According to IBEF, the Indian Textile industry is constantly growing . In fact, the current value for FY21 is US$ 85 billion and expects to reach US$ 190 billion in the coming five years. As budding entrepreneurs, it is the best time to learn how to start a textile business and set it up.
Before moving further to the process, there are four types of textile business that you can start.
Starting any of these textile businesses requires following the basic steps:
When starting something new, whether work, journey or party, we always have to plan it before.
Thus, it ensures that there are no conflicts or mismanagement later.
But, you must be thinking about what to cover when planning how to start a textile business?
Well, a business plan is the summary of your business. Therefore, map out everything that comes to your mind first.
After that, tick the points from the checklist mentioned below:
Get your business registered as soon as you map out the plan and figure out your business type.
Depending on your scale and type of business, you can register it under either of the following structures:
Private Limited Company
Starting manufacturing or import-export business.
For starting a business in wholesale, retail or import-export of raw materials or fabric, you can opt partnership structure.
Limited Liability Partnership
Best for small businesses and startups. Hence, you can go for it if starting a small wholesale or retail store.
A sole proprietorship is most suitable for retail shop owners or online business owners.
In fact, you can do company registration online in just 4 simple steps by filling the form on the right >>>
Whenever you start any business, it is necessary to get the licenses to operate legally.
The licenses you need for the textile business are as follows:
Moreover, having all the licenses and permits protects you from legal conflicts and penalties.
Managing the investment of a business involves obtaining and using the funds for the correct purpose.
Getting the investments is a crucial step and takes most of your time.
With this in mind, I have done some research and found out SMERGERS to give you easy access to investors.
After that, you have to manage these funds and allocate them properly for all the purposes.
For example, the main expenses are rent, utility bills, salaries, stock, machinery, hidden costs and transportation.
The location always plays a vital role in the operations and smooth working of the business.
Find a location that is both near to your resources and accessible to your customers.
Before choosing a location, do a quick analysis of the market where you are to set up.
Also, it is not mandatory to have a lot of space to start a business.
You can even set up a manufacturing unit on a small scale depending on the machines.
Stock sourcing and selection of suppliers is a tough but interesting task.
Moreover, before getting the raw material and fabric, you must be updated on the current trends, fashion and demand.
For Manufacturing- Find the best source of raw materials within India. Hence, you can avoid extra charges of importing the raw materials.
For Import-Export- Get in touch with the manufactures directly, and avoid any brokers or mediators.
For Wholesale- Contact the manufactures directly and source the products from the factory after checking the samples for quality and minimal price.
For Retailers- Indiamart is the best platform for retailers to buy quality products and find the best wholesalers.
The machinery and workforce are equally essential aspects to be taken care of.
However, you only need machines for manufacturing business and some for import-export for weighing and loading.
On the other hand, you do not require any machines for the wholesale or retail business.
Further, all the business requires workforce depending on the scale and type of business.
To know more about the hiring requirement in your type of business, consult an expert by filling the form on the right.
Now, you almost know how to start a textile business, you are ready to set it up.
Once you get all the things, set up your business.
If you are setting up a manufacturing factory, install your machines with caution and with enough distance between each.
Similarly, if you are opening a retail store, ensure that your customers have enough space to walk and explore your products.
Also, for a retail business, brighten up your store properly So that your customers can see the colours and quality of fabric.
You will need to set up logistics for both the manufacturing business and the import-export business.
As well, wholesaling may also require taking care of logistics to supply the stock to the retailers.
Therefore, keep in mind to set up your factory near to both the source and customers. It will help in reducing your logistic expenses.
Instead of doing everything, it is always better to focus your attention on a specialty product.
Therefore, focus on a particular customer base and fulfil their demands instead of targeting the larger market.
Also, focusing on the niche make things easier and allows you to know your customers better.
It will also help you in analysing your target market and the best way to reach them.
You can start advertising your business as soon as you set it up.
Therefore, start circulating the news in your circle.
With this in mind, you can also create a social website and advertise your business on it.
Some modes for advertising your business can be:
Now, as you are ready to launch with everything in its place, Have a Grand Opening!
According to Hindu beliefs, we believe in having Hawan and Pooja before starting something new.
Therefore, choose an auspicious day to start business and do all the rituals and pray to God for showering abundance and success on you.
Also, you can have a party with your friends and celebrate the opening of your new Textile Business.
For starting a textile business, you require to know the textile industry.
Therefore, when you look up how to start a textile business, you should know how to be updated on fashion, quality and colours people prefer.
For more information, you can contact our experts at www.starteazy.in