we will be producing: Completed
  • Establishing business relationship with vendors – suppliers of textile (fabrics), sewing accessories and related merchandize, clothes wholesalers and other stake holders: In Progress

How To Start A Readymade Garments Business In India?

Table of Contents:

1. Readymade Garment Business Plan

2. how to start a garment shop in india, 3. how to start garment business- online., 4. key takeaways, faqs on readymade garments business.

All of us indulge in shopping for clothes, right? But have you ever dreamt of selling the clothes that you buy? Then read on. Because in this article we will show you how to turn that dream into reality! Readymade apparel is a part of our daily lives. People are bound to shop for clothes for numerous occasions-it can range from an anniversary gift to a festival, even for a housewarming party. Ready made clothing are made from different types of fabrics, and are mass-produced, finished textile products. The demand is steadily increasing, and they are very simple to manufacture and market. Hence, making readymade garment business plan a lucrative one.

readymade garments business plan

Readymade garments have got a huge domestic market and also accounts for approximately 45% of India’s total textile exports. The Indian apparel and textile industry was valued at 100 billion $ in 2019 and is expected to reach 220 billion $ by 2025. A readymade garments business can be a profitable one, but you must have some fresh ideas. If you look around, you will find that there are plenty of apparel stores that are not doing well; the main reason is the lack of proper planning. Starting a clothing business can seem daunting at first, but with the first customer sale or trial sample run, you will get great joy and satisfaction.

Starting a clothing line, like with all other businesses, can be a personal journey. The idea to start strikes most people when they notice a gap in the market. You will need both a creative as well as a business mindset to utilise it. Here are some simple business tips to start a garments store business in India:

1- Make A Proper Business Plan

Gain some experience in some other business, maybe a ready made dress brand before venturing out on your own. Once you work there, you will have first-hand knowledge of the challenges in the business and how to overcome them. Start with a simple plan; pick one product that you love and can easily buy or manufacture. Create a budget with different expense heads like marketing, sales, operations, purchase, etc. Also, you have to have an idea about the cash flow and the return on investment. You should visit other clothing stores doing well in your area and learn from the competition. Observe their display style and products. Also note business hours, location, and services.

2- Pick A Proper Location

A crucial part of any business is to first select the location. Find out the market potential of the area to which you would like to cater. Finalise the location after doing a proper market survey. Choose an area that is densely populated and there is a high chance of selling profitably. The proposed location should have a high foot-traffic and less competition.

Also read: Garment Manufacturers in India

3- Legal Aspect

Before starting a business , you have to take all legal permissions and licenses from the local administrative bodies. If the estimated annual turnover of your clothing store business is going to be less than Rs 20 lakhs, you should get a GST registration done . If you don’t have a GST , many reputed companies will avoid doing business with you to avoid violating tax laws.

4- Get Your Finances Ready For Investment

Starting an apparel store business is expensive. Get an idea about the amount of money that you have to invest, and the time of the return of the same. Remember that initially, you will have to spend money to make more money. If you don’t have the seed money, you can borrow the capital from your family or friends. Or getting a small business loan from a bank might be a better option. You will need funds to buy materials like fixtures and lighting, pay rent for the store, purchase merchandise, and many other expenses.

Also Read: Clothing Manufacturers in India

5- Infrastructure

A good infrastructure is important because if the outer appearance of your store is visually attractive, it will draw in customers easily. Inside the store, you should keep the same sizes of clothes in the same row, to make it easier for buyers.

6- Manpower

Make a list of people whom you need to hire an accountant , a sales-person, or a helper to help in the business. Then start hiring the right people.

readymade garments business plan

7- Create Exciting Designs

One of the most important things in the clothing business is good product development. You must first sketch the design on a piece of paper. Or, you can use any specialised software like adobe. After the design is finalised, you must create a tech-pack which contains all technical specifications like measurements. This you must give to the manufacturer.

Also Read: Best Clothing Brands in India

8- Inventory Management

While purchasing goods, you have to plan properly, and should not buy a huge stock. Before purchasing stock garments or manufacturing in bulk, you must first make a trial run. Suppose you order 30 dresses in all sizes. You must first see how they are selling. There is no point ordering in bulk if the initial lot does not do well.

Also read: Jeans manufacturers in India

9- Choose Selective Items

You should first decide on your niche and stay focused on a few categories of clothes. Avoid stocking all the varieties for different age groups. For example, you can choose a particular variety as kids wear, menswear, womenswear, or bridal wear. Stock only those items which are trendy and marketable. Even if you branch out later into other products, you will be always remembered for your original product-line. Take the middle ground and don’t veer towards too expensive or cheap products. These are the best ways to attract customers.

readymade garments business plan

10- Create The Right Brand

Though branding is essential for all businesses, it is absolutely critical for a clothing line. Your brand is your business’s public identity and should display the most essential attributes of your company. If it is not good, you will not get a chance to stand out among the competition.

11- Maintain Quality

You should maintain a balance between the cost of the product and the quality so as to give your customers value for money. If you are sourcing from any apparel manufacturer, you should check if the product delivered matches your specifications. Good packaging is also important for presentation.

The impact of Covid-19 has shifted many consumers to online shopping. Here we discuss how you can start an online shop for clothing.

1. How Will You Sell?

Choose an online store builder like OkShop that will let you start selling clothes with an online shop of your own . And this all is for free!

2. Social Media Marketing

Social media is a must-use marketing tool to boost your brand. You can use celebrities and popular social media influencers to endorse your brand and thereby boost sales . You can use various social media platforms like Facebook and YouTube to promote your product to friends.

3. Pick A Business Model

For your online clothing store, you can pick from the four following business models:

✓ Custom cut-and-sew: This type of business model is for those who want to launch their own clothing brand and design. Everything, from designing to manufacturing, has to be done by yourself.

✓ Print-on-demand: It is the cheapest and easiest, and is best for custom t-shirt printing.

✓ Private label: Here you buy blank or label-less apparel and then add your custom label, design, and tag. This is more cost-effective than print-on-demand, as you can get better rates while buying in bulk.

✓ Drop shipping: Here you pick clothing from wholesalers and it is cost-effective since you don’t have to buy stock upfront.

readymade garments business plan

Readymade apparel is a good business opportunity if you work hard. It will provide you with a steady income every month, so it is a good option for entrepreneurs to invest. We hope that the business tips on how to start a garment shop in India we shared in the above article would help you to enter the prospective business of clothing.

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readymade garments business plan

Q. How to start a ready-made garments business in India?

Ans- These are some of the things you should keep in mind before curating a readymade garment business plan :

  • Finding a Niche
  • Get acknowledged with the Domain
  • Finding Suppliers
  • Creating your Target Market
  • Finalising the Correct Location
  • Getting Funds/Investment
  • Registering your Business Legally
  • Managing your Distribution Plan
  • Inventory Management
  • Hiring the Correct Staff
  • Product Pricing
  • Marketing Your Business

Q. How much profit does a garment shop make?

Ans- In general, the clothing market profit remains anywhere between 30% and 60%. But for international and domestic brands, the margin rate increases gradually. On some brands, the starting profit margin is easily above 50%.

Q. How do I start a readymade garment business?

Ans- Here are some of the requirements on how to start garment business in India :

  • Purchasing online procurement
  • Curating a Proper Infrastructure
  • Selecting a Proper Location
  • Maintaining Quality
  • Targeting Selective Items
  • Obtain Marketing Knowledge
  • Check Legalities
  • Gain some beforehand experience
  • Begin with small scale

Q. Is clothing a good business?

Ans- A clothing store business is truly profitable in India. With profit margins ranging from 25 to 60%, it is deemed to be one of the most profitable businesses in India.

Q. How to start a Clothing Store Business in India?

Ans- Any readymade garment business plan is incomplete without a strong business plan. A clothing store business can be truly profitable, check out to start a clothing store business in India:

  • Gather Money for Investment
  • Finish GST Registration Process
  • Choose Location Wisely
  • Start with a Small Scale Business
  • Do Competition Research
  • Finding Proper Suppliers
  • Be Original with Branding
  • Filling Stocks
  • Choose your Selling Items
  • Hire Additional Staff
  • Manage Working Hours
  • Put out Attractive Offers & Discounts
  • Learn Bookkeeping

Q. How do I start a garment shop?

Ans- Follow these steps to start a garment shop in India:

Step 1- Deciding your Niche

Step 2- Building business plan or budget

Step 3- Shaping Your Business

Step 4- Curating Your Business Designs

Step 5- Create your Personal Brand

Step 6- Start your Manufacturing Process

Step 7- Test Your Products in the Market

Step 8- Introduce your products to the Market

Q. How do you price clothes?

Ans- Pricing of Cloths is done with the help of the keystone markup method. In this process, you can multiply a price by 2 (sometimes up to 2.5) in order to get their pricing for the next level. If you start with the garments CP or cost price i.e. the cost price of all your manufacturing costs.

Q. Is it hard to start a clothing business?

Ans- Every business has its own pros and cons while beginning but everyone's doesn't have the risk factor in them to begin. The clothing business is profitable but the thing to note is to stick through the ups and downs of the market.

Q. What is the profit margin for clothes in retail?

Ans: It is generally within a range of 4 to 13 percent.

Q. What does the term ‘readymade garments’ mean?

Ans: It refers to those clothes which are finished and can be worn off the hook without any other work to be done. They are available in different sizes.

Utpala Ghosh

Get the best business ideas, small business tips & read more about technology for small businesses by Utpala Ghosh.

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Clothing Boutique Business Plan Template [Updated for 2024]

  • by Emily Polner

minute read

Clothing Boutique Business Plan Template [Updated for 2024]

Whether you’re a first time business owner or seasoned entrepreneur, your new clothing store will benefit from having a formal boutique business plan. 

A business plan is a document that outlines its intended purpose and goals and helps serve as a reference to keep you on track after you open your doors. If you plan to raise capital, you can send your boutique business plan to friends, family and other potential investors so they have a clearer idea of what they’re investing in. 

In this article, we outline what to include in your clothing store business plan, as well as a blank business plan template for you to use however you see fit. You can be as detailed as you like when writing your plan. 

Here’s what you need to know and include to get started: 

How to start a clothing store business in 2023

Executive summary, business description and mission statement.

  • Product services and pricing

Competitor and market analysis 

Clothing marketing strategies, business structure, clothing boutique startup costs and funding , growth forecast, clothing store boutique business plan template, the ultimate clothing boutique guide.

From managing always-evolving inventory to making personal connections during sales, your clothing store needs tools that help you do it all.

The Ultimate Clothing Boutique Guide

How much does it cost to open a clothing store? 

The cost of opening a clothing store varies depending on the size and location of your store. Leasing a retail space costs more in certain geographic areas than others. The average initial cost of opening a store can be anywhere from $48,000 USD to $150,000 USD, and this figure doesn’t include an upfront payment of first month’s rent or utilities. 

Having an accurate idea of your initial cost—and, as such, how much funding you need—is one of the key benefits of a thorough boutique business plan.

How to start a clothing store business in 2022

The costs and logistics involved in starting a clothing store business in 2023 are different than they were even 10 years ago. 

You need a rock-solid niche for your business, so you can make a splash in a crowded market. You need a brand identity that stands out, too. Those pieces aren’t new, though creativity is more important than ever—you want your new boutique clothing store to stand out online, after all. 

It’s the online aspect that really matters in 2023. Instead of picking between a brick-and-mortar or ecommerce store, your boutique business plan should take both into account. In an era of high-tech stores (even Amazon is getting in on the industry with its Amazon Style ), customers have come to expect more from retailers. 

Keep in mind the technology you need to start a clothing store today: that includes a POS system with an eCom platform and integrated payments, inventory management software that syncs your online and offline stock in real time and loyalty programs to reward them for shopping. These costs, and the time required to manage multiple sales channels, should be built into your business plan.

How to write a clothing boutique business plan

A business plan can be as long or as short as you’d like, but it needs to be clear to others, not just members of your organization. Other parties will read your plan in order to determine whether or not to invest, so each part needs to be understandable. 

Here is an example of a business plan for a boutique clothing store that gets funders on board (and what you should be putting in each section). 

The executive summary should be a summary of your entire business plan. It typically appears at the beginning of a business plan, but you should write this last so you can draw from the rest of the sections for a more accurate blurb. 

Think of this as the elevator pitch for your boutique business plan. If this summary was all someone read, they’d come away with an idea of what you want to open and why; detailed enough that they get the big picture, but not so detailed that they get lost on the page.

An executive summary should be at most 10% of the entire document. For example, if your clothing store’s business plan is 15 pages long, the summary should be a page and a half at most; if your plan is five pages long, try for a half-page executive summary. 

Example executive summary template

Business name: Corner Store

Founders and executive team: 

  • John Retail, President
  • Jane Ecom, CFO
  • Ranjeet Sales, VP of Human Resources
  • Kamala Brick, VP of Merchandising
  • Frank Mortar, VP of Marketing

Products and services: 

Target demographic: Corner Store targets college students and young professionals ages 18 – 34. Our demographic is ambitious, on the go, health-conscious and environmentally aware.

Marketing strategies: 

Future plans and goals:

  • 5 locations by next financial year
  • 15% of sales through ecommerce
  • Launch on third party delivery by second quarter

The next section should be a description of what your clothing business is and does. For example, are you a children’s clothing boutique? Are you selling in store, online or both? What kinds of styles are you going to cater to? For instance, do you sell basics like plain tee shirts or pieces with a more bohemian aesthetic?

This is also where you should define your mission and company values. Your mission should answer the questions: why are you starting your business and what will your new store bring to the table? Your company values are the characteristics your business aligns itself with and uses to make informed decisions. What values are most important to you and which qualities will you make a priority? 

This is your opportunity to really sell potential funders on why your clothing store will succeed. What’s more compelling: describing yourself as a new apparel retailer, or as a new clothing boutique with a focus on personal styling for young professionals that carries local designers in a high-foot-traffic area in your city’s financial district? 

Example company description template

Mission statement:

Corner Store combines athleisure and food and beverage retail into one convenient extended-hours offering. In addition to bespoke lines of healthy energy drinks, Corner Store offers comfortable workout clothing made from recycled fabrics.

Corner Store is open longer than competing athleisure stores, and is more focused on health than competing 24-hour convenience stores.

Core values:

  • Ease of access
  • Productivity
  • Affordable healthy options

The structure of your business will have a big impact on how it’s taxed and managed. Define your plans for incorporating as well as your org chart: 

  • How is your business defined, legally ? Is it an LLC, an S-Corporation, a partnership or unincorporated? 
  • Who is running the clothing business? List the founders and what each person brings to the table in terms of skills and capital.
  • What kinds of roles will you be hiring for? Who reports to whom? Create a preliminary organizational chart that includes the current hierarchy of your business and which roles will need to be filled. 

Example business structure template

Legal structure: 

Business leaders:

  • John Retail, President – 35 years of experience in retail
  • Jane Ecom, CFO – 10 years of experience heading financial operations 
  • Ranjeet Sales, VP of Human Resources – 23 years of experience with HR, including founding a successful HR agency
  • Kamala Brick, VP of Merchandising – launched 3 successful product lines targeting college students 
  • Frank Mortar, VP of Marketing – co-founder of Digital Agency, leading marketing agency in the office supply retail space

Hiring plans: 

Products, services and pricing

With your executive summary and business description having introduced potential funders to your vision, your boutique business plan should next move into the concrete details. Your products and services section should outline: 

  • What kinds of items you’ll be selling
  • Any services you’ll be offering (i.e. tailoring or clothing rentals) 
  • The main benefits and features of what you’re selling
  • How much each item will cost you vs. what you’ll be selling it for 
  • How each item will be created or sourced: which suppliers are you getting your inventory from, if any? Do you have existing relationships with suppliers or will you have to create them? 

If you plan to offer more or different products later down the line, outline that in this section as well.

Example products, services and pricing template

Description of each product and service: 

  • Corner Store energy drinks: low sugar energy drinks with upscale flavors to appeal to a health-conscious consumer. Packaging made entirely from recycled materials, featuring inspirational quotes for productivity. Three flavors available in 330ml cans at launch (grapefruit tarragon, yerba mate, coconut lime) with two more launching in the third quarter (coffee, watermelon rose).
  • Corner Store performance underwear: breathable, gender-neutral stretch tops and bottoms made for movement, to go under clothes for exercise or fashion. Made from recycled and end of line materials. Five colorways releasing at launch, with new updated styles every season.

