# Startup Cost for New T-Shirt Company?



## doomy3

I was in retail as an Area Manager for 10 years, and got tired of the management side of operating a retail clothing store. I decided that I would rather be on the side of the fence that was making the product and selling online and selling to retailers, etc.

I am very limited from a design standpoint, so I will be hiring out all design work once me and my partner decide on a final name and business plan, etc. My specialty is more on the business side of marketing, selling, branding.

My question is, how much should we expect to bring to the table in capital to do things the RIGHT way. We are probably looking at an initial launch of 8-10 prints, with an ecommerce site, other marketing, etc. We would also be looking at possibly doing custom packaging.

How much money should we set aside for something like this? Any advice would be greatly appreciated!


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## Rodney

> My question is, how much should we expect to bring to the table in capital to do things the RIGHT way. We are probably looking at an initial launch of 8-10 prints, with an ecommerce site, other marketing, etc. We would also be looking at possibly doing custom packaging.


There are SO many variables there that it would be hard to give you a meaningful figure.

You say 8-10 prints, but you didn't mention how many per design. You didn't mention which printing method. 

It might be easier for you to make a list of everything you need and then research each to see how much it will cost you.

It could be anywhere from $1000 to $10000+ depending on a whole host of variables.

You can read tons of advice in the forums about starting here:

start related topics at T-Shirt Forums

starting related topics at T-Shirt Forums


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## lburton3

$5,000 would give you a pretty good start. If you plan on wholesaling from the start, though, you'll obviously need a lot more than that, unless your buyers pay up front.


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## jmcgurren

I agree with lburton3. I started a company about a year ago and initial costs were about 3,000 for printing and that was like 350 shirts total with 2-4 colors and like 7 different designs.. I have an ecommerce web site but I manage it myself and I built the site myself so my only costs were printing and biz start up fees with the state and such. Only problem is all the screen printing companies I have been to seem to screw up almost every design at least once and I have lost a lot of money that way. I recommend a press check on all of your printing or even standing in on the process and watching it all happen. When you aren't picking up a bunch of crappy looking shirts you will be happy. You might even learn a thing or two .. i do most of my own printing now on a small press i bought.
-Jeff


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## dmfelder

There are so many business models out there, it's hard to figure out how much money you'll really need. The real question is what do you want to do.

We initially didn't have the money to buy our own equipment, so we farmed out our DTG printing. Now, we are a viable direct-to-garment printer. But this didn't come without a cost. A DTG printer will cost you $6,000-$10,000 and the time to keep it running will suck every last hour of sleep out of you!

Make good connections, grow your business slowly, test the waters, and be agile enough to quickly change and/or grow your business model.

Then, the you can figure out the best way to spend your money.

The nice thing about shirts is that, while margins can be tight, you don't have to invest too much money to be the middle-man.

Good luck!


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## gaseousclay

i'd say you can get by with $3000 if you know what you're doing. I don't believe you need to have a large number of designs to begin with -- if you think your tees are decent enough, they'll sell...no matter how many you start with. plus, there are so many affordable resources out there almost anyone can start a clothing store, you just have to want it bad enough


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## jkruse

I started with $500 and have grown naturally but recently I've been trying to think for how much it would cost to do it the right way.

200-300 (per shirt design) X 10 = $2,000 -$3,000
Printing 50- 100 shirts per design on AA at around $7 a shirt = $3,500 - $7,000
Website + myspace design = $1000 (I would design these myself but I'm just going to put a figure in)
Advertising = ? (I've only done word of mouth so far and I'm doing great)

$6,000 and up

If your looking for a design on bigcartel check out my site for some examples I've done.


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## jlcherry2477

doomy3 said:


> I was in retail as an
> My question is, how much should we expect to bring to the table in capital to do things the RIGHT way. We are probably looking at an initial launch of 8-10 prints, with an ecommerce site, other marketing, etc. We would also be looking at possibly doing custom packaging.


 - coming from owning a clothing business with a "partner", i would never go into business again unless it was solo. I would expect for something your looking to do to have at least $15-20,000. ..just my .02.


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## Mar10world

i'm working with a business counselor who is asking me tough questions about operating capital, turn in inventory, and he wants me to give a figure (for financial portion of business plan) for income forfeited. I believe in my product but i wasnt going to quit my job and order 10,000 units ya know?.


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## mishoga

Hello, my name is Mish. I am new to the forums and so thankful I've found them. 

I too am in a very similar situation. I started selling my own designs about 2 years ago. I do all dying, embroidery, crystal embellishments, screen printing, etc... I have a manufacturer in CA that cuts stock patterns and I have custom patterned a few of my own designs. 
Last year I invested $10,000 to test the market and gave myself 12 months to see the response. Response and demand is overwhelming to the point I am turning away business constantly. I can not keep up with the demand. As soon as I supply it to the boutiques...it sells. I'm at the point that I am working 70+ hours a week plus my regular work hours. 
I've come to the conclusion that I need to do this on a larger scale. 
I am attending the Magic trade show at the end of this month in the hopes of finding a all inclusive manufacturer to reproduce my designs.
I am figuring I will need to invest between $40,000-$70,000. This will include marketing to a specific target consumer.
I researched extensively when I decided last year to test the market and see the response.
Advertising in one issue of a major publication for a third of a page is $5,500. That's just one issue.
I'm going in blind as I don't really know the business and the fashion industry does not share willingly.
I would appreciate any and all advice anyone could offer. I too will share my experience in this process. 
Thank you in advance.


