If your New Year’s decision is to finally start up a fashion business, then there are useful tips you could use as guidance. It’s not too complicated to start a business but you have to take care of legal matters and do the creative part as well. Scroll down to read about starting out a fashion business in 2022.
Learn and make contacts beforehand
If you enter the business like a complete amateur, you might make some mistakes you otherwise wouldn’t. It would be good if you had a formal education when it comes to business or marketing, but it is not mandatory as long as you have talent and perseverance. You should learn the industry standards, make contacts and learn from them. Professionals who have already succeeded can be great mentors.
Registering Your Clothing Line
Your first legal step is to register your clothing line. This is mandatory and you can choose if you want to register a limited company or sole proprietorship. It is recommendable to consult a financial advisor for this matter. Your funding and taxes can depend on the type of business. While sole proprietorship means you and your business are the entity in the eyes of the law, a limited company is an opposite. In case you had any debts, having a limited company wouldn’t affect your personal assets. Sole proprietorship, on the other hand, can be easier when it comes to paying taxes.
Create a good business plan
A business plan is mandatory if you are serious about your business. There are several questions that a good business plan should answer. First, you should think of ways of funding the business. It can be crowdfunding, angel investment, start-up loan, or self-funding. The last one requires some personal assets. It should also deal with questions like how, when, or where you are going to manufacture and distribute the clothes. Start-up costs are not just for registering the business, it’s also website development if you sell online, storage space, photography, IT hardware, stock, and others
Find your niche
You’ve probably heard that finding a niche or filling gaps in the fashion industry is something good. It is true that if you manage to find something that others don’t have, you will have a huge advantage. This is where your creativity matters. The uniqueness doesn’t have to be about the clothes, it can be about the whole approach you have, the inclusivity, website functioning, etc. If you see that many people work from home these days, designing comfortable but still fashionable clothes for the home can be an interesting idea.
Designing or dropshipping?
Photo by Karolina Grabowska from Pexels
Maybe you’re not a creative person and you only want to sell but not to design. This is fine and there is an option for you called dropshipping. Basically, it’s reselling from wholesalers. You should find a reliable platform from where you could order your clothes. In the early stage of your business, you should already decide whether you want to design or stick to business strictly. Your partner wholesaler company should be related to the niche you chose. If you choose your target group to be urban women, then wholesale party dresses can be considered a desirable product.
Fabric sourcing, manufacturing, and production
If you have contacts in the industry it can be helpful in this phase of business development. Local fabrics can be good partners for fabric sourcing or even manufacturing. There are online designers’ communities and you can chat or meet with people who can share their experience and contacts with you and give you useful advice. You might not even need outside help in the early stages since your production volume might be low, but contacts are always useful. Other than fabric sourcing and manufacturing, you should deal with distribution and retailers.
Develop your brand
In this stage, you have already registered your brand, started the production and distribution. Your brand is out in the market. Build brand awareness by having a good website with SEO properly done. Your website can be an online store and for this, you are probably going to need customer support service. Digital marketing on social media can help a lot as well. Tell your story, clients like to hear something personal and unique. Bond with the potential customers. You can make giveaways or participate in local events as a sponsor. Instagram and TikTok stars can enhance your brand’s popularity in exchange for some free items, etc. Don’t forget that the best brand awareness comes from good quality and service that people will later recommend to their friends.
Now that you know some basic steps for starting out a fashion business, don’t hesitate to make your plans work in 2022. Make contacts, see wholesale websites, online designers’ communities and make sure you do it all legally with proper registration.