How you plan to price each item:

Supply chain details: 

It’s important to look at what your competitors are doing to get a sense of which needs are being met and where the biggest gaps in the market lie. Make sure you explain how you’re positioning yourself and why you offer something different or better than what already exists. Include the following information: 

  • Competitor analysis: who are your competitors? What seems to be working for them and what doesn’t? How long have your competitors been in business? Are they growing? Make sure you categorize your competition into direct and indirect competitors in your boutique business plan. Direct competitors will be anyone who is targeting your exact niche, while indirect competitors will be big chain retailers and department stores who offer an alternative experience to what you’re building.  
  • Industry trends: talk about the current trends and future predictions for your industry. Is it popular or growing? How have these trends impacted your niche? Can you expect these trends to keep growing—and what proof do you have that the popularity of your chosen focus isn’t just a passing fad?
  • SWOT analysis: a SWOT (strengths, weaknesses, opportunities and threats) analysis details exactly what it sounds like it does. Think about what your biggest strengths and opportunities are, as a business. On the flip side, is there anything that may be a potential threat to your success? 
  • Target customer: what kind of person you’re aiming to target. Who is going to shop at your store? Where do they live, how old are they and what are their main pain points? What are they looking to get out of a clothing store, and how will you serve their needs? Do you have any data about your particular target’s spending power and shopping habits?

Example competitor and market analysis template

Competitor analysis:

  • KiKiLime: 10 years in business, 7 locations across California and Texas, $60.8m in sales in 2022. Direct competitor Strong sales on launch, but recent supply chain scandal has impacted growth Opportunity to capture disillusioned customers who want truly sustainable options

Industry trends:

Market size:

SWOT analysis:

Target customer: 

  • 18 – 34
  • Lives or works in or near city centers
  • Busy lives, looking for a store that’s open before and after work
  • Health conscious, but price conscious 
  • Focus on sustainability

As a new business, you’ll need to promote yourself to bring customers in the door. Use this section of your boutique business plan to explain to investors and your team how you intend to do that.

  • Which marketing channels do you plan to use? Are you going to use email marketing, social media marketing , SEO blogging, PR or influencer marketing ? 
  • Do you plan to run paid advertisements or only market your business organically, or both? If you plan to pay for advertising, you’ll need to include this budget in your costs section. 
  • How will you measure the success of your marketing efforts? Which metrics will you examine to determine whether or not you met, exceeded or fell short of your goals? 
  • What sort of loyalty program will you use to ensure customers keep returning? How will you split your budget for marketing to new customers and reaching out to returning customers? 

Example marketing strategies template

Which marketing channels you’ll be using:

  • Social media: focus on Pinterest ( average age 25-34 ), Instagram (average age 18-24), TikTok (average age 18-24)
  • Email marketing nurture flows: tied to loyalty program and in-store sales
  • Influencer partnerships: launch partnership with Gia Influ, wellness influencer with 300,000 followers
  • Content marketing: four online activations a month

Plans for paid vs. organic marketing: 

Loyalty program outline: 

Marketing goals:

There are many upfront purchases to be made as well as recurring expenses that come with starting a clothing store. This is where you’ll list what you need to buy and the funding you’ll need in order to make sure you get everything you need. Here are some examples of costs you might include: 

One-time costs

  • Lease, security deposit and other fees associated with signing a retail lease
  • Furniture and façade costs 
  • Initial inventory
  • Technology hardware, such as computers, tablets, phones, credit card readers
  • Website design costs (if you’re not using an eCom platform with a built-in site builder)
  • Grand opening costs for the store’s launch day

Recurring expenses  

  • Rent and utilities
  • Employee wages
  • Marketing and advertising
  • Retail commerce platform subscription 
  • eCom platform subscription and web hosting costs
  • Domain name registration
  • Accounting services 

In addition to listing expected expenses and funding needs, also add a projected profit and loss statement, cash flow and balance sheet, if you’re able to. This will help paint a more complete financial picture.  

Example startup costs and funding template

What you need to buy: 

How much funding you need: 

Profit and loss statement: 

Need a profit and loss template? Download one free here.

Balance sheet: 

Growth forecast 

In this section, list how much inventory you’ll have on to start and your initial assets. Plan how much cash you’ll have on hand for your grand opening. 

Here is where you can predict how quickly you will grow and in what ways you intend to expand. How much revenue do you intend to generate after one year in operation? Do you plan to offer more products in the future? Are you envisioning outgrowing your first retail space? Do you intend to open more locations? Describe these plans to the best of your ability. 

Example growth forecast template

Assets: 

Cash on hand: 

Revenue (projected or actual): projected revenue $4m per location in first year, expanding to $10m per location by year five

Other growth plans or predictions: 

  • 10 stores across the US by year five
  • Enter the Canadian market by year seven

Now that you know what goes into a business plan, you’re ready to make one. Fill in this free template to set your future clothing store up for success. 

Executive summary 

Business name:

Founders and executive team:

Products and services:

Target demographic:

Marketing strategies:

Company description

What does your business do?

What gap does it fill in the market?

Legal structure:

Organizational chart: 

Supply chain details:

Competitor and market analysis

Industry trends: 

Marketing strategies

Startup costs and funding.

Revenue (projected or actual):

Create your clothing business the way you envision it

A clothing store business plan can help you solidify your thoughts and ideas so that you can start your business the way you intend to. Taking time to ask yourself important questions like how and why you’re starting will serve you well in the long run. 

Clothing retailers use Lightspeed’s commerce platform to take sales, manage inventory, create a website and so much more. If you’d like to learn about how Lightspeed can help you accomplish your business goals, watch a demo .

readymade garments business plan

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Emily Polner

Emily is a Content Specialist at Lightspeed, where she brings her passion, knowledge, and expertise to give you helpful tips on how to take your retail business to the next level. When she’s not behind the keyboard, Emily can be found thrifting, getting iced lattes at local cafes or endlessly scrolling through TikTok.

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Alchem Learning

How to Start a Readymade Garments Business

Welcome to our guide on starting a readymade garments business! If you’re passionate about fashion and want to venture into the world of clothing, this article will provide you with essential steps to get your business up and running.

1. Research and Planning

Begin by conducting thorough market research. Identify your target audience, analyze your competitors, and understand the latest fashion trends. This will help you create a unique selling proposition for your garments.

2. Business Plan

Create a comprehensive business plan that outlines your business goals, target market, pricing strategy, sourcing of materials, and financial projections. A well-thought-out plan will guide your business decisions and attract potential investors or lenders.

3. Legal Formalities

Register your business and obtain any necessary licenses or permits. Choose a suitable business structure, such as a sole proprietorship, partnership, or LLC, and ensure compliance with local regulations.

4. Sourcing Suppliers

Establish relationships with reliable suppliers for fabrics, trims, and other materials. Quality materials are essential for creating garments that meet customer expectations.

5. Design and Manufacturing

Create unique and appealing designs that resonate with your target audience. Decide whether you’ll be manufacturing in-house or outsourcing production. Maintain a balance between creativity and cost-effectiveness.

6. Branding and Marketing

Develop a strong brand identity, including a logo and brand colors. Create a website and use social media platforms to showcase your products. Engage with your audience through content that highlights your brand’s story and values.

7. Inventory Management

Implement efficient inventory management to track stock levels and avoid overstocking or stockouts. This will help you optimize your resources and meet customer demands effectively.

8. Sales and Distribution

Explore various sales channels, including online platforms, physical stores, and collaborations with retailers. Set up a smooth distribution system to ensure timely delivery of products to customers.

9. Customer Service

Provide exceptional customer service to build trust and loyalty. Address customer inquiries promptly and resolve any issues with professionalism. Positive word-of-mouth can significantly impact your business.

10. Scaling Up

As your business grows, consider expanding your product range, exploring international markets, or introducing new sales strategies. Continuously adapt to changing market trends and customer preferences.

Starting a readymade garments business requires careful planning, creativity, and dedication. By following these steps and staying committed to your vision, you can turn your passion for fashion into a successful and rewarding venture. Best of luck on your entrepreneurial journey! 😊

Frequently Asked Questions

1. what is a readymade garments business.

A readymade garments business involves designing, manufacturing, and selling pre-made clothing items to customers. These garments are ready for customers to purchase and wear without the need for additional tailoring.

2. How do I research my target audience?

Research your target audience by studying demographics, preferences, and buying behavior. Use online surveys, focus groups, and social media analytics to gather insights that will help tailor your products to their needs.

3. What should my business plan include?

Your business plan should outline your business goals, target market, competition analysis, marketing strategies, financial projections, and operational plan. It serves as a roadmap for your business’s success.

4. How do I choose the right suppliers?

Choose suppliers based on their reliability, quality of materials, pricing, and ability to meet deadlines. Build strong relationships with them to ensure a steady supply of materials for your garments.

5. Is it better to manufacture in-house or outsource?

The decision to manufacture in-house or outsource depends on factors like budget, production volume, and expertise. In-house manufacturing provides more control, while outsourcing can be cost-effective for smaller businesses.

6. How can I effectively market my garments?

Market your garments through a well-designed website, engaging social media content, influencer collaborations, and participation in fashion events. Highlight your unique designs and brand story to attract customers.

7. What’s the importance of inventory management?

Inventory management helps you avoid overstocking or stockouts. It ensures you have the right amount of stock available to meet customer demands while minimizing storage costs and wastage.

8. What are some distribution options?

Distribution options include selling through your website, partnering with online marketplaces, setting up physical stores, and collaborating with retailers. Choose the options that align with your target market’s preferences.

9. How can I provide excellent customer service?

Offer exceptional customer service by promptly addressing inquiries, providing clear product information, offering hassle-free returns, and actively seeking feedback to continuously improve your offerings.

10. How do I scale up my business?

To scale up, consider expanding your product range, entering new markets, optimizing operations, and adopting innovative sales strategies. Regularly assess your business plan and adapt it to changing trends.

Top Businesses in the World

Explore 20 leading international corporate websites to improve and grow your online presence. Learning from these industry leaders will provide valuable insights and strategies to elevate your site.

  • 1. Apple Inc.
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References:

  • How to Start a Small Business: A Step by Step Guide | Amazon Business
  • How to Start Your Own Business (with Pictures) – wikiHow
  • 9 Things Needed to Start a Business in 2023
  • How to start and fund your own business | USAGov Lock
  • How to (Realistically) Start an Online Business That (Actually) Grows | BigCommerce
  • How to start a business: Step by Step
  • The complete guide to starting a business | Legalzoom
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How to Start a Profitable Garment Manufacturing Business

  • by Next What Business Research Team
  • August 30, 2024

The ready-made garment manufacturing business in today’s world is a multi-billion dollar industry. As a result, the garment manufacturing industry holds immense potential for entrepreneurs looking to enter the world of textile and apparel industry. However, it must be mentioned that establishing a successful garment manufacturing business involves a wide range of factors. It includes creativity, efficiency, and quality together to create clothing that meets market demand. In this comprehensive guide, we will walk you through the process of launching a garment manufacturing business.

Table of Contents

12 Steps to Start a Garment Manufacturing Company

1. select items for garment manufacturing business.

Before actually starting a garment-making business, it is essential to understand the demand and buying trends of the local market. Talk to local buyers and sellers and find out the gaps that can be explored.

Broadly three major categories of products are included in the garment manufacturing business. 1. Woven Garment, 2. Knit Garment and 3. Sweater Garment or woolen garment. Every category has a wide range of products for men, women, or kids. In the woven garment, products are shirts and trousers of formal or casual styles. In Knit garments, products are T-shirts, Polo, etc.

Suggested Read:   How to do Market Research

2. Create a Business Plan 

It is important to do elaborate market research prior to and craft a business plan accordingly. Firstly, you need to select the specific product category that you will be making. Narrow your product profile as much as possible. Understand the industry and identify the key factors that are influential in garment-oriented business. Estimate the production requirement and accordingly calculate the fixed capital investment including machinery and workspace cost.

It is advisable to have a detailed project report in hand before initiating the business. Determine your target audience and marketing strategy. Identify and assess your competitors and find out how you will compete with them. Crafting a business plan will help you in arranging the finance and also you will get confidence whether your business is feasible or not.

3. Company Registration and Licenses 

Deciding on the proper business structure under which you are going to operate your business is an important decision to make. Based on your resources you can opt for a business structure like proprietorship, limited liability company, one-person company, private limited company, etc.

Read:  How to Register a Company/ Startup in India

A number of licensing and registration regulations are required in the garment manufacturing business. Firstly, you need to register your business. The legal formalities in this business may differ according to your business location. In starting a garment manufacturing business in India, you will need to obtain a trade license from the local authority, a factory license, EPF, ESI, and a fire license.

At present, GST registration is a must. Check this article to learn more about applying for GST registration online. It is recommended to talk to an attorney about the necessity of a specific license in your area.

4. Select a Location

It is critical to find a location for your garment manufacturing unit that is not far from the immediate market. It will not only help you in reducing logistic costs but also sell your items in the local market. Furthermore, choose a location with adequate space for production, storage, and administrative functions.

5. Machinery For Garment Manufacturing

You will need to determine the manufacturing machinery according to your product. There are apparel printing machines, fabric printing machines, t-shirt printing machines, different sewing machines, double-needle bar knitting machines, knit braiding machines, etc. According to your plan select the specific machinery. Check the warranty period and on-site training before furnishing the final order.

Read: Best Small Manufacturing Business Ideas

6. Learn Basic Garment Manufacturing  Process

The first step is to create patterns for each garment’s size and style. Nest is to hire skilled seamstresses and tailors to ensure precise sewing and assembly. It is mandatory to implement rigorous quality checks to maintain consistent product quality.

The basic garment manufacturing steps are given below:

Design/sketch → pattern design → sample making → pattern production → grading → marker making → spreading → cutting → sewing / assembling → inspection → pressing/finishing → final inspection → packing → despatch

7. Raw Materials For Garment Manufacturing

Different types of quality textiles and fabrics are the major raw materials used for garment manufacturing. You will need to procure trims and accessories like buttons, and zippers as per your requirements. Try to establish relationships with reliable fabric suppliers who provide quality materials.

Ensure the quality of the raw material that you are purchasing. Talk to the vendors and purchase the material from reliable suppliers at the right price.

Read: Top GST Software for Small Businesses

8. Create a Sourcing Plan

Garment manufacturing includes the operations of purchasing fabrics and materials from a textile producer, cutting and sewing them to make clothing materials, and then selling them. In establishing a successful garment manufacturing business, you will need to be careful in choosing products, purchasing equipment, establishing your company as a brand, and marketing your products. The better your designs are and the newer your concepts are, the brighter your chances to flourish.

9. Cost of Starting Garment Manufacturing Business

The investment required to start a garment factory depends on the scale of production. However, a production area of 600 Sq. ft and an investment of around 20 lacs is a bare minimum to start a small-scale garment manufacturing unit.

10. Arrange Funds

If you are short on budget, it is essential to arrange funds from banks and lending institutions. Do remember to keep your business plan document ready if you are pitching for funds from investors. This is because all types of investors will ask for your plan document before investing in your company. Also, apply for a credit card to meet small-time business expenses.

11. Hire Manpower

Garment manufacturing is manpower involved business. The most important position is the designer. He or she actually performs the most crucial role in making the venture successful. Hire skilled and experienced manpower only for senior positions.

12. Promote Your Garment Manufacturing Business

Apparel sales are driven by economic conditions, demographic trends, and pricing. The apparel industry is mature and it exists in a dynamic and competitive environment. A brand name is a powerful tool in the promotion of the garment business. Established brand names build consumer loyalty, which translates into repeat business. Choose a memorable, related to your garment name for your business. Establish a wide strong distribution channel network

Creating a website is a must nowadays. Creating an online store along with your website will provide you with an added advantage. Concentrate on creating an online presence. Also, register your business with online B2B directory portals. Public relations activity and press releases are important in the garment manufacturing business.

Frequently Asked Questions

Is the garment manufacturing business profitable.

As per this report , the global textile market size was valued at USD 1,695.13 billion in 2022. It is expected to grow at a compound annual growth rate (CAGR) of 7.6% in terms of revenue from 2023 to 2030. Hence we easily conclude that the garment business is a profitable industry. However, the success will largely depend on various factors, including market demand, cost management, product quality, and business strategies.

Do I need a background in fashion to start a garment manufacturing business?

Having a background in the fashion industry will surely have certain advantages. However, anyone can start a garment manufacturing business by partnering with experienced designers and pattern makers.

How do I identify the right fabric suppliers?

Research suppliers, ask for samples, and consider factors like quality, pricing, and reliability.

How can I maintain product quality during production?

You must implement strict quality control measures at each stage of production to catch and rectify any issues.

How do I determine garment pricing?

It is essential to consider production costs, overhead expenses, market demand, and competitor pricing to set a competitive yet profitable price.

Is it important to have an online presence for a garment manufacturing business?

Yes, having a website and engaging on social media platforms can help showcase your products, connect with customers, and generate sales.

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BUSINESS STRATEGIES

How to start a clothing business in 10 steps

  • 26 min read

Get started by:  Creating an online store →  |  Getting a domain →

how to start a clothing business

While fashion is a highly competitive multi-billion dollar industry, starting a clothing business, especially online, is more accessible than ever before.

Whether you want to design your own clothing line from scratch, customize readymade wholesale garments, start clothing dropshipping  or launch a small T-shirt business with print-on-demand services, the number of resources available to new businesses like yours are at an all-time high. You can start a business , build an online store , establish your clothing brand, connect with potential customers and start selling online in no time.

