Whether you are planning to open a physical or an online shop for your fashion business you have to know the basics of how to start a business. The task of starting may seem daunting at times but you just have to get up and get started to be independent and take your own life into your own hands.
It is easy to start a fashion business but to continue it is another matter. Continuing and growing the business to see profit will take time and you would need patience. You will have to look inside you to know if you can run a business. In the initial stage, you would have to dedicate all your time to running a successful business.
Before even thinking about starting a business you need to research the market. Are you going to create your design? Or buying the products? Are you prepared to spend long hours?
Planning is one thing and then actually starting is another. This is what I meant by looking in yourself so you know you have what it takes to start a business.
You have to ask hard questions, are you going to run this business alone, or are you going to hire people to help you? When hiring you need to look for like-minded people or else you will be running into trouble very quickly. You will have to find the lacking within so you can fill that gap and then move on from there.
It is not easy to start a business from scratch if you don't know what to do, and it becomes easy when you know the steps to take beforehand.
So if you want to know how to start a fashion business in Bangladesh 2023 then read on.
Important things to know before starting your own business.
- Confidence in yourself is very important when starting a fashion business.
- Passion for the craft will bring positive results.
- You need to be skillful if you are planning to design your fashion brand.
- Funding is essential when starting a business on your own.
- If you are not dedicated to your own business then you won’t see any profit.
- Managing your time in all aspects of the business will be a difficult task.
Still, have questions? You will be happy to know that, in this guide, I will answer questions you may have about starting a business and end with tips to avoid.
Let's start with,
How much does it cost to start a fashion business?
The answer to this depends on what type of business you want to start? Is it going to be an online shop or are you going to open a physical shop?
An online shop can be started with small capital but in a physical shop, you need a bigger amount. In Dhaka, Bangladesh, renting a shop will drill a hole in your bank account or may have to look for investors or take a loan.
With costs varying so much you must be asking why not start an online shop and then when you have the capital to grow your business then you should do it. This is a good idea if you don’t have the capital or the investors in hand. To slowly grow a business should be the ultimate goal.
Is the fashion business profitable?
Yes, the fashion business can be very lucrative. Any business will be successful and churn out profit provided you follow the correct steps followed by many successful entrepreneurs.
To make a profit you need to be able to think smart and get your products at a reasonable price. You would need to source your materials at a cheap price and manufacture them at the cheapest rate. If you are going for readymade business then you need to be able to find out shops that will give you the wholesale rate if not you won’t see a dime and will only be spending them.
It is vital for the business you decide what kind of business you want to run. As both readymade products and creating new ones have a niche, you just have to find the market and shove yourself in the thick of it.
But before thinking about the profit you need to start the business positively and below are 10 points to guide you on your path.
How to start a fashion business in Bangladesh 2023?
Let us take a deep dive into the world of how to start a fashion business in Bangladesh 2023.
Business plan
Making a business should be the first thing you should do. This will determine what kinda business you are going to be. Are you going to import your clothes from abroad and sell them to local shops? Are you going to create your line of clothing by manufacturing them and then sell them in your shop? Or are you going to design them and then manufacture them to sell in an online store? A business plan determines what your goal is and clearly defines how you are going to maintain them.
Register your companies name
Before you start to discuss your business plan with anyone register the company’s name. Time and time again I have heard people say that their unique idea name for the business has been stolen. Either intentionally or unintentionally the name has registered way before they did. This is because when you discuss your ideas with others they will inadvertently tell others or they steal the idea. So the best idea is to register the name before discussing it with others.
To register the name you need to pay a certain amount in fees to get the TIN and trade license which will allow you to do business in Bangladesh. This is a little bit costly but it should do by following the law of the land.
You need to choose a name first and that will cost you 600tk which you can do online. Next, you will have to go to BRAC bank to make the stamp duty payment, you need the receipt of payment to submit to the registrar of joint-stock companies which is 2500tk.
