Do you want to start a leggings business and want to know the cost breakdown? If YES, here are 14 factors that affect the cost of opening a leggings production company. The hosiery mills industry that leggings manufacturing business is a part of comprises of establishments that primarily manufacture hosiery and sock products.

In facilities leased or owned by the company, producers form raw materials, such as cotton and polyester, into hosiery and socks. These products are then sold to wholesalers and retailers for resale to consumers. The leggings manufacturing business is a business whose products are used all across the world by females. It is fact that there is no cultural barrier to the usage of leggings.

If you are conversant with the leggings manufacturing business, you will realize that there is room for an entrepreneur to start his or her own business and still get a fair share of the market. No doubt it requires loads of research, experience and huge capital base to be able to establish a leggings line that can be globally accepted.

But if you want to start small, then you might not have to break the bank to get started, but you must still do a thorough research and if possible, acquire a degree or diploma in fashion design or textile technology. In this article, we will help you with the estimated cost of opening a leggings manufacturing company in your city.

The Estimated Cost to Open a Leggings Manufacturing Business

When it comes to starting a standard leggings manufacturing business, one is expected to spend the bulk of the startup capital on leasing a facility, purchasing and installing equipment and machines (establishing hosiery mill). Please note that the exact cost of opening a leggings business depends on the size of the factory and where it will be located.

You are also expected to purchase raw materials and pay your employees and utility bills. These are the key areas where you are expected to spend your startup capital on;

  1. The total fee for registering the business in the United States of America – $750.
  2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  3. Marketing promotion expenses for the grand launching of the leggings manufacturing in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  4. The cost for hiring Business Consultant (it includes writing of a business plans) – $4,500.
  5. Insurance (general liability, workers’ compensation and property casualty and other related insurance policy) coverage at a total premium – $12,400.
  6. The cost for payment of rent for a facility for 12 months at $1.76 per square feet in the total amount of – 75,600.
  7. The cost remodeling the facility and constructing a standard leggings manufacturing factory (including installing the needed industrial sewing machines, equipment and gadgets) – $150,000.
  8. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
  9. Operational cost for the first 3 months (salaries of employees, fueling and maintenance of the distribution trucks, and payments of bills et al) – $150,000
  10. The cost for start-up inventory (stocking with a wide range of fabrics (textiles), sewing accessories and other related merchandize) – $100,000
  11. The cost for storage hardware (bins, rack, shelves, creates) – $20,720
  12. The cost for front end office equipment (cash register, security, ventilation, signage) – $750
  13. The cost of purchase of distribution trucks – $35,000
  14. The cost of launching a website – $600
  15. The cost for our opening party – $5,500
  16. Miscellaneous – $5,000

From the rough estimate as listed above, you would need a minimum of six hundred and sixty four thousand five hundred and twenty five USD ($664,525) to establish a medium – scale but standard leggings manufacturing business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.

Please note that this is a rough estimate and we usually advise our readers to go to the market or directly contact wholesalers and suppliers of the type of the machines and raw materials in order to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above. Having said that, here are some of the factors that will influence the cost of opening a leggings manufacturing business in the United States of America;

14 Factors That Determine How Much It Cost to Open a Leggings Business

1. The Choice of Location

A major factor that will determine the cost of opening a leggings manufacturing business in the United States of America is the location. There are business consultants and realtors who are specialized in helping people choose an ideal location for their business; a location that will guarantee them to profitability.

For example, renting or leasing a store or production facility in a location that is off – the city center or off a major road will be less expensive when compared to renting or leasing a store facility in a highbrow area; a location along a major road with high vehicular and human traffic.

2. The Required Licenses and Permits

In the United States of America, you cannot open a business without first applying for the mandatory license and permits. You would need operational license, building license, zonal permits, and signage permits license amongst others.

These license and permits cost money and it will influence the overall cost of opening your business in the United States of America. Please note that you will  pass through several inspections before you can be issued your licenses and permits – this will also cost you money.

In order to get the overall cost of licensing and permits associated with opening a new leggings manufacturing business in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.

3. The Type of Facility

The type of facility you want to operate your leggings manufacturing business in is also a major factor that will determine the overall cost of opening a leggings manufacturing business in the United States of America. As regards the facility, you have the options of renting, leasing or constructing your own facility from the scratch.

With renting and leasing, you might spend extra to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants.

