How Much Does It Cost To Start A Children's Clothing Business? (In 2024)
Looking to start a children's clothing business?
But curious about:
- how much it costs to start a children's clothing business?
- what are the typical children's clothing business startup costs?
- or the actual cost of starting children's clothing businesses?
Well, we have the data to prove it, supported by real children's clothing businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a children's clothing business?
Based on our data reported by actual children's clothing business founders, the average cost of starting a children's clothing business is between $100 and $150,000.
Additionally, our data shows that the the median startup costs for a children's clothing business are around $1.5K.
Remember, though, not all children's clothing businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of children's clothing businesses
Real World Examples: How much does it cost to start a children's clothing business?
We asked real children's clothing business founders and business owners how much it actually cost to get started?
Here is what they said:
Jennifer Coulombe
Founder of Sat Nam babe ($500/month)
"I used iFundWomen to launch my company with a crowdfunding campaign, raising approximately 70% of what I needed to launch my business."
Jen [LAST NAME] is the founder of Sat Nam babe, a mindfully made line of yoga-inspired clothing for kids under six and babies, which she launched in Spring 2017.
Dahlia Rizk
Founder of Buckle Me Baby Coats ($200K/month)
"With my prototype in hand, I filmed a demo video of my nephew using the coat and posted it to Facebook to test market demand. The post quickly went viral and I found myself with lots of orders but no manufacturer so I turned to Kickstarter to capture orders while holding off shipping as the coats (and my first website) were being developed."
Dahlia Rizk is the founder of Buckle Me Baby Coats, a business that designs and sells car seat-friendly children’s coats, which gained significant traction after a viral Facebook post and successful Kickstarter campaign.
Rosalee Rester
Founder of Baby Wit LLC ($1K/month)
"I’d purchased on my credit card a used HIX heat press for $300. I also purchased an Epson Ink Jet Printer, transfer paper, band transfers from that Canadian company and t-shirts from American Apparel. I think my entire investment was under a grand."
Rosalee Andrea Rester is the founder of Baby Wit, a baby apparel t-shirt company that started in 2003.
Erin E Hooley
Founder of Bailey's Blossoms ($750K/month)
"After taking a 2-year break in Brazil, I had had plenty of time to reset and I came back with huge dreams. I depleted the savings we had acquired while there of $35,000 and jumped all in once more."
Erin E. Hooley is the founder of Bailey's Blossoms and Peyton Bre, an e-commerce children's clothing business that started in 2008 and has since grown into a multi-million dollar adventure.
Kirsten and Sam
Founder of Parker Baby Co. ($500K/month)
"We were out of pocket about $1,500 which was everything we had budgeted for this side hustle. But we saw the potential and decided to keep going while focusing on a less complicated product."
Sam and Kirsten are the founders of Parker Baby Co., a practical baby products business that launched in 2017 and experienced rapid sales growth.
Emma Lovell
Founder of CoziGo ($26K/month)
"I set about finding an alternative manufacturer and started the whole process again. New molds had to be paid for, but I knew the right questions to ask this time around and we kept moving forward."
Emma Lovell is the founder of CoziGo, a baby stroller accessory business that sprang to success after gaining an investment on Shark Tank Australia and having a solid manufacturing and quality control process.
Charles Carette
Founder of Bambox ($60K/month)
"Startup cost were close to none, thanks to the cloud and free-tier in SaaS solutions."
Charles Carette is the founder of Bambox, a subscription-based ecommerce business for baby essentials started in 2017 that currently ships more than 1,100 boxes a month.
Laura Garcia Perdomo
Founder of zapato FEROZ ($500K/month)
"Fortunately, we had money saved to start the project, with less than €10,000 everything was up and running. This economic freedom gave us a lot of peace of mind when it came to managing the start of the brand."
Lau García is the founder of Zapato FEROZ, a children's footwear business that started with less than €10,000 and now makes $60k per month.
Lisa Will
Founder of Stonz ($250K/month)
"We incorporated, choosing the name Stonz for a shortened and more Google-friendly version of stay-on. Our first tradeshow was in September 2004 in Vancouver; the Vancouver Gift Show and the Stonz Bootie was introduced. I had returned to work by then but pursued Stonz business in all my spare time and weekends. I was excited to have gained 10 retail accounts with only prototypes from the tradeshow. I knew Stonz was going to have legs to it. The feedback and questions showed me where we need to tweak, do some more work, and keep going."
