Listen, I’m going to make a deal with you:
If you promise not to let low rise jeans ever come back in style…
I will guide you through everything you need to know about starting a fashion line.
Ok, so I’m actually going to help you do that anyways (but I’m still begging you about the low rise jeans…)
Because helping small business owners and starting businesses is what I do, and it has been since I launched my lead generation business in 2014.
So in this article I’m going to walk you through the 7 steps you need to break into the independent fashion industry…
Including the realistic startup costs you can expect for this kind of business.
So let’s dive right in!
How to Start a Fashion Line in 2021
Thinking of Starting a Fashion Line in 2021? Here's What You Should Know:
The fashion industry is both competitive and ever growing. So if you want to start a clothing line, you will need to start by writing a business plan, designing your collection, creating your tech packs, and partnering with the right manufacturer. Plus preparing yourself for the first round of production!
Start Up Costs
While this list is not a comprehensive compilation of everything you need to start fashion line business, it provides a snapshot of what you need to add into your business plan.
Annual Revenue of Established Fashion Business
According to Small Business Chron, the average annual revenue of this kind of business is: $23,751-$51,000
Profit Margins of Established Fashion Business
According to this website, the average Profit margin of this kind of business is: 4-13%
7 Step Quick Start Checklist:
1. Writing a Business Plan and Getting Legal
Being a fashion designer with your own clothing line might sound glamorous…
But before you can jump ahead to the glitz and glam of becoming the next Vera Wang, you’ll need to do your due diligence.
What do I mean by that?
Well, you need to actually take the time to create a business plan and establish a legal business entity before you launch into the design phase of starting a clothing line.
Before you sit down to write your clothing line business plan, you will first need to determine the purpose of your business plan.
If you will be using the business plan to apply for a small business loan, or attract the attention of a potential investor…
Your business plan will need to be both formal and comprehensive.
However, the primary goal of a business plan is to create an actionable, well researched set of steps to achieve your long term business goals.
This will be true of a formal business plan as well as one that you may choose to simply write for your own benefit as a new business owner!
Regardless, you will need to follow a basic outline for writing a business plan.
Basic Things to Include in a Business Plan:
You have several options for how to structure your business from a legal standpoint.
If this isn’t already apparent, the Partnership business structure will only apply to you if you are going into business alongside a partner.
And a Sole Proprietorship is actually how your business will be automatically categorized by the government if you choose not to form a different business entity structure.
While Sole Proprietorships work well for small businesses or side hustles that don’t generate much capital…
They aren’t great for serious entrepreneurs looking to scale and grow a company.
And they offer very little legal protection for you as the business owner.
Which is why I personally recommend forming an LLC as your next step in starting your clothing line.
An LLC means that if someone were to sue your business, they could come for your business assets but your personal assets would be protected.
From there, you will be able to register for your business’s EIN number.
Which will be necessary for filing your taxes at the end of the year, opening a business bank account, and also for obtaining a business credit card.
2. Designing Your Collection
I’ll bet money that if you’re passionate about starting your own clothing line…
It’s because you’ve already been dreaming about the collections you’ll design.
Am I right?
Yeah…
I am.
Which means that this is the time to get all of those daydreams down onto paper now!
This is your design phase.
Before you can move forward with developing your brand, or finding the right production partnerships…
You have to hone in on your designs.
So start sketching out your pieces.
This isn’t the time for technicalities.
Those will come later.
So if you’re already worried about creating your tech packs, just slow down.
Right now, what you need to decide is who you are going to be as a designer, and what your first collection launch is going to say about your clothing line.
This is the time to make a statement.
If you’re already jumping ahead to trademarking…
Don’t worry.
We’re about to get there.
But this isn’t the time to worry about that yet.
Let your creativity flow, and be as detailed in your sketches as possible.
Think about everything from the colors and prints you want to use…
To the texture of the fabric and the type of thread!
