Any type of business requires a business plan as it serves as your guide towards your goals and how to achieve them. The business plan will keep you on track of the business development and will still come handy if there are changes in the course of the business’ run. This will be critical to your success and any other setback can be attributed to how the business plan was designed. It should be the first step when you’re thinking about a new product development.
When it comes to starting your own clothing line, having a business plan is a must-have document. It does not have to be lengthy because a single page document would suffice as long as the important details are covered within the business plan. Here is a comprehensive guide on how to create your clothing line business plan.
You have to understand your clothing line business plan is an ongoing document. It gets modified depending on the need of the business development. Clothing business plans adapt to situations and it does not have to be a constant. Feel free to modify your business plan template if the situation calls for it. However, keep in mind of your goals and objectives and they have to be kept in check within your clothing business plan.
Parts of a Clothing Line Business Plan
1. Feasibility Study
This chapter will not only cover the feasibility of your product in the market but must also give a market analysis of the industry you are in. It is necessary to get to know your market and assess whether it is possible for you to build around your brand. Your feasibility study report should contain the following;
- Analysis of your target niche
- Define your target customer
- Describe your market competition
- Describe the stability of your competitors
- What is your selling point?
- What sets you apart from your competitors?
2. Company Story
Great companies are built around interesting stories. You should include your story as part of your business plan and this could serve as an inspiration for you to achieve success with your product. You do not really have to make stories to make things interesting, simply narrate how your business idea came to life. The people will respect your sincerity and this could be a way to connect to your market.
Here are important details need to be found in your company story;
- Brand name
- Mission & vision of your company
3. Talk About the Product
If your clothing line is producing multiple products on your company launch then at least provide people details of what to expect out of your products. Cite a common distinction for your product line which will be evident once people purchase your products in the market. This is your first sales pitch and you should remain true to your words and not try to oversell the products.
However, if you are still in the process of product creation then here is a step by step guide for you regarding product conception:
a. Design conception
The design is a major selling point in any type of product or apparel. Designs capture the interest of consumers and it may take a closer look for them to check on other specifications such as quality and price. When creating your product design/s, think about your market and come up with a design for them and not for yourself. Put yourself in their position and assess your design whether you will buy this product or not.
It is also advisable to create multiple sketches instead of simply doing a single design. This will provide options and the scraps can also be reworked later on for new designs. You may need the help of a professional graphic artist for this process unless you are skilled in creating designs on the computer. Also definitely look into prototype manufacturing for your clothing ideas!
b. Pick a style for your clothing
Having a common style for all of your clothing/apparel gives your brand an individuality. This sets you apart from your competitors and allow your brand to be recognized. Any fashion business plan highlights the clothing line style which should be the focus for consistency during the entirety of its operation. Some of the common variants for clothing line styles are the colors of textile you will use for your products and different wearing styles.
c. Find a garment factory
You need to work with a garment factory along with suppliers to turn this project into a reality. Choose someone you can work with for a long time and never settle for the cheapest service out there because chances are, you may compensate quality because of this. This is a crucial step for your company and you need to highlight this item along with your criteria for choosing a factory on your clothing business plan.
d. Product pricing
The price of your clothing products must be justifiable depending on the expenses spent to manufacture them. Take a look at competitors’ prices and compare it with yours. There should not be a huge disparity between your prices as long as your products are of the same type.
4. Marketing Campaign
Your clothing company business plan must include the marketing strategy you have in mind to sell your products. You should definitely consider the e-commerce approach since it has been the thing lately. Set an online clothing business plan for e-commerce but do not let go of traditional marketing approach depending on what is convenient for your business. Marketing itself is a very broad topic and we will tackle this exclusively on our future blog posts.
5. Financial Aspect
Lastly, your clothing line business plan must discuss the financial aspect of the business. Expenses and required capital must be presented along with the possible profit out of the business. Financial numbers along with calculations should be shown for transparency. The financial aspect of the clothing business plan is also necessary to help you assess whether you need help from co-investors or business partners to finance your clothing company.
These five parts of a clothing line business plan are standard for clothing line companies. However, you are free to add other items or modify your clothing business plan template according to your preferences. There are no actual rules for it as long as you got all of these important aspects of your business covered.