How Much Does It Cost To Start A Fashion Business? (In 2024)
Looking to start a fashion business?
But curious about:
- how much it costs to start a fashion business?
- what are the typical fashion business startup costs?
- or the actual cost of starting fashion businesses?
Well, we have the data to prove it, supported by real fashion businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a fashion business?
Based on our data reported by actual fashion business founders, the average cost of starting a fashion business is between $50 and $550,000.
Additionally, our data shows that the the median startup costs for a fashion business are around $7.5K.
Remember, though, not all fashion businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of fashion businesses
Real World Examples: How much does it cost to start a fashion business?
We asked real fashion business founders and business owners how much it actually cost to get started?
Here is what they said:
Judith Treanor
Founder of Temples and Markets ($6K/month)
"In the pre launch phase I bought in $10,000AUD of stock. The majority of this was either brought back with me via the plane trip home or sent via courier. Startup costs included $5000AUD for web development and product photography, travel to S.E Asia and business registration. All up I invested $25k to start Temples and Markets."
Judith Treanor is the founder of Temples and Markets, an online curated store that showcases ethically sourced products from S.E Asia.
Cotilda Makhumula-Nkhoma
Founder of Cotilda's Fashion Limited ($1.14K/month)
"People talk about having capital, savings, but there was none of that, what money I had would run through my account like it wasn’t even there, my parents continuously reminding me, you are investing it will come. And yes, I am still investing in the business just over 4 years later."
Cotilda Makhumula-Nkhoma is the founder of COTILDA.COM, an African Inspired Fashion business that started in 2015 and focuses on producing high-quality, limited edition apparel.
Tanya Zhang
Founder of Nimble Made ($5K/month)
"We financed the business with our personal savings and funded the first batch of inventory of our 3 dress shirt styles and administration costs at $5,000."
Tanya Zhang is the co-founder of Nimble Made, a D2C e-commerce menswear brand that started in late 2018 and focuses on providing slim-fitting dress shirts.
Drew McNamara
Founder of Creative Souls ($1K/month)
"In order for Creative Souls to get started, it cost about $45K."
Drew McNamara is the founder of Creative Souls, a shoe and apparel brand with designs from people with disabilities that started in 2019 and aims to make an impact on the lives of artists with disabilities.
Jocelyn Thompson
Founder of EPIPHANY LA ($40K/month)
"I had a check for $15K to start. I was too scared to take out another loan on top of my student loans and $15K seemed like so much money at the time."
Jocelyn Thompson is the founder of Epiphany LA, a one-product brand that sells foam push-up padding inserts designed for sports bras and swimsuit tops.
Betsy DeVille
Founder of Betsy DeVille ($100/month)
"The first run was around $200 and that felt like a lot of money. I didn’t want to get it wrong."
Betsy is the founder of Betsy DeVille, an e-commerce business capturing the positive viewpoints of the atheist, humanist, freethinker lifestyle and expressing them in fashion, accessories, home decor, and gifts.
Brock McGoff
Founder of The Modest Man ($4K/month)
"Building the first version of TMM cost me just $100."
Brock McGoff is the founder of The Modest Man, a digital media brand dedicated to helping men of modest height dress better and feel more confident.
Artem Semjanow
Founder of Seamm ($12.5K/month)
"As with any startup, the most important factor is having the right team, so a significant portion of our expenses went toward employee salaries, totaling around $600,000."*
Marina Martianova is the founder of Seamm, a U.S.-based startup that creates digital twins of real-world fashion collections for virtual worlds.
Albina
Founder of Smaragdas Art ($1K/month)
"I was lucky I got financial support from 'The People’s Trust' organization, this was important support for starting the business."
Albina is the founder of Smaragdas Art, a handmade jewelry and fashion design business that started in 2020.
Ashlyn Greer
Founder of Fashivly ($5.93K/month)
"For the first 5 months of the business, I operated with almost zero start-up costs. ... The only cost associated with any of this was the $19 a month Photoshop subscription that I used to put together the looks and the digital guide."
