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T-Shirt Business Plan Template

Written by Dave Lavinsky

T-Shirt Business Plan

You’ve come to the right place to create your T-shirt business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their t-shirt companies.

Below is a template to help you create each section of your T-shirt business plan.

Executive Summary

Business overview.

Comfy Style Tees is a startup T-shirt company located in Philadelphia, Pennsylvania. The company is founded by Scott Smith and Mike Anderson. Scott Smith is an established graphic artist who will be creating the designs for the company’s T-shirts. Mike Anderson is a graduate of Pennsylvania University with a Master’s degree in Marketing. Together, the pair is ready to open their own T-Shirt business, Comfy Style Tees. Scott has been creating unique graphic art for over a decade and has gained a substantial following as an artist on social media. Mike has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers who are interested in purchasing apparel featuring Scott’s artwork. The duo plans to hire a small team of professionals to manage the day-to-day complexities of running a retail business including accounting, customer service, sales, and inventory management.

Comfy Style Tees will offer comfortable T-shirts made from premium 100% cotton. Each T-shirt will feature artwork printed using a direct-to-garment (DTG) printing method that allows for Scott’s detailed and colorful designs to come to life. Comfy Style Tees will create and sell limited edition T-Shirts in small batches.

Product Offering

The following are the products that Comfy Style Tees will provide:

  • Men’s T-shirts
  • Women’s T-shirts
  • Children’s T-shirts
  • Toddler’s T-shirts
  • Pet T-shirts for dogs and cats

Customer Focus

Comfy Style Tees will target people of all ages and genders who value wearing unique T-shirt designs that can’t be found off the rack. The company will target men, women, children, and people with dogs and cats. Comfy Style Tees will target fans of Scott’s artwork as well as individuals that are unfamiliar with it. No matter the customer, Comfy Style Tees will deliver the best communication, service, and high quality products.

Management Team

Comfy Style Tees will be owned and operated by Scott Smith and Mike Anderson. Scott Smith is an established graphic artist who will be creating the designs for the company’s T-shirts. Mike Anderson is a graduate of Pennsylvania University with a Master’s degree in Marketing.

Scott Smith has been creating unique graphic art for over a decade and has gained a substantial following as an artist on social media. Mike Anderson has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers who are interested in purchasing apparel featuring Scott’s artwork.

Success Factors

Comfy Style Tees will be able to achieve success by offering the following competitive advantages:

  • The most flexibility in the customers’ shopping experience: customers can order online for delivery or in-store pickup, come into the physical store and shop, and return items through the mail or in-store no matter which method they purchased them through.
  • All tees are carefully printed using the latest DTG printing machines and meticulously inspected to ensure quality.
  • Comfy Style Tees doesn’t sell to other retailers or white label its products, so if a customer wants an authentic Comfy Styles Tees product, they know they will be able to get it exclusively from the shop or the online store.

Financial Highlights

Comfy Style Tees is seeking $120,000 in debt financing to launch its T-shirt business. The funding will be dedicated towards securing the retail space and purchasing DTG printing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll, rent, and marketing expenses. The breakout of the funding is below:

  • Retail space build-out: $30,000
  • DTG printing equipment, supplies, and materials: $30,000
  • Three months of overhead expenses (payroll, rent, utilities): $40,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for Comfy Style Tees.

pro forma financial projections for Comfy Style Tees

Company Overview

Who is comfy style tees.

Comfy Style Tees is a newly established boutique T-shirt shop in Philadelphia, Pennsylvania. Comfy Style Tees will offer the most fun, unique, and stylish tees around. Comfy Style Tees will provide a wide range of sizes for adults, children, and pets. Customers can purchase the one-of-a-kind Scott Smith designs online or in-store. T-shirts are DTG printed in small batches and each unique design is offered for a limited time only, so customers who want a particular design will need to act fast before they are sold out.

Comfy Style Tees will be able to provide the best customer service through its friendly and knowledgeable in-store associates and its use of the latest AI technology for online support. The management team is composed of professionals who are highly qualified and experienced in customer service, marketing, and operations. This strong management team allows Comfy Style Tees to serve all customers with attention and care, removing all headaches from the shopping experience.

Comfy Style Tees History

Comfy Style Tees is owned and operated by Scott Smith and Mike Anderson. Scott has been creating unique graphic art for over a decade and has gained a substantial following as an artist on social media. Mike has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers.

Since incorporation, Comfy Style Tees has achieved the following milestones:

  • Registered Comfy Style Tees, LLC to transact business in the state of Pennsylvania.
  • Has a contract in place to lease the retail space.
  • Reached out to numerous potential suppliers to get samples and quotes for their wholesale garments that will become the company’s DTG printed T-shirts.
  • Began recruiting a staff of accountants, marketers, and sales associates to work at Comfy Style Tees.

Comfy Style Tees Services

Industry analysis.

The global T-shirt market size was an estimated $206B in 2018 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.0% by 2027. In the United States, the T-shirt market reached an estimated $43.47B in 2022 and is expected to grow at a CAGR of 3.9% by 2026. The market for T-shirts can be segmented by materials and printing techniques. Most T-shirts that sell well are made from cotton, polyester, linen, rayon, lycra, or a blend of these fabrics. Two of the most popular printing techniques are screen-printing (estimated revenue share of 56% in 2021) and digital printing, which is expected to grow by 10.9% by 2030.

Over the years, the T-shirt industry has evolved from practical, plain white tees to designer labels, custom designs, and graphic prints. The market outlook for the T-shirt industry is positive with increased ecommerce and more people looking for unique styles. Although online shopping is increasing, more revenue is still currently being generated through physical retail. The top five countries generating the most revenue from T-shirt sales are China, the United States, India, Germany, and the United Kingdom.

Customer Analysis

Demographic profile of target market.

Comfy Style Tees will target people of all ages and genders who value wearing unique T-shirt designs that can’t be found off the rack. The company will target men, women, children, and people with dogs and cats.

