How Much Will it Cost to Open a Clothing Brand?
Individuals who have embraced the fashion business have their successes to show for it. Owning a clothing line is an integral part of the fashion business.
How much do clothing lines make a year? What is the cheapest way to start a clothing line?
For someone who is not already in the clothing line business and who desire to take advantage of the amazing opportunity in the industry, the challenge can be really daunting. Especially, deciding where to start and most especially the cost.
HOW MUCH MONEY DO YOU NEED TO START A SMALL CLOTHING LINE
The cost of starting a clothing line can be most daunting. So daunting it could make you take your eyes and heart off the opportunity in the fashion industry and clothing line business.
You should know, however, that starting a clothing line is a very serious endeavour and demands utmost planning and preparation to ensure that the venture becomes a success.
In looking at how much it costs to start a clothing line, certain factors must be duly considered.
Some of the factors that must be considered which affects the cost of starting a clothing line include the size and also the location.
To help provide a better and clearer understanding of the cost implications of starting a clothing line, we are going to do a breakdown of the required costs of starting a clothing line.
One of the key factors that would also help to determine the cost of starting a clothing line would be the scale at which the clothing line would be starting at.
The clothing line could start on a small scale, a medium scale, and at a large scale.
COST OF STARTING A CLOTHING BRAND
Let’s look at the cost breakdown of starting a clothing line.
- Registration Cost
The first cost to consider in starting a clothing line is the business registration cost, which is the cost of registering the business with the government. The registration cost could get up to $800 (U.S. dollar).
- Consultancy and Business Plan
Another important cost to consider is the cost of consultancy and writing a business plan. To increase the chances of success for the clothing line operation, a well-written business plan is very important.
Also, proper consultation should be made. All these would come at a cost. The cost of consultancy and business planning for the clothing line could come up to a cost of $2,000 (U.S. dollar).
- Legal and Licensing Fees
The legal and licensing fees are necessary costs that must go into starting the clothing line. Permits are also required to be granted.
Some of the licenses which are required for the clothing line are business license and health department license. You would also need to get permits from the fire department. Other required permits include air and water pollution control permit, among others.
The cost of getting these required permits and licenses could come up to $1,800 (U.S. dollar).
- Cost of Insurance
The cost of insurance also forms part of the required costs for the clothing line. The business would need theft and burglary insurance, general liability insurance and also property insurance.
The cost of insurance which the business needs could come up to $1,500 (U.S. dollar).
- Equipment Cost
Equipment is at the heart of the business. You need equipment to make the business a success. The equipment which you need for the business includes;
- Seam Ripper and Tweezers
- Lint Roller
- Glue Stick
- Sewing Machine
- Pressing Iron
- Measure Tape
- Water Sprayer
- Pattern Weights
You should also know that you should get as many of this equipment as your budget can carry.
The cost of this required equipment could go as high as $20,000 (U.S. dollar).
- Cost of Facility
The clothing line would need a facility, the place where the business of the clothing line would be conducted.
This cost would go into leasing for the property. This would also include the cost of rent. This cost could come up to $200,000 (U.S. dollar).
- Cost of Facility Remodelling
To make the leased or rented facility suitable for the business of the clothing line, the facility would have to be remodelled. The cost of the remodelling could come up to $150,000 (U.S. dollar).
- Cost of Utilities
The cost of the utilities for the facility would be made up of such costs as phone bills, water, and electricity bills. This cost could come up to $700 for the first three months.
- Labour Costs
The cost of labor for at least the first three months of the business should also be considered. This cost could come up to $1,500 (U.S. dollar).
From the cost analysis and breakdown which we have done, it can be seen that the cost of starting a medium to large scale clothing line would start at a cost of $378,300 (U.S. dollar). This cost could go up as high as $1 million (U.S. dollar) and above.
Considering the cost of starting any business endeavour is very important before embarking on the endeavour and starting a clothing line is no exception. Note that the cost of inventory is not included in this cost estimate. This would be determined by the scale of the clothing line.