Clothing production involves the creation of material values (clothing products) for various kinds of consumption.
This type of production is like:
- narrowly focused, for example, sewing parachutes or repairing workwear,
- and with a wide range, for example, sewing clothes for general use and so on.
Before you start, you need to draw up a business plan for the garment industry, which would take into account all the costs and nuances of organizing such a business.
Why opening a sewing production is a profitable solution?
Now this is an uncompetitive niche in many cities of the Russian Federation (you can read more about the business idea of opening a clothing production here ). People appreciate businesses that make their own clothes because they are cheaper, the quality can be checked and there is an opportunity to make an individual order.
There are a number of reasons why it is worth writing a business plan for a clothing business and starting your own business:
- You don’t have to know how to sew to be a seamstress.
- This business is related to production, which means it has a high profitability.
- Most of the initial investment is invested in production equipment, so you will risk about 50% of the money invested. The rest can be returned after the sale of the equipment.
- The sewing business is partly creative — a great chance to prove yourself!
Sewing business business plan: how much money will it take to open a business?
The business plan of the garment industry must necessarily include all items of expenditure.
Since it will not be possible to determine the scale of your idea, you can estimate how much money will be spent on average per job.
- The main tool in the sewing industry is sewing machines, so the bulk of the initial investment will go to the purchase of equipment.
- In addition to equipment, you will also need button semi-automatic machines, irons, special printers and more (this list largely depends on the specifics of the idea).
- In addition, you will have to pay staff for renting the premises and purchase consumables (fabric, buttons, locks).
As a result: for one seamstress at the start, it will take about 50-80 thousand dollars, including taxes and equipment per person. Later, these costs will be reduced.
As a result, you will need up to $ 1 million to open a sewing production with 10 seamstresses.
- 30% will go to pay the seamstresses,
- 30-40% for the purchase of equipment,
- 5-7% for materials,
- 15-20% for the premises and its refurbishment,
- the rest — for additional expenses (legal registration, accountant, etc.).
The list of expenses may also include the cost of advertising your business.
Sewing production business plan: project risks?
1) The main risk is the search for orders. The success of the entire business will largely depend on successful orders. Read this article to find out how to look for clients for the garment industry .
It is on your resourcefulness in this matter that all the risks depend. It is not necessary to spend hundreds of thousands of dollars on PR — you can quickly promote everything via the Internet.
2) The second risk is the organization of production and execution of orders.
The main task of the manager in this business is to establish order at work and attract interested seamstresses — this can be achieved without investment.
Before implementing the project of opening a sewing workshop, it is better to calculate its payback. In order to calculate the payback of your business idea, you can follow this link:
Sewing business business plan: step by step instructions for implementation
- First, you need to draw up a business plan for the clothing industry.
- Search for premises and legal registration.
- Hiring qualified professionals. Creative and executive people are simply necessary in such a business.
- Arrangement of premises, purchase of equipment and start of work.
- Search for clients through all possible channels.
- Expansion of production and direction of sewing business.
A properly established sewing business can pay off in as little as a year.