If you want to start a clothing manufacturing business, it can be extremely challenging. From deciding on your niche to taking your product to market, you’re likely to encounter difficulties and you will need the persistence to follow through.
You need to understand the time and financial commitment required to achieve success. Here are some considerations you need to keep in mind when starting a clothing manufacturing business.
Choose your niche
The clothing business is very competitive and you will need to choose a niche carefully in order to succeed.
Do you have a particular style in mind? Do you want to fulfill a particular need, such as cruelty-free clothing? What gap do you see in the market that you think you could satisfy? Your original idea is your guiding principle and your reason to be remembered, even if you branch out later.
Create a business plan
Even if you’re just testing your designs on a small scale, it is helpful to draw up a business plan. You will need a business plan if you want to secure funding. All that’s necessary to begin with is a couple of pages identifying your key business strategies.
You should have a general description, a product overview, an operational overview and a summary of the key components of your business model.
Your business plan must outline your current financial position and priorities for growth. In the beginning, for example, you may not see any need for automating processes but as you begin to scale, it could become worth investing in a computerized maintenance management program.
Organize your business
You will have to make decisions about your tax structure, the legal name of your company, insurance and funding. It may be wise to consult a tax specialist or lawyer at this point.
You need to know your target market and your competition and think about your logo and other elements important for branding. You will also need to understand the operational process and what is required for each step.
Prepare for manufacturing
Manufacturing is the stage where expenses start to mount up. If you’re going to manufacture yourself, you will have to choose where you want to operate and source equipment, fabrics etc.
If you’re going to have others manufacturing your garments, you’ll need to give them i.e. the essential information they need, from design and measurements to materials and extra details.
Establish a pricing model
Making a profit is essential. This means you need to earn more than your expenses. Your fixed expenses are ones that don’t change, such as equipment purchase or rent, whereas variable expenses are those that change. Your profit margin should be about 30 to 50% more than your expenses if you want to remain in business.
Create your brand and market your products
How your brand your company is very important as this is what will create an impression on prospective buyers. Millions are being spent on e-commerce today and unless you take your business online, you’re missing out on a great opportunity.
Create a strong online presence so you can reach your target audience. For instance, if you’re designing clothes for eco-conscious people, you need to find out where they are hanging out online so you can start building relationships with them.
Analyze and make adjustments
Efficiency is essential to your survival and you have to keep figuring out how you can improve. Ensure that you are meeting your projected profit estimates and if you’re not, you have to try and streamline your processes. You have to be able to offer competitive pricing and on-time delivery if you want to ensure repeat business.