How to Start a Clothing Line with No Money

Do you want to start a fashion design business but are short of money? With proper planning and dedication, it is not at all difficult to start a clothing brand with a low budget. Here in this article, we lay down the steps you need to follow to open your clothing line with no money from with no experience.

There is a myth among many that you need to have formal education in fashion designing to be successful. In fact, there are plenty of fashion designers who have successfully built their clothing brand with no prior experience. But with sheer determination and hard work, they made it possible.

16 Steps to Start a Clothing Line with No Money

If you are the one who is creative and enjoys the designing aspects of garments, launching your own online clothing line is worth considering. Find below the steps you need to follow to launch your own clothing line business.

1. Understand the Market

Experts predict the high growth of the fashion and apparel industry worldwide in the coming years. However, like any other business, it is advised to conduct detailed market research regarding the latest trends and styles that customers are interested in buying.

The fashion trade is a highly dynamic one.  Learn more about competitors, products, and pricing. You also must gather as much information as possible from online resources. Explore those gaps and opportunities and accordingly plan your clothing line business.

2. Find your niche

As a starter having a low startup budget, it is absolutely critical to select a small niche. Depending on your skills and interest, select a category of clothing line that has a good balance of demand and fewer competitors.

A niche market is a small segment of a bigger market. We list below some of the renowned niche clothing brands for inspiration:

  • Nicole Miller
  • Levi’s
  • Burberry
  • Monolo Blahnik

3. Write a Business Plan for Your Clothing Company

Based on the information collected from the market, start writing your clothing line business plan. It will work as a road map towards proper starting and running your company smoothly. Clearly write in detail about aspects like cost of items, target market, name of your business, promotional plan, and operational plan.

4. Name Your Clothing Line

In the clothing industry, the name of the brand plays an important role in the overall success of the business. Select a catchy name for a clothing line so that customers can relate your products easily.

Learn MoreHow to Name Your Business? Step-By-Step Guidelines

5. Register your business

If you want to run a legally compliant business, registering the business is a must. Every country and state provide different business structures based on your resources.

For example, if you are from the United States, forming an LLC provides you certain additional benefits that proprietorship business formation does not provide. It helps you in protecting your personal assets from business assets if you come across financial issues while running your company.

6. Get Necessary Licenses

Check with the local competent authority and procure necessary licenses and permits required to run a clothing line business. Do remember, you might have to pay penalties in the future for not having required licenses.

7. Open a Business Bank Account

A business bank account is a must for business owners. All your business transactions should be carried out through a business account. It not only protects your personal assets but also helps in easy annual tax filing.

8. Set up Business Accounting

Proper accounting is critical to understand the financial status of your company. You must select an accounting software and set your accounting process. It also helps in annual tax filing.

9. Buy a Business Insurance

Another important way to protect your business is by buying appropriate business insurance. The most common insurance that business owners procure is general liability insurance. It will save you in an unfortunate event of financial loss.

Read: Types Of Business Insurances Every Small Business Must Have

10. Design Clothes for your Line

After completing the official part of starting your clothing line business, it is time to concentrate on the operative part. Create creative designs for your items so that customers find it unique and buy. If you are not sure of yourself, hire designers, and get attractive designs.

11. Partner with a Printer

The next step is to print your designs. Contact printers who can print your items at an affordable price with good quality. You can also check online to get the job done. An online print platform like Spreadshop can make your job a lot easier. They provide you all the heavy lifting for you like payments, production, fulfillment, or shipping.

12. Price your products

There are two ways of fixing the price for your clothing items. One is cost-based pricing and the other is value-based pricing. Cost-based pricing is simply calculated the actual cost of the item and add a profit margin you feel right. Value-based pricing on the other hand is the price that you feel customers are ready to pay for the product.

If your clothing product has competition and similar products are available on the market, it is advised to go for cost-based pricing. On the other hand, if your product has a certain unique feature that no or few other competitors are offering, go for value-based pricing.

13. Calculate the Cost of Starting a Clothing Line

If you are a beginner in the clothing industry, start targeting a niche market. It will help you in starting at a low cost and provide you the time to understand the industry better. Nowadays, you can start your own clothing line with a nominal startup investment of $500.

14. Get Funding

As a starter, it is extremely tough to get funding from financial institutions. For a beginner, crowdfunding can be a better choice. It is recommended to launch your clothing line with your own investment and taking help from friends and relatives.

When money starts coming in, pitch for funding with potential investors. This is a better way of getting funds as every investor will look for the necessary credentials to invest money in your project.

15. Decide where to sell your clothes.

Finding places to sell your clothing products is the most critical part of the clothing line business. If you are short with a budget, the best place to sell your products is indeed social media platforms. The other place is to list your items with online marketplaces like Amazon, eBay, Etsy, and many more.

Also, contact local retailers and provide them samples of your items.

16. Create a Website

Nowadays, having a website is of the utmost necessity for any business. It holds true for the clothing line business too. Having your own website will not only help to reach a wider audience but also in developing a serious brand. The cost of creating a website nowadays is ridiculously low. Check our list of the best website builders where you can create your website without any technical knowledge.

FAQs on Starting a Clothing Line Business

How Much Does it Cost to Start a Clothing Line?

The startup cost of starting a clothing line will depend on the scale of operation. The various factors which will determine the cost are printing expenses, raw material, cost of designing, promotional cost, and shipping costs.

However, based on current prices, a small clothing line can be started within a $500 upfront investment. Mid-level clothing line cost you in the range of $1500 to $5000. If you are planning to start a full-fledged large scale clothing line company, the investment will be a minimum of $30,000.

How Much a Clothing line Business Owner Make in a Year?

The average annual earning of a clothing line business owner in the United States is estimated to be in the range of $50,000 to $60,000. However, the earning obviously will largely depend on the production output and promotional costs.

How to Source Raw Material for Clothing Line Business?

Sourcing of fabric and other raw materials can be procured both online and offline. However. buying from online marketplaces will be cheaper for bulk orders. For low quantity order, local distributors and retailers is a more preferred choice.

In conclusion, a clothing line can be a hugely profitable business provided you are prepared to dedicate yourself to the trade and plan your business as per your resources.