Along with that you also need to submit, Articles and a Memorandum of association, and proof of payment for Treasury Stamps (the receipt). Name clearance certificate, Form XII (Particulars of the Managing Agents, Managers, and Directors); Form X (A list of people who consent to act as directors); Form IX (Consent to act as directors); Form VI (Notice of the registered office) and Form I (Declaration on the registration of the company).
The next thing would be to file for the TIN( tax identification number) which will take about 4 days to obtain so in the meantime you can get your loge registered which will cost around a day and will cost you 60tk. And while waiting you should get the trade license which will cost you 5000tk and will take 3 days so in that time you register with VAT, Excise and Customs Commission under the National Board of Revenue.
If the above process is followed then you will be able to complete the registration of your company and be able to start your fashion business in Bangladesh legally.
Designing your logo, to create a brand value
Your logo will be your identity so creating a unique logo that stands out from the rest of your competitors is a huge plus point. When you are researching your competitors( discussed below) you should check their logo and how you can outsmart them with yours. Your brand’s face is your logo so you need to be careful when designing it. Hiring a professional to help you with the design of the logo is a good idea so you can focus on other things. As you will be starting your business, you should look for an affordable graphics designer, not a cheap one. If your friend is in the graphics line then you can contact them and ask them to do it. Don’t expect any free work as nothing free is good so offer them some award or promotional items of the brand when it starts.
Research your competition
One of the essential steps before starting a fashion business is to research your competition. This step essentially will help you identify what your competitors are doing and then take those necessary steps to create something more.
Try to identify who your direct competitors are important. Visit their pages on Facebook, read their customer reviews, and if they have a shop visit the shop. Try to find out what their big sellers are and how can you improve your designs and then go from there.
The fashion industry is one of the biggest industries in Bangladesh. It is always changing so you have to create something which no one is doing otherwise you will be a footnote.
Identifying your place in the market
The fashion industry is a huge market in Bangladesh so finding your place in it will be a task and a half. Look for a gap in the market and how you can fulfill it with your product. It is vital to find a niche where you can thrive. Don’t think you can capture the market because you are something unique as everyone, in their way, is doing something unique. If you want to make ladies' clothing then you need to find out what is missing then you need to create something unique so the buyers will want to buy your product. Don’t follow what others are doing and expect that you will be making a profit out of their hard-earned research and development.
Who are you going to sell?
After looking for the niche in the market you need to identify the people who you are going to sell. Researching the market and finding out the missing link where you can sell your product is the best idea. This is not always possible as the fashion industry is highly competitive and forever changing.
If you want to start a new clothing line for men then you need to find out what the giants in the industry are not doing. For example, It can be a formal shirt but you can wear it in informal settings as well. To find the gap you would need to physically visit the shops so you will get first-hand knowledge and act accordingly.
Visiting your competition's factories is not possible so look them up online and then do as much research as possible you can. The target is to find a product your competitors are not making and then make it. If you are thinking your creative design will sell on its own then this is a misconception and your company will end before it can see any return.
Your design idea needs to be new and unique
Ask yourself what you are bringing to the table when you start to think about the designs of your clothing line. You should be an expert designer as you are starting a new clothing line. Mixing your expertise with market knowledge will be a challenge.
As this will be your first batch it needs to capture the market so keep that in mind when designing. Your design needs to be cost-effective so it doesn’t sink your ship before you set sail. You must have some idea about what you are going to be creating but you can also ask around if those designs will work or not. Talking to your friends and family is a good way to find out if your design is worthy of production.
The suppliers and manufacturers best suited for you
You will have to source a supplier of material and then look for a credible manufacturer who can breathe life into your creation. Getting the best supplier may not be possible as they will ask for money. And as you are starting a new business you need to look for a supplier who can supply materials at a reasonable price. Don’t look for cheap materials to save money. If you can’t find a good supplier then ask your friends and family and they might be able to help you out.Are you planning to cut, size, and shape all the materials on your own? I am sure you are not planning to do that so you need to get hold of the manufacturer who can produce your design. You may find a big manufacturer who is mass-producing clothes and on the side can produce for you also but this is rare. So go for the ones who are small and willing to do things your way.When looking for both suppliers and manufacturers, look for the small ones so that the price will be low. Small business suppliers will try to give you better quality materials so you continue your business.A small business manufacturer will also try to make the best product for the same reason. But you have to keep a sharp eye on the work so that they won’t bluff you and change the materials you gave or give defective materials. Check and re-check as many times as you need to so that you get the best product.
