How To Start A Clothing Line With Less Than 70 Dollars

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hey guys how’s it going John Santos and welcome to this channel where we help entrepreneurs start and grow their business ASAP with little resources or experience so in this video we’re going to cover how to launch your clothing line for less than 70 bucks now this is an update to my previous video which I shot in 2014 I’ve done all kinds of other videos on the channel so make sure you stick around and I’ll reference those in here as well so you guys can link over and learn more about some of these processes first and foremost it’s always going to be about starting lean guys it’s about starting lean and what I mean by that is don’t spend a lot of money on things that don’t necessarily drive any results now when you’re first starting off whether you have no money or whether you have a couple grand in the bank use it as if you have no money like literally don’t go out and buy a bunch of inventory or things that you think you might need because what you’re going to want to do is always keep it lean there’s a lot of different options you can take and some people will say that’s not true you know you’re going to need to spend $400 on this thousand dollars on that yeah you could and a lot of people do but in order for you to really prove what you’re doing you really have to start small the great businesses Under Armour whether it’s Apple you know all these great businesses have these stories of them starting in the garage and them starting from scratch from nothing with a few ideas and a couple hundred in the bank and that’s the same mentality that you got to take when you’re launching yours because if you take anything else you’re literally going to be spending money on things that don’t drive results and at the end of the day you’re back to starting up with nothing so now we got that out of the way stay lean stay mean and just go out there and do it let’s get into the steps now the first thing you’re going to need to do is create a plan doesn’t have to be a 16 page or 30 page or 60 page business plan to get your idea started but you do need a plan to get it started so what I’m talking about is don’t just go out there and start doing a bunch of random shit because then it’s not going to go anywhere you’re literally going to end up in a bunch of random shit go out start a one-pager now there’s a thing called lean canvas and I believe their website is lean stack now so links com so lean stack com allows you to create a one-pager now the one pager is going to help you analyze the things that you’re going to need to get started all right so who’s your team is what your competitive advantages are you know what distribution model what sales method everything it’s going to really walk you through what a whole business plan should include in a one-pager really see the landscape who your competitors are what is somebody else offering and how are you going to offer something different that’s going to attract the same target market because it’s face it guys there’s only a certain amount of people in the world and a certain amount of people in the US and everybody’s trying to go after them and they’re already buying stuff from other people it’s not like people are walking around with no shirt so without any jeans or without any bags they’re wearing something they’re they live by something they really enjoy something so what are you bringing to the table and how are you going to be different for them to give you their hard-earned dollars and support your brand so always start with a plan guys because that’s really what’s going to dictate what you do moving forward now writing a plan is going to cost you zero dollars so whoever’s tallying it up zero dollars to write a plan lean stack is free so you don’t have to spend any money on them they have a free version jump into the topic that everybody has questions about you know what legal structure should they have should they do an LLC sole proprietor partnership corporation S corporation there’s all kinds of things out there and options that people can use every state is different keep that in mind guys not every single state has the same laws same tax advantages you really want to talk to somebody in your area that has already formed a business in that area and really get their opinions on what they think is the easiest to start maintain and grow over time more than likely you’re going to end up changing it I mean I’ve seen businesses from all sizes change from LLC to a corporation from a sole prop to a corporation everybody ends up going up steps and you know just everybody ends up growing and expanding out of their original ideas but don’t let that hold you back so in this case I recommend a sole proprietor because in the state of Nevada and a few other states it’s free to get started meaning that you don’t have to pay any business licenses if you’re based out of your home and it allows you to establish your DBA S which is a doing business as it allows you to establish your bank accounts get your EIN numbers your wholesale which we’re going to cover all of that so don’t get overwhelmed yet so it’s going to allow you to get all that paperwork with a people sole proprietor formation now my business was formed as a sole proprietor it’d be Jonathan doing business as survive all right so that’s an example of a sole proprietor and a doing business as that means that vendors and everybody else would invoice revived brand Co not invoice Jonathan because I set up a DDA meaning how to set up another entity under my name to take care of the business bank accounts and to take care of the invoicing and all that other stuff so you do the same for an LLC or corporation your LLC will