Realistic Cost Of Starting A Clothing Brand 2024 (It’s not $0)

Seaggs

11 Feb 202307:15

Summary

TLDRIn this video, Jake outlines the realistic costs and essential steps needed to start a clothing brand. He emphasizes that while some claim you can start with $0, you must spend money on necessities like poly mailers, a website, and inventory. He also covers optional tools such as a label printer and marketing systems that can streamline operations and grow the business. Drawing on his experience since 2017, Jake provides practical advice, pricing breakdowns, and insights on both hardware and software essentials to help aspiring brand owners get started effectively.

Takeaways

💰 You need to spend at least $1,000 to appropriately set up a clothing brand.
👕 The cost of producing a collection of 30 T-shirts ranges from $210 to $450, depending on the blanks and print services used.
📦 Poly mailers for shipping cost around $19 for a pack of 100 on Amazon.
💻 A website is essential, and platforms like Shopify can cost between $5 and $30 per month.
📱 Social media platforms like Instagram and TikTok are crucial for building a digital presence and connecting with your audience.
📋 A business plan is necessary for setting your brand’s direction and growth, and can evolve through trial and error.
🖥 A computer or tablet is mandatory for workflow and design, with prices starting around $300.
🎨 Design software like Adobe Illustrator and Photoshop is important, and the Creative Suite costs around $54 per month.
✉️ Consider using email systems like MailChimp to collect customer emails and send out marketing campaigns, costing around $20 to $50 per month.
🚀 Digital marketing, such as Instagram and Facebook ads, is highly recommended for brand growth, with flexible costs depending on the campaign size.

Q & A

What are the basic necessities required to start a clothing brand?
-The basic necessities include poly mailers for shipping, a website (like Shopify), social media presence (Instagram, TikTok), inventory or pre-order method, a business plan, a computer or tablet, and design software like Adobe Illustrator or Photoshop.
How much should you expect to pay for a t-shirt with some color print?
-The cost of a t-shirt with color print ranges from $7 to $15, depending on the clothing blank used. Most printing places have a minimum of 30 to 50 units, so the total cost could be between $210 and $450 for a batch of 30 units.
What is the suggested price for poly mailers for shipping products?
-Poly mailers cost around $19 for a pack of 100 on Amazon.
What is the monthly cost of running a website for a clothing brand?
-The monthly cost of a website ranges from $5 to $30, with Shopify being a recommended platform.
What are the benefits of using a pre-order method versus holding inventory?
-With the pre-order method, you can accept orders without holding inventory, then place production afterward, which can reduce upfront costs. Holding inventory requires purchasing stock before selling, which ties up capital but allows for faster order fulfillment.
What is the estimated cost for a decent computer or tablet to run a clothing brand?
-A suitable computer or tablet would cost around $300 or more, depending on the specs, with a recommendation of at least 250GB of hard drive space.
How much does design software like Adobe Illustrator and Photoshop cost?
-Adobe Illustrator or Photoshop can cost $20 to $30 per month each, or you can get the Adobe Creative Suite for $54 per month, which includes all Adobe products.
What are some optional items that could help improve business operations?
-Optional items include a label printer ($180), an email system ($20 to $300 per month depending on the list size), an SMS system ($20 per month), and an improved shipping system ($20 per month).
How much should you budget for digital marketing, like Instagram and Facebook ads?
-The cost of ads is flexible, ranging from $5 to $50 per day. For example, running ads at $10 per day for 15 days would cost $150 a month.
What is the total estimated fixed cost and monthly recurring cost for starting a clothing brand?
-The fixed costs amount to approximately $499, while the recurring monthly costs range from $245 to $484, depending on optional expenses like ads, email systems, and shipping systems.

Outlines

00:00

🧢 How Much Money You Need to Start a Clothing Brand

Jake introduces the video by discussing the basic costs required to start a clothing brand, emphasizing that while some may claim you can do it with no money, it realistically requires a budget of at least $1,000 to get properly set up. He shares his credentials, having started in 2017 and gained significant experience with manufacturers and large orders. Jake briefly touches on essential costs, like creating t-shirts with a minimum print order, and promises detailed price summaries along the way. He concludes by stressing that money must be spent to run a business, covering both hardware and software needs.

05:00

📦 Essential Tools and Costs for Starting Your Brand

Jake outlines the essential tools for starting a clothing brand. This includes poly mailers, a website (he recommends Shopify for $5 to $30 per month), and the necessity of a strong social media presence across platforms like Instagram and TikTok. He explains the pre-order versus inventory methods for managing stock and emphasizes the need for a business plan to guide the brand’s direction. Additionally, he mentions the importance of owning a computer or tablet, recommending at least 250 GB of storage, as well as using design software like Adobe Illustrator or alternatives like Affinity. Overall, the essential setup costs $319 upfront and $35 to $84 monthly.

