Setting UpGuide on How to Start a Clothing Business

Guide on How to Start a Clothing Business

Starting a clothing business is a great way to showcase your creativity and design flair through the manufacture and production of a range of clothes to produce a successful small business. As a sector there’s a huge range of brands from the multi-billion pound global businesses through to small startups that are the passion of one or two creative designers.

Our guide helps you understand the steps you’ll need to consider to build a solid business plan and be set for success – though the clothing industry is fiercely competitive so along with your enthusiasm, designs and ideas get ready for plenty of work as you start to build your new business.

Steps to Start a Clothing Business

Whether you are opening a physical or online shop, they require the same amount of hard work, though a physical shop will normally need more up-front cash to support the rent or lease on the premises. Whichever outlet you go for, you’ll need to prepare with the right legal and financial set up and we’ll describe these later in this article.

1. Find Your Niche

To open a clothes shop in the UK is to enter a highly competitive market. You can’t enter the market with generic clothes products of varying quality and style. Remember that you will be competing with some of the biggest and deeply entrenched brands. You’ll need to adopt a nuanced strategy to differentiate yourself from competitors. Competition in the fashion business is fierce, so setting yourself apart is essential and know your customers.

The good news is that although there a lot of other brands, the market is also huge; overall the clothing business sector is massive and can be subdivided into several segment, such as women’s, men’s, activewear, and so on. Pick a market segment that appeals to you and offers potential for financial gain. It will make it easier to narrow your focus to a certain group of consumers. When launching a clothing brand, it’s best to concentrate on a certain niche than to appeal to a wide audience as it will make marketing easier.

Figure out who your target market is. You should be aiming your marketing efforts toward these individuals. Learn about the styles of clothing, the fabric, ethos of manufacture, and their style icons. Research the market to identify a need you can meet. You might run a test with a single standout item to gauge interest before committing to a larger rollout.

2. A Business Strategy for Your Clothes Brand

Regardless of the initial investment money you want to put into your clothes company at the outset, you will need a business plan that details your objectives, methods, and projected timeline for success. Writing a business plan is critical because it compels you to consider and map out every facet of your proposed enterprise. Introduce your company and its mission, then get a thorough business model breakdown. Therefore, you must provide your goals, target audience, and product manufacturing costs, marketing costs and distribution.

Maintain some degree of adaptability in your business strategy. Even if you’re planning on running your clothing line as a side gig at first, it’s important to keep your business plan up to date, so you’re ready to grow fast when it becomes successful.

3.   Develop a Brand Name That Is Both Distinctive and Memorable

Given that you’ve found this post, it’s safe to assume that you’ve already begun compiling a short list of potential brand names. But if you haven’t, now’s the time to consider names.

While this advice may seem elementary, it is a challenging but rewarding aspect of launching a company. Having a name for your company that is both memorable and original is crucial. Remember that it will be the perpetual face of your company. It’s also the first aspect potential buyers will discover about your company and its products or services. Therefore, if you want to leave a long-lasting impact on the market, you must nail this component. Examine your own favourite clothes company names for some inspiration. Examine the origin of these names to learn more about their distinctive qualities. Look for expressions that sum up your company’s idea, goal, and attitude.

Try to customise your name. Examine the brand name to see if you can include your initials, middle initial, or last name.

Make sure the name you create is a one-of-a-kind brand name that will never be substituted for another and check with existing companies and brands for any potential trademark or name infringement. After deciding on a brand name, you should register it formally as a trademark (through the UK Government Patent Office) and form your company and register a domain name.

4.   Decide on Your Budget

You don’t need a significant financial investment to launch a clothing line in the UK but you do need a good business plan. You may begin on a modest scale and then grow as your finances allow for it. For a modest start, you can get going with a budget of £5,000 and get your company off the ground.

Perhaps the biggest issue for your new business will be financial cashflow. You will need to pay for manufacture before you can pay for marketing, distribution and sales. Only once you start to generate sales will you see money coming back into your business.

Separately, there’s seasonal cashflow – some clothing lines will be highly seasonal (for example, swim-wear, summer clothing, etc will see strong buying in the Spring and Summer).

It’s best to get into things gradually, keeping things basic and organised for the first few months. Beginning with a small number of design lines is more manageable than beginning with a large selection. You may then manage the money and invest it fairly after you have a firm number in mind.

How much money you’ll need to launch a clothes store in the United Kingdom is determined by several aspects, including the industry, the platform you’re using, the company’s size, target market, and location. Unlike a traditional storefront, starting up an online presence incurs far lower initial costs. The objective is to consider as many variables as possible while creating a budget.