In this 10 step guide, we’re going to cover everything you need to know about how to start your own clothing line—from conceptualization to selling.These steps don’t have to be completed one-by-one in a linear fashion. You can multitask and work on a few steps at the same time. For example, once you’ve decided on your brand identity (Step 2) you can start building your online store  (Step 6). Use this guide as a checklist to keep you on track.

How to start a clothing business online in 10 steps

Research and choose your brand strategy 

Create your brand identity  

Decide what products to sell  

Choose a business model and register your business

Review costs and business expenses

Start building your online store  

Write a business plan  

Gather funding  

Design and create prototypes  

Get your marketing campaign up and running  

01. Research and 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 for this type of business :

What is your mission?  Perhaps you dream of creating a clothing line, using your own bespoke fashion designs. Or it could be as simple as creating a fashion business, offering quality, on-trend clothes you love. You might prioritize selling garments at an affordable price, manufacturing locally or using sustainable materials. Consider what factors are important to you and your clothing business. This is about your brand’s values and your purpose. This is about the product you want to provide . Be inspired by these clothing business ideas , if you're not sure.

What makes your clothing business different?  This is your   unique selling proposition (USP) , and it’s what ultimately tells customers why they should buy from you instead of your competition. This is largely about how you want your business to run. What is missing from the market that you can provide? Think about how you can set your clothing business apart.

What is your niche?  Is there a gap you can fill? Find your niche and see how you can serve it. Everyone wants to buy clothes that fit well, look great, are within their budget, and serve a purpose where it’s fashionable or practical. If you’re able to figure out which part of the equation is missing from the current market (which can be quality, price, ethics, design, function, or fit), then you have an instant in.

Who is your target audience?  Who are you creating your clothes for? Will you have direct communication with them by being a  business-to-consumer (B2C)  type of business? Do market research and get an idea of your main customer base. Deep dive into finding your ideal audience and considering ways to serve them. You may not have niched your new clothing line all the way down yet, but you should know upfront whether you’re planning to create politically-driven graphic tees for college students or comfortable slippers marketed to senior citizens. These factors are important, as they’ll shape your decisions moving forward, even if they shift slightly as you progress. Don’t worry, you can always adapt them as your clothing brand develops.

A good tactic for determining your target audience is   creating buyer personas . Think about their pain points that you can solve.

Let’s say that you want to create a clothing line that offers expensive washable silk pajamas. The following might be examples of your audience buyer personas:

Professional women aged 24-35, with no children but who are high-income earners. They are looking for high-end pyjamas that look and feel great. They want something that will hold up well, while still feeling luxurious.

Mothers aged 30-45 in upper or middle-class families who have elementary-school-aged children. They love silk but need something practical. Silk would typically be out because dry-clean only doesn’t always work for busy schedules, but machine-washable silk opens doors to practicality and convenience.

You can learn a lot about your niche and target audience through social media. Join forums on Reddit , add yourself to Facebook Groups  and follow relevant Instagram Pages  and influencers to immerse yourself in the niche you are seeking to serve. You can also use social media analytics tools as well as Google Analytics to gain valuable insights into user behavior, engagement patterns and demographic information. This will help you find and create products or styles that uniquely fill a void in the market and create marketing campaigns that speak directly to your audience.

Who are your competitors? Before committing to a niche or establishing a business model for your clothing line, you want to take a look at the competition. You can learn a lot from what they’re doing well, plus find ways to outshine them or offer something new.

If you wanted to start a high-end sock business, for example, research might show that plenty of similar companies are using subscription packages to keep reengagement high and sales up long-term.

Learn more: How to start a subscription box business

how to start a clothing business

You also want to take a look at your competitor’s pricing and promotions. You don’t necessarily need to beat their pricing; many customers, for example, will pay up to  25% more for sustainably-made items , and luxury brands can charge more than those opting for affordable selling points. That being said, market pricing does need to be taken into account, especially when you’re looking at direct competitors.

During your research, look at customer feedback, including reviews on competitors' product pages. You can learn a lot about what your target audience is looking for and where your competition is falling short.

Once you’ve answered these questions, nail it all down by  creating your mission statement . Don’t overlook this step because it’ll help you stay focused as you move forward on this journey to starting your own clothing line.

02. Create your brand identity

Once you’ve determined your clothing line’s brand strategy, then you can work on creating your brand identity . When you’re getting your clothing business off the ground, you’ll need all the elements to fit together well to form a strong, cohesive brand that your audience will trust, love and want to continue purchasing from.

These are the four pillars to creating a successful brand:

Quality:  What are you offering and who will be buying it? Lower-quality items can be more accessible and reach different markets than higher-end products. Keep all your products targeted toward the same market.

Price:  Consider your product quality, materials, manufacturing costs, target audience and competition. Then create a price range that's suitable for your items. Charge more for higher quality or unique items that are currently in-demand.

Brand design and style: Put your unique flavor into your business. Make sure the overall look and feel is consistent across your product collection, clothing logo , eCommerce  website, packaging, social media and marketing campaigns. The style you’re going for should also be in line with everything else on this list. If not, something will feel out of place and customers won’t purchase. Thankfully creating a brand identity for your clothing business is easier and faster than ever before, with AI-powered tools that help you create a logo  and build a free website  just by answering a few simple questions. It's also helpful to use an industry-specific logo maker to give you inspiration and help you fully represent your brand (in this case, a fashion logo maker ).

Brand name:  For clothing lines especially, your clothing brand name  can be a powerful selling feature in and of itself, even if you aren’t a high-end designer label. Brand names can also include mission-focused associations that make your clothing business stand out, like using ethically sourced designers or high-quality materials. This will come into play as you build brand trust  and brand recognition. If you’re struggling with a name, consider using our clothing line name generator  for some ideas.

When considering how to start a clothing business, create a Pinterest board or build a list of businesses you love and admire. Study how they have created their brand identities. Look at their use of design—logo, typography, color palette and website —and see how it embodies their brand strategy.

Develop a compelling value proposition to establish your unique brand identity in the competitive fashion market. This will help you communicate the distinct benefits and value that your clothing brand offers to your target customers. Your value proposition can include factors such as the style and quality of the clothing, the brand's mission or story, ethical and sustainable practices, affordability, or a combination of these elements.

03. Decide what products to sell

You’ve analyzed the market, you’ve delved into your niche, so now it’s time to use this knowledge to choose what clothing products you will create and sell.

There are so many different directions you can go with a clothing line, including the following eCommerce business ideas :

Designing your own line of sustainable and ethically made wardrobe basics

Designing custom-made bridal or bridesmaids gowns

Customizing readymade wholesale sweaters with hand-embroidered designs

Starting a T-shirt business  using print on demand services

Dropshipping  cold weather items, like gloves and hats. Learn more about starting a dropshipping business  and creating a dropshipping website  to do this.

Personalizing items, like caps or mugs, with a customer’s dog on the front

Creating artisanal, hand-stitched accessories like scarves or hats

Manufacturing comfortable, high-quality athleisure wear

Hand-painting robes, pajamas, and kimonos

Based on your target audience and niche, choose a target style, which can include any of the following and more:

Comfortable

You also want to think about the materials you’re using to create your products, as this can ultimately be a defining feature of your brand just as much as style. These choices may include:

High-end luxury knits

Eco-friendly options, like organic or recycled materials

Affordable low-cost and widely-available materials like mass-produced cotton

Remember to start small, especially if you will be manufacturing the products and not using a dropshipper. Design a few products (or even just one) to get started with and then take it from there. You don't want to bite off more than you can chew.

04. Choose a business model and register your business

There are plenty of different business models you can choose from when it comes to starting your own clothing line. Let’s take a look at the most common business models used.

Private label

If you want to design and create your own unique clothing line and have it manufactured to your specifications, then this is the business model for you.

You’ll need to consider various factors. What will your first collection be? This is how you announce your clothing line to the world. It should reflect your brand’s unique identity. Will you make the clothes yourself? If you don’t have the technical skills to design a garment you could work with a fashion designer to bring your ideas to life. What fabrics will you use? You will need to source the right fabric, in the right amount, to keep your costs down. Do you want to hand sew each item or will you outsource the work and find manufacturers?

If using a manufacturer, once you’ve created your designs and placed an order for a set number of products, you will receive the inventory and keep it on hand to ship out as it’s ordered. Sometimes, this means you end up with left-over inventory that doesn’t sell, which can cut into your profits, so take that into account when you set out.

You’ll also need to  manage your inventory , which means storing it yourself, renting warehouse space or using a  3PL . Take time to do your research and find the right answers for your business as each factor will impact your pricing and profits. Starting this type of clothing line gives you full creative control, and makes it easier to scale once the right processes are in place.

Check out how Ashco  created a unique brand that’s trendy, comfortable and serves a specific niche in the market.

Custom wholesale

Custom wholesale  businesses purchase premade wholesale clothing and then customize each garment by hand. Whether you decide to purchase contemporary or vintage wholesale clothing, this type of clothing line is a great way to stand out from the crowd. But remember that hand customizing can take time and labor. You’ll need ample space to work as well as somewhere to pack and store inventory.

Custom clothing lines

If you want to offer made-to-order items, a couture custom clothing line may be an excellent choice. You can specialize in event clothing, tuxedos or custom made suits for prom, wedding dresses or red carpet gowns, and create bespoke pieces made to fit each client.

Custom clothing also includes made-to-order branded products such as dress shirts with a customer’s brand logo printed on them, and even aprons with a customer’s name embroidered across the top.

Custom clothing lines allow you to create something truly unique for your clients as needed, giving you an advantage in the market, but it can be much more difficult to scale than other small medium business  models as creating custom items can take time to execute, which can create a backlog overtime if the demand is high.

Dropshipping

If you are interested in curating products from sellers that align with your brand instead of manufacturing them yourself,  dropshipping  can be a good option. It’s low-cost with low overhead, because you don’t need to manufacture, store, manage, or ship any inventory. Instead, when the customer places an order, the third-party seller will ship it directly to the customer.

To  start dropshipping , just  integrate your eCommerce website with a dropshipping company , find great products and start selling. Explore eCommerce website templates  to help you figure out what's best.

Dropshipping has some downsides, especially considering the overall lack of control. You can’t control who else is selling the products you are, which can drive up competition levels. You also have very little quality control or influence on inventory availability on your end, aside from delivering customer service.

how to start a clothing business: dropshipping

Print on demand

Print on demand  is another low-investment option that lets you customize clothing from print on demand companies  like  Printful  of  Printify’s  robust catalogs. The print-on-demand company makes and fulfills your orders. All you need to do is create designs that you can market and sell directly to consumers.

This option, sometimes referred to as “white labeling,” is all about quickly customizing and producing products to create something unique while streamlining the process. And if you choose to integrate with a print-on-demand service, it operates within dropshipping parameters; you market the item and process the sale, and then the printing company creates the product and ships it straight to the consumer.

This can work well for items that are quickly produced, like graphic tees, and it prevents you from needing to have an enormous stock of inventory in terms of finished products that might not sell. This can reduce your potential profit loss.

Worst Year Ever  is expertly using this method to design and sell 2020-themed clothing. While the store focuses on tees, they also make use of other customizable products from the print-on-demand catalog.

Chosen a business model? Now you'll need to register your business. You'll need to choose the business entity you want to start - sole proprietorship, LLC or a corporation. Every business owner must apply for an EIN (Employer Identification Number) in order to pay all relevant business taxes owed. Not sure how to go about registering a business in your state? It's best to consult with an attorney or local chamber of commerce.

For example, learn how to start an LLC in New York .

05. Connect with reliable partners

Building relationships with third-party vendors who can help you create the products, styles and business you envision, is a key part of creating a clothing business. When looking to partner with another company, do everything you can to make sure they are reliable, professional, and responsible. If you’ll need someone to send you 200 yards of delicate white lace every month to make wedding dresses, for example, you’re going to want to make sure you can count on it.

As a start-up clothing line you might need to convince some of these third-party vendors, such as manufacturers, to work with you. Be prepared to answer their questions and understand their production process.

Here are some things to look out for before partnering with a company:

Look for reviews online

Request samples

Use social media to ask if anyone has experience working with them

Seek out recommendations, including businesses you can verify yourself

Ask the company about previous work

Ask to visit their premises and see their process (In person or via video call)

06. Review costs and business expenses

Before you make any decisions, the first thing you should do is crunch some numbers. Knowing your expenses at the outset will help you to prepare, monitor expenses with an expense report  and even secure proper funding if needed when you create your clothing line business plan .

Remember that while starting your own clothing line or online clothing business will always involve some financial investment, it can absolutely pay off.

The following are common costs associated with starting an online clothing business:

Design:  These may include any costs of hiring a third-party designer, paying for design software, and any materials you’re using to create designs yourself.

Manufacturing:  While you might choose to source your own materials and make your own prototype, most clothing lines will find manufacturers to create a prototype and then produce the inventory. The cost of the raw materials is usually included in the price of the manufacturing. With many manufacturers, the larger the order quantity, the lower the cost per unit. This is because they have set up costs for each design. However this option is not always ideal for a small business on a tight budget with limited space for inventory.

Inventory storage and management: If you aren’t dropshipping, you’ll have a large chunk of inventory that you need to store and manage somewhere. Storage space (which may include a staffed warehouse as you grow) is an essential part of this, but   inventory management   software can help you keep track of your products.

Packaging:  Many clothing lines opt for custom packaging in order to enhance their store’s branding and to create an unboxing experience. This can include branded boxes, tape, and tissue paper. You’ll also want to think about price and brand tags for your different products.

Shipping:  Consider the costs to get the inventory to your warehouse as well as the costs to ship it to your customers. You’ll need to make sure you’re charging the customer accordingly so it doesn’t eat into your net profit  margins.

Legal contracts: You may have legal contracts with a manufacturer, third-party marketing company, rental space, or storage space. It’s best to have a lawyer review these contracts first before signing them, so you’ll want to account for legal fees.

Necessary licenses and permits: You’ll likely need a business license, and you may need special permitting depending on where you live and where your business will operate. If you’re in the US, note that these requirements vary by state. You should check your state’s requirements and   review the standard licenses you may need .

Website:  You can get site hosting  and a custom domain , and choosing a platform with strong   eCommerce features   like Wix can help you do all this at once. Beautiful product photography is key, so invest in a quality camera and some lighting or hire a photographer for a professional look. If you hire someone for site design, SEO work, or site copywriting, this should be factored into your costs, too.

Marketing:  Once you’re ready to promote your brand, you’ll need to budget for marketing, which can include paid ad spend, referral fees, affiliate fees, sponsored posts and more.

Taxes:  All businesses will need to pay taxes. You can talk to a qualified accountant to determine exactly how much you’ll want to set aside, whether or not you are eligible for certain corporate tax  benefits, and find out how often you need to pay. Some businesses may need to pay quarterly instead of annually depending on your business structure.

07. Start building your online clothing store

Once you’ve refined your brand strategy and identity you can start working on creating a professional website for your new clothing line. Your online store  should embody the spirit of your brand.

When setting out to start your online store,  you’ll want to choose an eCommerce-focused platform that has plenty of features. This’ll make it easier to build your business and offer exceptional customer service.

A platform like Wix eCommerce offers a large number of key   eCommerce features   you’ll need to create and grow your business. Use a free designer-made template or build your site from scratch and customize it to fit your brand identity by changing details like color palette, font, and layout.

Once you choose the right platform, make sure your site includes the following.

A strong homepage

Here you should feature your key products, and include a tagline that highlights why potential customers should purchase from you. Your tagline should be short and sweet, no more than a single line, while still being clear about what value you can offer your customers.

No products yet? No problem. Make an impact with a ‘Coming Soon’ landing page. Add a Subscribe form and use it to build a contact list. When you’re ready to launch, send out an email marketing campaign letting customers know when your first collection will drop.

Once you have stock you can make your online store visible and add a clear CTA   that directs your customers immediately to the product catalog. Use   banners to showcase limited time offers or coupon codes.

An “About Us” page

Your “About Us” page is where you can stress your mission and your USP to continue to highlight what makes your clothing brand different. It’s also a great place to share the faces behind your brand to build rapport.

Cherry and Mint  uses its about page to highlight the person and values behind the brand. "After creating my brand and being more into things, i [sic] started realising the negative impact fast fashion has to the environment," writes Zoey, founder of Cherry and Mint. "Therefore I try to practice ethical & sustainable views as much as possible."

High-converting product pages

These are some of the criteria to include on your   product pages :

Copy that aligns with your brand voice and explains the value of your product

A detailed   product description, including materials used, sizing information, and care instructions

Multiple high-quality images and potentially a video to show the item from multiple views (or on multiple models)

Customer reviews

A customer service or help page

Make it easy for customers to review your store policies, including your return policies, estimated shipping times, and terms and conditions. It can also be helpful to include frequently asked questions, so that customers can find the answers themselves without needing to reach out to you.

