So… you decided to start your own brand? Want to have your own designs out there for the world to see and consume? Have dreams of having your line publicized and worn all over the place? That’s awesome! Reality check – it’s a lot of work! More than you can think! But honestly, it is very rewarding if done the right way and I definitely encourage you to follow your instinct. Heck, if you’re reading this you’re already on your way. And forget what anyone tells you, negative feedback, or any bla, bla, bla… if you want to do it, you CAN do it and nothing should stop you. Just go for it!
I wanted to share my experience and give a few tips on how to get started in this industry. It’s not foul proof and does not guarantee success, but it’s my point of view of what I went through and going from knowing nothing about the industry, to being financially independent by doing something I like. And regardless of the type of fashion you want to create, this post will help guide you in the right direction. I will breakdown this post in segments, so you can easily identify the steps and get the ball rolling.
- How it all Started
- What to do First
- Setting up the Business
- The Design Process
- Manufacturing and Sourcing
- Operations
- Keep it Rolling, Yo!
- How it all Started
I started my own outdoor clothing brand named Bøffel in California in the summer of 2014. It all came about since I love the outdoors, anywhere from the beach to the mountains, and in order to enjoy it at its best, you need appropriate apparel to protect your body. If you’re hiking you need good hiking shoes/boots and quality breathable socks so your feet are comfortable and have the least damage possible. The same goes for a good jacket that is light and keeps you warm or cool enough to protect your upper torso. If you’re surfing, good shorts that allow the most motion, breathable, quick-dry and can even be used when you’re not swimming. Or something as simple as a sweater for the winter, that is warm, resistant, and doesn’t fall apart or shrink, no matter how many times you wash it. But it’s all about your own preference really. I personally like wearing clothing that I know is resistant, that will last a long time, has material quality and is comfortable.
But typical resistant and high-quality clothing I like wearing tended to be on the high price range. So, it got me thinking… did quality product have to mean top dollar? Look I get it, I didn’t mind paying a little more for something I knew was good and was going to last a long time. High quality had to mean a higher price tag. These products were carefully manufactured, and all details attended to in precision and such care, it had to justify the higher expense. The manufacturing had a complex and efficient process, that clearly made it more expensive. But was this really the true story? High quality stuff, hiking boots for $150+, 3-in-1 jacket for $300+, Fleece jacket for $80+… or was this all just a sham? So, I had to find out! I went into full ‘maniac’ research mode. I read as much I could about all aspects of the fashion industry, from different styles, trends, design process, manufacturing process, sales, spoke with some bloggers and influencers in the space, then attended a few tradeshows, and after gathering all this intel, it all boiled down to one conclusion. High quality didn’t have to be expensive and I realized all those famous top brands had very high profit margins, because even though the product was good (but pricey), in reality didn’t cost a lot more than what much cheaper brands sold for. So, I thought, ok I like the outdoors, I like comfortable high-quality clothing, now I know what it takes to create this… why not start my own brand? And so it began!
- What to do First
2.1. Sit down and think what you want to do. Do you want to just make socks? Do you want to just make sneakers? Do you want to just create fashionable items, primarily marketed to women? Do you want to just create bags and purses? You need to decide what you want to create and sell. Once you decide what type of fashion you want to create, do as much research as you possibly can. Trust me, it’s never enough and the more info the better.
2.2. Think of a name for your brand – this is a very important step, it represents the essence of what you’re trying to create, and people associate the product with your brand and company. Come up with a shortlist with a few names, then slowly narrow it down. Take your time.
2.3. Once you have a few possible brand names, you need to do some research and find out if there are businesses out there with the same name. Also, you need to find out if there are any registered/patented names, as the options you picked (see USPTO).
2.4. Search for domain name availability for your website.
2.5. As for any business, there is a certain amount of investment required, and this industry is no exception. However, with so many options available today, it has never been easier to start and launch a business. The bad news is you need a certain amount to get started, the good news is it doesn’t have to be that much. Below is a simple breakdown on some of the costs involved, from starting the company to having the goods ready to sell. This will give you an idea on how much you need to get started.
a) Business Registration: $150-$300 (one-time fee)
b) Domain Registration: $25-$50 (one-time fee, pay for renewals after)
c) Logo Design: $50-150 (one-time fee)
d) Website Design: Free. You can do this yourself, no need to pay tons of $$ to have someone do this, especially with so many services offering templates where you can simply edit. It is simple if you just want to have a landing page with product pictures. If you want an online store, takes a little more work, but still easy to do.
