Starting a clothing business requires a great deal of passion, commitment, and consistency. One other thing, you should definitely check custom tags for clothing, you will need labels for your clothes and I am 100% not bluffing.
But don’t be swayed by the sweet talk of “there is money in business”. Yes, when done right you can make tons of money in business but entrepreneurship is not without its own fair share of challenges.
Jumping into the clothing business or any other form of business just because someone recommended puts you in a vulnerable position, God help you when the risks come knocking.
So how do you tell if starting a business is for you? Well there are no standard guidelines to understanding that, the only way to tell is if you start a business.
For your consumption I have compiled the benefits and risks that await you in any business, particularly the clothing business.
Possible Risks
- People management: you can’t work in your business alone, and humans are sometimes difficult creatures so it may be difficult to motivate them at times. What you can do is offer nice compensation and a comfortable working environment.
- It may be difficult to penetrate the market: The clothing business is a saturated market,but what if you have a successful design? The big players may copy you, do it at a lower cost and try to put you out of business.
- As a brand, you typically pay taxes which can be quite high. It’s important to understand what you will be paying in taxes each year so you can determine if the work you’re taking on is worth it.
- You are your own. With starting a business be prepared to say bye to the days of having the management provide a playbook for your roles and responsibilities. You are responsible for your business, all decisions lie with you and so is the success or failure of your enterprise.
- Sometimes, your staff may break down, other times it’d be your equipment. It’s important to charge depreciation on your equipment and prepare for sick leaves from your workforce to avoid disruption to operations.
Possible benefits.
- It is possible to scale: There are case studies to prove this. With the right system and funding your clothing company can grow and there is no limit to what you can do.
- Acquisition opportunity: Other big players in the industry may want to buy you out if you pose a threat to their market share or you have amazing clothing designs. And sometimes it is better to sell.
- Unlimited income potential: With clothing business there is no cap as to how much income you can make. The stronger your business skills and the more committed you are, the more you are likely to make.
- It becomes easier to predict revenue. Based on previous years growth you will be able to predict what revenue growth you will experience in future years and on that basis predict future expenditure. This makes financial planning seamless!
- You have control of your time. Many people actually venture into business because they got tired of answering to a boss. You may actually have no time for yourself at the early stage of starting the clothing business but once you are able to build on the right foundations, you will achieve your freedom!
- A clothing brand thrives on a simple business model and thanks to the advent of the internet you can easily sell your products on various marketplace like facebook, amazon and even your own website.