Regardless, make sure you make it easy for shoppers to receive personalized customer service if needed. High-quality customer service will increase customers’ confidence in your brand and can drive sales.

Include easy-pay options at checkout

Your checkout process must be simple, fast, and easy for customers. If it’s not, you have a much higher chance of ending up with abandoned carts and lost sales.

Incorporate easy-pay options like  PayPal   or Apple Pay on your checkout page to offer multiple fast and secure payments for customers. By reducing clicks in the checkout funnel and by offering different payment options, you make it that much less likely a shopper will abandon their cart.

Stalf   makes it easy for customers to check out with an additional option to pay with PayPal.

08. Write a business plan

Now it’s time to write a business plan for your clothing line. This plan will be the roadmap for your business. It can add structure and help to streamline your goals for the future. It should contain:

Company description: Include details like the name of your clothing business, your background, your mission statement, information on core products, your company’s goals and how you will achieve them. Include an estimated timeline for meeting these goals.

Company products: List detailed descriptions of the products you will be selling. Add images, or sketches if these are available, and be sure to include information on production costs and expected pricing.

Market analysis:  Include your research on current market trends, your competitors and your target audience. Add your conclusions as to how your business will fit into the market.

Marketing and operations plan:  This section should contain details of your brand identity, your business model and your plans to market your new clothing line.

Management and organization:  Show how your business will be structured. Perhaps it’s just you, for now, but as your clothing line grows you might gain more stakeholders who will need to be included.

Financial projections:  Show how you expect to sustain your business financially. Consider start-up costs, whether or not you might seek funding, and how long you think it will take before you turn a profit.

Appendices:  Add any other information that helps to create a full picture of your new clothing business. Don’t forget to include additional business documents such as contracts, licenses and insurance here too.

09. Gather funding 

After you’ve chosen a business model for your clothing line and started to put together basic cost projections in your business plan, you’ll want to raise money for your business .

First, assess how much cash you’ll need upfront to get everything up and running. Use that market research from early on and apply it now.

Break all your projected costs down, line-by-line, and try to estimate at least 5% over what you think you’ll need. This will allow you to be prepared for unexpected costs that arise. Your business will need to be covering everything from transaction fees, manufacturing costs, marketing spend, and loss of profit from returns.

Try to minimize your initial costs as much as possible. Store inventory in your garage instead of a warehouse, for example, and manage it using the Wix app . There’s also the option to handle customer inquiries yourself using social media or through the live chat function on your site instead of outsourcing to an agency. You can scale when you’re ready, but it’s best to do so once your profit is up. Remember that you yourself likely won’t make a large profit or be able to take a salary right away.

Before reaching out for funding, create a detailed business plan. Outline your expenses and why they’re essential, your profit margins, and how you plan to promote your business. Account for everything, because this will help investors feel more confident in investing.

If you need assistance with funding, there are plenty of options to consider.

If you belong to a credit union, ask about business financing: Credit unions often have competitive financing with low interest rates, and may be able to approve you quickly.

Check out online lenders: Kabbage  and  Lending Tree  are two excellent examples, as they’ll typically respond quickly and may offer more competitive rates than large banks.

Look for investors: Investors may offer financing in the form of a loan, or they may want a certain percentage of equity in your company in exchange for the financing. Consider what options work best for you, and know that someone who wants equity may be more interested in a collaborative venture.

Regardless of where you go, there are a few key business financing options to consider:

Business loans:  Business loans offer a one-time, lump-sum payment upfront. You’ll have a set period of time to pay it off (with interest), and have pre-determined monthly payments. Some business loans have penalties for early payment.

Business lines of credit.  Business lines of credit   are a type of open, revolving financing. You’re approved for a set amount (like $20,000), and you can draw from any available funds as needed, like a credit card. The draw period will be for periods like five, ten, or even 15 years, and you only pay interest on the funds you’re actively borrowing. This is often more appealing to businesses in early stages, as they can use what they need when they need it without paying interest on the rest.

Business credit cards.  These are open lines of credit, and work exactly like personal credit cards but they’re in your business’s name. Be careful not to go too deep into debt here, as the interest rates are often much higher.

09. Design and create prototypes

If you’re creating your own clothing line, you’ll need to get started on designing your clothes. Sketch out your designs, and create your prototypes. This can be done with the help of a designer or manufacturer, but can also be done in your bedroom alone with just your sewing machine.

If you’re creating the prototype yourself, you may want to provide the manufacturer with a tech pack. This is essentially a blueprint for your design and should contain every single detail about your product, such as fabric, measurements, stitching, labelling and packaging guidelines.

If you aren’t a designer, rest assured, as many manufacturers will include creating a prototype in their cost. This gives you a chance to see and feel the quality of the product before you commit to ordering a large amount. It can also help you determine their speed, adherence to your design instructions and ultimately if you have chosen a manufacturer that is right for your clothing business. It’s worth noting that if your clothing line contains different garments, for example, you sell both knitwear and jeans, then you might need to use a different manufacturer for each item.

Whatever you do, make sure you love what you create. You want to be absolutely certain that you’re happy with every product you’re creating before you order massive quantities of them—whether it’s a scarf or the packaging that the scarf will ship in.

Test the items yourself for quality, if possible. You could wash clothing multiple times according to care instructions to make sure they hold up well, and even wear them to see if they stretch, fade, fray, or bleed onto anything. This is your brand reputation on the line, so you can’t be too sure.

If you’re dropshipping items or selling with print on demand, you should always order the items that you plan on selling in your own store to ensure that they’re exactly what you think they’ll be.

Make sure that your products are up to the standard that you expect, and that they’re consistently high quality. After you’re confident, you can start ordering your inventory.

10. Get your marketing campaigns up and running

It’s time to start creating a marketing plan to promote your business. After all, customers can’t buy from you if they don’t know that you exist.

Here are some options for promoting your new clothing business online:

Search engine optimization (SEO): Wix sites that complete SEO setup receive two times more visitors and 1.3 times higher turnover.

Organic social media marketing: Choose the best social platforms to reach your target audience. Create branded profiles and curate your content to attract and engage followers, building brand and product awareness.

Pay-per-click ads: Create  Facebook Ads  and Google Ads to create and capture customer demand. Hundreds of Wix Stores owners have seen over 1,000% return on their ad spend with Facebook and Instagram through the integrated Facebook Ads marketing tool.

Sell on multiple sales channels: Set up Facebook and Instagram Shop and start selling on social media. You can also integrate other marketplaces like eBay, Amazon and Etsy to your online store. By adding an additional sales channel to your online store you can increase your sales by up to 12%.

Influencer marketing:  Partner with   clothing brand influencers   who have an engaged following from your target audience and who can help you expand your reach quickly.

Brand ambassadors:  Find and create fans of your products. Then encourage them to provide recommendations and site reviews.

Partner with another brand: Work with more-established brands that sell to your target audience but aren’t a direct competitor to increase your reach quickly.

Content marketing: Write   blogs   or create resources, like styling videos, to provide value to your audience.

Ready to start your own clothing line? Create your online store  today.

How to market your clothing brand

There are many ways to market your clothing brand. Here are a few tips:

Define your target audience: Who are you designing for? What are their needs and wants? Once you understand your target audience, you can tailor your marketing messages accordingly.

Create a strong brand identity: What makes your clothing brand unique? What values do you represent? Your brand identity should be reflected in everything you do, from your logo and website to your social media presence and marketing materials.

Develop a marketing strategy: What are your marketing goals? What channels will you use to reach your target audience? How will you measure your success? Having a well-thought-out marketing strategy will help you stay focused and achieve your goals.

Use social media effectively: Social media is a great way to connect with your target audience and promote your brand. Be sure to post high-quality content regularly and interact with your followers.

Run targeted ads: Paid ads can be a great way to reach a large audience and generate leads and sales. Be sure to target your ads to your ideal customer.

Partner with influencers: Partnering with influencers in your industry can be a great way to get exposure for your brand and reach a new audience.

Attend trade shows and events: Trade shows and events are a great way to network with other businesses in your industry and promote your brand to potential customers.

Why start a clothing business?

Starting a clothing business can be a rewarding venture for multiple reasons. If you're a designer already, or looking to get started with a clothing business, some of the following benefits might inspire you further:

Creative expression: Designing unique styles and creating fashion trends can be fulfilling for those with a passion for creativity and design. If you have a genuine interest and passion for fashion, starting a clothing business provides an avenue to turn that passion into a profession, allowing you to work in an industry you love.

Entrepreneurial opportunities: The clothing industry offers numerous entrepreneurial opportunities, from designing and manufacturing to retail and online sales. It allows individuals to be their own boss and take control of their business. Starting a clothing business can contribute to job creation, whether by hiring employees for design, manufacturing, marketing, or retail positions. This can have a positive impact on the local economy.

Diverse market: The clothing market is vast and diverse, catering to various demographics, styles, and niches. Whether it's casual wear, activewear or niche markets like sustainable fashion, there are opportunities to find a unique position in the market. On top of that, if you have a knack for spotting trends in fashion, you can capitalize on changing consumer preferences. Staying ahead of trends can set your clothing business apart and attract a fashion-forward audience.

Brand building and customization: Building a clothing brand allows you to establish a distinct identity in the market. A strong brand can create customer loyalty and recognition, contributing to long-term success. The clothing industry also lends itself well to customization and personalization. Creating personalized or custom-designed clothing items allows you to cater to specific customer preferences.

Global reach: With the continuing rise and popularity of eCommerce , starting a clothing business provides the potential for a global customer base.

Looking to start a clothing business in a specific state?

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How to start a clothing brand FAQ

Do i need a license to start a clothing line.

The requirements for licensing vary depending on your location. In some jurisdictions, you may need a business license, a permit to sell clothing and a tax ID number. You may also need to comply with certain labeling and safety regulations in order to license your business.

How much does it cost to start a clothing line?

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Textile Learner

How to Start a Garment Manufacturing Business

Shubham Anil Jain Aditya Birla Fashion and Retail Limited Bangalore, India Email: [email protected]

Introduction: The manufacturing of clothing necessitates proficiency in textile marketing as well as process technology. A garment manufacturing business involves the production of clothing and textile products. It encompasses various processes, from designing and pattern making to cutting, sewing, and finishing. Today’s world has a multi-billion dollar ready-made garment manufacturing industry. More people are conscious of their appearance and fashion. This has given the global garment manufacturing industry a lot of room to grow.

Start a Garment Manufacturing Business

Things to Consider Before Starting a Garment Manufacturing Business: Starting a garment manufacturing business requires careful planning, attention to detail, and a focus on quality. Here are some steps to help you get started:

1. Perform research: The ready-to-wear clothing market is incredibly large. The creation of garments is a difficult task as well. You should start by taking a more comprehensive view of the clothing and garment market. Consider the full supply chain for clothing.

2. Consider all of the available options: Before starting out, it is crucial to evaluate the potential of the apparel manufacturing sector. You can build a brand-new product line from the ground up.

As customers in the United States, Europe, and high-street retailers buy fabrics from third-world countries, mainly South Asia, you can also expand internationally. You can therefore start your own export garment manufacturing business.

3. Select the Products You Want to Make: A fashion line contains many different kinds of products. Choose some categories for your company. When making a decision, do some research on current trends, best-selling items, staple products, and basic product categories.

Because you will be creating clothing for other people, product design is not necessary for this business. On the other hand, you must initially concentrate on product design if you want to build your brand and a fashion company with production facilities.

4. Select a Location: If you don’t have enough space to manufacture, you won’t be able to start your factory. The next step for the production company would be to select a location. If your factory could be located in an industrial area, that would be ideal. That would have enabled you to benefit from numerous chances to get daily necessities.

Employees and tailors are easily accessible in the industrial area. Tirupur, Ludhiana, Noida, Delhi, Gurgaon, Bangalore, and Kolkata are a few of India’s well-known garment manufacturing hubs.

5. Determine the Monthly Production Estimate: It is now time to decide how much output you will produce each day. In order to meet this demand, you will need to purchase a lot of machinery, hire a large number of workers, establish a manufacturing unit and departments, and set up additional equipment.

6. Estimate the Amount of Labour, Equipment, and Materials that will be Needed: Make a thorough project report that details the personnel requirements, the types of equipment needed, and the materials needed to make the products.

Part of the machine demand planning process involves researching the various machinery needed to produce the targeted goods and types of goods. Next, determine how many sewing machines , non-sewing machines, and pieces of machinery are required to meet the monthly production quantity.

7. Draw up an Investment Strategy: Create a thorough report that details the costs associated with the space, labour, equipment, and supplies. Once your project report is complete, calculate the cost of factory setup.

The cost of machinery and equipment, raw materials for one production cycle, three months’ worth of personnel pay, pre-operative costs, implementation costs, overhead costs like power, printing, and office supplies, marketing and promotion costs, and so on are all included in this financial report.

8. Choose a Source of Startup Funding: You will have a better idea of how much money you will need to start and run the clothing business once you have compiled the financial report. Separate the required finances into two categories: the initial capital expenditure and operating expenses. According to this split, adjust the funds. By requesting a bank’s government-backed startup loan, you can raise capital. Another choice is to collaborate with someone who wants to invest in your business.

Steps to Set Up the Garment Manufacturing Business:

a) Registration of the company: Consult the Ministry of Corporate Affairs about registering your company. The completion of the registration may take anywhere from one to seven days.  The selection of a company name is the first stage. Additionally, the name must be both easy to pronounce and distinctive. To see if the name of your choice is available, visit the MCA website. The majority of clothing businesses are set up as Limited Liability Partnerships (LLP) or Private Limited Companies.

b) Open a bank account: After the organization is registered, a separate bank account needs to be opened. The incorporation certificate and PAN card, which may be needed for opening a bank account, will be provided after business registration.

The account will be useful if you ever need to apply for a company loan. This is a crucial step in launching a clothing company in India.

c) Rental contract: If the industrial premises are rented, the organization and the property owners must sign a lease. If the lease agreement is executed in the entity’s name, the responsibility will be constrained. In addition, transfer is easy.

d) Sign up for GST: Before making plans for an inventory or paying for installations, the business must register for GST and obtain a GSTIN. You can claim all of the GST input tax credits by using your GSTIN number, which will reduce your tax obligation.

e) Complete the premises as per industrial standards: After renting a property, upgrade the infrastructure. Depending on the floor plan (a single-floor factory or a multi-story building), social compliance must be taken into account when building.

Create a floor plan for the various divisions, offices, and production lines. Establish office infrastructure by installing electrical wiring, for example. You can set up a conference room, showroom, CAD room, and sampling room.

f) Invest in equipment: In accordance with your project report and from a reliable supplier, purchase machinery and equipment. Get price estimates from a few equipment vendors. There are other sewing machine varieties available as well.

g) Hire and develop staff: To get going, assemble a group of managers and workers to run your company. To hire employees, you can use the assistance of a workforce-providing organization.

There should be a head of department for each unit. Hire professionals who have experience working in the garment manufacturing sector. Make the necessary preparations if on-the-job training is required.

h) Start production: You can start making garment samples of the designs you’ll be making to show prospective customers. Once you have a clientele, you’ll start getting large orders. To fulfill these orders, you will need to create a list of the raw materials and extras you will need, as well as purchase them all. When the facility is prepared for mass production, you should start garment manufacturing.

i) Promote and market your business: It is now time for you to spend some time on the marketing of your company once you have finished setting up your organization and putting all the functions and operations in place. No company has a chance of success without marketing. You need to let people know about your business, what you have to offer, how you differ from the competition, your vision, and anything else that will draw in more and more customers.

Conclusion These are the fundamental actions to begin start a garment manufacturing business. Additional approvals, clearances, and permits can be necessary depending on the state government and the size of the unit. To avoid potential legal difficulties, it is advised that you do extensive pre-licensing related study before opening a garment manufacturing facility. To get recurring orders, try to develop long-term partnerships with distributors, retailers, etc. Besides, to start a garment manufacturing business needs to stay updated with industry trends, invest in technology and automation, and maintain a focus on delivering high-quality garments to succeed in this competitive industry.

References:

  • https://nextwhatbusiness.com/garment-manufacturing-business/
  • https://lio.io/blog/how-to-start-a-garment-business-in-india/
  • https://corpbiz.io/learning/how-to-set-up-garment-manufacturing-business-in-india/
  • https://okcredit.in/blog/how-to-start-apparel-manufacturing-business/
  • 5https://www.onlineclothingstudy.com/2019/04/how-to-start-garment-business.html

You may also like:

  • Strategic Business Pattern of Apparel Buying House or Sourcing Hub Office
  • Impact of Covid-19 on Apparel Manufacturing Business
  • Fashion Advertising Techniques and Its Significant Role in Apparel Business

Mazharul Islam Kiron

Founder & Editor of Textile Learner. He is a Textile Consultant, Blogger & Entrepreneur. He is working as a textile consultant in several local and international companies. He is also a contributor of Wikipedia.