Cost evaluation
When starting a fashion business you need to do a cost evaluation. You need to set specific budgets for the specific parts of your business. You need the material cost, manufacturing cost, and marketing cost and if you are going to open a shop and not an online store then you need to set aside money for rent and employee salary.
Online business is on the rise but even in online business, there is a huge amount of spending. You have to boost your page so that it can reach the target audience. This ad does not come cheap so you need to be smart and not spend all your money on ads. You need to target a specific audience who is going to buy the product. Your money will be wasted if it's not targeted to the correct audience.
Hit up your connections to get more connected
To create more connections you need to connect more. Networking is very important when starting a fashion business in Bangladesh. Through people, your name will spread so hit up all your connections who you think can help to get customers. You have to sell your name to people you don’t like so you can get more customers. More customers mean more money so you have to set aside your ego and dive into promoting yourself.
Final Words:
In this article, you will find how to start a fashion business in Bangladesh 2023. If the points above are followed then you will start in the right direction. Best of luck!
Bonus Tips
When thinking of starting a fashion business there are a few things we fail to take into account so as a bit of final advice to you I am leaving these points which should be avoided
- Not Correctly determining the pricing
- Failing to research properly
- Not making clear who you want to sell
- Not marketing beforehand
- Not taking full advantage of social media marketing
- Daily Facebook posts to create awareness
- Creating eye-catching Instagram images
- Boosting social media posts so more people know what your product is about
- Failure to follow the business plan
- Delegate your work
- Putting all your finance into the business
- Not Checking out how HishabPati can help you to manage your business
Using HishabPati
Lets make your journey with business easier with HishabPati app.
Make the start of your business easier by keeping track of daily business records with the help of the HishabPati app. You can use Hisaabpati on your laptop or desktop, or as an app on your phone. With its help, a part of your business becomes simpler, which I consider a significant victory.The hisabpati app helps you keep track of all your business transactions with just the tap of a button. You can monitor your inventory and keep track of all purchases and sales. The app acts as a small accountant in your pocket, so you don’t have to worry about this aspect of your business. You can store the contact information of all your customers and suppliers in one place, which you can easily access as needed.You can save weekly, monthly, or yearly reports in PDF format, share them, and have regular discussions to help you take the necessary steps to improve your business.To use this app to its fullest potential, purchase the premium package for just 99 Taka or the business package for 199 Taka per month.
HishabPati app It helps you keep track of all transactions in your business with just a tap of a button. You can monitor your inventory and keep track of all purchases and sales. The app is like a small accountant in your pocket, so you don’t have to worry about this aspect of your business. You can store all your customers' and suppliers' contact information in one place, which you can easily access whenever needed.
Make the start of your business easier by keeping track of daily business records with the help of the HisaabPati app. You can use HisaabPati on your laptop or desktop, or as an app on your phone. With its help, a part of your business becomes simpler, which I consider a significant victory.The HisaabPati app helps you keep track of all your business transactions with just the tap of a button. You can monitor your inventory and keep track of all purchases and sales. The app acts as a small accountant in your pocket, so you don’t have to worry about this aspect of your business. You can store the contact information of all your customers and suppliers in one place, which you can easily access as needed.You can save weekly, monthly, or yearly reports in PDF format, share them, and have regular discussions to help you take the necessary steps to improve your business.To use this app to its fullest potential, purchase the premium package for just 99 Taka or the business package for 199 Taka per month.
To use full of this app Buy Premium Package which is 99 taka per month & business package price is 199 Taka per month.
