How To Start A Readymade Garment Business in India?

How to Start A Readymade Garment Shop in India?

Here is a guide to starting a readymade garments shop in India at an offline location:

1. Market Research

Proper market research will help identify your target audience while understanding their needs and preferences. Knowing your competition lets you position your store in the market and price your products adequately. Create a USP and focus on quality to attract customers and gain their trust.

2. Business Registration and Licensing

Before setting up a ready made clothes business, you will require legal licenses and permissions from the local authorities. Also, get GST registration to do business without violating tax laws.

3. Location Selection

Selecting a strategic location is a crucial part of any physical store. Find out the area’s market potential and choose a densely populated location with a high chance of selling clothes profitably. Moreover, the location you choose should have less competition and high foot traffic.

Also Read: How To Start A Startup In India?

4. Suppliers and Inventory Management

Initially, buy an inventory of products you can easily sell through your store. It will cover your regular expenses like suppliers' payments, utility bills, staff salaries, and other overhead expenses. Take care of inventory management to keep your stock full.

5. Store Setup and Design

A good store setup and design is crucial to attract customers and make an impression. The outer appearance of your store should be visually attractive. Inside, place clothes in an organised manner to make it easier for customers to pick and buy. A trial room is also necessary in a readymade garments store.

6. Hire a Staff

Hiring efficient staff is important. You will need an accountant, salespersons, helpers, etc., to manage the store efficiently. A team of enthusiastic people will run your business well and gain profitability. Start hiring the right people for your readymade garments business.

Also Read: How to Start a Business from Scratch in Simple Steps

7. Marketing and Branding

Marketing is another crucial aspect of a garments business, especially in today's competitive apparel industry. Invest in digital and traditional marketing channels to effectively reach your target audience and attract them to your store. Focus on branding to spread your name and make it popular.

8. Financial Management

Starting a readymade garments business requires ample capital to invest in the store premise, setup, licenses, suppliers, infrastructure, staff, etc. Plan the business effectively and limit your expenses to make the most out of the available funds. 

9. Scaling Your Business

Once your store is set up and bringing profit, it's time to scale your business. You may want to expand your store, diversify your product line, open a new store location, etc. This needs capital you can easily source through a Business Loan from Hero FinCorp.

Also Read: How to Start Your Own Clothing Brand in 7 Steps

How to Start a Garment Business Online?

Many shoppers, especially after the Covid-19 pandemic, have shifted to online shopping platforms. So, your readymade garments business may also thrive there. Follow this guide to set it up online:

Step 1: Choose Your Niche

You can create a simple dropshipping business or set up a private label, custom-fit, or customised print business. You may also choose to specialise in women's, kids', men's, or plus-size clothes. Choose your niche according to your interests and specialisation.

Step 2: Create a Business Plan

Create a simple business plan, pick a product you want to sell, and create a budget for the overhead expenses. Also, estimate the cash flow and return on investment. Observe your competitors’ websites and decide your platform, services, and business hours.

Select an E-commerce Platform

Create a website or choose an e-commerce platform popular among your target customers. Register to the platform and display your products in an impressive and attractive manner. Ensure providing excellent customer service to gain your customers’ trust.

Also Read: How To Start An Online Business From Home?

Step 3: Register Your Business

You must register with the tax authorities and obtain an establishment license, even for an online business. GST registration is also necessary to avoid tax violations and pose yourself as a serious businessman.

Step 4: Source Your Products

You don't need to store your products in a warehouse with an online business. You can directly source the products from the manufacturer and ship them to the customers' addresses. However, you may also build an inventory for faster delivery and assure quality.

Step 5: Build Your Website

Rather than selling through an e-commerce platform, you may also build your store website to create a brand and impress customers. Ensure the website has a user-friendly interface and proper presentation of the products.

Step 6: Promote Your Business

Implement various marketing ways to promote your business and attract customers. Use different marketing channels to make your brand known and attract orders.

Also Read: How To Start An Export Business In India

How can a Business Loan Benefit to Expand a Readymade Garment Business in India?

A Business Loan is an excellent funding option to start a readymade garments business. Here is how:

• Ample loan amount, up to Rs 40 Lakh
• Competitive interest rates, starting at 14%
• Flexible repayment options, up to 60 months 
• No profit sharing
• No need to give control over the business ownership
• No collateral requirement
• Freedom to utilise the loan amount
• Easy Business Loan application online
• Quick loan processing with minimal documentation requirements

Also Read: How To Start A Boutique Business?

How to Apply for a Business Loan Online?

Follow these simple steps to apply for a Business Loan from Hero FinCorp online:

• Check the loan eligibility criteria on the Hero FinCorp website.
• Calculate the EMIs using the Business Loan EMI Calculator.
• Go to the Business Loan page and click ‘Apply Now’.
• Fill out an application form by providing the required details.
• Submit the Business Loan application with the required documents.
• After verification, the loan amount will be transferred to your bank account.

Also Read: Checklist to Start an E-Commerce Business in 2023

Conclusion

Garment business can be a lucrative business opportunity if you deliver quality products and satisfy your customers' demands. It can provide a steady monthly income with a good profit margin. So, it is a good business option for aspiring entrepreneurs. When it comes to business expenses, finance them with a Business Loan from Hero FinCorp without any usage restrictions. Whether you need funds to manage or expand your readymade garments business, a Business Loan can cover the costs at competitive interest rates.

Frequently Asked Questions

1. Is the readymade clothes business a profitable idea?

Readymade clothes are in great demand these days. Moreover, they provide a good profit margin to sellers. So, it can be a profitable business idea for many reasons.

2. How much space is required for a readymade clothes store?

A 500 sq ft - 1000 sq ft area is usually sufficient to set up a readymade clothes store.

3. What are the key expenses covered by the Business Loan?

Stock, infrastructure, staff, infrastructure, marketing, etc., are the key expenses a Business Loan may cover for a readymade garments business.

4. What types of clothes can I sell in my readymade clothes store?

Rather than selling all types of clothes in the store, you can specialise in clothes for men, women, kids, or plus-size people. You can also create a brand in Western or ethnic wear.

Disclaimer- The content provided in this document is for informational purposes only. It offers insights into the process of starting a readymade garment business, potential benefits, and various aspects related to this field. The information is based on general knowledge and industry research. The costs provided are only an approximation, and the actual expenses may vary depending on the scale of your business.