Start your business
If you want a new look for your life and finances, then a clothing brand may be your style. But where do you begin? What steps should you take, and how will you get customers? Knowing how to start a clothing brand is key before you make the leap.
The potential is there. In 2019, U.S. clothing and footwear sales topped $368 billion. In fact, the U.S. is the largest apparel market in the world. And globally, the clothing market was valued at $1.5 trillion in 2020.
You can grow your clothing brand locally, digitally, and globally. Let’s walk through the step-by-step process you’ll typically follow to start a clothing business.
Starting a clothing brand is all about freedom. When you start your own brand, you’re free to express yourself artistically, and to make your own choices. Starting a new clothing brand can also lead to financial freedom as you build a customer base and a dependable revenue stream.
Another big benefit to starting a clothing business is that production doesn’t have to be part of the equation. A brand is your artwork, philosophy, and name recognition, but you can outsource production to established manufacturers and focus on marketing and selling. From high-end fashion designer labels to bargain basics, and timeless clothing designs to trending fashion, brand identity can lead to profits.
Apparel brands become known for their design, innovation, and price point, but also for evoking feelings, values, or attitudes. The more someone associates their individuality with your apparel, the more they want your clothes in their closet.
As you plan and begin your clothing brand, you’ll need to think through how you’d like the business to run, consider your goals for growth, and know how the work will fit into your life. You’ll also need to understand practical considerations, state and local requirements, business insurance, and trends that could affect the business.
We’ve got you covered: Get your new clothing line business off the rack with the checklist below.
1Create a Clothing Brand Business Plan
2
Choose a Business Structure
A business plan can seem intimidating, but it doesn’t have to be. Writing a business plan sets you up for success by helping you think through all aspects of your business model. That doesn’t mean you have to work up a War and Peace-sized book though. A business plan can be as short as a couple of pages, as long as it has the right level of detail to guide your business as you get underway.
Your clothing brand business plan helps you:
Two common entities for a clothing company are single-owner sole proprietorship (“sole prop” for short) and starting an LLC (limited liability company) with an operating agreement. If your business will have multiple owners, consider creating an LLC or, depending on the scope of your business plan, forming a corporation.
Sole props are easy to set up. However, a sole prop could also make it trickier to minimize taxation. Review potential business taxes and structuring implications for your self-employment income.
LLCs can shield your personal assets from business liabilities. That means if your business goes into debt, or someone sues your clothing brand, your personal assets are off limits. The degree of protection varies, so be sure you know how to establish an LLC in your state.
How do you plan to fund your startup? Small Business Administration (SBA) resources are often more accessible to sole props. Private funding sources such as venture capital and commercial banks may prefer to work with LLCs.
Every business has to effectively manage expenses and cash flow in order to stay open. Thinking through anticipated costs will help you price your clothing brand and manage cash flow:
For starters, estimate the price to start a small clothing business.
Establish your fixed costs. These expenses recur monthly, quarterly, or annually, and you know what you’re spending. Long-term, there may be changes, but in the short-term these costs are stable, such as mortgages, commercial or industrial leases, and utilities.
What are your variable costs? These fluctuating expenses may include payroll, taxes, fabric, decorative materials, equipment, travel, and trade shows.
Understand your target audience. How old are your customers? Where do they live? What matters to them? What is their typical apparel budget? What clothing brands do they currently buy? The better you know your market, the better you can design the clothing they’ll want.
Other considerations include:
To give you a general idea, here are some common startup expenses for a clothing brand:
Other costs will vary depending on the nature of your clothing brand, such as whether you are making clothes yourself or mass manufacturing abroad.
Don’t forget about advertising, marketing, and labor costs. Invest in print and online marketing assets, such as business cards and a basic business website. Examine labor and other costs in different countries of production too.
No matter how large or small your business will be, starting it up will cost money. How you fund your clothing brand startup costs is a crucial decision:
Every clothing business needs a name. A sole proprietor can trade under their own name, and many fashion brands are built around a name. However, most clothing brands will want to come up with a good name. If you’re forming an LLC, follow the rules for how to name your LLC.
Once you’ve registered your business name, set up a business checking account. This helps you keep your business income and expenses separate from your business, especially if you’re operating as a sole prop.
You’ll need your Employer Identification Number (EIN). For sole proprietorships, this is usually your personal Social Security number. LLCs will need a dedicated EIN from the IRS, and any business can apply for an EIN.
In order to start your operation, acquire the right equipment, supplies, and training sessions for your clothing brand, which may include:
If you’ll outsource production, your equipment can be minimal. If you’ll in-house everything, see this great guide to clothing brand equipment setup from Online Clothing Study.
The continued global growth in the apparel industry is proof that people want more clothing options that suit their bodies and personalities. The right marketing helps potential customers find your business:
When it comes to getting new business, your current customers are the best source. Word of mouth is one of the best ways to get new business, so be sure to ask customers to refer you to people they know.
Your clothing brand also needs to be visible at live and online events. Events can be crucial in getting your brand in front of the right people.
A search-engine-optimized website is also key. Today’s robust online platforms and drag-and-drop design tools can help anyone set up a basic business website. Make sure your site explains who you are, what your brand stands for, showcases your apparel, and has ways for customers and potential business partners to contact you. Including keywords relevant to your brand can help people find you through online searches.
Clothing brands can take many forms.
A clothing brand can be your ticket to a profitable business. The market is there, and once you have a solid business plan, a business registration, the right financing, and a marketing strategy, you’ll be well on your way to running your own clothing company.
Do-It-Yourself (DIY) | ZenBusiness Pro Plan |
---|---|
Starting Price | |
state fee | $199 + state fee |
Average Filing Time | |
2-3 weeks | 5-8 business days |
Registered Agent | |
+$99/yr | ![]() |
Operating Agreement | |
+$35 | ![]() |
State Compliance Help | |
$119/yr | ![]() |
EIN | |
+$70 | ![]() |
DOMAIN NAME | |
+$25 | ![]() |
DOMAIN PRIVACY | |
+$10 | ![]() |
BUSINESS WEBSITE | |
+$100 | ![]() |
BUSINESS EMAIL ADDRESS | |
+$25 | ![]() |
SHOW ALL DETAILS |
Do-It-Yourself (DIY) | ZenBusiness Pro Plan |
---|---|
Starting Price | |
state fee | $199 |
Average Filing Time | |
15 business days | 5-10 business days |
Registered Agent | |
+$249/yr | ![]() |
Operating Agreement | |
+$99 | ![]() |
State Compliance Help | |
$280/yr | ![]() |
EIN | |
+$60 | ![]() |
DOMAIN NAME | |
+$25 | ![]() |
DOMAIN PRIVACY | |
+$10 | ![]() |
BUSINESS WEBSITE | |
+$100 | ![]() |
BUSINESS EMAIL ADDRESS | |
+$25 | ![]() |
SHOW ALL DETAILS |
LegalZoom Standard Package | ZenBusiness Pro Plan |
---|---|
Starting Price | |
$329 | $179 |
Average Filing Time | |
15 business days | 5-10 business days |
Registered Agent | |
+$159/yr | ![]() |
Operating Agreement | |
+$99 | ![]() |
State Compliance | |
$280/yr | ![]() |
EIN | |
+$60 | ![]() |
SHOW ALL DETAILS |
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