Niche Fashion Business

How Much Does It Cost To Start A Niche Fashion Business? (In 2024)

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Updated: September 29th, 2024

Looking to start a niche fashion business?

But curious about:

how much it costs to start a niche fashion business?
what are the typical niche fashion business startup costs?
or the actual cost of starting niche fashion businesses?

Well, we have the data to prove it, supported by real niche fashion businesses and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a niche fashion business?

Based on our data reported by actual niche fashion business founders, the average cost of starting a niche fashion business is between $49 and $70,000.

Additionally, our data shows that the the median startup costs for a niche fashion business are around $3.5K.

Remember, though, not all niche fashion businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of niche fashion businesses

Real World Examples: How much does it cost to start a niche fashion business?

We asked real niche fashion business founders and business owners how much it actually cost to get started?

Here is what they said:

Tramell McInnis

Founder of LilKong Brand ($3K/month)

"Our startup cost based on the amount of styles/pieces + marketing, trademarking & other expenses, it ranged from $40,000 to $50,000 in total expenses."

Tramell McInnis is the founder of LilKong Brand, a lifestyle designer fashion brand that started in 2018.

Read this case study

Read by 5,213 founders

Albina

Founder of Smaragdas Art ($1K/month)

"I was lucky I got financial support from 'The People’s Trust' organization, this was important support for starting the business."

Albina is the founder of Smaragdas Art, a handmade jewelry and fashion design business that started in 2020.

Read this case study

Read by 2,768 founders

Lizzy Klein

Founder of mazi + zo ($5K/month)

"Thanks to relatively conservative financial planning...I was okay risking $15,000 on the initial product and brand development and market testing."

Lizzy Klein is the founder of mazi + zo, a fine jewelry business focused on high-quality, effortlessly stylish pieces, which started in 2019.

Read this case study

Read by 9,274 founders

Anastasia Osindero

Founder of Boystrous ($150/month)

"Before my temporary contract ended in late June, I had been able to invest in my business using my earnings, investing in a batch of plain t-shirts, a heat press machine, and a printer."

Anastasia Osindero is the founder of Boystrous, a menswear brand launched during the COVID-19 lockdown in 2020.

Read this case study

Read by 7,981 founders

Jeremy Roberts

Founder of Tradlands ($134K/month)

"To fund Tradlands we cashed out our existing 401k’s and received a little financial support from family. We started the business and funded the first production run with a total of $15k."

Jeremy Roberts is the co-founder of Tradlands, a women's clothing business that started in 2013 and generates $134k per month in revenue.

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Read by 10,136 founders

Marlene Reid

Founder of Dolly Thompson Baby Boutique ($1.25K/month)

"To date, I have self-funded my business from personal savings, however, I am currently in the process of sourcing a grant to assist with our marketing campaign."

Marlene Reid is the founder of Dolly Thompson Baby Boutique, a baby clothing business that started in early 2023 and has been generating impressive monthly sales.

Read this case study

Read by 3,086 founders

Taha Yavuz

Founder of Lucasgift ($100K/month)

"Actually, we started our business while we were living in a small apartment with my dad. The downstairs was our inventory area (garage), and we were fulfilling the orders from our living room."

Taha is the founder of Lucas Gift, an online personalized gift business that began in 2017.

Read this case study

Read by 1,301 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful niche fashion businesses that you can learn from.

Starting a niche fashion business - what you should know:

Beginning a niche fashion business involves understanding specific costs and strategizing to keep expenses manageable.

Initial Inventory Costs

When launching a niche fashion brand, one major expense is the initial inventory. Depending on the quality and volume of items, initial stock can cost between $5,000 to $20,000. To minimize expenses, consider starting with a smaller, curated collection and gradually expanding as your customer base grows.

Production and Materials

Production costs vary significantly. High-quality materials and custom designs can drive up costs, with price tags ranging from $50 to $150 per unit. Partnering with local manufacturers may reduce costs due to smaller minimum order quantities, potentially lowering the overall expense to about $20 to $70 per unit.