have its its own name like its own firm and identity name but then if you ever want to do business as a different name you always have the option to do that now all of that is going to be filed through your own state’s website say you’re living in New York or California you know you’ll Google California LLC registration or California sole proprietor registration for the most part a lot of states have gone fully online you can file your applications there you can file your business licenses or your permits everything registered online so always make sure that it has a.gov don’t ever fall for the trap of like a different com acting like a gov always look at the end because it’s always going to be cheaper that way if you do it yourself once you have that paperwork whether you decide to do sole proprietor LLC or corporation you’ll be able to get an employer identification number which is also known as an EIN number always make sure that you’re going to the dot gov sites the ein number is available at the IRS gov website and it doesn’t charge you anything you just need to have the business registered so whether you decide to do a sole proprietor an LLC or corporation whatever fits best for your position just go in there enter in the information that they asked you have a few minutes to complete it once that’s completed they’ll give you an EIN number which now you’ll have the business paperwork ready your DBA if you decided to go sole proprietor and then you’ll have your EIN number so with that with those documents you’ll be able to head over to a bank whether you choose Wells Fargo whether you choose Bank of America whether you choose Chase there’s even Capital One which has an online option like it’s an online bank account and they make it pretty simple really easy to get started as well so if you want to open up an account just do your research on the banks make sure you open up the business account it’s going to be under your guyses name you might need a couple dollars to open it up but for the most part it’ll be available right after you submit your documents and you get your EIN number so once you complete that process you can submit for yourselves and use tax now what that is in a lot of other places is they’ll actually consider it a wholesale tax ID number meaning that they’ll be able to sell you items whole sales so if you want to buy fabrics whether you wanna buy t-shirts in bulk whatever it is that you want to buy you’ll be able to buy it and purchase it wholesale because now you’ll you’ll have to report those on your own taxes so a sales and use tax is available through your own city and state you’ll be able to register your business and information all the above documents we just went over they’re going to request them and then they’re going to request for a business bank account as well but you have all that ready if you follow the steps before this and now you’ll be able to buy wholesale now I did get a few things where people were saying that they were requiring other information and all this other stuff is just make sure that you’re registering your business as an online business account buys wholesale and resells so the last few steps covered had exactly how to structure your business now again whatever you decide is completely up to you but you’ll now be able to get into business start buying wholesale setting up accounts with third parties vendors and you’re pretty much good to go like I said a lot of those things are free they’re free or very minimal charges so always make sure you go to the right sites and don’t get ripped off by third parties so now we’ll jump into a topic that a lot of people have in mind and that’s trademarks copyrights patents you know everybody’s like I want to get patent on my name you can’t patent a name you can trademark it and you can’t patent a design you can copyright it so just keep those in mind there’s three different uses there they’re not all the same they don’t intermingle and for the purpose of this question I know a lot of people are asking like okay when do i trademark it or how much does it cost and one should I do it how should I do it so for the most part like I said at the beginning of this video guys keep it simple you’re not sure if the brand is going to pick up crazy if I were you I wouldn’t spend a 250 plus so I trade market but it’s completely up to you if you have other people in the business and they’re like do the trade market because it’s available like it’s going to cost you 200 plus to register it on your own and once again that’s on the USPTO gov website you hit over to the trademark section you’ll be able to follow the applications all yourself if you go through a lawyer that’s going to conduct the research I could double or triple your fees that you’d pay at the USPTO if is now you’re also paying for the guy’s time big marks can either run your a couple like two hundred bucks two to three hundred on your own where they could run to you like seven to a thousand if you go to a lawyer go out and prove it before you start spending money on trademarks because then that’ll definitely go over the seventy bucks it’s going to be people down below saying dude a trademark is 300 bucks so how is this a $70 to start your clothing line is because I’m telling you guys to prove what it is that you’re doing before you start investing money into trademarks but say you do have a product that’s like fucking crazy and revolutionary and something really cool that you can patent then I do recommend you take that route you’re going to have to spend a couple more dollars it’s going to cost you anywhere between 75 to a thousand plus to submit your patent pending and then a couple thousand to submit your patent so that’s a different story but anybody that’s