The precise demographics for Philadelphia, Pennsylvania are:

TotalPercent
    Total population590,157100%
        Male284,87348.30%
        Female305,28451.70%
        Under 5 years41,7497.10%
        5 to 9 years43,5097.40%
        10 to 14 years41,3247.00%
        15 to 19 years43,3017.30%
        20 to 24 years48,1198.20%
        25 to 34 years106,40718.00%
        35 to 44 years73,78812.50%
        45 to 54 years64,66911.00%
        55 to 59 years35,1095.90%
        60 to 64 years27,9954.70%
        65 to 74 years39,5396.70%
        75 to 84 years17,3942.90%
        85 years and over7,2541.20%
Total housing units260,024100%

Customer Segmentation

Comfy Style Tees will primarily target the following customer profiles:

  • Young adults (ages 18-29)
  • Men and women (ages 30-45)
  • Men and women (ages 46+)
  • Children (ages 4-17)
  • Toddlers (ages 0-3)
  • People looking for stylish T-shirts for their dogs and cats

Competitive Analysis

Direct and indirect competitors.

Comfy Style Tees will face competition from other companies with similar business profiles. A description of each competitor company is below.

Simple Tee, LLC

Simple Tee, LLC provides comfortable T-shirts at affordable prices. Located in Philadelphia, the Simple Tee retail shop is able to provide a wide selection of custom tees for its customers. The company makes form-fitting T-shirts for men, women, and children using 100% premium cotton and cotton blends. Simple Tee, LLC uses screen-printing technology to produce quality T-shirts to suit any style.

Simple Tee, LLC’s promise is to deliver top notch customer service, quality products, and great prices. The company’s team checks each T-shirt to ensure the highest quality before placing it on the sales floor. Simple Tee also sells its tees online and wholesale to other retailers.

Cool Trends T-Shirts

Cool Trends T-Shirts is an Philadelphia, Pennsylvania-based apparel company that provides outstanding customer service and fun art prints on all of its T-shirts. Cool Trends T-Shirts uses screen-printing and digital printing technology to make its one-of-a-kind tees. The company makes tees for young adults, children, and toddlers. You can buy Cool Trends T-Shirts through its online Shopify store. Cool Trends T-Shirts does not have a physical store, which saves the company money. These savings are passed on to the customers in the form of deep discounts on all Cool Trends products.

Dezyned T-Shirt Co.

Dezyned T-Shirt Co. is a trusted Philadelphia T-shirt company that provides superior service to customers at all three of its retail locations in Pennsylvania. The company makes its own DTG printed tees for the whole family. Dezyned T-Shirt Co. is able to provide unique tees designed by its founder and artist in residence, Alice Johnson. The company’s tees are priced in the high-end because they are made from premium cotton and printed in small batches, with Alice’s unique designs feature on each one.

Competitive Advantage

Comfy Style Tees will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Comfy Style Tees will offer the unique value proposition to its clientele:

  • All tees are made from 100% premium cotton, carefully printed using the latest DTG printing machines, and meticulously inspected to ensure quality.
  • Comfy Style Tees offers unique pieces that can’t be found anywhere else.

Promotions Strategy

The promotions strategy for Comfy Style Tees is as follows:

Social Media/Referrals

Scott Smith has built up an extensive social media following of fans that love his artwork. Once Scott advised them he is going to be creating his own T-shirt business, many have signed up to receive updates on the new line and have opted to refer a friend for a promotional discount. As more friends are referred, the potential customer base continues to grow.

Print Advertising

Comfy Style Tees will invest in professionally designed print ads to display in magazines, flyers, and direct mailers.

Website/SEO Marketing

Comfy Style Tees will use an online platform like Shopify for its website and  ecommerce store. The website will be well organized, informative, and list all the products available. As marketing director, Mike Anderson will also manage Comfy Style Tees’s website presence with SEO marketing tactics so that when  someone types in the search engine “unique T-shirts in Philadelphia” or “T-shirt store near me”, Comfy Style Tees will be listed at the top of the search results.

The pricing of Comfy Style Tees will be competitive to premium, so customers feel they receive value when purchasing the high quality T-shirts.

Operations Plan

The following will be the operations plan for Comfy Style Tees.

Operation Functions:

  • Scott Smith will be the Owner and Designer. He will oversee the design and printing process and manage all supplier relations. Scott has spent the past year recruiting the following staff:
  • Mike Anderson – Marketing Director who will provide all marketing and sales initiatives for the company including managing the website, social media, and online marketing.
  • Kate Johnson – Bookkeeper who will provide all budgeting, accounting, tax payments, and monthly financial reporting.
  • Sam Lee – Lead Sales Manager who will manage all sales associates activities and schedules as well as oversee the day-to-day operations of the sales floor.

Milestones:

Comfy Style Tees will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease the retail space.

9/15/2022 – Finalize personnel and staff employment contracts for the management team.

10/1/2022 – Finalize contracts for suppliers.

10/15/2022 – Begin the marketing campaign.

10/22/2022 – Begin printing the first limited edition batch of tees.

11/1/2022 – Comfy Style Tees opens its store for business.

Comfy Style Tees will be owned and operated by Scott Smith and Mike Anderson. Scott Smith is a graphic artist who will be creating the designs for the company’s T-shirts. Mike Anderson is a graduate of Pennsylvania University with a Master’s degree in Marketing.

Scott Smith has been creating unique graphic artwork for over a decade and has gained a substantial following on social media. Mike Anderson has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers who are interested in purchasing apparel featuring Scott’s artwork.

Financial Plan

Key revenue & costs.

The revenue drivers for Comfy Style Tees are the fees the company will charge customers for the T-shirts. The price range for Comfy Style Tees is $35-$375.

The cost drivers will be the payroll cost, DTG printing cost, and the cost of the T-shirts themselves. Other expenses will be rent, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Average number of T-shirts sold per month: 750
  • Average revenue per month: $10,000
  • Retail space lease per year: $60,000

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

T-Shirt Business Plan FAQs

What is a t-shirt business plan.

A t-shirt business plan is a plan to start and/or grow your t-shirt business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your t-shirt business plan using our T-Shirt Business Plan Template here .

What are the Main Types of T-Shirt Businesses?

There are a number of different kinds of t-shirt businesses, some examples include: Women’s T-Shirt Business, Men’s T-Shirt Business, Unisex T-Shirt Business, and Children’s T-Shirt Business.

How Do You Get Funding for Your T-Shirt Business Plan?

T-Shirt businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a T-Shirt Business?

Starting a T-shirt business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A T-Shirt Business Plan - The first step in starting a business is to create a detailed T-shirt business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your T-shirt business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your T-shirt business is in compliance with local laws.

3. Register Your T-Shirt Business - Once you have chosen a legal structure, the next step is to register your T-shirt business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your T-shirt business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary T-Shirt Equipment & Supplies - In order to start your T-shirt business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your T-shirt business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful T-shirt business:

  • How to Start a T-Shirt Business

Where Can I Get a T-Shirt Business Plan PDF?

