Do you want to know exactly how much it cost to start a clothing line? If YES, here is a detailed cost analysis for starting a clothing line and raising finance.
Having provided you with a:
- Clothing line Industry Overview
- Market Research and Feasibility
- Clothing line Business Plan
- Clothing line Marketing Plan
- Clothing line Name ideas
- Clothing line Licenses and Permits
- Clothing line Marketing ideas
We will consider how much it cost to start a clothing line from scratch including the operating costs.
How Much Does It Cost to Start a Clothing Line?
Loads of factors affects the total start – up capital required to start a clothing line business. Some of the factors that can influence the startup capital required to start a clothing line business are; the location and country where you intend starting the business, the size of the business and of course your target market or niche.
These are the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business / Incorporating the Business
- Legal expenses for obtaining licenses (Health department license and business license)and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al)
- Budget for publicity and advertisement of our brand
- Cost for hiring Consultant
- Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium
- Cost of accounting software, CRM software and Payroll Software
- Cost for leasing facility for our production factory
- Cost for facility remodeling
- Cost for purchasing initial supply of fabrics, racks, hangers and packaging materials
- Phone and Utilities (gas, sewer, water and electric)deposits
- Operational cost for the first 3 months (salaries of employees, payments of bills et al)
- The cost for Start-up inventory
- Cost for sewing machines and other sewing equipment and tools
- The cost for the purchase of furniture and gadgets (Printers, Telephone, vacuum cleaner, tables and chairs et al)
- The cost of Launching a Website
- The cost for our grand opening party
- Miscellaneous supplies
If you intend starting your own clothing line business in the United States, then you would need an estimate of:
- $500,000 to $1Million to launch a small scale clothing line business
- $1Million to $2Million to launch a medium scale clothing line business
- 5Million and above to launch a large scale clothing line business
Starting a Clothing Line – Financing your Business
It is one thing to come up with a fantastic and highly workable business idea; it is entirely a different kettle of fish to hit the ground running. Finance is the lifeline of any business; as such money will be required to get a lot of things in place prior to starting a business.
There are some form of businesses that can be started with little or money and starting a clothing line business is not one of them. If you want to start a clothing line business, you will need to raise start – up capital. This start-up capital could be raised through diverse avenues.
There are various means of generating start – up capital to setup a new business. Most often, people raise their start – up capital from personal savings or by obtaining soft loans from family members and friends.
If you intend starting you clothing line business on a large scale and you don’t have the money to finance the business, you can apply for loan from your bank or you can invite investors to partner with you. There are also angel investors who may be attracted to your business, once they see that your business plan is attractive and promising.