3. To Trademark or Not to Trademark
Stop right there my friend…
Don’t trademark your business right away if you don’t absolutely have to!
So why am I putting trademarking as step number four in this guide?
Because so many new designers jump straight to trademarking before they’ve even made a single sale…
And I want you to think things through before you decide to jump right into the step.
No one is going to steal a design that isn’t even being purchased…
And trademarking can be expensive.
It can easily run you upwards of $2,000!
If you’re just starting out and have only begun to start your clothing line…
Spending $2,000 on trademarking your clothing brand might not be the best use of your finances.
So what do I recommend instead?
Firstly, you need to do your due diligence to scout and investigate the brands and trademarks that are already in existence!
It won’t make any difference if you are hoping to trademark a design or phrase or a brand name that has already been used and trademarked.
If someone else has already established themselves with a design or brand that is the same or similar to what you are hoping to create…
You will need to rethink your plan.
Not only is it morally wrong to knowingly copy someone who has already put in the work…
But it can result in your fledgling clothing line being sued!
So you can start there.
But if you eventually feel that you are ready to trademark your brand and designs…
Then you can work to save up for this investment with the profits that are coming in from the sale of your clothing pieces.
The good news is that most law firms won’t charge you the full cost of trademarking up front.
They will typically charge you half up front and then half at the end.
So once you do reach the point that trademarking is a practical next step for your…
You can divide this hefty business expense up into two separate payments.
4. Finding a Manufacturer
Choosing a manufacturer for your clothing brand is a huge decision.
Not only in terms of making a large financial commitment…
But also in the sense that whoever you choose as your manufacturer, you will spend considerable time partnering with them to bring your clothing line to life.
To make the process of finding the right manufacturer even more intensive, not all factories like to work with new designers or designers that have small production runs.
Sourcing factories overseas is a common solution.
And it’s drastically cheaper.
But although much of the clothing and textile industry has shifted to factories overseas due to the affordability factor…
As a small clothing brand, working closely alongside a local manufacturer can be incredibly valuable.
Plus, overseas manufacturers often have large minimum order quantities that are generally unattainable for small clothing lines.
So even though their pricing per item is much more affordable than a smaller manufacturer that is state-side…
The sheer volume of the minimum order quantities will shoot it far out of budget anyways.
There will be trade-offs with either option, but I highly recommend working directly with a local production factory if at all possible.
While it might seem overwhelming to find the right factory as someone who is potentially new to the fashion industry…
There are some incredible resources available now that can help you narrow down your search if you have limited connections within the industry.
The CFDA (Council of Fashion Designers of America) has actually recently released an extremely helpful list of trusted manufacturers and factories in the United States.
Here is a link to their list:
This list is a great place to start, and as an added bonus, the it can be filtered by a variety of different categories and specifications, such as:
If you are unfamiliar with the last term, Full Package Service Factories are manufacturers that offer comprehensive services to clothing designers.
Meaning that they are responsible for everything from the pattern making, to the prototype, to the samples, and finally the production.
They handle all of it in one place, which can make the entire process much more streamlined…
And it eliminates the need to hire independent contractors for the entire process.
This also creates efficient communication during the design and production phases of creating your clothing line from scratch.
5. Creating Tech Packs and Flats
If you set out to start a fashion line without prior experience in the industry…
Then you may or may not be familiar with the concept of design Flats and Tech Packs.
You will need to become familiar with and skilled at creating both!
So what are tech packs and flats?
A flat is a flat technical sketch of your garment or garments that is usually done using the adobe illustrator software.
Your flats must show the front and back views of the item you are creating and include all significant details about the design.
Your tech pack is a long, multi-page document that is typically created in the Excel software program, and it is the blueprint for your design.
Without a tech pack, your production team won’t be able to turn your design ideas into reality.
A tech pack usually includes the following sections:
What to Include in Your Tech Pack:
While your flats will be a quick overview of the overall front and back design and details…
Your tech pack is the step by step guidebook on how to fully create each piece in your clothing line.