Lisa Will is the founder of Stonz, a baby and children vegan footwear and accessories brand started in 2004 that saw significant growth after its first tradeshow participation.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful children's clothing businesses that you can learn from.
Starting a children's clothing business - what you should know:
Launching a children's clothing business involves several cost considerations that can influence your budgeting and planning.
Initial Inventory Costs
The cost of initial inventory can vary significantly depending on the quality and quantity of the clothing you plan to offer. On average, you can expect to spend anywhere from $5,000 to $30,000 on initial inventory. Opting for higher-end fabrics and custom designs can increase costs, while sourcing from wholesalers or using less expensive materials can help keep them down.
Marketing and Branding Expenses
Effective marketing and branding are crucial for standing out in the children's clothing market. Costs here range widely, but a reasonable initial budget would be between $2,000 and $10,000. This includes website development, social media campaigns, logo design, and other promotional activities. Remember, investing in strong branding can lead to higher customer retention and justify higher pricing for your products.
Operational and Overhead Costs
Don't overlook operational expenses such as rent, utilities, and payroll. If you're renting physical space, monthly costs could range from $1,000 to $5,000 depending on location and size. Online businesses might have lower overhead but consider costs for e-commerce platforms, which can range from $30 to $300 per month. Additionally, factor in potential shipping costs and packaging supplies, which can add another $500 to $2,000 monthly.
Licensing and Legal Fees
Ensure you budget for any necessary business licenses and legal consultations. Licensing fees vary by location but typically range from $50 to $400 annually. Legal fees for drafting contracts or intellectual property protection could run between $500 and $3,000. These expenses are crucial for safeguarding your business and ensuring compliance with local laws.
Potential Costs of Starting a Children's Clothing Business
Starting a children's clothing business involves several initial investments, from product sourcing to marketing efforts. Here is a detailed breakdown of potential costs:
Category | Description | Estimated Cost |
---|---|---|
Business Registration | Fee for registering your business name and legal structure. | $100 - $500 |
Domain & Hosting | Costs for securing a domain name and web hosting services. | $10 - $15 per year for domain; $50 - $200 per year for hosting |
Website Development | Building an e-commerce website (can vary based on complexity). | $500 - $5,000 |
E-commerce Platform Fees | Monthly fees for platforms like Shopify, BigCommerce. | $29 - $299 per month |
Inventory | Cost of children's clothing stock – initial stock purchase. | $5,000 - $10,000 |
Design & Prototyping | Fees for prototypes, design services, and tech packs. | $1,000 - $3,000 |
Manufacturing Costs | Production costs for custom clothing, per unit costs. | $2 - $10 per unit |
Packaging | Branded packaging materials like boxes, bags, tags. | $0.50 - $2 per package |
Shipping Supplies | Costs for shipping materials – envelopes, tape, labels. | $100 - $300 |
Shipping & Fulfillment | Fees for shipping services and possible warehousing. | $5 - $15 per order |
Marketing & Advertising | Costs for digital marketing campaigns, SEO, social media ads. | $500 - $5,000 per month |
Branding | Professional logo design, brand guidelines, and other assets. | $500 - $2,000 |
Labor Costs | Employee wages, freelancers, or consultants and design services. | $15 - $40 per hour |
Point of Sale System | Cost for POS software and hardware if selling offline. | $1,000 - $2,500 |
Photography | Professional product photography for online store. | $300 - $1,500 |
Office Supplies | Basic office setup – furniture, computer, printer, etc. | $500 - $2,000 |
Insurance | Business insurance coverage. | $500 - $2,000 per year |
Rent & Utilities | Cost of physical store or office space plus utilities. | $1,000 - $5,000 per month |
Legal & Accounting | Fees for professional services like lawyers and accountants. | $500 - $3,000 per year |
Setting up a children's clothing business requires careful planning and budget allocation across these various cost categories to ensure a smooth launch and operational efficiency.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.