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## 2wicky

doomy3 said:


> I was in retail as an Area Manager for 10 years, and got tired of the management side of operating a retail clothing store. I decided that I would rather be on the side of the fence that was making the product and selling online and selling to retailers, etc.
> 
> I am very limited from a design standpoint, so I will be hiring out all design work once me and my partner decide on a final name and business plan, etc. My specialty is more on the business side of marketing, selling, branding.
> 
> My question is, how much should we expect to bring to the table in capital to do things the RIGHT way. We are probably looking at an initial launch of 8-10 prints, with an ecommerce site, other marketing, etc. We would also be looking at possibly doing custom packaging.
> 
> How much money should we set aside for something like this? Any advice would be greatly appreciated!


I've got almost the same layout for my endeavor and I've factored spending roughly $3000-4000 to get it all off the ground. 

Some things I am doing to keep costs down. 

Hiring of my web tech and my initial artist (for website, brand and initial designs) are both people I know and trust. This is costing me less than a grand for both. 

Website I don't want to skimp on but will do most of the work ourselves. Still, costs are costs. Domains, hosting package, ecommerce purchase, etc is estimating around $400. 

Only going to launch with 5-6 designs. While I'd love to shoot for 10 as well, to give an immediate look of professionalism I feel that working out the kinks with just 5-6 in regards to printing, sizing, etc. will be more productive and then expand another 5 in under 2 months. 

I also am planning custom packaging, there's some good threads on this forum in regards to how you want to do that. To start I'm planning foil packaging with logo stickers added, cost will obviously go up a bit but presentation and customer appreciation is important. 

Personally I don't feel approaching retailers should occur until all the kinks have been worked out through your local site and you are happy with your brand and design lines. Once you've been established, have some good product/model shots, can design a nice brochure, etc. then I feel your product has the confidence to be alongside the heavy hitters.


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## NigelT

Hi,

I also have a similar setup and am facing around £2000 ($3000+) to get 200 t-shirts printed. This is more than the initial amount I had set aside and I am considering my options at the moment.

Would it be best to just put aside more money to cover the cost, or it is best to scale back in terms of tees and/or designs?

At the moment I have about 13 designs, so maybe this can be scaled back especially considering 2wicky's post I suppose I can still have the professional look with less designs. Maybe someone more experienced can advise?

I'm considering custom packaging too. Heading to the search pages now...


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## mcspargeslarg

jmcgurren said:


> I agree with lburton3. I started a company about a year ago and initial costs were about 3,000 for printing and that was like 350 shirts total with 2-4 colors and like 7 different designs.. I have an ecommerce web site but I manage it myself and I built the site myself so my only costs were printing and biz start up fees with the state and such. Only problem is all the screen printing companies I have been to seem to screw up almost every design at least once and I have lost a lot of money that way. I recommend a press check on all of your printing or even standing in on the process and watching it all happen. When you aren't picking up a bunch of crappy looking shirts you will be happy. You might even learn a thing or two .. i do most of my own printing now on a small press i bought.
> -Jeff


Your words were insightful man. What kind of press did you wind up getting yourself?


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## chesterwayne

It depends on your business model, if you are planning on printing shirts through a printer or through your own machine. Be sure to include costs of building a website ($1000 - $10,000). Advertising costs ($500 - 2,000) Printing machinery ($5,000 - $20,000). Graphic Designs ($200 per design). To do it right, you should have at least $5,000 to start.


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## bahamianqt

thanks to everyone for their insight this post has shed some much needed light in my direction.


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## [email protected]

Mish,
I don't understand. If business is so good ..70 hrs a week, can't keep up with demand.....why do you have another job? Are you able to comfortably live on your shirt biz?
Don't mean to be nosey, just sounded confusing to me. I bought a DTG machine last month and am just getting started, ....shirts , coasters, totes, all selling. Let's hear more !


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## mishoga

I teach yoga. I have 5 classes. That is my love. Neither my clothing or my teaching supports my life and family. 
What I meant to say I am working so many hours painting, embroidering, screen printing, dying and wash out, finishing and invoicing stock. Stuff like that. 
That doesn't include the time needed for sales, promotion and networking. 
It's a lot but I am determined.


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## VLAENTINUSMC

I am looking for a mentor my name is David Valentin. Please contact me if you are interested.


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## SharpasKnives

I started a shirt company with my girlfriend for $1200 CAN ($900 USD). We were able to buy second-hand screens and ink, etc from friends, family, and kijiji. We did all the art ourselves though... And outsourcing art is expensive. And the more you pay, the better you can get (usually). Honestly, I think you an do it for as much as you'd like. You can print by hand for cheap, or buy a big press for thousands of dollars. It really depends on your look and how you are marketing yourself. You can do a lot with less if you do your research. 

We do everything by hand because I'm a bit of a control freak and I hate dealing with outside companies. It works for us because we're pretty hard-headed but don't be afraid to learn to do things yourself, I guess. The most expensive part for us was buying shirts and the website. We do everything through shopify.


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