How Much Does It Cost To Start A Fashion Supply Business? (In 2024)
Looking to start a fashion supply business?
But curious about:
- how much it costs to start a fashion supply business?
- what are the typical fashion supply business startup costs?
- or the actual cost of starting fashion supply businesses?
Well, we have the data to prove it, supported by real fashion supply businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a fashion supply business?
Based on our data reported by actual fashion supply business founders, the average cost of starting a fashion supply business is between $126 and $70,000.
Additionally, our data shows that the the median startup costs for a fashion supply business are around $18K.
Remember, though, not all fashion supply businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of fashion supply businesses
Real World Examples: How much does it cost to start a fashion supply business?
We asked real fashion supply business founders and business owners how much it actually cost to get started?
Here is what they said:
Anthony Mellor
Founder of White2Label Manufacturing ($6K/month)
"My startup costs were therefore very low (just £40) as we didn’t encounter costs until we made a sale!"
Anthony Mellor is the founder of White2Label Manufacturing, a sportswear manufacturing wholesaler that uses both white label and bespoke services to provide clients with the products they need for their brand.
Apaar Gupta
Founder of The Design Cart ($120K/month)
"I financed my business initially with some of my savings. When that started getting exhausted, I leaned on my father to invest some money into the company and that’s what got the ball rolling."
Apaar is the founder of The Design Cart, an online B2B sourcing portal for the fashion industry that has been operational since January 2018.
Sarim Nadeem
Founder of Dexpel ($120K/month)
"We started the company with a mere budget of $2,000 and bought ourselves a small A3 printer, a laminator, and a cutting system."
Sarim Nadeem is the founder of Dexpel, a custom print store business that started in 2009 and specializes in a wide variety of customizable apparel and merchandise.
Karen Lee
Founder of Leze Apparel Inc. ($45K/month)
"Our start-up cost was $5,000, which covered sampling and shooting for our campaign."
Karen is the founder of LEZE the Label, a women's workwear business that creates comfortable, stylish clothing from recycled materials.
Anastasia Osindero
Founder of Boystrous ($150/month)
"Before my temporary contract ended in late June, I had been able to invest in my business using my earnings, investing in a batch of plain t-shirts, a heat press machine, and a printer."
Anastasia Osindero is the founder of Boystrous, a menswear brand launched during the COVID-19 lockdown in 2020.
Marlene Reid
Founder of Dolly Thompson Baby Boutique ($1.25K/month)
"To date, I have self-funded my business from personal savings, however, I am currently in the process of sourcing a grant to assist with our marketing campaign."
Marlene Reid is the founder of Dolly Thompson Baby Boutique, a baby clothing business that started in early 2023 and has been generating impressive monthly sales.
Taha Yavuz
Founder of Lucasgift ($100K/month)
"Actually, we started our business while we were living in a small apartment with my dad. The downstairs was our inventory area (garage), and we were fulfilling the orders from our living room."
Taha is the founder of Lucas Gift, an online personalized gift business that began in 2017.
Donovan Mathews
Founder of Bryden Apparel ($74K/month)
"When we first started, it was only the two of us and we worked out of my living room to keep our costs as low as possible to give ourselves more runway. This rebate was capped at $15,000 and 60% after the $15,000 limit.* **We used our personal savings to purchase laptops and other equipment & software and got $9000 free capital and free equipment to launch our business."
Donovan is the founder of Bryden, a clothing manufacturing agency started in 2015 that generates an average monthly revenue of $74,000 and serves customers in more than 20 countries.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful fashion supply businesses that you can learn from.
Starting a fashion supply business - what you should know:
Starting a fashion supply business involves various costs, and understanding these nuances will help you manage your budget more effectively.
Initial Inventory Costs
Your initial inventory will be one of the most significant expenses. Depending on the materials and quantity, you could spend anywhere from $5,000 to $50,000. For example, high-quality fabrics can cost between $10 to $50 per yard, whereas low-cost alternatives might only be $2 to $10 per yard. Bulk purchasing can significantly reduce costs, but it requires a larger upfront investment.
Location and Rent
The location of your business will dramatically affect your expenses. Renting a space in a prime downtown area can cost upwards of $3,000 to $10,000 per month, while a warehouse in a less central location might only set you back $1,000 to $3,000 monthly. Consider your target market and the necessity of having a central location versus the cost benefits of a less expensive area.
Staffing and Labor Costs
Staffing is another critical cost. Salaries for skilled labor, like designers and fabric cutters, can range from $30,000 to $70,000 annually per employee. If you decide to outsource certain tasks, such as manufacturing, the costs can vary, but expect to pay between $20 to $60 per hour depending on the complexity and location.
Marketing and Branding
Marketing and branding are essential for establishing your business. Initial costs for creating a logo, website, and promotional materials might range from $2,000 to $10,000. On-going marketing expenses, including social media ads, fashion shows, or influencer partnerships, can add another $1,000 to $5,000 per month.
Legal and Licensing Fees
Don't forget to factor in legal and licensing fees. Registering your business will typically cost between $50 to $500 depending on the state and required permits. Additionally, hiring a legal advisor can cost between $150 to $500 per hour but can save you from costly mistakes in the long run.
Understanding these cost factors ahead of time will help you make informed decisions as you set up your fashion supply business.
Potential Costs of Starting a Fashion Supply Business
Starting a fashion supply business requires careful planning and a detailed breakdown of potential costs. Here's a comprehensive table outlining various expenses you may encounter.
| Expense Category | Expense Type | Estimated Cost | Notes |
|---|---|---|---|
| Business Formation | Incorporation Fees | $100 - $800 | Varies by state; LLC and Corporation costs differ |
| Business License | $50 - $150 | Varies by location | |
| Trademark Registration | $225 - $400 per class | Costs vary depending on the number of classes | |
| Legal and Accounting | Legal Fees | $250 - $600/hr | Initial consultation and document preparations |
| Accounting Fees | $100 - $300/hr | Monthly accounting and tax preparation | |
| E-Commerce Platform | Website Development | $2,000 - $10,000 | Professional design and setup |
| Hosting Fees | $5 - $100/month | Depending on server type and traffic volume | |
| Domain Name Registration | $10 - $50/year | ||
| E-commerce Platform Fees | $29 - $299/month | Shopify, WooCommerce, etc. fees | |
| Marketing and Sales | Initial Inventory | $5,000 - $50,000 | Based on scale and product range |
| Digital Marketing | $500 - $5,000/month | SEO, social media ads, Google Ads | |
| Branding and Logo Design | $300 - $2,000 | Professional design services | |
| Technology and Tools | Point of Sale System | $1,000 - $2,500 | Hardware and software |
| Inventory Management Software | $50 - $300/month | Cloud-based solutions | |
| Customer Relationship Management (CRM) | $12 - $150/user/month | Subscription costs | |
| Office and Operations | Office Space | $500 - $3,000/month | Depending on location and size |
| Office Supplies | $100 - $500/month | General supplies and utilities | |
| Shipping and Handling | $200 - $2,000/month | Depending on volume and delivery zones | |
| Employee Compensation | Salaries for Staff | $25,000 - $60,000/year/employee | Varies based on role and experience |
| Employee Benefits | 20-30% of salary | Health insurance, retirement, etc. | |
| Miscellaneous | Insurance | $500 - $2,000/year | General liability, property insurance |
| Contingency Fund | 10-20% of total budget | Unexpected expenses and emergencies |
Carefully considering and planning for these expenses will help ensure the successful launch and operation of your fashion supply business.
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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.