And a good rule of thumb when drafting your tech packs is to include more information than you think you should.
So once you think you’re finished…
Go back and add in one more layer of detailed instruction!
Why?
Because creating and producing clothing is expensive, and the more you have to go back and forth between your design and your production team…
The more you’re going to spend.
So your tech pack is the key to having crystal clear communication on the final results that you are expecting from your manufacturer.
And it will ensure that you are not wasting your hard earned investment capital on multiple different samples of the same piece if at all possible.
If you are looking to learn more on drafting tech packs and flats, check out the following resources:
6. Preparing for Production
Once you have perfected and finalized your tech packs for each piece in your clothing line, you can start preparing for production.
If you’re starting to feel like there are a lot of complicated steps involved in starting a clothing line…
Then your feelings are correct.
Breaking into the fashion industry with your own clothing brand is no easy task…
And I highly recommend asking yourself beforehand if this is truly the business model that you are passionate about.
If you are driven to succeed in the world of fashion, then don’t let anything stop you…
But if your goal has more to do with starting your own business, then there are much more lucrative and practical methods of doing so!
I would know, since I ditched my 9-5 job to pursue starting my own online business by helping generate leads for other small businesses.
And this business model now passively generates over 50K per month after only five years!
If you’re interested in learning more about why I recommend lead generation for aspiring business owners, click here to learn more.
But back to your clothing line!
The very first step in preparing yourself for production is to order all of your sample fabric and trims.
This should be the correct and final fabrics and trims for the garment that you will be sending to production, so make sure that you are confident in your purchase.
When placing your order for the final fabric and trim, remember to include everything:
Then you can move on to having a pattern maker develop your patterns.
A pattern is different from your clothing samples.
They won’t be finished pieces of 3D clothing.
In fact, a pattern is made up of individual pieces that will be used as templates to cut fabric and create your clothes.
Think of your pattern as a disassembled version of your final garment.
You will need to either hire an independent pattern maker or use a full service factory with pattern maker on staff for this step in the process.
Next, it will be time to create your prototypes!
The prototype is the step right before your official sample.
Since the goal of your design prototypes is to help you identify any necessary changes to your patterns…
A prototype is usually done using a substitute fabric similar to your final fabric, but hopefully more affordable.
This fabric will mimic what you will be using in final production so as to test out the pattern and see it in 3D form.
If there are any problems with your design, you will have to go back and forth between your prototypes and patterns until you have the final version of your garment prototype.
Then you can create your Fit Sample.
The fit sample will be made out of your final fabric and trims and it will be tested on a “fit model” to ensure that there are no issues with the fit or fabric.
After your designs have all been tested out on a model, you will be able to order the final samples for your clothing line collection.
At this point, you can make final changes to your collection, and also determine your wholesale costs to produce each item and narrow down which pieces you want to send to production.
This is the time to ask yourself which pieces work and which pieces don’t…
Plus make any difficult eliminations of pieces that will simply be too costly to send to production.
7. Finalizing Production
Take a deep breath, because you are getting so close to placing the first official orders for your clothing line!
These are the last steps you will need to take during the production of your clothing line.
Since you have made final decisions on which items will make it to your final collection launch, and you’ve estimated the costs of designs based on development of prototypes…
You can move on to creating a look-book and line sheets.
A line sheet is a sales tool for buyers that tells them:
Your look-book will be the fun part!
This is where you get to take the very first professional promo photos of your clothing line for marketing purposes.
Hire a professional photographer with experience in fashion photography, get a couple models, and let your creativity flow!
At this point, success is probably so close you can almost taste it.
If you are planning to sell your clothing pieces directly to consumers via your own website and brand…
Then this is also the time to share your look-book and start building excitement for your official launch.
Which means that you can also start taking pre-orders for your pieces!
