Smocked clothing business is a business that designs and sews a collection of apparel known as smocked clothes for a target demography or market. Although smocked dresses can be worn by women and girls of all ages, they are highly suitable for pregnant or postpartum women, as they are often easy to pull on and off for quick changes and breastfeeding.
These clothes are sold in retail locations and/or online stores. Please note that smocking refers to the technique of gathering fabric and sewing it together in a way that lets the material stretch, and smocked dresses have roots in rural life dating back hundreds of years.
Smocked clothing business is a niche idea in the global apparel industry and a recent report published by Statista shows that the global apparel market is projected to grow in value from 1.5 trillion U.S. dollars in 2020 to about 2.25 trillion dollars by 2025, showing that the demand for clothing and shoes is on the rise across the world.
The regional distribution of apparel is expected to stay mostly consistent between 2015 to 2020, although the Asia Pacific region had the highest level of growth at four percent. The three world’s largest apparel markets are the United States, China, and Japan in descending order.
Steps on How to Start a Smocked Clothing Business
Table of Content
Conduct Market Research
The first step in the market research process for your smocked clothing business is to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source for information that will help you maximize your business, information that will give you reliable data of what your potential market will be looking out for from a smocked clothing business, the designs and styles that people will be able to spend a premium on and also help you operate your smocked clothing business with less stress and of course, build the business to profitability within the shortest time frame.
a. Who is the Target Market for Smocked Clothing Business?
- Pregnant women
- Nursing (Breast-feeding) mothers
- Girls of all ages
- Every female within your target market location
b. Is Smocked Clothing Business a Profitable Business?
Yes, the smocked clothing business is very profitable. Please note that while clothing’s absolute numbers are steadily climbing, worldwide revenue growth—as represented by the compound annual growth rate—is slowing: down from 15.3 percent in 2018 to 7.6 percent by 2022.
c. Are There Existing Niches in the Industry?
The smocked clothing business is a niche idea in the global apparel industry hence there is no niche when it comes to the smocked clothing business.
d. Who are the Major Competitors?
- Hill House Home,
- Inditex – Zara, Massimo Dutti
- LVMH – Louis Vuitton, Givenchy, Dior, Marc Jacobs
- TJX Companies – TJ Maxx, Marshalls
- Richemont — Cartier, Chloé, Net-a-Porter
- Kering — Gucci, Alexander McQueen, Balenciaga
- L Brands — Victoria’s Secret, Pink
- Fast Retailing — Uniqlo, Theory
- Next (British clothing company)
- VF Corporation — The North Face, Vans, Lee
- Michael Kors
- Hanes Brands
e. Are There County or State Regulations or Zoning Laws for Smocked Clothing Business?
Yes, there are county or state regulations and zoning laws for smocked clothing businesses, and players in this industry are expected to work with the existing regulations governing such businesses in the county or state where their business is domiciled.
f. Is There a Franchise for Smocked Clothing Business?
Yes, there are franchise opportunities for the smocked clothing business. Here are some of them;
- fab’rik – Investments: $113,700 – $190,800
- Copper Penny – Initial Investment – $189,850 – $414,900
- Winnie Couture – Investment – $299,000 – $550,000
- Hometown Threads – Initial Investment: $165,000
- Klein Epstein & Parker – Initial Investment – $135,617 – $241,467
- Style Encore – Initial Investment – $264,200 – $398,400.
g. What Do You Need to Start a Smocked Clothing Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Production Facility and Showroom
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Equipment, Machines, and Raw Materials
- Startup and Working Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a smocked clothing business are;
Creative Smocked Clothing Business Name ideas
- Loveth® Smocked Clothing, Inc.
- Tine and Tyler® Smocked Clothing, Inc.
- Smocked Nation® Smocked Clothing, Inc.
- Smocked Bespoke™ Fashion Brands, Inc.
- Esther Lane® Smocked Clothing, Inc.
- Al Baroness® Smocked Clothing, Inc.
- Lady Annie® Fashion Company, Inc.
- Mina Martins® Smocked Clothing, LLC
- High End® Smocked Fashion House, Inc.