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Preparing a Business Plan for Garment Manufacturing Setup

Business plan preparation a new setup

  • First, get customers (buyers) and then make apparel products according to the customers' needs and sell them to them.
  • Second, make your product first and then get customers to sell your product. Whatever way you choose to do business, you need to work on the following things to make your project successful.

1. Select the product category

2. estimate production requirement , 3. number of sewing machines needed, 4. type of sewing machines needed for making the design, 5. raw materials requirement, 6. factory space requirement , 7. manpower requirement, 8. project cost , 9. internal process flow, 10. supplier listing , 11. reach your customers , post a comment, advertisement, contact form.

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readymade garments business plan

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></center></p><h2>How to Start a Clothing Manufacturing Business</h2><ul><li>March 3, 2023</li></ul><h2>Table of Contents</h2><p>Hello! You know, starting a new clothing business is not a daunting process anymore. Helping clothing manufacturers, we can say this because we have been helping startups build their own brands. Many of you might be thinking about how to start a clothing manufacturing company, and to answer your questions and queries, we decided to cover the whole topic in detail.</p><p>Starting a clothing line business  is perfect in today’s era, where we see a new clothing brand stepping into the fashion industry every week. Ever wondered who the people behind these brands are or clothing retailers? Well, they are clothing manufacturers. Being one, we can assist with everything required to start a clothing manufacturing business.</p><p>As part of this guide, we’ll also go into detail regarding how to run a clothing manufacturing business successfully and the costs involved with starting one if that is your intention. So it should prove particularly insightful if that is your interest. Just connect till the end of the blog, and we are sure you will find your way easy to set up your clothing manufacturing business.</p><p>Let’s start the comprehensive guide on how to start a clothing manufacturing business that goes to success.</p><p>Note: The guide is based on the knowledge and experience of many entrepreneurs and fashion industry experts, so it will definitely help.</p><h2>Key Points & Commonly Asked Questions for How to Set Up a Clothing Manufacturing Business</h2><p><center><img style=

People have many queries that need answering; to make things simpler for you, here are some top queries that could prove useful: –

How can I start my own cloth manufacturing business? – Should I buy or start from scratch when starting?

The process for starting your own cloth manufacturing business can be pretty simple or complicated based on which way you are going. To simplify the business, you can do business with a drop shipping manufacturer and supplier. Or you can directly work with the fabric supplier, manufacture clothes using machines, and sell them to brands and retailers. The latter process gives you a broad experience of the fashion industry as you’re directly working with the clients and is more beneficial.

Does a cloth manufacturing business require a license to work?

Yes, all legal business requires a license to work. Your business license requirements depend heavily on the region, state or country in which you operate your enterprise. In order to conduct and do business successfully in that market. You can consult a business license organization or government to get the correct details of the business information and licenses.

How much it cost to start a clothes manufacturing business?

cost of clothing business

Well, it depends on the type of setup you are doing in your clothes manufacturing business. Like it depends on

  • The quantity you want to produce
  • Machines that you will be used to manufacture clothes
  • On which type of textile will you be working
  • Which variety of printing methods will you use
  • What will be the size of your factory
  • What type of garment manufacturing process do you want to work on?
  • Is it small-scale or large scale

The average cost to set up your clothes manufacturing business is $38,745.

You can check a detailed guide on the cost of the clothing business  here .

Does the clothing business require copyrights or trademarks?

Yes, if you want that no one else steals your designs and works by your name in the clothing industry, then acquiring a copyright license and trademarks for your brand name, design and labels are essential. Moreover, if you catch someone using your designs or selling a duplicate brand under your name, you can press charges against them and gain financials from them. That’s a benefit of having a trademark.

Learn more about  how to trademark a clothing brand

Can a clothing business be started with no experience?

I say, why not? All the major fashion brands once had no experience. If they can this far, then why not you? You need a good guide that makes things understandable for you and provides you with a road map to start your own clothing business.

Initially, to understand how the fashion industry works, you can advise yourself to start a clothing business by drop shopping method. By this, you will be saved from a lot of hassles and responsibilities that are pretty daunting to handle as a starter.

What is a clothing manufacturer?

clothing manufacturer

First, before we move on to starting your clothes manufacturing business, you need to understand who a  clothing manufacturer  is and what they do.

A clothing manufacturer is responsible for manufacturing clothes according to the brands and retailers’ needs and specifications. The manufacturing process includes cutting, sewing, designing, pattern making, printing, labeling, packaging, and more. The clothes manufacturing process is further broken into several sub-steps that vary depending on your manufacturing type.

Find a clothing manufacturers for your business?  Discover the top high end clothing manufacturer for your brand by visiting the link.

How does the clothing manufacturing business work?

clothing manufacturing business

As mentioned earlier, the clothing manufacturing process is divided into a couple of stages which are further divided into a couple of sub-stages. Here are the stages of the clothing manufacturing business,

  • Pre-production stage : Here, the pattern making and fabric sourcing are done
  • Planning : This stage includes the foresees of production and making of the proper timeline of activities in the manufacturing process.
  • Cutting : here, the fabrics are cut into patterns by using the size guidelines that designers provide in the form of a tech pack ( A graphical technical document that mentions all the sizing, features, design, and fabric details)
  • Quality assurance : After the products are manufactured, they are sent to the quality assurance department, where they are being checked whether they are according to the quality required or not. If they are not, they’re sent for reproduction.
  • Delivery : After the production completes and if they are according to the customer’s needs, they are sent to the customer.

Clothing Manufacturing Business

So now that we are clear on  what is a clothing manufacturer  is and how they work in the clothing industry, we are safe to move and discover how to start a fashion manufacturing business. So, let’s dive in. Here are the important steps for creating clothes manufacturing business.

Research the Niche

There are many opportunities in the clothing business, so first, you need to brainstorm and research the opportunities and gaps in the fashion industry. In this research, you need to find the customers’ pain points and gaps in the market that you can fulfill by bringing your own innovative solution. Its simple anything that makes customers’ life easy will sell.

So it is essential that you find one niche you can start in, one which best suits you and your abilities, where quality products can be manufactured and sold at a competitive price point. Competition exists in every aspect of life; therefore you need to stay one step ahead. You can do so by producing high-quality clothing at competitive prices or lower than the market (that’s one best technique to increase your brand visibility and gain consumer attention initially.)

Study the Trends

The trends are essential elements in the fashion industry and can make or break your clothing business. Consumers are willing to spend more and more on the current trends in the fashion industry, so to be ahead in the industry, you need to understand the trends and then work on them before any particular line runs out of trend.

Like in recent years, there was a great trend in sports apparel and yoga wear, and we observed a lot of brands working on the athletic line and sports apparel. So you can also start off with any clothing lines you think have a chance of becoming a trend in the coming years. For this, you need to study the demographics and customer buying behavior to understand better the customer’s pain points of the customer, like what made them buy any particular product and what qualities consumers are looking for.

Know the Garment Manufacturing Industry

Before you step into any business, it’s very essential to know the industry, how it works, and the process involved in it. Likewise, you will first have to learn about the garment manufacturing industry. Practical knowledge about the industry and its process is way more beneficial than reading information from the Internet.

Suppose you start a business in T-shirt manufacturing. Then you should be acquired with knowledge about how the fabrics of T-Shirts are assembled and how they are manufactured, what are the process of shirt manufacturing is, and what are the prerequisites and requirements of raw materials in the manufacturing.

The best approach is to have a project report in which you record and measure all the steps needed to manufacture a T-shirt. And then, you should have your first project done; during the project, you will get the experience of the actual methods used for manufacturing T-shirts. Moreover, you will also come across a number of problems that will help you understand the process more efficiently.

Finding the Location to Set Up Your Factory

You might already have a place where you will be setting up your manufacturing factory. You need to have a space where you can produce clothes peacefully and utilize the space to the fullest by having the space on rent or by buying it.

As you will be working as a whole factory or industry, so it’s better to have your factory set up in an industrial zone. By setting up a factory in an industry, you will have an advantage of an easy accessibility of supplies. Moreover, there are more chances of getting skillful labor in the industrial zone.

Most of these international and more prominent brands have their manufacturing setup in the industrial zone, so it increases your chances of growing.

Know Your Requirements

First of all, you need to know your requirements, because you will set up your whole factory according to them. If you are working in any particular niche production, then you will need to have the required machines and skillful labor for that. Another thing that you should focus on the daily amount of manufacturing, like what’s the total amount of T-shirts, trousers, or any other clothing product you will manufacture.

In simple words, you will need an estimation of numbers or forecast of your production. You will need to plan your plant according to it. Like you need to arrange machines, workforce, labor, and departments according to the number.

For example, if you will be manufacturing 4000 T-shirts in a month, then you will need to invest according to the numbers.

Build Contacts with Fabric Supplier

As a manufacturer, you will be sourcing fabrics to manufacture clothing lines, and there are different types of fabrics used in the clothing line. So you will need to connect with a clothing fabric suppliers who can provide you with various kinds of fabric so that you can cater to your customer’s needs.

Connecting a diverse fabric supplier should be an integral part of your plan. When you are in the market, different brands, consumers, and retailers will contact you to manufacture clothing lines for them, and there are 98% chances that all of them will require different fabrics. For example, some might ask you to manufacture a T-shirt of polyester material, or some sportswear brands can ask you to create a jersey of spandex material or knit fabric, so you will need to source the fabric according to your consumer requirements.

Build an Online Presence

social media

It makes no sense to do business without the Internet in today’s era. All of the business and the whole fashion industry is highly dependent on the Internet. The Internet is the main platform that bridges the gap between consumers and the fashion industry. So having your own website and marking your presence is an important step.

You can mark your online presence by setting up your online store (website), which shows your catalogue, and the brands you have worked with. This creates a good impression on your other brands and attracts an audience. Having a minimalistic website is the trend nowadays, so you should have a website that tells a good story and attract the audience to have a look at what you are offerings.

The visitors you are targeting should be able to visit your website and recognize you as a clothing manufacturer as soon as they enter your website. Here are some best ways to ensure an effective web presence

  • Create your logo and set a slogan
  • Write sales copy that sets in your consumers’ minds, target their emotions, and wins their trust by it.
  • Let your consumers know what you can offer and how it can solve their problems.
  • Display your catalog and let them know what you can manufacture.
  • Have a reviews page where they can read your previous customer’s reviews.
  • Keep it simple and minimal.

Create a Business Plan

business plan

This is the part most brands and startups miss and don’t work on, not realizing how important a business plan is and how it makes your business grow. After completing the basics of your cloth manufacturing business, you should work on your business plan.

Your clothing line business plan will serve as a guide to setting up your clothing business. Your business plan can include your company goal, vision, mission statement, and more. Your business plan should describe your intended methods of operation, your marketing and partner strategies and any key sections you should include in it. Here are some essential sections you must include.

Key points to have in the business plan

  • Executive summary
  • Mission statement
  • Factory location
  • Business Entity
  • Financials projections
  • Investment costs
  • Marketing plans
  • Target audience
  • Legal documents
  • Market analysis
  • And other supporting material

We have written a well-defined guideline on a business plan, have a look at it here:  Clothing line business plan .

Make a Marketing Plan

Marketing is key to success when you are doing business online, especially in the fashion industry, because countless people are interested in fashion. So to create a brand voice and increase your brand visibility, you will first need to market your brand through marketing platforms. The social media marketing is the best platform to spread the word and take your brand to the consumers.

You can choose any or both traditional and hybrid marketing to showcase your brand like you can create TV ads, billboards, flyers, or use social media marketing ( the best way. ) Moreover, another great digital marketing tool you have is the SEO services that can help you promote your cloth manufacturing brand.

Expand your selling channels

The best thing about the Internet is that its too wide to explore. You can easily have access over to another corner of the globe easily. So apart from your website, you can offer your services in different marketplaces like Amazon, Alibaba, and more. These marketplaces are widespread platforms where consumers and brand search for services and offers, so you can easily get more sales and grow your business through these websites. You can list your products offerings, and attracts customers. Moreover, these are the golden platform to generate B2B sales. You can connect with retailers and businesses directly.

And it is done. This is how you can start a clothing manufacturing business in an easy way.

The most important factor

Identify the demand in the market

The first rule for your business should be to sell the most demanding products trending in the market. This helps you cater to the most number of consumers band. The current trends that are often difficult to spot in the market and customer demands for such products are increasing day by day. For example, the trend of custom T-shirts is increasing daily, and customers love the idea of T-shit being designed for them specifically with their favorite character, film dialogue, or name over it.

The USA fashion industry is wide and highly competitive; different brands offer creative T-shirts to the customers, making a cutthroat competition for you. Being a startup, you have an excellent opportunity to offer the same high quality trending clothes to the customer with lower profit margins initially. However, you can increase profit margins once your clothing brand is famous in the fashion industry.

Supplying the target audience per their demands is one of the best techniques for effective business. Also, you can introduce something new or work on different clothing niches with innovative designs and high-quality fabrics. Finally, try to offer something unique that isn’t readily available to the customer, which will create a sense of exclusivity to your brand. 

Key Points on How to Start a Clothing Manufacturing Business

There are a vast number of options that you can choose from when it comes to apparel manufacturing and the fashion industry. However, if you are someone who wants to start your clothes manufacturing business or if you are Finding a clothing manufacturer for your business, then you don’t need to search more. This blog has discussed all the pointers you should need when starting your own clothing manufacturing business.

Furthermore, here are some key points that you should remember:

  • Picking a Unique Niche
  • Invest in the suitable machines

Wrapping up

Are you starting your own business clothes manufacturing? Our best wishes are with you, but there are uncountable things that you must look for when you are starting your own clothes manufacturing business. Starting can be hectic for you but with the right guide, confidence, patience, and dedication. Moreover, marketing and promotion for your brand are must-have tools when you are in the fashion industry.

You can target businesses or direct end clients for the production of custom clothing lines. In today’s era, the e-commerce industry is booming all around the globe, so you shouldn’t forget to set up a website for and sell your services online all around the globe. Moreover, you can also sell your designs online.

Tom Brady

Tom Brady is the weekly publisher of fashion blogs and articles. He is devoted to providing his readers with a fast-paced story, whether a blog or an article. What began as an undergraduate hobby of writing about the fashion industry has now become a top blog and full-time role for him. His interest is simple, anything that attracts readers about the fashion industry.

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  • Garment Manufacturing

How To Start A Garment Business? Ultimate Guide:

How to Start Garments Manufacturing?

Table of Contents

Hey folks! It is most common when you plan to start a stitching business that these kinds of queries come to your mind like, how to start a garments business, readymade garments business, garments manufacturing business and garments business online.

When people start any business they work consistently with their budget and capability, the truth is there are some ways to start out the clothes business ultimately it depends upon the financial ground, product knowledge, and experience you’ll have.  The clothing product can be selected like, clothing men, stylish clothes for men, women’s clothing and kids garments, shirts, T-Shirt Jeans, etc.  Further, If you have any expertise regarding any stitchable product so that can be considered for setting up the garments company .

I have already clearly specified the way of getting the business in one of my articles , where you’ll get the direction that how business orders come.

I have already briefed different kinds of uniform business startups you may find in this blog . <<< Checkout  

The garments factory sounds like a vast manufacturing setup wherein clothing items are produced in mass quantities with a perfect operating system that shows a clear picture of a professional organization.

Usually, for high-volume production, you will have to use advanced machines and equipment. All its systems shall be set up in a great place. As well as completing the target, the quality will be monitored because it becomes part of the product identity, and accordingly, it gets recognization in the markets.

Garments Business Requirements :

You will also need a considerable number of workers to operate its entire system; therefore it has been advised to follow the business plan , through which you will get guidance for starting up a clothing factory.

It has been often seen that garment factories mostly produce a large scale of undergarments , denim jeans , trousers , t-shirts , and police and military uniforms .

If you have planned to start production of police or military uniform , then you have to pay more attention to every pattern to complete the task because, in comparison to ordinary clothes, it takes much time to make it.

readymade garments business plan

5U,’4 Police and Military Uniform

How to Start a Garments Business and Starting a Garment Manufacturing Business in a Right Direction

Usually, most of the stitching industry has material cutting, stitching, and finishing departments. It has been observed that large-scale garments manufacturing companies used a perfect production system that included advanced machines and equipment, also taking care of the product’s quality as well as maintaining timely delivery, this is why their employees also perform job responsibilities professionally.

All these things are limited to small-scale manufacturing companies, but it does not mean that all those mid-level organizations do not pay attention to the quality and the order delivery, the difference is that they do not have a production system like a mass production company. 

That is why those small entrepreneurs also need to pay more attention to production results, but some of them remain behind to fulfill their commitments.

Regular Tailoring Dress and Manufacturing Requirements:   <<<<Read here

Casual Garments Type and Manufacturing Requirements :  <<<<Read here

Essential Machines for Every Garments Production   <<<<Read here

How to Select the Machine Model <<<< Read here

Whole Garment Making Machine Fully Automatic   <<< Read more

“Most of the following machines and equipment can be utilized commonly for all kinds of uniforms and many different types of garments in case of starting production on a large scale”

Police & Military Uniforms Production System

Material cutting section:.

