Firstly, start with market research. Spent at least a month or two in knowing, how market of ethnic clothing works. Learn from where raw material comes, how it is manufactured into finished product, how it reaches to market, how product is distributed, what is the margin cost of each vendor in the middle, who benefits most out of this business, what are the pros and cons of ethnic clothing business, what are the risk factors involved, who the largest number of consumers from the targeted audience, what future market or trend can be possibly get in involved in this business, consider legal aspects involved in this business along with government taxes and other factors involved which you can only realize once you take a deep dive in ethnic clothing business.
Once you acquire complete knowledge of ethic clothing industry, don’t directly jump into it by starting your startup. You need to do net practice before that. Start Trading Ethnic Clothing. Trading will help to understand what it actually takes to run this business. It’ll also help you to create relations between various parties involved in the business, with less risk. Understand what actual market potential involved in the business. You might get to meet some B2B parties who even export or import ethnic clothing. Learn from them. How they actually do it international, what is the process, international legal involved, which countries produce or import more. This will help you to understand International working of Ethnic Clothing industry, when you might do business worldwide. Do trading for at least 3-4 months.
It’s been about 6 months in ethnic clothing business, it should be a good to go for you to do a startup. After being in the industry and practically doing business, you must have got little idea where exactly you want to jump start, where the industry has potential, which sections you are confident to go into, how much capital you need and what kind of employees you require. Decide you want to open online business or retail. Most startup mean online business only. You can do it in two ways; either sell your products on websites like flipkart, amazon, etc. or you can create your own portal which might involve more troubles. If you sell product on already existing eCommerce website, you just need to get in touch with them, complete legalities and start selling off your ethnic clothing right away. If you want start your own portal, you need to hire people, a lot of people. If you’re thinking that in the very near future you’ll do large scale production and have large number customers, I’d suggest you to do hire developers and create your own portal which involves great cost. If you’re starting in a very scale, you can just contact a web development company and create a CMS (maybe, wordpress) based website and get going right away. In either way, you need to hire accountants, charted accountants, on-ground developer(s), lawyer, get company registered and have a payment gateway.
Money you made from trading can be used as capital for your startup. You can also borrow some money from your family, friends or relatives. Banks also provides loans for starting a business, though i personally don’t suggest or prefer you to go with it. If you’re still out of cash, than you can search for seed funders who basically fund early stage startups. Mostly, they only fund if you’re having your own startup, and not trading on flipkart/amazon. You can show them your passion for ethnic business, your past trading work, your future expansion plans and how they will profit out of investing in your startup. If they’re convinced, you’ll get your money and they’ll take some equity in your startup.
This is the basic way, how you can do startup in ethnic clothing business.
Author: Pruthvi Sodha