wondering as far as names go trademark is the way to go if you have a design that you want to copyright meaning like you have a really cool artistic drawing that you want to put on a shirt for the most part art is always protected but if you do want to copyright it it’s going to cost you like fifteen to twenty bucks and that’s optional there’s some content where I actually talked about this so just click down below and I’ll be able to send you that information it’s a free download you guys will be able to get and you guys will really know a little bit more about it but for the most part guys trademarks are optional you can get them but unless you’re ready to start spending a couple thousand just to get started it’s not the way to go prove the brand prove the designs then start investing some money into the legal protection if you’re really worried about somebody going and stealing your name Reserve the websites reserve the social media print some shirts because once you have all that pretty much established you can always go back in and trademark it and prove that you were the first one to do it that’s other legalities that’s getting into other legalities but if you go out there and you were serve it and you establish it you could always apply for it and protect it later and now we get into the topic of websites now there’s all kinds of options for you use there’s XE their store Envy there’s Big Cartel there’s Shopify there’s WordPress the list goes on and on guys and I actually have a video that covers all the major ones and it’s linked down below and I’ll try to put it up here as well so you guys can click over to that so if you have any specific questions for what should you do to get your website started I recommend you check that video out now when it comes to online retail and online e-commerce there’s a study by Internet retailer that said that by 2020 by the year 2020 there will be five hundred and twenty three billion dollars in sales online in the US right now it’s currently sitting around 300 billion so that’s a crazy increase in online commerce so when you’re choosing a website you always got to keep three things in mind always make sure that it’s mobile-friendly it’s easy to navigate and then it’s safe and secure so you always want to make sure that the theme in the platform that you use allows you to meet those criterias because that’s what’s going to help you sell online there really is two major ones that you can go you can either go fully custom and outright on the website or you can pay on a month-to-month basis now that’s really how websites are going to be broken down like all the options that you see online is going to be those two things you’re either going to be able to own it or they’re going to charge you month by month the number one if you want to own it outright it’s going to be Bluehost Bluehost with WordPress integration and that’s going to allow you to host your domains with them they’re going to give you your email addresses are going to give you a custom domain site they’re going to host your site they also offer the protection that you’ll need to make sure that you’re credible to people logging in now WordPress is fully customizable you can choose your themes customize them add to shopping packages add to checkout options WordPress is overall like its own beast and if you’re willing to put in a little bit of work you can out write on your site start set really affordable monthly hosting packages like three bucks a month the first year you might pay 30 bucks to host your site you know and everything else is for the most part all free and payments are processed through your also sir whoever you decide to use and then the second option that you really have and is really making a huge impact in the game is going to be Shopify and Shopify charges you a monthly fee and that monthly fee is $29 a month for a starter package and what that covers is it gives you your website it allows you to install a theme and it and it handles your inventory it handles your processing and it’s a seamless transition so Shopify is really up in their game and they’re really increasing in the e-commerce world and for the most part all major apparel brands are moving towards that platform that make it super easy for you to launch your website for you to manage your orders like all the shipping everything is is managed through Shopify and they have a really cool dashboard so those are your two options guys so you could either go custom with WordPress so you can go month-to-month by Shopify and like I mentioned earlier just go down to the video description and I’ll link my other video that talks more in detail it’s going to be up to you with how you want to use it but for the purpose of this it can cost you $29 a month and we’ll note that down into the $70 budget now in this step it’s not going to count towards the $70 budget because it really varies you could literally go pre-orders get orders for your design have a company make produce it and ship it there’s different options you can do but the one thing that I will tell you guys is don’t spend any money on large inventory before you can prove that it’s going to sell now I talked about this throughout the channel all the time and this falls back to starting your business ASAP with little resources all right that means that you always want to go out and prove that this design that you’re selling is going to sell before you place any orders there’s manufacturers out there that I’ll print a few shirts at a time for you to get started and prove what it is you’re selling and once you can prove that that selling you can order a few more get the shirts a lot cheaper and then you’ll be able to make a higher margin all right so now you have your website you got