You can download our free t-shirt business plan template PDF here . This is a sample t-shirt business plan template you can use in PDF format.

Other Helpful Business Plan Templates

Ecommerce Business Plan Template Clothing Store Business Plan Template Retail Business Plan Template

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T-shirt Business Plan Template 

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Craft a winning T-shirt business plan in a structured business format that attracts investors and funding.

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T-shirt Business Plan Template

Image 1

Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

Prepared for:

​ [Recipient.FirstName] [Recipient.LastName]

​ [Recipient.Company] ​

Business Plan for [Sender.Company] ​

Executive Summary

​ [Sender.Company] (Entreprise Name)is a pop-styled and sports-based t-shirt business geared towards changing the fashion market with cool customer-themed t-shirts to make them stand out.

Established in (Year of Establishment), the [Sender.Company] franchise serves local and international clients.

Market Opportunity

The rise in demand for customizable, sustainable, and unique outfits in the volatile fashion industry has created the need for high-quality and affordable outfits.

With innovative apparel designs and quality fabric, [Sender.Company] aims to fill this gap with long-lasting, authentic t-shirts that make individuals and corporate brands stand out.

Our Products and Services

After starting out our enterprise, [Sender.Company] will provide the listed products and services:

Corporate branding

We create unique t-shirt designs for organizations, companies, schools, and sports teams based on their logos, slogans, and color specifications.

Individual branding

Our expansive design creates authentic customized t-shirts for people based on their personal specifications.

Fashion franchise

We mass produce t-shirts for clothing lines and fashion designers who have an established customer base.

We will begin providing the above products and services on our website at an estimated fee (Mention Amount) for pre-ordered t-shirts.

However, in a growth span of (Insert Timeline for the Milestone), we aim to expand from selling solely online to opening franchises in multiple cities with the highest client bases. We will also include exclusive discount prices for loyal customers and membership programs.

Financial Projections

​ [Sender.Company] projects steady leverage in the coming four years with an estimated annual profit and revenue increase of (Enter Growth Rate).

This will be achieved through flexibility in customer demands, building a remarkable brand, optimizing our market strategies, and enlarging our product range.

Funding Requirements

To achieve our set objectives within the set timeline, we seek investors to raise the initial start-up capital of (Enter Funding Request Amount), which will be used to (Outline Capital Spending, e.g., purchase the fabrics, build an online store, and market the t-shirts).

Market Analysis

Industry overview.

The T-shirt industry operates both online and offline, with a notable shift towards e-commerce in recent years.

Online sales have experienced significant growth due to convenience and a wider customer reach.

However, physical stores still hold relevance, especially for personalized and boutique offerings.

Ideal Client Profile (ICP)

Age: (Age Range)

Income Level: (Income Range)

Profession: (Profession)

Location: (Location)

Lifestyle Choices: (Lifestyle Preferences)

Purchasing Power and Motivation: (Motivation to Buy, Purchasing Power)

Established Businesses

Successes: (Competitor Successes)

Failures: (Competitor Failures)

Challenges to Entry

Establishing a T-shirt business may face challenges like (Legal/Operational/Brand Recognition/Product Transportation/Payment Systems, etc.). Identifying and addressing these challenges will be crucial to our success.

Operations Plan

​ [Sender.Company] will operate on the internet as an e-commerce enterprise, enabling us to reach a wider client base globally. However, we will have a physical office and warehouse fully equipped with printing and branding equipment.

Equipments and Branding

We will use modern direct-to-garment (DTG) printing technology to manufacture and brand high-quality fabrics. Our fabrics will come directly from the silk and cashmere industries, which our trained designers will use to create customized t-shirts.

Quality Assurance

To ensure the maximum quality of our finished products, we will regularly assess the t-shirts in all production stages. Also, client feedback will be collected to improve our products and service quality.

Operation Schedule

Since we are an online franchise, our operations will be 24/7 all year round.

Financial Breakdown

Initial investment.

We request an investment of (Enter Funding Request Amount) to be spent on (Detail how your startup budget will be spent).

Manufacturing and printing equipment cost

E-commerce website construction cost

The cost of the first batch of fabrics

Personnel and Designer acquisition

Initial branding and marketing cost

Operations Costs

Website maintenance

Regular fabric purchasing

Employees salaries

Utilities and Taxes

Equipment maintenance

Income Statement

[Sender.Company] Income Statement

1st Year

2nd Year

3rd Year

4th Year

T-shirt Sales:

Other Revenue:

Total Revenue:

Operating Expenses

Gross Profit:

Tax Payment

Net Income:

Leverage Rate (%)

Confidentiality Agreement

The parties to this confidentiality clause, [Sender.Company] and [Recipient.FirstName] [Recipient.LastName] , acknowledge their commitment to maintaining the confidentiality of the business plan's contents. They recognize the potential for irreparable harm in the event of unauthorized use or disclosure of confidential information. Thus, both parties pledge to return or destroy all records of the confidential information upon request or termination of discussions or agreements.

​ [Recipient.FirstName] [Recipient.LastName] ​

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How to Start a Successful T-Shirt Business: 8 Key Steps and Tips

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Free T-Shirt Business Plan Template

Matthew Khalili

12 Min Read

how to start a t-shirt business

Over the last ten years, the revenue of the t-shirt industry has increased by about 26% . That’s why smart entrepreneurs like you are considering starting an online T-shirt business.

Many businesses buy custom t-shirts to help advertise their products or brands. In addition, people love showing their humor with funny sayings and their love for movies and TV with cool pictures.

With a T-shirt business, you can earn a serious amount of money, knowing each person in the US spends $15 a year on it. The interesting part is that you don’t even require a huge investment to start.

But do you know how to get started with your t-shirt business ? This guide is here to help you turn your vision into reality. So, let’s roll up our sleeves and get started!

Why start a t-shirt business?

The business of selling t-shirts has grown a lot lately, thanks to more people shopping online. And with the help of t-shirt business models like print-on-demand, you can run this business by sitting on your couch. Here are some benefits that the print-on-demand model provides:

Benefit #1 — Free Yourself from Inventory!

Forget about renting a warehouse and wrestling with boxes of tees. With drop-shipping, you’re in the design game, not the inventory game.

Just pick your favorite styles (t-shirts, hoodies, onesies, the whole shebang!) and colors, upload your killer design and boom, your personalized store is ready to start selling t-shirts online.