5. Create Your Designs

Designing your first range and product development is the exciting part of starting any new garment company. In the beginning, even if you just have a single product’s worth of design ideas, you’ll have sketched them out on paper or computer. When ready, you’ll find it easier for the future manufacturing process if you transform your ideas into electronic using software such as Adobe Illustrator.

After you’ve finished your designs, it’s time to start planning your technical pack, which contains all the information your manufacturer will need to get started. Include everything from the product’s fabrics, design and measurements to its materials and any optional features or extras.

Following this, you’ll want to begin the pattern-making and grading processes in preparation for finding a manufacturer.

6. Prepare Your Online Shop

Having a website and an online shop is an essential step – you could sell purely from a physical location such as a shop or stall, but the majority of your potential customers will likely find you online.

This is why almost all businesses nowadays have an active presence online with a good, user-friendly website. So, construct your website if you like to remain ahead of the curve. Assembling an online store is simpler than it seems, so relax. Creating an online clothes business is simple; you only need an appropriate eCommerce development firm and the finest e-commerce platform.

Starting an online clothing line is a breeze with the help of e-commerce platforms such as Shopify or BigCommerce. Each of these includes inventory management but there are standalone software options to help you control and manage your stock. They are simple to update and protect your data while providing you with many eCommerce tools to increase your revenue.

7. Finalise all Necessary Legal Processes

For a clothing firm to launch successfully, it is crucial to meet all applicable legal requirements and industry standards.

A business licence is only necessary to launch an online clothing sector in the United Kingdom if you want to sell your wares at a market.

However, you should check the Sale of Goods Act to ensure that your clothing follows these laws. According to these rules, you must guarantee that the goods you provide for sale are identical to those advertised.

It is important to remember that the seller, not the manufacturer, is responsible for fulfilling these agreements. So, check that the promised quality and style of the clothing you’re providing are present.

8.   Insuring Yourself is an Absolute Must

Instead of being sorry, it’s better to be safe. Having enough insurance coverage is a must to safeguard your company. There’s no telling what will happen next, so it’s best to be prepared for anything.

Simply put, if a stakeholder or a customer files a legal complaint against your firm or its goods, you must be protected by public liability insurance, professional liability insurance, and product liability insurance.

In addition, the insurance protection you need to provide will change based on whether you sell online or in person. So be sure that your insurance policy covers these points.

9. Production of Your Clothing

Once your design work is finished and ready, it’s now time to tackle the production and get your designs to a factory, unless you plan on doing the manufacture yourself. For most clothing ranges, your next step is to find the partner who can turn your ideas into reality. Start your search for the best manufacturer by talking to people you know and getting a sense of what features are most important to you. The manufacturing process is essential to the success of any clothing company, no matter how big or small. Therefore it’s important to take the time to locate, contact, and evaluate a reliable group of manufacturers.

After making your choice, you should order a sample. Ask the manufacturer of your choice to produce a small batch of your ideas and compare the results to those of another manufacturer if possible. Before committing to a large-scale production run, ensure sufficient time for necessary modifications and upgrades.

Don’t just go with your gut on this; instead, use a combination of research and your intuition to create a brand. Put aside money for packing and customer communications if you can, and attempt to maintain some semblance of regularity if possible. You can’t use pristine packaging one month and a jiffy bag the next.

10. Test Your Designs

Trying to find a way to use your draft prototypes? Putting them out there in the market is one way to gauge consumer interest in your product before committing to an entire production run and you can get a lot of information from potential customers from trade fairs, school fairs, and online marketplaces like Facebook Marketplace and ask for feedback from visitors.

As you constantly expand your product offering and learn what customers like or do not want, you will realise that your business’s market research phase never ends. Take the feedback as a valuable tool to improve your already great offerings and use it to propel your company forward.

11. Take Your Product To Market

You’ve done market research, found that your product is in demand, and are now ready to place an order for the first complete production run. You now need to start marketing to your target customer segment. Along with a good marketing plan, look at word of mouth, digital and traditional advertising, and even partnerships to help promote your new brand and products to potential customers.


Starting a clothes business is incredibly rewarding and gives you a way of turning your creativity and design ideas into a real business. However, as it combines business, design, marketing, manufacture, and sales, it is one of the more complex sectors to enter and needs a lot of work to tackle all of the steps. Our guide gives you an overview of the various elements to consider as you’re planning your new business – and we hope you’re inspired to move from an initial idea and design to launch your own clothing brand.

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Written by

Mark Hodgson
Mark Hodgson
Mark Hodgson is one of our expert writers. Mark is our lead researcher and editor who writes our main guides and expert topic coverage. He’s passionate about helping entrepreneurs, startups and small businesses with practical advice delivered clearly. Mark’s worked for a number of business magazines and titles and has started two small businesses himself, so has first-hand experience in setting up, managing and growing a small business and shares his expertise with our readers.

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