- Nelly B® Smocked Clothing, Inc.
- Maria De La Rosa® Clothing House, Inc.
- Stacy McRib ™ Smocked Couture, LLC
- Bridget Decoster™ Smocked Clothing, Inc.
- Broadway™ Smocked Couture, LLC
- Mark Fernand® Smocked Clothing, Inc.
- Jacinta Borrow® Smocked Clothing, Inc.
- Finest Signature© Smocked Clothing, Inc.
- Georgina Paulson™ Smocked Clothing, LLC
- Jill Noel™ Smocked Clothing, Inc.
- Madonna Whyte® Smocked Clothing, Inc.
Register Your Business
a. What Type of Business Structure is Best for Smocked Clothing Business?
Even though there are several options when it comes to the business structure of a smocked clothing business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Smocked Clothing Business?
- General Business License
- Seller’s Permit
- Fire and Safety Permit (Fire certificates)
- Federal Export Licenses
- Zonal Permits
- Signage Permit
- State Occupational Licenses
- Operational State Facility Inspections (Building Permits)
d. What Type of Certification is Needed to Open a Smocked Clothing Business?
You don’t need any certifications to open a smocked clothing business.
e. What Documents are Needed to Open a Smocked Clothing Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a smocked clothing business, you may need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to challenge people in court for illegally making use of your company’s intellectual properties especially as it relates to your designs or logo et al.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Smocked Clothing Business?
When it comes to starting a smocked clothing business, the startup costs vary. They could range from $10,000 to over $500,000. This is because the startup inventory and the equipment and machines needed to start will greatly influence the overall cost of starting the business.
b. What are the Costs Involved in Starting a Smocked Clothing Business?
- The Total Fee for Registering a Business in the United States of America – is $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Marketing expenses for $3,500 as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring a Business Consultant – is $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – of $2,400.
- Cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $53,300.
- Cost for facility remodeling (construction of racks and shelves) – $5,000.
- Other start-up expenses like utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for equipping the production factory – is $45,000
- The cost for start-up inventory (materials, sewing supplies and packaging materials et al) – is $25,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- Cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al): is $4,000.
- The cost of Launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Smocked Clothing Business?
- The size of the smocked clothing business
- The choice of location
- The required licenses and permits
- The cost for branding, promotion, and marketing of the smocked clothing business
- The cost for furnishing and equipping the smocked clothing facility
- The cost of insurance
- The cost of registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the grand opening of the smocked clothing business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your smocked clothing business, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility for your smocked clothing business will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Smocked Clothing Business?
- Rent and lease
- Supplies and inventory (materials, sewing supplies, and packaging supplies et al)
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Maintenance of machines
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (President) – $40,000 Per Year
- Factory Manager – $30,000 Per Year
- Merchandise Manager – $29,630,000 Per Year
- Fashion Designers – $29,000 Per Year
- Accountant (Cashier) – $28,500 Per Year
- Marketing and Sales Executives – $28,000 Per Year
- Tailors – $26,100 Per Year
- Customer Service Executive – $26,000 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Smocked Clothing Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Al Baroness ™ Smocked Clothing, Inc. is a standard smocked clothing business that will be located in an industrial area in Delaware City, Delaware. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of renewal on terms and conditions that are favorable to us.
The facility has government approval for the kind of business we want to run and it is easily accessible. We are deliberate about that to facilitate easy movement of raw materials and finished products.
b. Products and Service
- Different designs and sizes of smocked dresses
c. Mission Statement
Our mission is to build a highly successful, profitable business whose brand will be known all around key cities in the United States of America and the globe.
Our vision is to be among the top 3 smocked clothing brands in the whole of the world.
d. Goals and Objectives
The goal and objective of a smocked clothing business are to produce smocked dresses for a target demography.
e. Organizational Structure
- Chief Executive Officer (President)
- Factory Manager
- Merchandise Manager
- Fashion Designers
- Accountant (Cashier)
- Marketing and Sales Executives
- Customer Services Executives
- Security Guard
a. SWOT Analysis
- Ideal location for a smocked clothing business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
- Unique design and styles
- Financial Constraints
- A new business that will be competing with well-established smocked clothing brands, especially from India.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in people who want to join fashion trends
- Online market, new services, new technology, and of course the opening of new markets
- Increase in the number of women and girls within our target market area.