Benefit #2 — Save Time and Effort with Printing Included

Gone are the days of worrying about printing your design onto a t-shirt! Print-on-demand services can handle the entire printing process for you, such as:

  • Eliminating the need for you to find a printer
  • Managing the logistics
  • Dealing with potential printing issues.

Just pick your favorite design, choose your size and how many you want, and that’s it! They’ll take care of everything else, from printing to sending it to your customers.

Remember, the final product will look its best if you give them a clear, high-quality image (PNG & EPS) to work with.

These companies may use various printing techniques like screen printing, digital printing, or direct-to-garment, so choose a service known for producing high-quality garments.

Benefit #3 — You can work from anywhere

This is where things get exciting! Forget the days of commuting and rigid office schedules. With this business model, your workplace can be anywhere with a decent internet connection and a laptop – your cozy home, local coffee shop, or even a sunny beach!

The key to success lies in effective communication. You’ll need to stay connected with your suppliers (the drop-shipping companies) to ensure smooth order fulfillment and with your customers to handle inquiries and build relationships.

Benefit #4: Effortless Order Fulfillment

Shipping? Not your problem! Your drop-shipping partner takes care of that, too. These companies have established networks or partnerships with reliable distribution giants. This ensures your customer receives their order promptly and efficiently. You focus on marketing and sales while they handle the behind-the-scenes magic of delivery.

So, now you know about the many benefits of the online t-shirt business, but how do you begin with it? The following sections in this guide will clarify the process in 8 easy steps.

How to start a T-shirt business in 8 easy steps

  • Choose a niche
  • Create a business plan and get funded
  • Making it legal
  • Prepare the production setup
  • Identify your sales channels
  • Create unique t-shirt designs
  • Set Up an online store
  • Market your online t-shirt business

1. Choose a niche

Start by picking a specific topic or market for your online t-shirt business. This will help you attract the right customers without spending too much money. Successful t-shirt businesses stand out by focusing on a particular group of people or interests.

To find out what your potential customers are interested in, you can look up famous words or phrases they might be searching for online. You can do this with the help of a keyword tool.

Understanding which specific market to enter is crucial when starting a business. Here are some ways to figure out if a niche is worth it:

  • Look at a list of common hobbies on Wikipedia to get some ideas.
  • Think about your interests and the groups you’re part of. Sometimes, going with your instinct works.
  • Visit subreddits dedicated to your potential niche. Observe how many people are talking about it and how engaged they are.
  • Use Facebook’s Audience Insights. This free tool shows how many people on Facebook are interested in things similar to your t-shirt designs. This helps you know if there’s enough of an audience for your shirts on social media.
  • T-shirts inspired by internet culture are among the most popular kinds you can sell. Research has shown that t-shirts with funny designs are perfect for making money.

After you’ve selected your niche, it’s time for you to make a solid business plan for your t-shirt store.

2. Create a business plan and get funded

If you need a loan or investors for business, then a solid business plan is your magic key!

In case you’re wondering what a solid business plan looks like, we’ve created a t-shirt business plan template to guide you through the process.

Just like a blueprint guides builders, a well-structured plan shows banks and investors every aspect of your business, especially the finances.

A business plan can help you extract your business’s estimated costs and projected revenue. This will help you strengthen your financial understanding and likelihood to get your loan approved.

Usually, it’s wiser to ask for just enough money to get started. Then, if you need more later, you can ask for another loan.

Banks are more likely to lend you more money if they see you’ve used the first loan wisely and your business is making money. This approach also means less risk for you.

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business plan for tshirt business

3. Making it legal

Once you create a plan, making your business legal is the next thing you would like to focus on. For that, you need to choose a name and see all the legal requirements for your business in your state.

Choose a unique business name. It will help people remember you, secure your place online (like getting a website and social media accounts), and ensure you aren’t confused with competitors.

Here are a few key steps to start:

  • Register your business name.
  • Get a federal tax ID number.
  • Decide on your business structure.
  • Set up how you’ll get paid, not just with cash.

If handling paperwork is not your thing, you can always consider hiring a lawyer to ease things.

4. Prepare a production setup

There are many ways to make printed T-shirts suitable for anyone, regardless of your skills or experience.

If you like hands-on work, consider buying your screen printing equipment. This allows you to control the quality of your T-shirts.

Plus, people enjoy watching these creations come to life on social media platforms like TikTok and Instagram.

The initial cost might be high, but afterward, you’ll only need to spend on maintenance, which means more profit for you.

Alternatively, you can hire local screen printing services. This adds to your initial costs, but working with a nearby business or a trusted distant company helps ensure quality.

For a quicker start, many small business owners use print-on-demand services. They’re fast and let you sell many products without worrying about unsold stock. But remember, each item costs more to print, so your profits will be lower.

5. Create unique t-shirt designs

Once you’re done setting up your production setup, the next job remains to create unique t-shirt designs. Here’s how you start:

Perfecting Your Designs

Start by creating designs that represent your brand’s vision. If your online T-shirt business showcases your artwork or digital designs, save them in the correct format (usually .eps) for printing.

Intricate designs might require test prints to ensure clarity. Beginners can learn design through free online tutorials for software like Adobe Photoshop and Canva.

Collaborating with Artists

Consider collaborating with talented artists from sites like Creative Market, Fiverr, or Upwork. Depending on your relationship and business model, you can purchase their artwork or form a profit-sharing partnership for ongoing collaboration.

Sourcing Design Ideas

If you’re short on design ideas, look at sales trends on platforms like Etsy or use tools like Jungle Scout to understand popular products on Amazon.

Additionally, Google Trends can offer insight into popular slogans or design themes that might sell well.

Presenting Your T-Shirts

Once your designs are ready, showcase them realistically. Use services like Placeit to superimpose your designs onto photographs of models in blank T-shirts.

Alternatively, you can find stock photos of people in blank shirts and edit your designs onto them using Photoshop.

6. Identify your sales channels

When you decide to start selling, picking the right place to market is crucial. Selling directly from your website is an option but can be costly. However, there are online marketplaces that make selling easy, too.

Your Own Website

This is like building your own theater, with total control over everything. It’s great if you want complete branding freedom, but it also takes more effort to attract the audience.

Online Marketplaces

Think of these as bustling marketplaces like Etsy, Zazzle, or Redbubble. They’re already full of clothing buyers, so setting up your shop (like a little stall) is easy, but you’ll share the spotlight with others.