                  Machine & Equipment Description:

  • Pattern Designing Software / CAD (Computer-Aided Design) system
  • Automatic Fabric Inspection Machine. (Advanced)
  • Fully Automatic Fabric Spreading Machine. (Advanced)
  • Fabric Cutting Table. (Advanced)
  • Computerized Automatic Fabric Cutting Machine. (Advanced)
  • Fusing Machine. (Advanced)
  • Fabric Inspection Machine. (Advanced)
  • Band Knife Cutting Machine. (Advanced)

Stitching Machine Section :

                   Machine & Equipment Description:

  • Single-Needle Lockstitch Machine. Flatbed (Advanced)
  • Multi-Needle Embroidery Machine (For Logo). (Advanced)
  • Double-Needle Welt Pocket Attach Machine. (With Zipper Folder) (Advanced)
  • Three-Needle Chain Stitch Feed of the Arm Machine with Puller. (Advanced)
  • Double-Needle Lockstitch Split Bar Machine. (Advanced)
  • Double-Needle Lockstitch Fixed Bar Machine. (Advanced)
  • Single-Needle Bar-tack Machine. (Advanced)
  • Snap Button Attach Machine. (Advanced)
  • Double-Needle Five Threads Overlock Machine. (Advanced)
  • Single-Needle Automatic Button Feeder and Attach Machine. (Advanced)
  • Single-Needle Lockstitch Buttonholing Machine with Indexer. (Advanced)
  • Single-Needle Eyelet Button Holing Machine. (Advanced)
  • Double-Needle Bottom Cover-stitch Machine for Belt Loop Making. (Advanced)
  • Double-Needle Automatic Belt Loop Attaching Machine. (Advanced)
  • Blind Stitch Machine. (Advanced)
  • Single Needle Lockstitch Machine with Edge Trimmer. (Advanced)
  • Button Wrapping Machine. (Advanced)
  • Collar Trimming is Turning and Blocking Machine. (Advanced)

Finishing Machine Section:

                     Machine & Equipment Description:

  • Centralized Steam Boiler. (Advanced)
  • Steam Iron. (Advanced)
  • Vacuum Table with and without the buck. (Advanced)
  • Thread Cleaning Machine. (Advanced)
  • Needle Detector Machine. (Advanced)
  • Stain Remover. (Advanced)
  • Collar & Cuff Press. (Advanced)

Note : The cutting and some of the finishing equipment can be used commonly for all kinds of garment-making purposes, as mentioned in my previous article. how to start a garments business, readymade garments business, garments manufacturing business and garments business online. You may also require all the equipment and techniques to start these businesses.

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Thanks for sharing important ideas that how can we begin the clothing manufacturing business. This blog is quite useful in terms of the clothing business. I read this blog considerately and I will share this blog with others who want to start an apparel business.

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Thanks James Brian

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readymade garments business plan

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.

a clothing hanger: clothing line business plan

Starting your own clothing business can be exhilarating, lucrative, and challenging. To increase the odds of your new clothing brand flourishing, you’ll need a financial plan, startup capital, a marketing strategy, and a product that stands out from the competition. Begin by drafting a comprehensive clothing line business plan that includes all of the above, while also laying out your plans for growth. Here’s how to get started.

What is a business plan?

A business plan is a document that outlines your company’s purpose and its strategy for success. Companies of all sizes use business plans, from small businesses to multinational corporations. A Harvard Business Review study found that entrepreneurs who write business plans are 16% more likely to succeed than those who don’t.

A business plan is different from a business model , which serves as a template for how a company can succeed in its chosen market. For example, your clothing company could rely on a business model with a record of success for startups in the fashion industry. A business plan is specific to your company, directly connecting your mission statement and products to your unique sales strategy. 

Shopify offers a free business plan template and tips for writing a complete business plan . These can be useful whether you’re in the fashion business or a different industry altogether.

Why you need a business plan for your clothing line

The clothing industry is dynamic. Fashion trends come and go, and target customers age into new demographics. Fashion brands can have a hard time keeping up with the constant change. To start out strong and stay ahead of the curve, you can begin by drafting a comprehensive business plan for your clothing line.

As your company grows, your business plan keeps you anchored to a core mission and sales strategy even amid rapid shifts in the marketplace. For example, if competing clothing lines introduce new products, you may be tempted to follow their lead. By leaning on your established business plan, you can decide whether launching similar clothing line products would truly align with your brand identity and mission statement .

A business plan can also help you secure investor funding. Whether you’re courting angel investors or venture capitalists , you’ll project purpose and discipline with a thorough business plan that’s supported by other documents like financial statements. A solid business plan can entice potential investors to fund your company, and it can also dissuade them from investing in your direct competitors.

How to create a clothing line business plan in 9 steps

  • Create an executive summary
  • Declare your mission statement
  • Offer market analysis
  • Establish your core products
  • Describe your organizational structure
  • Outline your operations plan
  • Propose a marketing plan
  • Make a financial plan
  • Describe future plans for growth

Your clothing line business plan should include nine key components for success and growth. Here’s a step-by-step guide for writing one:

1. Create an executive summary

An executive summary serves as a company overview. It outlines the details you’ll unpack in the rest of your business plan. You may draft multiple executive summaries for the same business plan—each with a special emphasis for a different audience. For example, you might present an operations-focused summary to the members of your management team and a finance-focused summary to a venture capitalist who’s looking to invest in your company.

Although the executive summary is the first section of a business plan, some entrepreneurs choose to draft it last—after they’ve written the longer, more substantive sections of the plan.

2. Declare your mission statement

Your mission statement articulates your company’s reason for being. It describes your industry, your product offerings, your unique value proposition (UVP) , your company ethics and values, and your motivation as a founder.

You may choose to include information about your legal structure in this section. If you’re operating as a for-profit business, you’ll choose among options like a limited liability company ( LLC ) or one of the two main types of corporations (C corporation or S corporation). If you’re operating as a nonprofit, you’ll use a nonprofit legal structure and draft a nonprofit business plan .

3. Offer market analysis

Your market analysis explains how your business will distinguish itself from the competition and find a reliable customer base. You’ll start with a market evaluation that assesses customer needs and desires. You can also conduct a competitive analysis that surveys potential rivals in your retail sector. In the clothing business, this can mean direct competition from other apparel lines. It can also include indirect competitors from places like thrift or consignment stores that may attract consumers with much lower prices, if not the latest fashions.

Your market research should include a customer analysis. This involves creating an ideal customer profile —describing the exact type of person you hope to sell clothing to. It also can mean creating buyer personas . These are imaginary customers whom you envision as part of your target audience . You’ll include their interests, income, demographics, and shopping habits. This will help you develop desirable products and devise a marketing strategy that reaches your intended customers.

4. Establish your core products

Having declared your mission statement and identified your target market, you will now describe the products you plan to offer in more detail. In your initial business plan, provide a brief overview of each product, and whether you manufacture it yourself or buy it from a third party. You can also include proposed retail prices based on your estimated costs. Your pricing strategy should match the budget of the customers you profiled in your market research.

If you’re a first time entrepreneur, you may choose to start your clothing business with a small number of items. Once you gain experience finding suppliers and managing inventory , you can scale up and add new clothing products.

5. Describe your organizational structure

This section of your business plan will break down your organizational structure , including an organization chart and chain of command. You can also lay out your initial management team, although this may evolve and change as you scale up. An organizational plan can help you win the confidence of investors who want to park their money in a disciplined, well-managed business.

6. Outline your operations plan

Your operations plan details the way you’ll run your business. Tell readers whether you’ll be running an online ecommerce store , a brick-and-mortar retail store, or both. Will you use private label or white label manufacturing? Will you store inventory on site or embrace a dropshipping model?

Your operations plan will naturally lead to questions of logistics —the management of your inventory, equipment, real estate, shipping, and workers to make your business function. This section of your business plan should explain what resources you’ll need to ensure successful operations. Estimate how many initial employees you have, how much space you’ll need, and what type of equipment you’ll use.

7. Propose a marketing plan

Your marketing plan will stem from the market analysis you laid out earlier in your business plan. Your plan will describe your target audience and the ways you plan to reach them. This can include digital marketing , print advertising, TV and radio ads, outdoor advertising , and word-of-mouth campaigns . You’ll want to familiarize yourself with the different types of marketing before you draft this section. 

Your business plan doesn’t need a specific marketing budget , but you may choose to include topline numbers that estimate how much you’ll allocate to marketing each month or quarter. You may also propose marketing management staff to oversee your marketing operations, turning your objectives into campaigns.

8. Make a financial plan

This section of your business plan should demonstrate how your projected revenue and expenses will show up on a balance sheet , income statement , and cash flow statement . Investors don’t expect new businesses to be instantly profitable, but you should still showcase a long-term plan to achieve profitability.

9. Describe future plans for growth

Conclude your business plan with growth projections. Investors and potential new hires will want to see you have a growth strategy . Set goals for market share and revenue. You don’t need to go into detail, but show you’ve set ambitious yet achievable business goals .

Manage your money where you make it with Shopify Balance

Shopify Balance is a free financial account that lets you manage your business’s money from Shopify admin. Pay no monthly fees, get payouts up to 4 days earlier, and earn cashback on eligible purchases.

Clothing line business plan FAQ

How many designs do you need to start a clothing line.

Upon launch, you’ll want enough clothing designs to offer shoppers choices, yet not so many that it overwhelms your logistics operations and supply chain. The Fashion Brain Academy podcast suggests three to eight styles for your initial rollout, which you can quickly multiply by offering different colors for each design.

How much money do I need to start a clothing line?

Your initial clothing brand costs will include raw materials (like fabric and thread), labor, shipping, real estate, production equipment, payment processing, website hosting, and marketing, among others. This will easily cost several thousand dollars and potentially much more, even for small startups. Consider a resource like Shopify Capital for business funding.

What are the different distribution channels for a clothing line?

Among the distribution channels for a clothing line are ecommerce websites, brick-and-mortar stores, pop-up stores, Instagram, TikTok, eBay, and Etsy.

Are there any legal considerations I should address in my clothing line business plan?

Most states and localities require clothing retailers to obtain a permit to sell and collect sales tax. Others may require an apparel registration certification and various types of business insurance . It helps to legally establish your company as an LLC or S corp , although you can also operate as a sole proprietorship . Shopify’s Starting Up guides can help you navigate these initial legal considerations.

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How to start a readymade garment business?

  • Post author By Pooja
  • Post date June 9, 2017
  • 13 Comments on How to start a readymade garment business?

readymade garments business plan

Readymade Garment business these days is too much into trends because of changing fashion every next day. From ladies garments to Kidswear, readymade garment business has a good sell in the market. These days, even young professionals are diverting their choices towards this business due to high demand and margins. Now before starting any business, there is a need to have a proper study about that particular idea. So, this is the guide explaining about the ready mate garments business and let’s start with what are the requirements:

readymade garments business plan

Online Purchase of Procurement:

Start with small scale:, gain some experience before:, location selection:, legal aspect:, inventory management:, target selective items:, maintain quality:, infrastructure:.

A ready-made clothing store is a serious type of business and provides you steady income every month if you work properly. As there are no limitations on clothing items the investment should be done properly by keeping the above-mentioned points in mind.

  • Tags business ideas , clothing business , online wholesalers , readymade stores

13 replies on “How to start a readymade garment business?”

This blog helps me in starting a new business of ready-made garments. Thanks for this awesome article.

Really appreciate this blog, got some information about setting up business in this field.

really amazing blog this helped me out in my business

Thanks for this amazing Blog. This really help me to think ahead for starting my own business.

Muje please coll karna

Amazing blog

Best.guidance

Very very Useful Information Tips For Me Before Starting My Readymade Garments Business.Really Thankful To You…

Hello,I want to know that my place is Patna where I want to start my business but from where I will get my parcel of cloths

Jaipur Surat or ahmedabad currently

I will try to start my new business of garments thanks for your guidance.

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The ultimate step-by-step guide to garment manufacturing

From design process to mass production, you’ll learn all about the garment manufacturing industry and how you can optimize your own garment-making business.

James Humphreys

James Humphreys

readymade garments business plan

From musicians selling merchandise to kids wearing t-shirts featuring a streamer you’ve never heard of — nowadays, it seems like everyone and their dog has a t-shirt to flog.

This article explores the lucrative garment manufacturing industry. If you’re looking to weave and stitch your way to success, you can use this step-by-step guide detailing the necessary steps other fashion designers and product developers must take when making garments. So, without further ado, let’s get straight into it.

Garment production major source of employment, particularly for women and young people.

Garment manufacturing overview

The garment manufacturing industry is one of the most important sectors of the global economy.

It employs around  92,000 workers in the US , and the global market size is estimated at  $826 billion . There are many garment  manufacturing processes , each with its own unique set of steps and equipment. The most common types of garments manufactured are:

The first step in any garment manufacturing process is fabric selection.

The type of fabric used will determine the properties of the finished product, so it is important to choose wisely. Common fabrics used in garment manufacturing include:

Once the fabric has been selected, the fabric is spread and must be cut to the correct size and shape.

This is usually done with large fabric-cutting machines that can handle large bolts of fabric. The cut fabric is then sent to a sewing machine operator who assembles the garment using various techniques. The most common sewing techniques used in garment manufacturing are:

  • Flat-felled seams
  • French seams
  • Serged seams

After the garment has been sewn together, it is often decorated with:

  • Other embellishments

Finally, the garment is inspected for quality and then packaged for shipment.

Garment manufacturing is a complex process that requires skilled workers and sophisticated equipment. However, the result is typically a high-quality product ready to be worn by consumers.

Apparel inventory management software

Garment manufacturing provides important export earnings for many developing countries.

What you need to know to work in garment production as a manufacturer?

If you’re interested in turning a  hobby into a business or working on a garment production line, there are a few things you should know:

  • The clothing industry is large and varied, so there are many different types of jobs available
  • The work can be physically demanding, so you’ll need to be in good shape
  • The pay is often not very high, so you’ll need to be prepared to work long hours for relatively little pay

That said, working in garment production can be a rewarding experience.

You’ll get to see firsthand how clothes are made, and you’ll have the satisfaction of knowing that you helped to create them. So, if you’re willing to put in the hard work, it can be a great career choice.

Garment production is an important driver of economic growth in many countries, including Bangladesh, Cambodia and Vietnam.

A step-by step guide to garment production

The garment production process can be complex and confusing, but it doesn’t have to be.

This step-by-step guide will unravel the mysteries of garment production and help you understand each step involved:

1. Design and development

Design and development in garment production is a process that involves creating new fabric designs and styles of clothing, as well as improving existing garments — the goal is to create products that are both stylish and functional.

The first step in design and development is to research current trends in fashion. This can be done by:

  • Attending trade shows
  • Reading fashion magazines
  • Talking to trendsetters

Once you have an idea of what is popular, you can start sketching your own designs.

Once you have some sketches, the next step is to create prototypes. A preproduction sample is used to test how the garments look and feel on people. They will also help you determine if any manufacturing problems need to be addressed before  mass production  begins.

After the prototypes are created, the next step is to choose the right fabrics for your garments. There are many different types of fabrics available, and you need to select the ones that will work best for your products. You also need to consider the care instructions for each fabric.

Once you have selected the fabrics, the next step is to start manufacturing your garments.

This process can be done in-house or  outsourced to a clothing manufacturer . If you outsource, you will need to find a reliable company with experience in garment production.

2. Pattern making

Once the design is finalized, a pattern must be created.

This is done by transferring the design onto paper or fabric and then cutting out the individual pieces that make up the garment. As with any other garment production process, the pattern maker is important for manufacturing. Patterns are used to create the basic shape of a garment — usually created by hand or with the help of a machine.

Once the pattern is complete, it is then used to cut fabric and construct the garment.

A few different methods can be used to create patterns, but the most common method is to use a paper or cardboard template.

This template is then used to trace the outline of the desired garment onto the fabric. Once the tracing is complete, the fabric is cut by the pattern maker along the traced lines and sewn together to form the finished garment.

Another common method for creating patterns is to use a  computer-aided design (CAD)  program.

This type of program allows the user to create a virtual model of the garment that they want to create. The advantage of using a CAD program is that it can be used to create multiple garments at once and can also be used to make changes to the pattern before it is cut into the fabric. No matter what method is used to create them, patterns are an important part of the garment manufacturing process.

They are used to ensure that each garment is the correct size and shape and to make sure that all of the pieces fit together correctly.

Without patterns, it would be very difficult to produce garments that look good and fit well.

Once the pattern is created, it must be graded to ensure that it will fit a range of sizes.

This is done by creating different versions of the pattern in different sizes. After the pattern is cut, the garment goes through a series of processes called “grading.” Grading is creating different sizes of a garment from a base size.

This is done by making small, gradual changes to the measurements of the pattern pieces.