Marketing and Branding

Effective marketing and branding are paramount for establishing a niche presence. Digital marketing campaigns, influencer collaborations, and social media advertising can cost between $1,000 to $5,000 per month. Allocating resources towards targeted ads and content marketing can yield better ROI compared to traditional advertising methods.

E-commerce and Website Costs

Setting up an online store involves several costs. Using platforms like Shopify or WooCommerce can lead to monthly fees ranging from $29 to $299 for website hosting. Additionally, factoring in initial website design and development can add up to $2,000 to $5,000, depending on the complexity and custom features.

Legal and Administrative Expenses

Don’t overlook legal and administrative costs. Registering your business and securing trademarks may cost between $500 to $2,000. Also, consider budgeting for accounting services and software, which can add an extra $500 to $3,000 annually.

Shipping and Fulfillment

Efficient shipping and fulfillment strategies are crucial for customer satisfaction. Investing in reliable fulfillment services can range from $1 to $5 per order. Negotiating bulk shipping rates with carriers can further trim costs, potentially saving hundreds over the year.

Miscellaneous and Buffer Costs

Always set aside a contingency fund. Unexpected expenses may arise, so having an additional $2,000 to $5,000 can provide a financial safety net, ensuring smoother operations during the initial phase.

Potential Costs of Starting a Niche Fashion Business

Starting a niche fashion business involves various initial and ongoing costs, ranging from product development to marketing expenses. Below is a detailed breakdown of potential costs to consider:

Cost Category	Description	Est. Cost Range ($)
Product Development
Fabric and Materials	High-quality, unique fabrics and materials for sample creation and initial inventory	$2,000 - $10,000
Prototyping	Creating prototypes for your designs, including costs for small production runs	$500 - $2,000 per prototype
Production Run	Initial production batch for inventory	$5,000 - $20,000
Branding & Design
Logo & Branding	Professional logo design, brand guidelines, and visual identity	$500 - $3,000
Website Design	Custom website design reflecting brand aesthetics and user experience	$2,000 - $8,000
E-commerce Setup
Domain Name	Annual cost for your business’s website domain	$10 - $50 per year
Web Hosting	Monthly or annual web hosting fees for your e-commerce site	$100 - $500 per year
E-commerce Platform	Subscription fees for platforms like Shopify, WooCommerce, or BigCommerce	$29 - $299 per month
Payment Processing Fees	Transaction fees for payment gateways (e.g., PayPal, Stripe)	2.9% + $0.30 per transaction
Marketing & Sales
Digital Marketing	Costs for SEO, PPC, email marketing, and social media advertising	$1,000 - $5,000 per month
PR and Influencer Marketing	Fees to pay influencers, create press releases, and PR agency fees	$1,000 - $10,000
Legal & Administrative
Business Registration	Costs for registering your business, including state and local fees	$50 - $500
Trademark Registration	Costs for trademarking your brand name and logo	$225 - $400 per class (USPTO)
Accounting & Legal Fees	Fees for hiring accountants and lawyers for initial business setup	$1,000 - $3,000
Labor Costs
Hiring Staff	Wages for employees such as designers, marketers, and customer service representatives	$30,000 - $70,000 per year per employee
Freelancer/Consultant Fees	Costs for hiring freelancers or consultants for specific tasks (e.g., web design, SEO)	$50 - $150 per hour
Operational Costs
Office/Studio Rent	Monthly rent for an office or studio space	$500 - $3,000 per month
Utilities	Monthly costs for electricity, internet, and other utilities	$100 - $500 per month
Tools & Software
Design Software	Subscriptions for design software like Adobe Creative Cloud or CorelDRAW	$20 - $55 per month
Inventory Management	Tools for managing inventory, such as software subscriptions	$50 - $200 per month
Shipping & Handling	Packaging materials and shipping costs for sending products to customers	$500 - $2,000 per month