Big Players

Giants like Amazon and Walmart are massive arenas, attracting huge audiences. They can be powerful sales channels, but you might need to pay fees or compete with tons of other sellers.

Remember, the best choice depends on your needs:

  • Compare platform fees and transaction costs to see what fits your budget.
  • Some platforms offer marketing or customer support tools, which might be worth the price.
  • Consider where your ideal customers are hanging out online.

7. Set Up an online store

Once you have finalized your designs and production, the next step is to choose a platform to set up your online store.

While building your website from scratch may seem like a good option, it can be quite expensive due to the cost of hiring developers. To save on costs, it is recommended that you opt for a web-building platform.

Let’s look at some user-friendly e-commerce platforms perfect for setting up an online store:

  • Shopify: Great for detailed sales reports and making your shop look good.
  • Wix: It’s free to start and very easy to use.
  • Weebly: Cheap and includes selling tools right from the start.

These platforms all work well with print-on-demand services, a hassle-free way to produce and ship your T-shirts. This setup allows you to concentrate more on designing and marketing your products.

8. Market your online t-shirt business

Finally, your shop is live now, but how can you reach the masses? The answer is marketing. Here are some key strategies to think about:

  • Social Media: This is one of the biggest places people spend time. For example, you can use Instagram to reach out, especially if you’re targeting a young crowd. Make use of trending hashtags while sharing your products.
  • Search Engine Optimization: Ensure your store tops online searches.
  • Email Marketing: Keep in touch with your customers through emails. Remind them about items they liked, offer deals, and encourage them to return.
  • Paid Advertising: Place ads where your potential customers are already looking, like on their favorite websites or social media.
  • Creating Original Photographs : Consider hiring a local photographer and models to take dynamic and engaging photos of your shirts for a more personalized touch. This option depends on your budget and the scale of your T-shirt line. It’s a great way to give potential customers a real feel for your products.

Considerations for starting a t-shirt business

Starting an online custom t-shirt business might seem easy with current technology, but standing out and being profitable is challenging. Here’s a simplified guide on how to get started:

T-shirt Printing Techniques

There are three main ways to print on t-shirts:

  • Screen Printing: This traditional method produces durable designs but is cost-effective only for large orders. It’s versatile, allowing you to print on various items besides t-shirts.
  • Heat Transfer: This method is more accessible for small batches and allows full-color printing. However, the initial cost for the heat press machine can be high, and the quality may not be as durable.
  • Direct-to-Garment (DTG): DTG works like a regular printer and is excellent for detailed designs. It’s suitable for small orders but doesn’t offer discounts for bulk printing.

Your t-shirt designs should be unique and resonate with your target audience. Ensure high-quality prints using files with at least 300 dpi and a transparent background. Remember, simpler designs can often be more popular.

The durability and feel of your t-shirts are crucial. High-quality materials and printing techniques cost more but can lead to higher customer satisfaction and pricing.

Develop a solid and memorable brand. It should reflect your niche, design style, and quality. A distinctive brand helps you stand out in a crowded market.

Decide whether to stock inventory or use a print-on-demand service. Holding inventory might improve profits but comes with more risk. Print-on-demand is a safer option when starting out.

Dropshipping is also popular, allowing you to focus on design and marketing without worrying about production or shipping.

Starting a successful t-shirt business is a step-by-step process. While having a detailed plan for your shop, product creation, and delivery is essential, it doesn’t guarantee success.

To get ahead, consider every aspect of your business carefully:

  • Pick the best sources for your online design tools, printing equipment, and t-shirt materials.
  • Find the most affordable yet effective ways to print and ship your t-shirts without compromising quality.
  • Craft a plan that will drive more customers to your store. Whether through social media, SEO, or content marketing, find what resonates with your audience.

Doing these things well can significantly increase your chances of building a thriving online t-shirt store.

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Frequently Asked Questions

Can i create an online store for my t-shirt business.

Yes, you can create an online store to sell your t-shirts using the “print-on-demand” business model. This approach doesn’t require a significant upfront investment, and it can also help you save time.

What are the best platforms to sell t-shirts online?

It’s easy to feel overwhelmed with so many options to sell your t-shirts. To simplify things, here are the top 5 places to consider:

  • Etsy: Great for unique items and a large, engaged audience.
  • Shopify: Customizable and easy to use for a personalized store.
  • eBay: Global reach with a trusted reputation.
  • Wix: Ideal for beginners with intuitive design options.
  • Squarespace: Beautiful templates for a sleek store design.

Can I run a t-shirt business from home?

Yes, with the print-on-demand eCommerce model, you can sell T-shirts online without buying or storing inventory. Simply put, you design the T-shirts, and the service handles the rest, from printing to shipping. It requires little to no upfront costs and saves you much time.

How do I determine the right pricing strategy for my t-shirts?

When it comes to pricing your shirts, there are several strategies you can use to match your brand’s needs. Here’s a quick rundown of popular pricing methods:

  • Competitive Pricing: Set your t-shirt prices lower than your competitors to attract customers. Remember, the goal is to build a loyal customer base, not just to make quick sales, so focus on quality.
  • Cost-Plus Pricing: Add a set profit margin to the cost of making each t-shirt. For example, you might add 30% to the production cost to determine the final price.
  • Dynamic Pricing: Adjust prices based on how popular your shirts are. If a design is flying off the virtual shelves, you might increase its price slightly.
  • Bundling: Offer deals when customers buy multiple shirts, like a discount on buying two or more or a “buy three, get one free” offer.

About the Author

business plan for tshirt business

Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more

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T-Shirt Business Plan Template [Updated 2024]

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T-Shirt Business Plan Template

If you want to start a T-Shirt company or expand your current T-Shirt business, you need a business plan.

The following T-Shirt business plan template gives you the key elements to include in a winning T-Shirt company business plan.

You can download our T-Shirt Business Plan Template (including a full, customizable financial model) to your computer here.

T-Shirt Business Plan Example

I. executive summary, business overview.

[Company Name] is a start-up T-shirt company that sells cool, trendy and artsy t-shirts for men and women, as well as children. [Company Name] provides a variety of shirts styles and designs, each made to order. They can also make any item with custom artwork provided by the client.

