garment manufacturing business plan

How to Start a Garment Manufacturing Business in 10 Steps

The garment manufacturing business demands know-how about process technology and adequate knowledge in textile marketing. The ready-made garment manufacturing business in today’s world is a multi-billion dollar industry.

People have become more style and outfit-conscious. This has provided a lot of scope for the garment manufacturing business globally. Any passionate individual in garment activities can build this business through people from textile or fashion designing backgrounds are preferred.

Find below a stepwise guide on various aspects you must consider while starting a garment manufacturing business.

Here are the 10 Steps to Start a Garment Manufacturing Company

1. Select Items For Garment Manufacturing Business

Before actually starting a garment-making business, it is essential to do understand the demand and buying trends of the local market. Talk to local buyers and sellers and find out the gaps that can be explored.

Broadly three major categories of products include in the garment manufacturing business. 1. Woven Garment, 2. Knit Garment and 3. Sweater Garment or woolen garment. Every category has a wide range of products for men, women, or kids. In the woven garment, products are shirts and trousers of formal or casual styles. In Knit garments, products are T-shirts, Polo, etc.

Suggested Read: How to do Market Research for a Startup

2. Create a Business Plan 

It is important to do elaborate market research prior to and craft a business plan accordingly. Firstly, you need to select the specific product category that you will be making. Narrow your product profile as much as possible. Understand the industry and identify the key factors that are influential in garment-oriented business. Estimate the production requirement and accordingly calculate the fixed capital investment including machinery and workspace cost.

It is advisable to have a detailed project report in hand before initiating the business. Determine your target audience and marketing strategy. Identify and assess your competitors and find out how you will compete with them. Crafting a business plan will help you in arranging the finance and also you will get confidence whether your business is feasible or not.

3. Company Registration and Licenses 

Deciding on the proper business structure under which you are going to operate your business is an important decision to make. Based on your resources you can opt for a business structure like proprietorship, limited liability company, one-person company, etc.

A number of licensing and registration regulations are required in the garment manufacturing business. Firstly, you need to register your business. The legal formalities in this business may differ according to your business location. In starting a garment manufacturing business in India, you will need to obtain a trade license from the local authority, factory license, EPF, ESI, and fire license.

At present, GST registration is a must. Check this article to know more about applying for GST registration online.

Also, Read: Top GST Software for Small Businesses

You will also need to register your business with the central excise department. You will need to obtain ‘consent to establish’ and ‘consent to operate ‘ both from the Pollution Control Board. You will need to obtain Vat Registration also. It is recommended to talk to an attorney about the necessity of a specific license in your area.

4. Machinery For Garment Manufacturing

You will need to determine the manufacturing machinery according to your product. There are apparel printing machines, fabric printing machines, t-shirt printing machines, different sewing machines, double-needle bar knitting machines, knit braiding machines, etc. According to your plan select the specific machinery. Check the warranty period and on-site training before furnishing the final order.

5. Learn Basic Garment Manufacturing  Process

The basic garment manufacturing steps are given below:

Design/sketch → pattern design → sample making → pattern production → grading → marker making → spreading → cutting → sewing / assembling → inspection → pressing/finishing → final inspection → packing → despatch

6. Raw Materials For Garment Manufacturing

Different types of quality textiles and fabrics are the major raw materials used for garment manufacturing. You will need to have several buttons, and zippers also as per your requirement. Ensure the quality of the raw material that you are purchasing. Talk to the vendors and purchase the material from reliable suppliers at the right price.

7. Create a Sourcing Plan

Garment manufacturing includes the operations of purchasing fabrics and materials from a textile producer, cutting and sewing them to make clothing materials, and then selling them. In establishing a successful garment manufacturing business, you will need to be careful in choosing products, purchasing equipment, establishing your company as a brand, and marketing your products. The better your designs are, the newer your concepts are -the brighter are your chances to flourish.

8. Cost of Starting Garment Manufacturing Business

The investment required to start a garment factory depends on the scale of production. However, a production area of 600 Sq. ft and an investment of around 20 lacs is a bare minimum to start a small-scale garment manufacturing unit.

9. Hire Manpower

Garment manufacturing is manpower involved business. The most important position is the designer. He or she actually performs the most crucial role in making the venture successful. Hire skilled and experienced manpower only for senior positions.

10. Promote Your Garment Manufacturing Business

Apparel sales are driven by economic conditions, demographic trends, and pricing. The apparel industry is mature and it exists in a dynamic and competitive environment. A brand name is a powerful tool in the promotion of the garment business. Established brand names build consumer loyalty, which translates into repeat business. Choose a memorable, related to your garment name for your business. Establish a wide strong distribution channel network

Creating a website is a must nowadays. Creating an online store along with your website will provide you with an added advantage. Concentrate on creating an online presence. Also, register your business with online B2B directory portals. Public relations activity and press releases are important in the garment manufacturing business.