- The arrival of outsourced smocked dresses from Asia especially India and Bangladesh where the cost of production is very minimal
- Unfavorable government policy and regulations.
- Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability.
- Economic uncertainty
- Liability problems
b. How Do Smocked Clothing Businesses Make Money?
Smocked clothing businesses make money by selling a wide range of smocked clothes.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers and fashion magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills to target areas
- Contact boutiques and clothing dealers in the neighborhood where your smocked clothing business will be located informing them about your business and the products you retail
- List your smocked clothing business in local directories/yellow pages
- Advertise your smocked clothing business on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your smocked clothing business is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles and trucks or vans are branded with your company logo et al.
a. How Much Should You Charge for your Product/Service?
The price of smocked clothes depends on the type, size, and brand of the product.
b. How Much Profit Do Smocked Clothing Business Owners Make a Year?
It depends, but available reports show that the national average earnings of smocked clothing business owners are approximately $51,000 per year. Smocked clothing business profits can average between $23,751 and $140,935, depending on your location, line specifics, expenses, marketing efforts, and company size.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the smocked clothing business
- The location the smocked clothing business is covering
- The management style of the smocked clothing business
- The business approach of the smocked clothing business
- The advertising and marketing strategies adopted by the smocked clothing business.
- The number of years the smocked clothing business is in business
d. What is the Profit Margin of a Smocked Clothing Business?
Typically, smocked clothing businesses gain a handful of profit on all the products. Their margins usually range from 20% to around 60-70%. So, the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.
e. What is the Sales Forecast?
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $480,000
Set Up your Shop
a. How Do You Choose a Perfect Location for Smocked Clothing Business?
- The demography of the location as it relates to the number of women and girls
- The demand for smocked clothes in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of smocked clothing manufacturers and other fashion outlets in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Smocked Clothing Business?
- Dallas, Texas
- Boston, Massachusetts
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Atlanta, Georgia
c. What Equipment is Needed to Operate a Smocked Clothing Business?
These are some of the machines, equipment, and tools that we would need to start our smocked clothing business;
- Industrial sewing machines
- Pattern makers for crafting designs.
- Women and men dress forms used for garment building.
- Hole punchers
- Straight and curved rulers
- Measuring tapes
- Notchers for marking seams.
- Dotted pattern paper.
- Sewing machine needles
- Hand sewing needles.
- Sketching books.
- Drapings tools.
- Dressmaking Stickpins
- Style tapes
- Fabric shears
- Soft lead pencil
- Marking pen
- Pattern plotter.
- Pattern-making software.
- CAD tools for designs
- Digital drawing tools
- Digitizer board for pattern scanning.
- Heat transfer machines for T-shirts.
- Print tables.
- Slat wall
- Labels and Tags.
- Packaging materials
- Industrial pressing irons
- Supply of fabrics
When it comes to hiring employees for a standard-smocked clothing business, you should make plans to hire a competent chief executive officer (president), factory manager, merchandise manager, accountant (cashier), marketing and sales executives, tailors, fashion designers, and security guard.
Launch the Business Proper
In recent times, no smocked clothing business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the smocked clothing business, you will be able to inform people in your city that your smocked clothing business is open for business.
a. What Makes a Smocked Clothing Business Successful?
- Choose a good location and showroom facility to launch the business
- Make sure your smocked clothes are unique and the finishing is topnotch
- Throw an open house grand party before officially opening the smocked clothing business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your smocked clothing business
- Leverage all available online and offline platforms to promote your smocked clothing business
b. What Happens During a Typical Day at a Smocked clothing business?
- The production factory is open for the day’s work
- The facility is cleaned and well-arranged
- Factory swing into action (production of smocked clothes)
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Smocked Clothing Business?
- Good fashion design sense
- Excellent tailoring skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining and bidding skills
- Work experience in a smocked clothing business environment
- Experience in managing people
- Experience in business administration.