Working in product development, another thing which our clients ask all the time is about money: how much money do I need to have my clothing line? What my first investment is going to be? How much money do I need to save? All of these questions are pretty common, and understandable if you are trying to open a new clothing line, but what it looks like is the fact that people do not understand that fashion is a business and every business is about numbers, investment, and organization. There is no magical formula or number.
To be really honest here, it is impossible to give a particular number or a general quote for absolutely anything. Different factors directly affect the price of your investment in developing a new clothing line. The type of garment (is it yoga pants or a gown?), how difficult the construction of the garment is, the fabric used (is it knit or woven?), the trims… each garment is different. The bottom line is: everything will depend on you.
To start budgeting, first, start gathering all the information you can. Create a list of how many styles you have, fabrics used in each style, a list of trims needed per style, and start adding numbers together. That is the only way to see what an estimated number looks like and if you will be able to afford your brand. This number will also help you to organize your sales plan and figure how many units you will have to sell at what price to be able to be profitable - which is the main reason why you would have a business.
I have been thinking if I wanted to write this post because it is SO hard to tell people that they need to be organized and there is no average number here, but I felt like it is part of my goal to share all details and information involved in product development and the fashion industry. There is no such thing as “a rough number” or “an overall estimation” for you to open a new brand without collecting information first. With my clients, for example, we cannot quote a pattern and a sample without seeing what the sketch looks like. So the same for opening a new business. All details and information is needed to be able to create accurate numbers. And one of the most important parts of creating a budget is the fact that you will know if you can afford your new business or not.
Not trying to scare anybody, I have seen many designers who had an amazing creative direction, but no business mind and because of that and for the lack of organization/budgeting they broke halfway through the process. I also have seen a lot of clients with “a lot of money” who did not care about the budget or how much money they spent, but they were not successful because the budget goes further than just what you are spending, it is also related to your sales plan and how you will be profitable.
Having a clothing brand is like having ANY other business, although a lot of people think that being in the fashion industry is all about glamour. Strategy and planning are necessary! And it is ok if you are not good in any of these areas, but make sure you will work with a team who is and will help you keep the business moving. There is no magic formula or a specific number if you want to start your clothing line, but there are budgeting and organization, and that comes with knowing your product, your vendors and starting plugging in numbers - with a business plan, like normal people would do (lol, but for real).
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