e) Website Hosting: $50-$150 (sign-up fee, pay for renewals after)
f) Tech-Pack Design: $50-$150 (per design)
g) Manufacturing Samples: $50-$100 (per design) + shipping
h) Manufacturing: Price varies per item and per MOQ.
i) Advertising: To start keep costs low, there are many low-cost ideas to promote your brand, easily ‘Googleable’. To name a few, Google AdWords (you can get rewards if you sign-up for web hosting services such as Wix or Shopify). If you drive a lot, you can also create a large sticker based on your logo (via UpWork, Fiverr or Etsy for $10-$40) to place on your car to promote your brand. Register your business with Google Places, Yahoo! Local and Bing (free). Start a blog to promote your brand (free).
j) Email: Personally I like using Google for my business email, it’s easy to use and to link with your domain name, it usually costs as little as $5 per month, you can have free distribution lists like [email protected], free storage on Google Drive (up to 25GB), and you can customize all your inboxes with your own logo. From a business perspective, you need a professional email. But there are other free options.
k) Shipping: Price varies. If you’re shipping everything yourself, you’ll have to factor in packaging (bags, cartons, tape), shipping labels (label printer and label rolls), and transportation cost per shipment (FedEx, UPS, USPS, varies per destination in the US, if international also have to consider Customs fees). If you’re using a service like FBA (Fulfillment by Amazon), all you have to worry about is sending product to Amazon, they will take care of the shipment part to customers. You’ll have to set-up your Amazon store and pay the associated vendor fees ($40 and up per month), but if you’re selling a lot, it’s the best and most effective option.
l) Returns: Price varies. If you intend to offer return options to customers (which is highly recommended), you need to factor in the cost. If you’re managing everything yourself, you need to factor in the time spent on support, cost for return labels and then processing the actual returns.
- Setting up the Business
3.1. Register the business to form a legal entity and to also obtain your company EIN (for tax purposes) – you have to make sure you obtain a Sellers Permit (this will allow you to sell merchandise to customers and also buy products from wholesalers without having to pay sales tax – the sales tax is paid by the consumer). In the US, there are several options to register a company. I’d recommend using LegalZoom, as it’s affordable. Otherwise consult an expert.
3.2. Register domain for your website and emails.
3.3. Create your logo, recommend finding a designer via Fiverr or UpWork as its affordable. Recommended file types for your images, .png and .jpeg (for website and social media), .ai and .psd (for artwork and for manufacturers).
3.4. Register your trademark. It’s important to protect your brand by registering the trademark of both your business name and business logo, and typically done as your sales are growing. You can use LegalZoom as its affordable, or consult an expert. Unfortunately, you’ll find that you can’t protect your image worldwide, but you can start with USA, then expand globally.
3.5. Create your social media accounts on all main platforms – Instagram, Twitter, Facebook, YouTube, etc., the idea is to have all the account names taken by your own company, so someone else doesn’t ‘steal’ it; then hide/deactivate all of them. Then once ready you can activate the accounts where you’ll actually promote your content. Recommend starting with Instagram and Twitter, followed by YouTube for video content. This is plenty to start.
3.6. Create bank account, vendor payment accounts and merchant accounts. You’ll need a merchant account in order to sell your products, and you’ll want as much flexibility as possible. Go to your local bank and create 2 free checking accounts (one to receive payments and one to make payments). Also create an account with different payment vendors such as PayPal and Venmo, so you can have flexibility for payments on the go, like on tradeshows or events.
- The Design Process
4.1. This is one of the key parts of the whole ‘shebang’. For low budgets, I recommend starting with a small selection of items, if not just one or two products to design, that fits into the market you want to be part of. You want to have a great product that sells, then expand to different products. And in essence, the design process is similar for any type of product. The idea always starts with a sketch or drawing. The drawing then turns into a colored digital format. The digital format is then solidified with product design and measurement specifications, labeling and logo placement requirements, fabric type and fabric specifications, and product color scheme. All of this turns into a Tech Pack, which is used to present to manufacturers, so they can use it as a guide to turn your sketch idea into a physical product.
4.2. To find a designer, you can easily go to UpWork or Fiverr, for a low-cost option. Once you start working with a designer and this is optional, I recommend having an NDA (Non-Disclosure Agreement) signed by designer, so you have another layer of protection to keep the information confidential. You can also do everything yourself, but if you’re not an expert on putting together a tech pack like this, you’ll need some help. So in this case either UpWork or Fiverr is a huge help.
