Starting Your Own Hat Line: 7 Things You Need To Know
BusinessIn the 10 years I’ve been in the custom apparel and hat business, I can’t remember how many people have called for help starting their hat line. They all thought they had a great idea. Most of them had little or no money. And none of them had any idea what it takes to succeed in one of America’s most competitive businesses. The first question these people asked was always “How much does it cost to make my own custom designed hats?” And always, I told them, as gently as I could, there are many other questions that they should ask first, and cost is perhaps the last of them. I have always given these people my honest opinions while doing everything possible to encourage them. This article summarizes all the advice I have given over the years. Later items will address each of the following steps individually in greater detail.
#1: Know your customer
Maybe the most important thing to do before starting any business! You must answer the following questions about your customers:
1. Who could be your customers?
2. How old are they?
3. How many of them are there?
4. Where do they buy?
5. How often do they buy?
6. How much do they tend to spend when buying hats or caps?
7. What is popular among these people at this time?
The answers to these questions determine the niche in which to sell your hats, what designs are appropriate, how many of your hats you can sell, and at what price.
#2: Know your competition
The second most important thing to do before starting any business! You must answer the following questions regarding your competition:
1. Who can be your competition?
2. What types of hats and designs are offering right now?
3. How much do you charge for these products?
4. Where do you sell your hats?
5. How are you marketing your hats?
The answers to these questions determine which designs to offer, how much to charge, which distribution channel to consider, and potential merchandising venues to consider when launching your own line of hats.
#3: Know your marketing plan
So what’s the best hat design of the decade if you can’t get your products out! Launching a line of hats is all about marketing. Let me give you a very simple example. I have a client, a real client whose name I cannot mention. These guys have some great design ideas. So they teamed up with a poker player and hired a PR person who is connected to the entertainment industry. These 2 people generated a lot of interest in their products! Before you know it, a couple of celebrities were wearing their designs and the rest is history. So brainstorm, be creative, put your name out there! Who knows? You can be the next ROXY, Quicksilver or even NIKE!
#4: Know your starting cost
So, you have figured out who your target customers are, who your competitors are, what hat designs you want to launch, and you have come up with the most creative marketing campaign. Now is the time to answer some questions related to costs:
1. Staffing and office rental
2. Marketing campaign costs
3. Travel expenses
4. Trade Show Expansions
5. Production relationship costs:
(i) How much does it cost to sample your designs?
(ii) Who should they go to make prototype designs?
(iii) Production Running Costs (Depends heavily on how many hats you want to produce for your release. To get a reasonable price, you should order at least hundreds per design. 25 hats is NOT a wholesale quantity.)
#5: Financing
You have a plan to market your line of hats; You know how much it will cost you; Now you need to know how to finance your business. Possible sources of money:
1. Your savings
2. Your friends and family
3. Mortgage your current assets like your home
4. Find outside investors (although this can be difficult to start a hat line, but you never know)
5. Bank loan (SBA loans are available to entrepreneurs in many cases)
#6: Know your release date
En la moda, el tiempo lo es todo. Are you launching your line of hats for the Christmas season? For back to school season? For the 4th of July? Most of the production abroad takes 72 to 90 days through maritime transport. Let’s say you are producing your hats in China. Do you know that the Chinese close up to 15 days during the Chinese New Year, which is celebrated on different dates, but especially in January and February, depending on the year?
#7: Write down your plan
You have collected all the pieces of the puzzle; writing them down increases your chances of success. Your plan will keep you focused and provide you with a general panorama, as well as the details you should consider. And if you’re trying to get financing, a business plan is not only crucial, but absolutely necessary!
This is a simplified summary of the essential steps that must be followed before starting a line of hats. So get creative with your designs; Be thorough with your research; Be meticulous with your planning. And good luck! Be sure to consult my other articles on specific details of each of the previous points. You can also check out my websites for additional information.