How to Start a Textile Retail Business

The textile industry is one of the fastest-growing industries. It has expanded considerably in the past few years and it is known that it will grow further in the future. If you have thought of investing in a textile business in the past then this is just the right time to do it. Being part of the garment industry means that you have to be closely linked to the fashion and design industry. A textile retail business can help you earn a steady income on a monthly business.
textile retail business
Fig: Textile retail business
The best part about investing in a retail business is that there are plenty of options for you to invest in. Therefore, you should always choose the one which triggers your interest. Just like any other business, there are certain steps that one needs to follow before starting any business. We are here to discuss the 6 steps which you must follow if you are going to start a textile retail business.

Step # 1 – Arranging Funds
For any clothing retail or textile business, it is important to invest. Naturally, the first thing that you need to arrange are funds (unless you are a millionaire and can afford to arrange your investment). There is a lot of planning that needs to be done before you even involve the money element in the business. First of all, you need to decide the location of your store, secondly, decide on the size and then lastly on the type of products that you need to sell.

Arranging Funds
Fig: Arranging funds
There are certain things that entrepreneurs need to take care of when they are investing. They either need to apply for a loan or take assistance from the family. There is a lot at stake therefore it is important to plan out where the money is going to be spent. The planned costs need to include all the money that you need, from the planning phase until the execution phase. Below are some listed items that you need to consider seriously.

Rent: You must plan out your rent for at least two years to avoid any issues later.

Licensing and permits: Certain taxes are imposed by the government which includes licensing and the permitting fees. Depending on the scale of work and the product you are selling, these taxes need to be paid to the government in advance.

Inventory: No matter what scale you are starting your business, there is always a need to purchase inventory storage items such as racks, shelves, cases, and storage, etc. These items should be considered beforehand to avoid confusion later.

Equipment: A textile business would require you to have certain equipment such as laptops, a point of sale system, internet access, and IT equipment which you would need to run your business. Moreover, you would need to separately work out the maintenance cost of the equipment on a monthly/bi-annual/annual basis.

Website Development/Web Hosting: No matter what kind of textile retail business you are getting into. There would be a need to develop your website and purchase its hosting. Web hosting can range from anywhere between $50 - $200 every month. The more you spend on your website hosting, the better your website and faster the loading time.

Insurance: Make sure that all your property is insured. Moreover, you must also provide employees with compensation and health insurance.

Marketing: The more you spend on your advertising, there are better chances of your brand to gain recognition.

Step # 2 – Link Building
Once you have planned out the expenses, the next bit is to build links. Your main aim should be to purchase good quality fabrics at an affordable price. Therefore, you need to conduct relevant market research before you approach any wholesalers. It would be beneficial at your end to conduct a thorough market analysis. The market analysis would naturally be based on your geographical location and your clothing preference.

build links
Fig: Build links
Step # 3 – Choose your Landing Station
A landing station is a point where the customer will come and buy your product. If you want to market your product online, then you might want to get an e-commerce website built under your brand name. Moreover, if you prefer to showcase your products in a brick and mortar store then you must understand the dynamics of a store or an office. If you have an office or a store you must pay attention to the aesthetics. If you are located in London then it would be suitable for you to get in touch with any of the reliable London carpet cleanersfor deep cleaning of the whole space.

Step # 4 – Market your Product
You might have the perfect product at hand, but there is no point if you are not effectively marketing your product. It would be prudent on your behalf to allocate a certain amount of money for marketing. There are several platforms through which you can market your product.

  • Social Media Marketing
  • Television Advertisements
  • Newsletters
  • Promotional offers
Step # 5 – Streamline the Payment System
Once you have successfully marketed your textile product, you will start receiving orders. Therefore, you should streamline your order and payment system. You can either go for the cash, bank transfer, checks, credit/debit card or a bank draft. Make sure that the option you choose is convenient for your customers.

Step # 6 – Manage the Cash Flow
Once the payment procedure is sorted, you need to understand how to manage your cash flow. Your business should be able to meet the operational expenses at all times. Operational expenses account for all the money that is required to run the business. You must also keep in mind that your business will not be able to generate a profit in the first few months of your business. Therefore, you must be prepared to deal with expenses until your textile retail business reaches breakeven.

Final Thoughts
Once the above steps are sorted and the final product is finalized, your business operations will be able to run much more smoothly. Do make sure that you have in-depth knowledge about textiles and the difference between the types of fabrics. Choosing the best quality fabrics can set you apart from your competitors and give you an edge in the market!

Author Bio:
Arslan has a passion for writing, designing and anything tech-related. His educational background in the technical field has given him the edge to write on many topics. He occasionally writes blog articles for Dynamologic Solutions.
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Mazharul Islam Kiron is a textile consultant and researcher on online business promotion. He is working with one European textile machinery company as a country agent. He is also a contributor of Wikipedia.

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