Products Served

Below is [Company Name]’s initial product list:

  • Kids t-shirts
  • Women’s t-shirts
  • Men’s t-shirts

Customer Focus

[Company Name] will primarily serve the residents who live within a 10 mile radius of our location and many others through our website and via other online retailers. The demographics of local customers are as follows:

  • 65,800 residents
  • 3,000 workers (who do not live the neighborhood)
  • Average income of $56,500
  • 33% married
  • 31.5% in Mgt./Professional occupations
  • Median age: 32 years

Management Team

[Company Name] is led by [Founder’s Name] who has been in the clothing business for 10 years. He was director of operations at a well-known clothing company in [location]. As such [Founder] has an in-depth knowledge of the business including:

  • Management and operations
  • Clothing design basics
  • T-shirt marketing
  • Hiring and training workers

[Founder] graduated with a degree in business management at [University Name] and also took courses in fashion design at [School Name].

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

  • There is currently no clothing brand devoted to local manufacturing in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched, both from customers and from suppliers.
  • The T-shirt business is a proven business and has succeeded in communities throughout the United States.
  • Market trends such as the growth of the graphic t-shirt market support our business opportunity.

Financial Highlights

[Company Name] is seeking a total funding of $120,000 to launch its store.

Specifically, these funds will be used as follows:

  • Office/Workspace Design & Build-out: $55,000
  • Equipment: $35,000
  • Working capital: $30,000 to pay for supplies, marketing salaries and lease costs until [Company Name] reaches break-even.

Top line projections over the next three years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

II. Company Overview

Who is [company name].

The company takes pride in their unique designs and good quality materials that are all locally sourced, supporting other small businesses. In every collection, the company collaborates with local artists as well, to give them a medium to showcase their art.

The company’s tagline, “art through fashion” is the company’s mission.

[Company Name]’s History

[Founder’s Name] began planning and conceptualizing [Company Name] in [year] which then became a registered business on [Month, Year]. [Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the most desirable location for its physical store.

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo and website located at www…
  • Determined the list of suppliers for t-shirts, fabrics, etc
  • Determined equipment and inventory requirements
  • Identified local artists who are willing to collaborate with the designs

[Company Name]’s Products/Services

Iii. industry analysis.

Over the past five years, the T-Shirt industry surged, bolstered by a greater number of broadband connections and rising per capita disposable income levels. Operators also benefited from the growing popularity of e-commerce, as more consumers turned to e-tailers due to their added convenience and relative accessibility compared with traditional brick-and-mortar retailers. Moreover, industry operators have benefited from a rise in the number of mobile internet connections, which increased consumers’ ability to find and purchase industry goods on-the-go from their smartphones. Due to these positive drivers, industry revenue will continue to grow.

As the retail space has become more saturated with entrants, the operating environment has become more competitive, and operators have attempted to undercut one another on price and product quality. Offering amenities such as free shipping and competent customer service associates has become more and more important for industry players to remain attractive in this competitive space.

Further, retail behemoths are able to exert strong negotiating and buying power over upstream wholesalers and manufacturers, enabling them to procure items at a lower price than smaller retailers. This buying power lets these retailers pass cost savings on to the consumer, and these competitive prices keep them attractive.

In recent years, there has also been a growing industry trend toward using a social-commerce business model, which encourages the integration of social media. This new type of open-sourced business model alleviates the risk associated with product development because each shirt produced already has inherent demand.  

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [company location] and the immediately surrounding areas.

The area residents we serve are affluent and are expected to spend more on clothing items than the national averages.

WilmetteWinnetka
Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

We will primarily target the following three customer segments:

  • Fashionistas: The store will attract people who appreciate fashion. The clothes it offers are incredibly unique, but also comfortable everyday wear
  • Millennials: Our modern graphic art shirts are expected to be popular among the younger demographic. With its artistic designs, it will capture the interest of the younger generation.
  • Tourists: Tourists visiting the area will be interested in locally made clothes. [Company Name] will become a tourist destination due to its unique t-shirt designs that no one can find anywhere else.

V. Competitive Analysis

Direct & indirect competitors.

Press-on Tees Press-on Tees operates an online service that connects millions of buyers and sellers of print-on-demand products. If you’ve dreamed up a catchy slogan or an arresting image, the company’s flagship website will print it for you on a T-shirt, hat, mug, poster, or other product; post it on cafepress.com for sale; and then ship it off and collect payments, keeping a nominal base fee for itself. The company boasts more than 19 million members across all of its properties. Founded in 1999, Press-on Tees went public in 2012.

Bubble Tees Bubble Tees operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers in Australia, the United States, the United Kingdom, and internationally. It provides an Internet based marketplace platform and associated logistics services to facilitate the sale of goods from artists to those who want to purchase goods bearing the artists’ designs. The company enables 600,000 independent artists to sell their designs, such as apparel, stationery, housewares, bags, wall art, etc. It offers its services through its Website and three foreign language sites. The company was founded in 2006.

T-Shirt Republic Founded in 2012, T-Shirt Republic is an ecommerce platform that connects independent artists with their fans and allows them to sell their art on t-shirts, apparel, and accessories. Artists simply upload their design to the site, and T-Shirt Republic fulfills all orders.

Artists may join, upload, and sell designs without a charge from the platform. T-Shirt Republic pays commission on each sale. In addition, the site encourages both artists and non-artists to create affiliate pages, where they maintain a storefront for their and/or others’ designs. This business model appears to take advantage of each storefront’s marketing capability to help spread awareness, in a social commerce way. Affiliates also earn a commission from each sale.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Locally-Made t-shirts: [Company Name] will work with the best local suppliers and artists for its items, ensuring that 90% of items will come from within a 100 mile radius of the store. Local residents appreciate support for local businesses and tourists appreciate that they will find items that they cannot find where they are from.
  • Management: Our management team has years of business experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for [x] years, [Founder’s Name] knows all of the local leaders and newspapers, as well as furniture suppliers. As such, it will be relatively easy for us to build branding and awareness of our store and to establish a product line.

VI. Marketing Plan

The [company name] brand.

The [Company Name] brand will focus on the Company’s unique value proposition:

  • Offering high-quality, locally-made clothing items
  • Telling the “stories” of artists within the store
  • Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be individuals living within a 10-mile radius of its store. The Company’s promotions strategy to reach these individuals includes:

Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will offer discounts and/or provide other inducements for people to visit the store.

Public Relations We will contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].

Advertising [Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.

Pre-Opening Events Before opening the store, [Company Name] will organize pre-opening events designed for local merchants and press contacts to create buzz and awareness for [Company Name].

Online Marketing [Company Name] will maintain a website and create an online shop with the list and pictures of products available for sale. It will be active in social media platforms and send out a weekly newsletter to provide its followers an update on on-going promotions and discounts.