🖨️ Extra Tools to Improve Business Operations

Jake covers optional but highly beneficial tools for enhancing business operations. He recommends investing in a label printer (around $180), using email systems like MailChimp for $20 to $300 per month, and integrating SMS systems to connect with customers. He also suggests upgrading shipping systems like Shipo or ShipStation, which offer better discounts and easier interfaces for bulk editing. Additionally, Jake encourages engaging with communities online, like Instagram group chats and subreddits, and emphasizes the value of Instagram and Facebook ads, advising a starting budget of $5 to $50 per day. The overall extra costs amount to $180 upfront and $210 to $400 monthly.

💼 Total Cost Overview and Final Thoughts

In the final section, Jake provides a total cost breakdown: $499 upfront and $245 to $484 per month for the essential and extra tools combined. He reminds viewers to consider other important factors like sales and income tax, LLC fees, and other business expenses, which vary depending on the location and scale of the brand. Jake encourages aspiring entrepreneurs to focus on setting up their businesses correctly first, then deal with these additional financial factors as they grow. He signs off by thanking viewers, encouraging them to like, subscribe, and check out his brands and digital assets linked in the description.

Mindmap

Keywords

💡Clothing brand

A clothing brand refers to a business that designs, produces, and sells apparel. In the video, the speaker discusses the process and costs associated with starting and running a clothing brand, emphasizing that it requires a certain level of investment to be successful.

💡Inventory vs Pre-order method

The inventory method involves purchasing clothing stock upfront, while the pre-order method involves accepting customer orders before production begins. The speaker mentions these methods to highlight different approaches to managing products, with the pre-order method reducing initial costs but requiring customers to wait for production to finish.

💡Poly mailers

Poly mailers are plastic, durable shipping bags used for sending clothing products. The speaker lists poly mailers as a basic necessity for a clothing brand, estimating the cost of these at around $19 for 100 pieces. They are a key element in shipping and fulfilling orders efficiently.

💡Website

A website is a digital platform where customers can view and purchase clothing products. The speaker emphasizes that having a website is essential for any clothing brand, recommending Shopify as a hosting platform, which costs between $5 to $30 per month. It serves as the main hub for online transactions.

💡Social media presence

A social media presence refers to maintaining active accounts on platforms like Instagram, Facebook, and TikTok to engage with potential customers. The speaker stresses the importance of using social media to build brand visibility and attract an audience. Instagram and TikTok are highlighted as key platforms.

💡Adobe Illustrator/Photoshop

Adobe Illustrator and Photoshop are design software tools used to create mockups, logos, and other visual assets for a clothing brand. The speaker mentions these tools as essential for creating professional designs and mockups, noting their monthly subscription cost of $20-$54. These tools are crucial for graphic design in apparel production.

💡Label printer

A label printer is a device used to print shipping labels and packing slips. The speaker recommends the Rolo thermal printer, which costs around $180, explaining that it simplifies the shipping process by eliminating the need for ink and using laser technology to burn labels. It's part of optimizing shipping efficiency.

💡Email and SMS systems

Email and SMS systems are tools used for marketing and communication with customers. The speaker advises using platforms like MailChimp and SMS Bump, which cost around $20 per month but can scale based on the size of the customer list. These systems are vital for keeping customers informed about new drops, sales, and promotions.

💡Digital marketing

Digital marketing involves using online platforms like social media and Google to advertise and promote the clothing brand. The speaker explains that running paid ads on platforms like Instagram and Facebook can range from $5 to $50 per day, depending on the budget, and is key to driving traffic and sales.

💡Business plan

A business plan is a strategic document that outlines the goals, direction, and purpose of a clothing brand. The speaker emphasizes the importance of having a clear business plan to guide creative processes and decision-making, ensuring that the brand stays focused on a specific vision as it grows.

Highlights

Basic necessities needed to run a clothing brand include costs for poly mailers, a website, and social media presence.

Starting a clothing brand requires at least $300 to $400 for the basics, not $0 as some claim.

A T-shirt with color print typically costs $7 to $15 per unit, and most printing services require a minimum order of 30 to 50 units.

Expect to pay around $210 to $450 for an initial shirt order, depending on the clothing blank and number of units.

Poly mailers cost about $19 per 100 units, a necessary expense for shipping products.

Website costs range from $5 to $30 per month, with Shopify being a recommended platform for clothing brands.

Social media presence is essential, with platforms like Instagram and TikTok being prioritized to showcase the brand.

Decide between pre-order and inventory methods: either buy inventory first or accept orders and produce after.

A clear business plan and direction are critical to keep your brand on track.

A computer or tablet is mandatory for efficient workflow, with prices starting around $300.

Adobe Illustrator and Photoshop are recommended for design work, costing $20 to $30 per month.

Label printers like the Rolo thermal printer, which costs $180, make printing labels and packing slips easier.

Email and SMS systems help engage with customers, costing $20 to $50 per month depending on list size.

Improved shipping systems like Shipo or Pirate Ship cost around $20 per month, offering discounts on shipping labels.

The total fixed cost for starting a clothing brand is around $499, with $245 to $484 in recurring monthly expenses.