There are two types of grading:

Horizontal grading creates different widths from a base width, while vertical grading is used to create different lengths from a base length.

In general, horizontal grading is more common than vertical grading because it’s easier to make small changes to widths than it is to make small changes to lengths. For example, when making a shirt, it’s easy to add or remove a few inches to the width of the pattern pieces to create a larger or smaller shirt.

However, it’s more difficult to add or remove a few inches to the length of the pattern pieces.

Grading is an important part of garment production because it allows clothing manufacturers to produce a wide range of sizes from a limited number of pattern pieces.

This makes mass production of clothing more efficient and helps keep  manufacturing costs  down. Grading is typically done by computer these days, but it’s still important for designers and pattern makers to understand the basics of how it works.

Garment manufacturing software

Need to utilize MTO and MTS workflows? Managing B2B and D2C orders? No problem. Katana supports apparel manufacturers with total visibility over their production process, from material requirements to capacity production planning.

4. Marking and fabric cuttings

Marking and cutting process are two of the most important steps in garment production.

Marking is the process of creating lines or markings on fabric to indicate where to cut the fabric. Cutting is cutting the fabric along those lines or markings. There are a few different ways to mark fabric for cutting.

People mostly use chalk or a similar marking tool to create temporary lines or marks on the fabric.

This is typically done on larger pieces of fabric, such as bolts of cloth. Another way to mark fabric is to use a permanent marker. This is often used for smaller pieces of fabric, such as swatches.

Permanent markers can be helpful because they will not rub off or fade over time like chalk can.

Once the fabric is marked, it is time to cut it. This can be done with a rotary cutter, scissors, or a knife. It is important to use sharp tools when cutting fabric to avoid fraying or tearing the material.

Marking and fabric cuttings are two essential steps in garment production.

By marking and cutting the fabric properly, ensuring that your garments are well-made and look professional.

The next step is sewing, which is when the individual pieces of the garment are put together using a needle and thread or a sewing machine.

The sewing process is one of the most important steps in garment production. It is responsible for joining together all the pieces of fabric that make up a garment. Without sewing, garments would simply fall apart — along with the world we imagine.

Sewing can be done by:

Hand sewing is slower and more labor-intensive than machine sewing, but it can produce very delicate and intricate stitches. Machine sewing is faster and more efficient, but it can sometimes be less precise than hand sewing. There are many different types of stitches that can be used in sewing.

The type of stitch used will depend on the fabric being sewn, the purpose of the stitch, and the preference of the sewer.

Some common types of stitches include:

Straight stitches

Zigzag stitches, buttonholes.

Straight stitches  are simply stitches that are sewn in a straight line, and they can be used for just about any type of stitching.

These types of stitches are typically used for seams, hems, and other construction details.

An advantage of using straight stitches is that they’re extremely strong and durable. If a garment is subject to a lot of wear and tear, then it’s important to use a stitch that can withstand repeated use. Additionally, straight stitches are also relatively easy to cut and sew, making them ideal for mass customization.

Zigzag stitches  are one of the most basic and essential types of stitches used in garment manufacturing.

They are created by sewing a series of zigzag-shaped stitches in a straight line and can be used to:

  • Finish raw edges
  • Join two pieces of fabric together
  • Create decorative embellishments

Zigzag stitches are also sometimes used to reinforce other types of stitches, such as buttonholes.

There are a few different ways to create zigzag stitches on a sewing machine. The most common method is to use a zigzag foot, which is a specialized attachment that helps guide the fabric under the needle in a zigzag pattern. Some machines also have a built-in zigzag stitch function that can be selected with the press of a button.

When zigzag sewing stitches, it’s important to use the correct needle size and thread weight.

A too-small needle can cause the stitches to break, while a too-heavy thread can create unnecessary bulk. The stitch width and length should also be adjusted to suit the project at hand – wider stitches are better for decorative purposes, while narrower stitches are more functional.

Zigzag stitches are relatively easy to master with a little practice and can open up a whole world of possibilities for your sewing projects.

A  buttonhole , also called a button loop or eyelet, is a small hole, usually round or oval, created in fabric so that a button may be passed through it and fastened.

Buttonholes may be sewn by hand or machine.

Hand-sewn buttonholes are considered more durable than machine-sewn ones and are more difficult to create. They are typically used on garments that will not be laundered often, such as suits and outerwear. Machine-sewn buttonholes are faster and easier to create than hand-sewn ones and are suitable for most garments, from casual wear to pajamas.

Buttonholes can be of different shapes, sizes, and finishes.

The most common shape is the round buttonhole, but oval and keyhole shapes are also popular. The buttonhole size should be slightly larger than the button it will be used with so that the button can easily be passed through it. Buttonholes can be finished in several ways, such as with a band of fabric (called a bartack) or binding bias tape.

They can also be left unfinished, which is common in children’s clothing.

Buttonholes are created before the garment is assembled. Once the buttonholes are in place, the buttons can be sewn on to correspond with them. Buttonholes are usually placed at strategic points on a garment, such as at the center front or cuff, to make it easier to fasten and unfasten the garment.

Creating perfect buttonholes can be challenging, but there are a few tips that can help:

  • Use a sharp needle and good-quality thread — this will help to prevent skipped stitches
  • Place a piece of stabilizer behind the fabric to prevent it from stretching or distorting as you sew
  • Sew slowly and carefully, taking your time to create a neat and even buttonhole
  • Practice on a scrap piece of fabric first to get the hang of it before sewing on your garment

Sewing is a critical part of garment production because it holds the fabric together.

Without sewing, garments would simply fall apart. Therefore, it is important to choose the right type of stitch for the fabric being sewn and the purpose of the stitch.

6. Finishing

The final step is pressing and finishing, which involves adding any embellishments or details to complete the garment. This can include:

The finishing process in garment manufacturing includes various methods used to improve the appearance and/or functionality of the fabric. Finishing can be performed on both woven and knitted fabrics. Common finishing process includes:

Each of these clothing manufacturing processes can be done using either chemical or physical means.

In general, finishing production falls into one of three categories:

  • Those that improve the fabric’s appearance — e.g., by making it softer or adding color
  • Those that improve its performance — e.g., by making it more water-resistant
  • Those that add special features — e.g., by adding fire-retardant properties

Washing is perhaps the most common type of finishing process. It is typically used to remove impurities from the fabric, such as:

  • Sizing agents
  • Residual oils
  • Dirt or debris that may have been picked up during manufacturing

Washing can also be used to shrink the fabric or soften it.

Bleaching is another common finishing treatment. It is used to whiten the fabric and/or remove any unwanted colors.

Dyeing is a finishing treatment that is used to add color to the fabric.

Printing is a finishing treatment that involves applying a design or pattern to the fabric.

The coating is a finishing treatment that involves applying a thin layer of material (usually plastic) to the fabric’s surface.

This coating can be used for a variety of purposes, such as to make the fabric water-resistant or to add a bit of extra stiffness. Many other types of finishing treatments are not discussed here. These include treatments such as:

  • Singing (used to remove loose fibers from the surface of the fabric)
  • Mercerizing (used to improve the luster and strength of the fabric)
  • Calendaring (used to smooth out the fabric)

How to reduce lead time in garment manufacturing in your business?

Garment manufacturing is a key sector in the fight against poverty and inequality.

One way to  reduce lead time  in garment manufacturing is to streamline your operations.

This may involve implementing  lean inventory principles and/or using  just-in-time inventory management  methods. Another way to reduce lead time is to improve your supply chain management. This includes ensuring that your suppliers can meet your delivery requirements and that you have adequate inventory levels.

Finally, you can also try to negotiate shorter lead times with your suppliers.

This may be possible if you have a good relationship with them and/or are willing to pay a premium for faster delivery. Lead time is an essential consideration in garment manufacturing. By streamlining your manufacturing operations, improving your supply chain management, and negotiating shorter lead times with your suppliers, you can help to reduce the overall lead time for your garments.

This will help to improve your efficiency and competitiveness.

Garment production plays a vital role in supporting local economies and communities.

What is lean manufacturing in the garment industry?

When it comes to applying lean principles in textile manufacturing , there are a few key things to keep in mind.

First, it’s important to identify and eliminate any non-value-added activities in the production process. This could include anything from unnecessary steps in the manufacturing process to excessive packaging. Next, it’s important to focus on streamlining the production process.

This could involve implementing Just-In-Time (JIT) production techniques or using lean tools such as value stream mapping .

Finally, it’s important to improve upon the lean manufacturing process continuously. This could mean making small changes regularly or making more significant changes periodically. Continuous improvement is essential to ensuring that the gains made through lean manufacturing are sustainable over the long term.

When done correctly, lean manufacturing can be a powerful tool for improving efficiency and reducing waste in the garment industry.

By following these tips, you can help your business reap the benefits of lean manufacturing.

Katana for garment manufacturing

Katana is the fashion ERP software for garment manufacturers that helps you manage every aspect of your garment business, from production planning  to quality control and  inventory management .

By using software to automate many of the tasks associated with running a garment business, you can improve efficiency and profitability. Software for garment manufacturing can help you in a number of ways, including:

Production planning runs

By using software to increase productivity, you can ensure that all the necessary raw materials  and supplies are on hand when you need them. This can help avoid delays and disruptions in production.

Quality control

Katana can help you track manufacturing and quality control metrics and identify areas where improvements need to be made. This can help you produce higher-quality garments that meet customer expectations. Katana also supports manufacturers using  contract manufacturing  for private label clothing perhaps — you can still be in touch with the garment factories and be a part of the production process, regardless of where you are.

Inventory management

Katana can help you track inventory levels and  reorder supplies  when necessary. This can help you avoid stockouts and keep your business running smoothly.

Marketing and sales

Using software to manage your marketing and sales efforts allows you to reach more customers and boost profit margins.

You can use software to create customer databases, design marketing materials, and track sales metrics. Garment manufacturing software can help you streamline every aspect of your business, from production to sales. By using software to automate tasks, you can improve efficiency and profitability.

Want to see it for yourself? Request a demo and see all the ins and outs of how Katana can elevate your garment business to the next level.

Table of contents

Get inventory trends, news, and tips every month, explore all categories, get visibility over your sales and stock.

Wave goodbye to uncertainty by using Katana Cloud Inventory for total inventory control

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The Beginners Guide to the clothing manufacturing industry.

Looking to learn more about all things clothing manufacturing? Look no further - this comprehensive guide covers everything from buzzwords, to raising investment & everything in between.

white2label team

Introduction to the clothing manufacturing business:

So, you’re here because you want to start a clothing brand and are looking for high quality clothing manufacturers? The good news is you’re in the right place. We’ve created this page to serve as a benchmark for you and your brand; to breakdown everything from sourcing the best clothing manufacturers for startups through to the financial commitment you will need to make to get your brand going.

This guide aims to help you answer some of the questions you may have about starting your brand from the unique perspective of one of the leading clothing manufacturers . We’ve seen hundreds of brands succeed and equally, if not more fail– we’ve spotted trends and commonalities between those who fall on either end of this spectrum.

Before we start, there's some buzzwords you're going to be hearing a lot when approaching suppliers, so below is a breakdown of the most common and the meaning;

  • MOQ - Minimum Order Quantity
  • CMT - Cut, Make and Trim
  • CNY - Chinese New Year
  • Ex-Factory - The date a production order will likely leave a factory
  • FOB - Free On Board
  • DDU - Delivery Duties Unpaid
  • DDP - Delivery Duties Paid
  • CPU - Cost Per Unit
  • Grade - The difference in measurements between garment sizes
  • Lead Time - Estimated production period
  • Tolerance - An agreed degree of variance between specification and finished items
  • BOM - Bill of Materials
  • PO - Purchase Order
  • QC - Quality Control
  • QA- Quality Assurance
  • AQL- Accepted Quality Level
  • PPS- Pre-Production Samples
  • FFM - Full Factored Manufacturer

the clothing industry

2.1 the market size.

There’s a lot of industries that are slowly becoming obsolete. Some failed to innovate, and others just slowly faded out as newer technologies came in to replace what once was a thriving sector supplying millions of jobs and was worth billions of pounds.

e-commerce growth graph

However, the clothing industry is not one of those sectors. This begs the question – just how large is the clothing industry? Well, it’s a good thing you asked!

Globally, the worldwide fashion retail market was valued at 300 billion dollars in 2020 and this is expected to rise to 360 billion dollars by 2025. As you can see, it certainly isn’t a small sector, nor is it one that’s on the decline. The clothing industry growth continued to thrive even during the global pandemic, where e-commerce sales hit an all-time high.

Starting a clothing brand in 2021 is all about ensuring you’re aware of this market size, it’s potential growth and equally, it’s competitive nature. You need to ensure you’re at the top of your game – sourcing only the best clothing industry suppliers, forecasting up-and-coming fashion trends and producing high quality and unique garments which appeal to your niche within the sector. Regardless of whether you’re operating in the retail clothing sector, or e-commerce; these elements should quickly become staples of your business or like some of the outdated industries we discussed earlier, your brand will also become obsolete.

As with most sectors, the fashion industry can be sub-divided into different areas. Where we stand, owning a manufacturing business, we’re heavily involved in the product development sector, but this does cross  over into design and involves levels of merchandising and marketing.

Each layer can then be further sub-divided; for example, fast fashion brands will often search for wholesale custom clothing manufacturers because in using these items, it allows them to bring collections to market much faster than going down the full-scale OEM route. Whereas contemporary fashion brands may be on the search for the best clothing manufacturers to accommodate their higher-end approach. Both of these fall into the sector of textile design and production.

The main sectors within the clothing industry are;

1.     Textile design and production

2.     Retailing

3.     Merchandising

4.     Marketing

5.     Customer Service and delivery

Although we’d love to go on about the details and the intricacies of each element, we have created a more in-depth blog which will explain more here.

2.3 The Market Size

One of the first things you should be considering when starting a clothing brand is what style of items you wish to sell. The apparel industry is one that offers great freedom of choice when it comes to deciding what to sell. There is pretty much a niche market for everything – from high-end, luxury fashion branding, through to sustainably sourced garments and everything in between.

The clothing industry growth has directly resulted in a spotlight on brands ensuring they maintain a transparent, ethical and sustainable supply chain with increasing pressures from end-consumers who are educating themselves on sustainable fashion manufacturing and looking for brands who adopt the key philosophies of this approach. It is worth noting that this should always be incorporated into your brand… ensuring you’re working with ethical clothing industry suppliers.  

The main product types within the clothing industry are;

1.     Streetwear

2.     Sportswear and athleisure

3.     Footwear

4.     Formal wear – such as suits, dresses and office attire

5.     Accessories

3.1 The different methods of manufacturing clothes

You’re likely on our website because you’re looking for high quality custom clothing manufacturers. The reality is that these are hard to come by – the most successful suppliers tend to impose MOQs (minimum order quantities) that are outside the scope of what most brands can reach for. The unfortunate reality is that it’s easier and more profitable for those custom clothing manufacturers to please a small amount of high value clients then it is to open their services to smaller businesses.

The good news however is that this opens up a gap in the market which we’ve aimed to plug since 2018. Whilst looking for custom apparel manufacturers is one route to go down for your brand when starting out, it certainly isn’t the only option and that’s where we come in.

Alternative options do exist and this comes in the form of white label clothing manufacturing. There are many benefits to white labelling.

3.2 OEM Clothing Manufacturing

OEM Clothing Manufacturing stands for Original Equipment Manufacturer and essentially means that this supplier can create custom products based on your specification. This would usually include the following;

1.     Fabric composition, colours and weight

2.     Design-cues

3.     Custom panelling and construction

4.     Trims, hardware and brand finishing

5.     More flexibility in branding applications

OEM clothing manufacturers can essentially do it all. They can turn your vision into a marketable and saleable product. This process isn’t easy though. Beyond finding a suitable supplier, you then need to convey your concept across in the form of a tech-pack  and ensure they understand every element of your product development process. Below is an example of how a tech-pack would look. Credit: techpack.co

tech pack example

Some of the best custom clothing manufacturers partner with companies like us – it allows us to provide lower MOQs and more competitive price points than you as a small brand going direct to the suppliers. This is because, as a business that produces for hundreds of brands every year, we have accumulated a strong working relationship with our suppliers as well as having good negotiation and buying power; all of which are things you must build up and maintain over years’ of working with the same manufacturers.

4. White Label Manufacturing

We briefly touched on this earlier when discussing different types of manufacturing, but white labelling deserves its own section because it is heavily overlooked.

DTG direct to garment printers

What is white label clothing?

White labelling involves taking a pre-manufactured blank item and branding it with your company’s logos, name and finishing it in a way that ensures it looks like it’s your brands’ bespoke pieces.

The common misconception with white label products is that they are all low quality, cheap and don’t stand the test of time and whilst elements of this are true, provided you find an appropriate clothing manufacturer, this shouldn’t be an issue.