VII. Operations Plan

Functional roles.

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Service Functions

  • Sales and customer service
  • Janitor/maintenance personnel to keep the store clean

Administrative Functions

  • General & administrative functions including legal, marketing, bookkeeping, etc.
  • Sourcing suppliers and managing supplier relations
  • Sourcing featured designers and providing collateral for their displays
  • Hiring and training staff
DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name] who has been in the clothing business for 10 years. While [Founder] has never run a business himself, he was director of operations at a renowned clothing brand company in [location]. As such [Founder] has an in-depth knowledge of the business including:

[Founder] graduated with a degree in Business Management at [University Name] and took courses in fashion design at [School Name].

Hiring Plan

[Founder] will serve as the store manager. In order to launch the store, we need to hire the following personnel:

  • Sales manager (requires retail experience in the clothing industry)
  • Sales professionals (3 to start)
  • Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of t-shirts and other clothing items.

The major costs for the company will be the cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $120,000 to launch its store. The capital will be used for funding capital expenditures, marketing expenses and working capital.

Key Assumptions

Number of customers per day
FY 175
FY 2100
FY 3125
FY 4150
FY 5175
Annual Lease ( per location)$50,000

5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

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tshirt business plan template

How To Start A T-Shirt Business (2024 Guide)

Published: Jun 25, 2024, 2:52pm

Reviewed By

How To Start A T-Shirt Business (2024 Guide)

Table of Contents

Step 1. make a plan, step 2. register your t-shirt business, step 3. find the right production method, step 4. create unique designs, step 5. choose your sales channels, step 6. build your website, step 7. market your t-shirt business, frequently asked questions (faqs).

There are more ways than ever to start a business that also gives you a creative outlet. Selling T-shirts with your art, words, or anything else printed is a great way to exercise your creativity and make money. A T-shirt business can make you a small profit on every unit you sell, adding up to a great source of extra income. Learn how to start a T-shirt business with our simple guide. We’ll help you start your new side gig or full-time T-shirt career in just a few easy steps.

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Before starting to sell T-shirts, you have to make a plan to help guide your actions toward success. Follow these seven steps to sketch out a path forward for your business, but don’t worry if you don’t have all the details yet. You just need to have an idea of where you’re headed so that everything flows smoothly once you get started.

First and foremost, you’ll need to pick a name for your business. Whether it’s just your name or something different, that will guide your process of creating a logo, business cards, a website, and other branded assets.

Once you’ve chosen a name, you can register a domain so that when setting up your website, you’ll be all set to link it with your brand. Shopify and Etsy are popular options for selling T-shirts online, but if you want to build your custom website, you should get started quickly so your website is ready to launch with your products.

Whether you intend for your new venture to be a side hustle or full time, you should register your business as a sole proprietorship or a limited liability company (LLC). Registering as an LLC will give your business more tax benefits. You’ll also be able to buy blank T-shirts at cost with your EIN (as opposed to your personal Social Security number).

It can cost anywhere from INR 4175.99 ($50) to INR 8,351.99 ($100) to register with your state. You should also familiarize yourself with your state’s legal requirements for small businesses and make sure everything’s in order.

If setting up your business is too large a time commitment, you can pay an LLC service to do it for you. Investing in this service and saving your time will allow you to focus on the creative aspects of your business.

There are a variety of ways to produce printed T-shirts for people of all skill and knowledge levels.

If you’re committed to working with materials yourself, you can purchase screen printing equipment for your home or office. This gives you a great measure of control over the quality of the art and designs printed on the shirts. If you enjoy creating social media content, people love to watch creations take shape on TikTok and Instagram. The upfront cost of these machines will be high, but you will have higher profit margins since you’ll only have to pay upkeep costs.

It’s also very easy to find local businesses that provide screen printing services. However, you’d have to take on the cost of paying these vendors as part of your initial budget. A local service or a company that’s far away but with whom you have a good relationship will also be good for keeping an eye on quality control.

There are also print-on-demand services that are very reliable if you want to get started immediately. Services like Printful and Printify have fast turnaround times and allow you to sell as many products as possible without assuming the cost of any unsold products. However, the profit margins for these products are smaller because of the cost of individual printing.

Before printing, you need designs that reflect your brand’s goals. If you’re starting a T-shirt business to highlight your own drawings, paintings or digital designs, you’ll need to ensure they are saved as the correct digital files (usually vector files, such as .eps) that can be used by your printing service of choice. If you make highly intricate designs, you’ll probably want to do some test printing to see if everything prints on the shirts clearly. If you’re just starting out with design, there are a lot of free tutorials for using Adobe Photoshop and Canva to create designs.

There are also thousands of great artists whose work you can commission through websites like Creative Market, Fiverr and Upwork. When you find an artist, you can purchase their work outright, but if you have a good relationship with the artist and want to continue working with them, a profit-sharing relationship might be more sustainable for the future.

If you’re stuck on ideas, you can get insight for new designs by checking sales numbers of T-shirts on Etsy or using the tool Jungle Scout (which shows you how many units a product has sold on Amazon). Additionally, a Google trends search of various slogans you want to design for your shirts can show you which are the most popular and probably the most likely to sell.

Once you have the designs ready, customers will want to see how the T-shirts look on real people. Placeit is an easy service to use that gives you a bunch of photographs with blank T-shirt products onto which you can put your designs. You can also look into stock photo packages that include photos of people wearing blank shirts, and you can use Photoshop to put your designs on yourself.

Finally, if you have the time and connections, you can hire a local photographer and get some models for more dynamic action shots. It depends on your budget and how many shirts you’re producing.

When you’re ready to sell, it’s time to choose a sales channel. You can host sales on your own website, but online marketplaces are also an easy way to sell.

If you choose a third-party seller, you’ll have to start an account and set up your store. Services like Etsy, Zazzle and Redbubble are known to sell a lot of clothing and get a lot of customers. You can also sell through Amazon or on social media.

Before choosing, you should check the prices of these services and see which one will be the most sustainable for the long term.

Even if you’re selling on a third-party marketplace, you need a website to promote your T-shirt business. Here are the best e-commerce platforms for building an online store:

  • Shopify : strong sales reporting capabilities, ability to customize storefront with design templates
  • Wix : free plans available, easy user interface
  • Weebly : e-commerce in the lowest-price plan

All of these services can be integrated with a print-on-demand service, if that’s how you’re producing your T-shirts. These make it easy to sell and promote however you choose, and can even ship the merchandise directly to your customers so that you can focus on the creative side of things.