- Manufacturing and Sourcing
5.1. This is another key part of the whole process. Where and how to find manufacturer for your goods? So there are a couple of things you need to ask yourself. What type of clothing am I creating? And, do I prefer the items to be Made in USA or Imported? Nowadays, pretty much anything can be made anywhere, it’s all about what makes sense for your brand. For example, I decided for Bøffel to have the items all Made In USA, because even if more expensive, it was and continues to be much easier to deal with and much more effective.
5.2. Made In USA. To make it short, it’s more expensive to have goods Made in USA and with less manufacturing options than overseas. However, the communication is easier, there’s a quicker turnaround for manufacturing, it’s easy to verify vendors, there’s a higher intellectual property right protection and a greater payment security. Best directories to find suppliers are Makers Row, Mfg.com, Kompass and ThomasNet.
5.3. Imported. Many people associate products made overseas to be of poor quality, and while for a great part it is true, it is also true that there are factories in countries like China, Vietnam, South Korea, India or Peru, that are capable of producing a very high quality product, and at a fraction of the cost compared to made in USA – the majority of the biggest brands have their manufacturing done there, just look up some of your favorite clothing articles in your closet and see where they were made. To make it short, it’s much cheaper to have goods made overseas and with a huge selection of manufacturing options. However, the MOQ (Minimum Order Quantity) is usually high, there tends to be a language barrier than can make progress difficult, manufacturing turnaround is much longer, there’s little to no intellectual property right protection, less of a payment security, and you have to deal with international shipping, imports and Customs clearance. Best directories to find suppliers are Alibaba, Oberlo, IndiaMart, Bambify and Sourcify.
- Operations
6.1. So your business is set-up, you have your designs ready, the manufacturers are lined up, so what else is needed? Well, now that product is ready to be produced, you also need to ensure each product is securely packaged and with correct labeling. You can do it yourself once you receive the goods but its very time consuming, and I highly recommend to have each product is individually packaged with protective plastic, including a hang tag with a specific printed UPC code and from a promotional standpoint, as an example to also include stickers.
6.2. Hang Tag. This is a tag attached to a garment or other piece of merchandise that includes information about the manufacturer or designer, the fabric or material used, the model number, care instructions, and sometimes the price. You can have this all reflected on one side, and on another have a custom design as a way to promote your brand.
6.3. UPC (Universal Product Code). This is a barcode that is widely used in USA, Canada, UK, Australia, New Zealand, in Europe and other countries for tracking trade items in stores. It’s also required if your setting up a store in Amazon and to use their FBA service. The easiest way to do this is to sign up for GS1 which provides your company UPC (EAN) codes. The cost of this varies but certainly has a sign-up and a yearly fee.
6.4. Now you need to decide how you want to handle operations. Will you be handling everything yourself, including receiving the goods from manufacturing, inventory management and shipping to customers? Or will you outsource the service to a low cost option like FBA (recommended)?
6.5. Pricing. This is an exciting topic, as it determines and actually puts numbers on potential sales. There are different formulas on how to determine the pricing for your product. A really good article that showcases this topic is available for reading at Shopify, go to:
https://www.shopify.com/retail/120028547-9-strategies-for-profitably-pricing-your-retail-products.
6.6. Sales Forecast and Inventory Management. Regardless of how you sell your product, you need to keep track of inventory available, specially to avoid stock-outs. If you have a stock-out (sold out of all merchandise), it’s a good sign since you are selling! The flip side is that now that you have zero inventory, you lose sales momentum until you have inventory available. So not only is it important to keep track of inventory, its also important to project how many sales you’ll have into the future, so you can plan manufacturing of additional inventory in time period, so you never have stock-outs, specially for top selling items. Keep in mind this is for your online store inventory only, FBA offers valuable tools for inventory management. When you sell to other vendors or retailers, its on an order by order basis. So it’s up to you to hustle and sell as much as possible.
- Keep it Rolling, Yo!
Like mentioned above, these are just some tips to help guide you making your dreams of starting a clothing brand come true. For my brand Bøffel it was difficult at first, but was able to overcome the lack of knowledge and experience in the industry, and turn it into a profitable business.
No matter what, keep going, keep hustling and you will be able to get to where you want to be. Don’t listen to any negative feedback, just be you and remember people will always purchase quality products.
If you have any questions, please contact me at [email protected], I’ll be glad to answer anything.