some product or you have the capability to pre order products now you’re going to want to fulfill orders now in order to fulfill orders don’t go the route of buying boxes yourself for the most part try to avoid buying boxes because it’s going to is going to add up on your cost always try to use the shipping carriers boxes so USPS has a shipping carrier option that’s like I want to say the best in the country when it comes to shipping any small products on they got the flat rate boxes that can go nationally internationally and they charge you a flat rate for them so you can head on over to any USPS store or any USPS post office and take a look at their sizing and dimensions and then you can go on to their website – USPS comm and register through your business information your documents that we talked about earlier and they’ll actually shitboxes out to your house so whatever it is that you want whether you want hat boxes t-shirt boxes like they’ll ship it to you because they want you to use their service so the next step is for you to process in person now honestly this is going to be your primary revenue driver when you first launch because you’ll actually be able to get real people looking at your product feeling it touching that wearing it and you’ll be able to get that feedback that you’re going to need so you’re going to see whether the prices are too high the design doesn’t resonate or it’s not what people really expect so go into these in person events and really interacting with complete strangers is going to give you so much market insight and allow you to really adjust your designs tailor them so you can maximize revenues online in order to process sales you’ll just need a phone like you don’t need to sign up on these banks or anything like that you just literally get your phone attach a card reader to it and get started always important to use a reputable card processor because when you’re at these events people are very hesitant to want to buy stuff with their credit card if they don’t really know who you are so if you have PayPal if you have square those are the two most recognizable platforms I’m actually going to link a video here that talks more about the processing options that you have but for the most part they’ll always use a reliable processor now this next step is super important guys and it’s really what’s going to drive your company and that’s the design and having a good direction for your market so if you want to launch a graphic tea business to start or or if you want to launch a certain cutting soap product I suggest you start looking into the options for you to either learn or outsource that work when it comes to graphic design there’s all kinds of classes available online that you can literally register for and they’ll show you how to use a pro Remz Adobe Photoshop is one of the leading design software’s that everybody uses and as well as Adobe Illustrator Adobe has made it available through the Creative Cloud so you don’t have to go out and buy these like six hundred to a thousand dollar platforms anymore you can pay month-to-month to use them you can sign up for an adobe cloud account and the descriptions are down below so you can you can check that out and see if it’s something that fits with you if you’re willing to learn if you’re a good artist by hand I suggest you start looking into how you can design on the computer if you have absolutely no design history or no design knowledge I suggest you still learn it because you’re going to want to be able to communicate with a graphic artist you always want to put the work forward so then that way it makes it easier on them to create graphic design you’re either going to design yourself you’re going to outsource to someone but you always want to be in charge of creating the direction for the brand so who is it targeting who is that target market that you have other skaters breakdancers hip hop whatever that market is figure out your fit in there and figure out what the competition is and how your designs are going to be different and why people are going to be buying your stuff so the purpose of this video was to get all the business logistics out of the way so you can focus on design aspect the marketing in the brand direction so I hope you enjoyed this video and you’re able to take a lot from it I hope you took some good notes if you have any more questions I did link some information down below I do have some free content available that you guys can download and I expand on certain things and you guys will be really able to think about exactly what you need to think about without worrying about all the other stuff so make sure you stay connected follow me on Instagram snapchat let’s talk if you have any questions email me through that or if you have any comments or any kind of other questions that we can expand on comment down below subscribe to this channel I really appreciate it like this video share it with somebody that might be interested I really appreciate that guys I do this for you guys for you guys to be able to start I have a bunch of other content on this channel so just make sure you check around take a look at some of the things on there videos come out every Friday so I’m always producing the content for you all the questions that come in I really appreciate them Congrats to everybody that started their businesses last year we’ve gotten so many emails so many requests of like people that hey check this out Hey Dude thanks so much like I really appreciate all that positive kontin all that positive feedback that you guys are given every time I see you win it makes me feel like I was a part of that so I really hope that this video helps once again subscribe like comment down below let’s stay in touch and let’s get it