If you want to construct your production facility from the scratch, you will buy the land or a property, bring up your design, construct and equip the production facility. You will agree that you are going to spend way more when compared to people that rent or lease a production facility. This indeed will greatly influence the overall cost of opening your leggings manufacturing business.

4. Your Products and Service Offerings

Another key factor that will determine the cost of opening a leggings manufacturing business in the United States of America is the products offerings of the business.

In as much your main product is going to be the production of leggings, there is nothing stopping you from engaging in the production of hosiery, socks, sheer footies, athletic socks, tights, socks for men, women and children, pantyhose, full- and knee-length hosiery for women and girls and nylon and sheer hosiery.

5. The Size of the Leggings Manufacturing Business

Another very important factor that determines the cost of opening a leggings manufacturing business in the United States of America is the size of the facility. Of course, the larger the facility, the larger the budget to get it up and running especially as it relates to equipping the facility.

Aside from the cost of equipping the production facility, it will also cost you more to position employees to man different job positions in the company. For example, less than 20 employees can work in a factory that is in a 50 by 50 production facility while it will take over 50 employees in a 100 by 100 production facility.

6. The Cost of Hiring and Paying a Business Consultant and Attorney

If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan, marketing plan, comprehensive SWOT analysis, and other advisory services.

So also, an attorney will help you with registering the business, drafting contract documents (especially for your suppliers and creditors) and offering you all the legal expertise that will help you start the business on the right foundation. Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening a leggings manufacturing company in the United States of America.

7. The Cost of Branding, Promotion and Marketing of the Business

The cost of branding, promoting and marketing the leggings manufacturing company is yet another key factor that will determine the overall cost of opening the business. Trust me, if you need massive results as it relates to winning a fair share of the available market in the city and country you intend selling your products.

As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction in the industry. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your leggings manufacturing business.

8. The Cost for Furnishing and Equipping the Business

Another factor that will determine the cost of opening a leggings manufacturing business is the cost for furnishing and equipping the facility. You will quite agree that aside from the basic machines and tools that are found in a leggings production facility, an investor that wants to open the business may decide to spend more to equip the facility to look unique.

Before you can open a leggings manufacturing business, you should budget for storage hardware (bins, rack, shelves, case), counter area equipment, Flat Screen TVs, sound system, Satellite dish and decoder, furniture (table, and stools), telephones, filing cabinets, store equipment (cash register, POS machines, security, CCTV, ventilation, signage), and security and fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening the business.

9. The Cost of Insurance

Paying for insurance is yet another important factor that will determine the overall cost of opening a leggings manufacturing business in the United States of America. Interestingly, in the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy cover that are required by the industry you want to operate from.

Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.

10. The Cost for Registering the Business

The cost of registering the leggings manufacturing business is yet another cost that will influence the overall cost of opening a leggings manufacturing business in the United States of America. Although the cost of registering a business is affordable, it will no doubt add to the overall cost of opening the business.

11. Source of Your Supplies

Another major factor that will determine the cost of opening a leggings manufacturing business is the source of your supplies. For example, if you don’t own your hosiery mill and you have to rely on supplies, if you are able to build a robust business relationship with some of the leading suppliers, then you would have succeeded in cutting down the cost of your supplies. As a matter of fact, you can even get your supplies on credit.

12. Cost of Recruiting and Training Your Staff

The fact that you are opening your leggings manufacturing business as a new business means that you are expected to recruit and train your staff. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire trainers and that will add to the overall cost of opening a leggings manufacturing business.

13. The Cost of the Purchase and Customizing of Uniforms

Another factor that will determine the overall cost of opening a leggings manufacturing business is the cost of purchase and customizing of uniforms, shoes, and caps amongst others. Your staff all need different uniforms and they are expected to put on these uniforms while on duty. All these uniforms will cost you money which is why it must be part of your budget.

14. The Cost of your Grand Opening 

You will agree that in recent times, no leggings manufacturing business opens its door for business without first organizing an opening party to officially launch the business. This means that the cost of the grand opening will determine the overall cost of opening the business in the United States of America.

You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. The bottom line is that it is a cost that must be part of your budget and it will influence the overall cost of opening your leggings manufacturing business.

In Conclusion,

Please note that there are other factors not listed above that will influence the overall cost of opening your leggings manufacturing business which is why we will advise that you work with a result driven business consultant.

Solomon. O'Chucks