However, if you will be selling your pieces wholesale to other boutiques or buyers…
Begin by sending out those look-books and line sheets to buyers, trade shows, and showrooms, so they can place their orders
And finally, the last step before official production…
*Drumroll Please*
Is Pattern Grading.
Which is just a fancy term for getting your patterns sized up and down so that you will be able to produce your garments in a wide variety of sizes.
Then you can use your pre-production sample to place your first round of bulk wholesale orders from your manufacturer!
Just make sure that this pre-production sample is literally perfect and without any flaws…
Because this is the reference that the factory will use for all of your production!
Even despite your best efforts, small errors do get made…
So as the owner of your company and the designer of your collection…
You will be responsible for inspecting each garment by hand and ensure that there are no flaws or issues.
After that…
Bing, bang boom!
Your collection will be ready to sell!
Pros and Cons
of starting a fashion line
Pros
For many aspiring entrepreneurs, one of the greatest draws to launching a business is the freedom to set your own schedule. There’s no boss to dictate your day, or look over your shoulder… You are in control of your time. This can be both freeing, and stressful. But for most small business owners, it is one of the most gratifying aspects of being self employed.
Not only is the fashion industry ingrained into the fabric of modern society (see what I did there?)... But it is also an incredible creative outlet. If you are a creative individual, you know that working within a creative industry like that of fashion is an incredibly exciting opportunity. Your job is literally art!
Everyone has to start somewhere. Even Nike. Or Coach. Think big from day one… Because you could become the next big name in fashion! There is infinite potential to scale and grow your fashion line. And even if you want to keep it small and local… More power to you!
Cons
The fashion world doesn’t play nice. It’s a cutthroat and competitive industry, and everything from working with manufacturers to getting your pieces into a runway show will require hard work and determination. Be prepared to hustle for your success if you’re going to make it as a fashion designer.
If you have any visions of earning steady passive income from your freelance business… I encourage you to lay those aside. Your income as a freelancer will be directly linked to your hours. While owning your own freelance business can eventually lead to consistent passive income, that is a long way down the road.
The fashion industry already has notoriously low profit margins, but this will be even more painfully obvious for a small up and coming fashion designer. Producing a small scale fashion line is even more costly than large production, because certain manufacturers will turn you away or charge you more per item if you cannot meet the minimum order quantities. And if you want to do things ethically, where everyone from the textile factory workers to your pattern maker get paid well… You will need to surrender even more of your profit margins.
Starting a fashion line takes time, and getting it out into the world takes even longer. If you choose to launch your own fashion brand, make sure you have enough finances set aside to get you through not just the first year, but the first two! This is how long it will typically take before you start to see a return on your investment.
Starting a Fashion Line Can Work, But Lead Generation is Better… Here’s Why:
If there is one piece of advice I could give you before you start a fashion line…
It would be this:
Don’t do it unless you are 100% passionate about the fashion industry, and completely committed to a long term business investment.
Starting your own fashion line is the furthest thing from a get rich quick scheme.
And while I don’t believe in those generally…
The fashion industry is fiercely competitive, operates with shockingly low profit margins, and can take years before designers see a return on their initial investments.
But I’m not just saying these things to harp on this particular business model.
I just believe that there is a better way.
And I can say that with confidence, because I’ve found the better way.
Before I quit my job over five years ago now, I was barely making 2K per month.
Now I make over 50K per month in passive income online.
And all of this is because of a business model called local lead generation.
Online lead generation leverages the localization capabilities of Google, as well as strategic SEO, to efficiently generate new leads for small businesses.
So not only do I get to enjoy the benefits of passive income, but I also get to help other small business owners thrive by taking the weight of attracting new leads off of their shoulders.
And anyone can learn to do this!
Plus, after you’ve done your initial due diligence…
You can use your newfound passive income to start as many fashion lines as you want (if your heart so desires)!
So if this sounds like it’s a little more your speed...
Click this link to learn more about how we can help you get started with your online lead generation.