Our white label catalogue service allows you to access the highest quality white label items on the market, with the most popular application methods of branding. All of this is offered in-house, under one roof – allowing for maximum efficiency and ultimate control of your supply chain. Further to this, it’s all done in the UK.

4.     White Label Manufacturing Vs Private Label Manufacturing (OEM)

The ultimate debate – which is better and why?

The short answer is that both have their place in clothing manufacturing and serve different purposes.

White Label Manufacturing:

-       Speed to market. Pre-made items are faster to brand and usually held in the UK, or country of purchase meaning no long waits for sampling, production and shipping.

-       Lower MOQs – you can increase your collection under a set budget. In some cases, you can even print-on-demand.

-       Less hassle – the items at their core are tried and tested. You don’t have to create size charts, or patterns. Nor do you have to go through rounds of sampling perfecting the items core fundamentals

-       Limited design freedom – you’re set to the specific products’ fit, feel and fabric. Often limiting your ability to personalise the item at its core.

-       It’s not unique- following on from the above, the product isn’t unique to your brand and fundamentally, remains a silhouette which is already on the market (and likely used by many other companies)

-       Relying on someone else’s supply chain – if there’s no stock, you can’t sell items. Although the benefit is low MQOs and speed to market, this becomes non-existent if you’re working with a clothing manufacturer who can’t supply in the first place.

Private Label Manufacturing

-       Complete design freedom – you’re able to create a set of products that is custom to your brand. You can fine-tune every element.

-       Economies of scale – the scalability with a custom clothing supplier supersedes that of a white label one. As you increase quantities, your cost price will decrease and you will start to see more value for money

-       You manage your own supply – you can buy as many, or as little (MOQ dependent) units as you require. However, proper planning and forecasting is required here to ensure this is done correctly.

-       Headache – approaching custom clothing manufacturers is hard. Finding reliable ones who can fulfil on promises, alongside those who have good communication, and everything in between is both a time-consuming and costly process.

-       Turnaround time – the average concept to market period for an OEM route is anywhere from 3-9 months once factoring in sampling and shipping. This affects your ability to bring products to market, as well as restocking.

-       Higher MOQs – you will often need to reach for higher MOQs to have the ability to pursue this route. It’s not uncommon for some suppliers to only quote units in the thousands, but here at White2Label; we can go as low as 100pcs per style and colour.

The Steps to Launching a Successful Clothing Brand

We get an interesting insight into successful brands’ because we’re one of the leading clothing manufacturers in the UK – we see the Founder's mentality, their attention to detail, willingness to be flexible within the design and product development aspect. We then see how this all articulates through to their marketing and execution.

Let’s be clear; nothing is more important than your product. You can have the best marketing and sales channels in the world but if your product doesn’t deliver, then you will fall at the wayside.

5.1  Researching and forecasting

One of the most important and overlooked element of any business is doing thorough research. Many Founders who we come across (who evidently end up not doing so well) seem to be in a rush, haven’t tested their concept and are creating pieces off of no more than their own assumption of what the market wants and needs.

business plan content

Unfortunately, this does not slide in the fashion sector. Remember that statistic about its value and level of growth? Whilst this is great, it also means the market is heavily saturated. This does not mean you can’t succeed ; it just means you need to be cautious and meticulous in your approach.

Whilst we do think that sometimes you should just take an item to market to really develop real market research, this can be costly and time-consuming.

The best route would be through sourcing an appropriate clothing manufacturer  who can assist with items at a low MOQ and fast turnaround time.

Simply searching a readymade garment business plan won’t work either – this element should not be rushed. Remember to take all feedback as constructive; some people may just be to the point and remember, you’re not always right.

5.2  Studying Opportunities and Niches within the Industry

Closely tied into the above, you need to find your niche. A niche market is a segment of a larger market that can be defined by its own unique needs, preferences or identity that differentiates them from the larger sector.

A great example would be Gymshark, who at the time of launch appealed to the (now not so) niche market of weightlifters who wanted aesthetically pleasing items opposed to the generic oversized bodybuilder style of wear. Whilst they’d now be seen as more of a mass-market, hypergrowth business; they certainly didn’t start that way.

5.3  Learning About the Garment Manufacturing Industry

It’s crucial that you develop a good collection of products from the get-go. It’s therefore imperative that you find clothing manufacturers for small businesses to help you when you’re starting out. Don’t get caught in the belief that because you’re a small business, you cannot afford good quality – whilst you may be limited, you can certainly find an appropriate clothing factory who can help propel your brand.

There are many elements to consider here, so we’ve left some blogs below which delve a little deeper into each segment of learning about the garment manufacturing industry;

-       The importance of sampling with clothing manufacturers

-       The best way to approach clothing manufacturers

-       UK clothing manufacturers: How to find the right supplier

5.4  Selection of Product Range

When starting a clothing brand in the UK, you’re eventually going to run into the question of, how many products is the right amount to launch with? Too many and you risk overstocking, restricting cash flow and potentially hindering the company’s growth and ability to diversify its collections. Conversely, buy too little and this could lead to a high bounce rate on your site, a low number of conversions/ average cart value; all of which could also hinder your growth.

cardboard boxes for shipping

Stocking more items also has indirect cost implications. Of course, the stock itself costs more but then you may have storage, handling, picking, and logistical costs associated with both moving the stock to storage, as well as out for orders.

So, what is the ideal amount of stock to buy on your first launch?

It’s hard to judge this and is entirely dependent on every individual brands’ situation. The only thing we would say is, follow the below business principle.

1. If you think you’re going to spend £5,000 on stock, double it.

2. If you think it’s going to take 6 months to launch, double it.

3. If you think you’re going to generate £15,000 in sales, half it.

4If after two years you’re still in business, you’re onto something.

The idea behind this is you get comfortable with managing your own expectations. Ideally, you should try to purchase as much as you’re comfortable purchasing… more stock on your site serves many benefits like;

-       Increased social proof – you look more established.

-       Higher average cart value.

-       Higher overall conversions.

-       Improved on-site SEO (Search Engine Optimisation)

-       Potential to capture more data – what consumers like, click on, and buy will help you with purchasing in the future

All the above is dependent on which clothing factory you use. Using white label products will allow you to purchase more, faster, and cheaper so you may be able to diversify your product offering at a faster rate than going for private label products.

6.  Finding the right place for your Clothing Factory

The aged debate – is it better to manufacture closer to home, or go overseas?  Similarly, to a lot of these points, it really depends on your brand, specification, and end-goal. Finding clothing manufacturers in the UK definitely has its perks, but it also has its downfalls.

Finding clothing manufacturers for small businesses tends to be easier when looking overseas – clothing manufacturers tend to be more accommodating to lower MOQs and happy to help with more complicated designs. They also mainly work on Full-Production-Package (FPP) , meaning they will source the raw materials and add all branding, trims, and hardware to the items all under one unit cost. On the contrary, clothing manufacturers in the UK tend to operate on a Cut, Make and Trim (CMT) basis, often leaving you to source raw materials, all trims and hardware and then ship them to the supplier, as well as brand the items in an alternative facility after construction… to cut a long story short, it is more hassle.

However, starting a clothing brand in the UK can be easy when approaching a businesses like ours who can handle all the elements of mass production, essentially meaning we can offer a FPP service here in our UK based clothing manufacturers with elements even being done in-house.

6.2  Estimating the garment production required for your brand

The hurdles don’t end once you find a suitable custom manufacturing company. You now need to estimate how many units you need to purchase and plan how many weeks you need to cover.

This section doesn’t just apply to brands who are selling thousands of units a month. Even if you’re ordering a low MOQ with a white label clothing manufacturer, you will still need to plan when you will need to restock and how much you will need to spend to either restock those items or produce new styles to keep your customers excited for future drops. Clothing manufacturers who offer split payment methods like us will help alleviate any issues you may face from a cash flow perspective by allowing you to split payments across a set term- i.e. reducing the initial investment required for your brand.

6.3  Trend Forecasting

In order to estimate the garment production requirement, you need to be able to effectively predict the trends your brand will experience. The very first time you launch, you will likely over or under buy certain items in terms of sizes or even styles all together. However, that launch will give you valuable CRM (customer relationship management) data that will allow you to properly forecast exactly what you’ll require for future collections.

Beyond raw sales, you will see what your most viewed items are, the most added to cart and which items people often buy together; it goes without saying that this data is invaluable in fine-tuning your brands’ buying moving forward.

financial graph

6.4  How much will you need to invest to get started?

We get asked this question a lot by different brands. The truth is you should only invest whatever you feel comfortable. Investing more than you can afford will cause you to make rash decisions to maximise short term capital gain and potentially diminish the long-term vision.

If you choose to go down the white label clothing route, an initial investment of around £5,000 will allow you to get a very diverse initial collection. If you’re invested into going down the private label clothing route, then you’ll likely need around x3 that amount to get the same level of diversification due to the higher MOQs. Just a note, this doesn’t mean you cannot launch with less money – people do all the time and that’s fine. This is more of an ideal scenario.

Finding clothing manufacturers for small businesses will help you leverage your investment to capitalise on the number of styles you can produce. In terms of UK based clothing manufacturers, we offer the lowest MOQ by far with our catalogue service .

Alongside the overall investment, you will also need to establish your target CPU (cost per unit) as well as RRP (recommended retail price point) to ensure you’re operating a profitable business whilst offering value for money. We stand by you get what you pay for and in this market.  Read our blog “Buy Cheap, Pay Twice – the number one rule tip for starting your own fashion brand”. 

6.5  Raising Investment for your brand

Do you need investment to launch a clothing brand? Do you need a lot of money to source the best clothing manufacturers? Or do you need investment to meet the MOQs of the private label manufacturers in the UK?

No, you don’t but it certainly does help. The brands who we’ve seen gain investment have been able to scale faster, often securing more competitive CPUs from different clothing manufacturers in the USA and other countries. They’re able to steer away from white label products and source custom manufacturing clothing which allows them to produce unique pieces for their brand which can be used in creative forms of marketing to differentiate themselves from the competition.

To raise investment, you will need to steer clear of a generic readymade garment business plan. This will be scrutinised by investors and it will serve many benefits. We go into depth about different forms of investment raising for your brand, the pros and cons in our blog “ What is the best way to fund a clothing brand ” - NEEDS LINK

7.1     The Challenges of Sourcing Clothing Manufacturers

"If sourcing clothing suppliers were easy then we would be out of work."

The harsh reality is that it’s extremely difficult to find trustworthy and reliable custom clothing manufacturers who have good communication. The manufacturing business is one clouded by those who overpromise and under deliver. Those who are interested in transactional relationships only, instead of building long-lasting relationships with brand owners.

The main challenge you’ll face is that most clothing manufacturers don’t really have an online presence and those that do tend to look very outdated, poorly designed and fail to instill trust. These aren't the characteristics you'd like to associate to a company who you'll be sending thousands of pounds to and will ultimately be in charge of supplying the fundamental asset to your business.

In addition to the lack of online presence, you’ll also face more challenges, such as;

-       Language barriers - leading to miscommunication which can cost you a lot of money

-       Poor communication – a general lack of updates, or explanation about the process

-       Failure to meet deadlines – general sample and production deadlines seem to go out the window

-       Time differences – working with overseas suppliers (especially in Southeast Asia) means you get a very small window during the UK hours to discuss, as they’re around 8 hours ahead

-       Lack of consistency – you’ll often find a lack of consistency between sampling and/ or re-orders as so many elements are outsourced, and minimal control of the main supply chain is in-house.

-       Lack of buying power – as a startup, you have no buying power. The supplier doesn’t know you, so you may not have as much attention paid to your order as a loyal, long-lasting client will.

The good news is that, as one of the leading clothing manufacturers in London, we were established based on experiencing all these elements first-hand and aim to tackle each one. The truth is, we’ve been in your shoes and we know exactly what it’s like to have a vision and falling at the first hurdle.

7.2     The Scope of Clothing Manufacturing in the near future

The days of having to fly out to find overseas clothing suppliers is long gone. Nowadays, you can source local clothing manufacturers in London, just as easy as you can find distribution channels in the clothing industry.  

We foresee the clothing industry growing and expanding as newer technologies come into play which level the playing field for brands across the board. We’re a strong believer that a larger budget doesn’t always mean better quality – you can find high quality custom clothing manufacturers all over the world and whilst a larger budget does help in terms of improving options and scale, it isn’t imperative.

What’s important to remember is that the way you approach clothing manufacturers  is very important. Just as you will search for the right partner to help you grow and scale as a brand, the best suppliers will properly vet which clients they take on and first impressions are very important.

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White2Label Manufacturing is a leading UK based clothing manufacturer, focused on offering clients and end to end solution. Trusted by 400 + brands so far. Are you next?

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    The ready-made garment manufacturing business in today's world is a multi-billion dollar industry. As a result, the garment manufacturing industry holds immense potential for entrepreneurs looking to enter the world of textile and apparel industry.

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    Whether you want to design your own clothing line from scratch, customize readymade wholesale garments, start clothing dropshipping or launch a small T-shirt business with print-on-demand services, the number of resources available to new businesses like yours are at an all-time high. You can start a business, build an online store, establish your clothing brand, connect with potential ...

  8. How to Start a Readymade Garment Business In India?

    Plan your readymade garment store. The readymade garment business is a very broad market so consider the following points: Choose which type of customer you will offer your product- children's wear, men or women. Select what kind of merchandise you'll focus on. Since you have just started your store, focus on one or two and when it is ...

  9. How to Start a Readymade Garment Business in India

    The readymade garment business is a promising venture to pursue in India. You can generate substantial profits by researching well and working smartly.

  10. How to Start a Readymade Garments Business

    In this blog post, we will give you a step-by-step guide on how to start your own readymade garments business. 1. Draw up a business plan. The first step is to create a detailed business plan. This will include the goals and objectives of your business, the target market, the competition, and the marketing and advertising strategy. 2.

  11. How to Start a Garment Business (a Production Unit)

    Few pointers for preparing your business plan and starting a garment business are listed in the below sections. 1. Do research on readymade garment business. The readymade garment industry is huge. The garment manufacturing process is a complex one as well. At the initial stage, you should explore the garment business in a wider prospect.

  12. How to Start a Garment Manufacturing Business

    A garment manufacturing business involves the production of clothing and textile products. It encompasses various processes, from designing and pattern making to cutting, sewing, and finishing. Today's world has a multi-billion dollar ready-made garment manufacturing industry. More people are conscious of their appearance and fashion.

  13. Preparing a Business Plan for Garment Manufacturing Setup

    This article is written to give you an idea of how to make a business plan for a garment manufacturing start-up. What are all things you can start working on before the approach for an expert's help?

  14. PDF Readymade Garments: Clothing Business Ideas & Opportunities

    Tags Indian Garment Industry, Garment Industry in India, Garment Industry, Projects on Readymade Garments, Textile Industry, Textiles and Garments, Textile Industry in India, Readymade Garments Industry, How to Start Garment Business With Low Investment, Most Profitable Apparel Business Ideas, Plan for Starting Up Readymade Garment Business, How to Start Clothing Business, How to Start Garment ...

  15. How To Start A Readymade Garment Business in India?

    Starting a readymade garments business requires ample capital to invest in the store premise, setup, licenses, suppliers, infrastructure, staff, etc. Plan the business effectively and limit your expenses to make the most out of the available funds.

  16. How to Start a Clothing Manufacturing Business

    Starting a garment manufacturing company can be a pretty hectic and daunting process. Here is a guide to making the clothing manufacturing brand-building process easier for you.

  17. How To Start A Garment Business? Ultimate Guide:

    Hey folks! It is most common when you plan to start a stitching business that these kinds of queries come to your mind like, how to start a garments business, readymade garments business, garments manufacturing business and garments business online.

  18. 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.

  19. How to start a readymade garment business?

    Readymade Garment business these days is too much into trends because of changing fashion every next day. From ladies garments to Kidswear, readymade garment business has a good sell in the market. These days, even young professionals are diverting their choices towards this business due to high demand and margins. Now before starting any business, there is a need to have a proper study about ...

  20. Business Plan On Garment Shop

    The business plan is for a readymade garment shop that aims to introduce new fashionable clothing designs to the market. The shop will be called "!!!!!" and will target teenagers, women, and men. It will offer a variety of clothing like jeans, trousers, shirts, tops, skirts, and more. There will be three workers - two for sewing/stitching and one for sales. The owners hope to influence ...

  21. How to Start Readymade Garments Shop Business In Small Investment

    How to start a Ready made Garments Shop Business In Small Investment.Here in this video, the simple steps to start a Ready made Garments Shop Business In Sma...

  22. The ultimate step-by-step guide to garment manufacturing

    Design and development in garment production is a process that involves creating new fabric designs and styles of clothing, as well as improving existing garments — the goal is to create products that are both stylish and functional. The first step in design and development is to research current trends in fashion.

  23. The Ultimate Guide to Fashion Manufacturing (2022)

    To raise investment, you will need to steer clear of a generic readymade garment business plan. This will be scrutinised by investors and it will serve many benefits.