Ashlyn is the founder of Fashivly, an online personal styling service that helps clients find confidence through personal style.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful fashion businesses that you can learn from.
Starting a fashion business - what you should know:
Starting a fashion business involves various costs and considerations that can significantly impact your budget.
Design and Prototyping
Design and prototyping are crucial initial steps in establishing your fashion brand. Creating a collection can range from $2,000 to $10,000, depending on the complexity and number of pieces. Freelance designers might charge anywhere from $50 to $150 per hour. If you’re opting for a full-service design agency, expect to spend upwards of $20,000 to $50,000.
Manufacturing
Manufacturing costs will vary dramatically based on the quantity and quality of the materials used. Producing small runs of apparel may cost around $30-$50 per item. However, bulk orders can bring the price down to $10-$25 per item. High-quality fabrics and ethical manufacturing practices can double or triple these costs, so budget accordingly.
Branding and Marketing
Branding and marketing are essential to ensure your fashion line’s success. Creating a professional logo might cost between $300 and $1,500, while a comprehensive marketing campaign could easily reach $10,000 to $50,000 annually depending on the platforms and strategies used. Social media advertising, influencer partnerships, and content creation should all be factored into this budget.
Retail and E-commerce
Setting up a retail or e-commerce presence also involves essential costs. A physical store lease might range from $3,000 to $10,000 per month, depending on the location. On the other hand, establishing an e-commerce website can cost from $2,000 to $10,000 for design and development, along with monthly hosting and maintenance fees ranging from $50 to $200.
Legal and Administrative
Lastly, do not overlook legal and administrative costs. Registering your business can cost between $150 and $1,500, depending on your state and business structure. Trademark registration typically ranges from $225 to $400. Additional legal fees for contracts and intellectual property protection could add another $2,000 to $5,000 to your total.
Understanding these detailed cost structures can help make informed decisions and effectively manage your budget when starting a fashion business.
Potential Costs of Starting a Fashion Business
Starting a fashion business involves multiple cost components ranging from initial setup to operational expenses. Below is a detailed table of the potential costs involved:
| Expense Category | Description | Estimated Cost Range |
|---|---|---|
| Licensing and Permits | Various local permits and business licenses | $200 - $500 |
| Business Entity Formation | Legal fees for forming LLC or corporation | $500 - $1,000 |
| Trademark Registration | Protecting brand name and logo | $225 - $400 per class |
| Website Development | Building an eCommerce website | $2,000 - $10,000 |
| Hosting Fees | Monthly fees for website hosting | $10 - $100/month |
| Domain Registration | Purchasing the business domain name | $10 - $50/year |
| E-commerce Platform Fees | Monthly fees for platforms like Shopify, WooCommerce | $29 - $299/month |
| Design Software | Tools like Adobe Illustrator and Photoshop | $20 - $50/month per software |
| Product Prototyping | Creating initial samples | $100 - $500 per sample |
| Fabric and Materials | Bulk purchasing of fabric and other materials | $1,000 - $5,000 |
| Manufacturing Costs | Production costs for initial inventory | $5,000 - $20,000 |
| Inventory Storage | Fees for warehousing or storage units | $200 - $1,000/month |
| Marketing and Advertising | Online and offline promotional activities | $500 - $5,000/month |
| Photography | Professional photoshoots for products | $500 - $2,000 |
| Labor Costs | Hiring designers, seamstresses, and other staff | $20,000 - $70,000/year per employee |
| Accounting and Bookkeeping | Fees for financial management services | $200 - $500/month |
| Office Supplies | Basic supplies such as computers, printers, etc. | $1,000 - $5,000 |
| Shipping and Handling | Costs associated with fulfilling orders | $500 - $2,500/month |
| Insurance | Business insurance coverage | $500 - $1,500/year |
| Miscellaneous Costs | Unforeseen expenses | $500 - $2,000 |
By preparing for these costs, entrepreneurs can better plan their budgets and financial strategies to ensure a successful launch and sustained growth in the fashion industry.
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.
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.
