How to Start a Small Clothing Business from Home: A 9-Step Guide

Do you have a passion for fashion, internet access and an entrepreneurial streak? Then you already have everything you need to turn your love of clothing into a home-based business.

And with the vast array of online selling avenues available, not to mention the flexibility that working from home offers, launching a clothing brand is now more accessible than ever. With this guide as a roadmap, you can move several steps closer to doing just that.

1. Understand the Basics of Running a Clothing Business

Before delving into the intricacies of starting a clothing business, it's essential to grasp the fundamentals of the industry as a whole.

For starters, designing clothing is just the tip of the iceberg. Researching current fashion trends, analyzing target market preferences and understanding the dynamics of the clothing business are also crucial.

It's also important to recognize that the fashion industry is multifaceted and encompasses design, manufacturing, marketing and more. So, you don't necessarily have to be a trained fashion designer to start a clothing business.

2. Craft a Solid Business Plan

A thoughtfully crafted business plan serves as the cornerstone of any successful venture, clothing businesses included.

While every business plan is different, you'd be smart to include the following:

A brief description of your business and the business model it will use.
A summary of your business goals and objectives.
A market analysis, including information about your target audience.
A description of your business's brand identity, and the things that will set it apart from competitors.
A preliminary marketing plan (more on that later).
A financial plan that includes revenue projections and a budget.
An operational plan that describes day-to-day operations.

3. Decide on Your Business Structure

Choosing the right business structure is a crucial step in setting up your clothing business. The most common options for small businesses are sole proprietorship, partnership, limited liability company (LLC) and corporation.

Each structure has its pros and cons, but for many small clothing businesses, a sole proprietorship (or partnership) is the most convenient option. That's because it doesn't require any formal setup or fees. Once they're more established, clothing businesses may benefit from the legal protection that LLCs provide. When choosing an entity type, be sure to research each one to determine which best suits your needs.

Additionally, remember to obtain any required permits or licenses. These vary significantly from place to place, so be sure to familiarize yourself with the laws in your particular location.

4. Source Your Clothing Products

Once you've settled on a business structure, it's time to source your clothing products. These are four of the most common sourcing methods:

Wholesale: Also known as the "private label" method, this involves purchasing clothing in bulk at discounted prices and then selling it under your own brand. This makes it easy to get started without creating custom designs, but typically requires a significant upfront investment. After all, it's not cheap to purchase hundreds (or thousands) of hoodies or t-shirts.
Custom manufacturing: You can manufacture your clothing to your specifications either domestically or overseas. While this offers more customization options, it can be complex and costly to manage production processes.
Dropshipping: This method involves partnering with a supplier (such as a print-on-demand service) who handles inventory storage and order fulfillment for you. This minimizes upfront costs and logistical headaches alike.
DIY production: If you're a sewist, you may want to consider making your clothing items yourself. This can help you create a "slow fashion" clothing line that appeals to eco-conscious customers, but may also limit growth in the future.

5. Craft a Memorable Brand

With your new clothing in hand, you're ready to create a distinctive brand for your business.

To start, you'll need a name. Your brand name should reflect your brand's values, aesthetics and target audience, all while being memorable and unique. (Hint: Conduct a trademark search to ensure your chosen name is available and not already in use by another fashion brand.)

Next, create a compelling brand story and visual identity that resonates with potential customers. This includes designing a logo, selecting brand colors and developing a cohesive brand aesthetic. If your business's branding is consistent and thoughtful, it will go a long way toward helping you stand out in a crowded marketplace.

6. Set Up an Online Clothing Store

There are several options for setting up an online clothing store, and each has its own advantages and drawbacks.

For instance, marketplaces like Etsy, eBay and Amazon offer built-in audiences and infrastructure. However, they may limit your branding and customization options. That makes them best for entrepreneurs who want to start selling ASAP and avoid the headaches that come with custom website design.

On the other hand, ecommerce platforms like Shopify, Wix and WooCommerce provide more flexibility and control over your online store, but require more technical and marketing know-how to set up and maintain. That makes them best for business owners who want to have control over the brand, and boast the skills to do so effectively.

When choosing the right platform for your clothing business, be sure to consider your budget, technical proficiency and long-term goals. And if you decide to set up your own website, don't forget to secure a domain name that reflects your brand.

7. Create a Marketing Strategy

Once your online store is live, it's time to drive traffic and sales through effective marketing strategies.

Begin by identifying your target audience and understanding their online behavior and preferences.

Then, work on developing a multi-channel marketing strategy that leverages search engine optimization (SEO), social media marketing, influencer marketing and email marketing. Each channel offers unique opportunities for reaching and engaging with your audience, so experiment with different tactics to see what works best for you.

Pro tip: Skillshare's online marketing classes can help you gain the knowledge and tools necessary to create a successful marketing strategy, no matter your prior experience.

8. Manage Finances and Operations

Managing the financial and operational aspects of your clothing business is crucial for long-term success. To do so:

Set up a dedicated business bank account to keep your personal and business finances separate.
Implement an accounting system to track income, expenses, inventory and cash flow.
Learn about basic accounting principles and tax regulations, such as quarterly estimated taxes.
Create efficient operational processes for tasks like order fulfillment and shipping.
Provide exceptional customer service and quick fulfillment to help build loyalty with your customers and earn word-of-mouth referrals.

9. Launch Your First Collection

With everything on the business side of things in place, it's finally time to launch your first clothing collection.

The first step is to design the collection, or choose the pieces your customers will love most. Using your chosen product sourcing method, carefully select a few key pieces to comprise it.

As your launch draws closer, consider hosting a launch event or digital campaign to generate excitement around your new collection. And once the launch is complete, utilize social media platforms and your online store to showcase your products and engage with your audience.

As time goes on, also remember to collect feedback from customers and use it to iterate and improve.

Learn Business & Fashion Skills with Skillshare

Starting your own clothing line from home requires both creativity and entrepreneurial drive. But with determination, perseverance and our step-by-step guide, you can turn your passion into a thriving new business.

And if you need help improving your business skills or taking your clothing line to the next level, you can use Skillshare's library of online classes to learn from successful business owners.

Written By

Carrie Buchholz

Carrie Buchholz is a freelance writer who lives in Northern Colorado with her husband and dog.