Marketing a fledgling business can be difficult, but there are low-cost ways to do it. If you’re targeting a specific niche, you can look into communities online like subreddits and Facebook groups where you can post your T-shirts to bolster interest.

You could also try to reach out to micro-influencers and ask for their engagement rates to see if they would have decent conversion rates. Influencers that are just beginning to take off are also likely to support a small business just starting out.

Which is better: Printful or Printify?

It depends on which metric you want to save money on. Printify has lower production costs than Printful. However, Printful has better international shipping rates.

How do you create shoppable posts on Instagram?

You can create shoppable posts through tagging the product in the same way that you would tag a person. Set up your Instagram shop first, then you’ll be able to tap items in your photos and link them to a product listing.

What is the average profit margin on a T-shirt?

Most sellers set their profit margin around 50%. So if your cost for the shirt + printing is INR 835.20 ($10), you might sell your shirt for INR 1,670.40 ($20). Setting a higher profit margin may enable you to offer free shipping.

Do I need a business plan to start a T-shirt business?

While you don’t need a business plan to start a T-shirt business, it’s a good idea to create one. The reason being is having a strong business plan will help you stay true to your original vision. Planning out your suppliers, goals and general growth plan will set you up for success in the future.

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Cassie is a deputy editor, collaborating with teams around the world while living in the beautiful hills of Kentucky. She is passionate about economic development and is on the board of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a Content Operations Manager and Copywriting Manager at Fit Small Business.

Rob is an SMB writer and editor based in New Jersey. Before joining Forbes Advisor, he was a content producer at Fit Small Business. In that role, he was responsible for writing, editing, and strategizing content geared toward small business owners. Before that, he worked at PCMag as a business analyst.

BUSINESS STRATEGIES

How to start a t-shirt business online: 2024 guide

  • Brielle Gordon
  • 18 min read

how to start a t shirt business

Starting a t-shirt business might just be one of the best and fastest ways to break into the booming fashion industry.

There's nothing quite like a good t-shirt. Apart from being easy to throw on, t-shirts have a unique way of expressing our individuality, our humor and our loyalties.

For online sellers, the t-shirt market is also a popular stomping ground. In 2021, the global custom t-shirt printing market was valued at $3.9 billion—and by 2030, it's expected to be worth $9.18 billion, according to Grand View Research .

Not only is it easier than ever to find a free online store builder  that's fully integrated with print on demand services  and tools to expand your reach but starting a business to sell t-shirts doesn’t necessarily require a big investment. You can launch and start selling custom tees quickly with minimal costs.

Related reading: 19 profitable eCommerce business ideas

Black text on a light blue background that says "Launch your online store" with a clickable link button that says "Get Started"

How to start a t-shirt business in 12 steps

Build your online store

Integrate with a print on demand (POD) service  

Pick a niche  

Create stunning designs  

Select high-quality materials

Get feedback on your designs

Choose a printing technique  

Manage your inventory  

Calculate your costs  

Set your price  

Build your brand  

Scale your business  

01. Build your online store

A professional eCommerce platform gives your customers the trust they need to complete their purchase. It’s also an important reflection of your brand’s identity.

Start your online t-shirt business journey by creating and customizing an  eCommerce website  that embodies your brand. When choosing how to make a website , be sure to choose a platform that allows you to easily integrate your store with a print on demand (POD) service , which offers the easiest way to design, print, and ship your t-shirts.

You’ll additionally want to keep an eye out for integrations with popular sales channels like Amazon and eBay, plus social media channels like Facebook and Instagram.

Here are some other factors to weigh when selecting your eCommerce platform:

eCommerce website cost : Start lean and budget expenses carefully. Find an eCommerce platform that allows you to start your business with a small investment. Some platforms even let you start for free. (Pro tip: Choose a platform that can support your business at any scale - from a microbusiness  to a small medium business  to an enterprise or B2B eCommerce business .) Review if the platforms offer advanced marketing and customer management tools  to help your business grow.)

Website design capabilities: You’ll want a platform that offers plenty of design flexibility and customization. This’ll allow you to create a business website  that matches your brand. (Pro tip: Look for a platform that offers ready-to-go, designer-made, store templates  that can easily be adjusted to fit your unique brand.)

Mobile storefront: More than half of all online purchases  are now made on mobile, so you'll want to make sure that your platform supports responsive sites and mobile customizations. Fans of the Instagram-famous cat, OwlKitty , can purchase branded tees through its online store which is optimized for mobile. By connecting their Instagram account to their store, OwlKitty sends shoppers directly to their store's fully-optimized product pages.

start a t shirt business - choose an ecommerce platform

Once you’ve chosen your platform, you can start creating your store. Don't forget to complete these basic steps:

Name your business: Start by brainstorming a word bank of concepts that relate to your t-shirt business idea. If you need help, you can use Wix's free clothing line name generator . Choose a name that reflects your business but won’t limit you if you choose to expand beyond t-shirts in the future.

Choose your domain : Match your domain name to your brand name. This will help your customers find you online.

Design your store: Customize any store template to reflect your brand and appeal to your target audience.

Add payment options: Make it easy for customers to pay you. Provide multiple options to make sure you don’t lose out on any potential buyers. Through Wix Payments, you can start accepting all major debit/credit cards , Apple Pay, buy-now-pay-later (BNPL) options, and more.

For more tips: How to start an online store in 10 steps  

start a t shirt business, create online store

02. Integrate with a print on demand (POD) service

If you're wondering, "What the heck is print on demand?" POD is a form of  dropshipping  that allows you to make and sell custom t-shirts (and other merchandise) online without the hassle of managing inventory, fulfillment, or shipping.

how to start a t shirt business, product page

Wix Stores tend to launch an average of 15% faster than other online retailers when choosing to dropship. And in the first quarter of 2021, Wix Stores using POD grew 529.4% year over year.

POD is a great way to get your feet wet without running up your costs or tying up your resources. In fact, family-owned farm, Little Tail Farms —which offers tours and farmstays—uses POD to sell farm-inspired merchandise to bring in extra revenue.

So, if this is your preferred business model, you'll want to connect your store to a reliable POD service like Modalyst , Printful or   Printify .

Many of these services have mockup generators that let you virtually place your design on tees and see how it’ll look on models. You can then use these product images on your website to show your customers exactly what they’re buying.

Under the POD model, you sell your graphic tees directly from your online store. Once an order is placed, your POD partner will then print the t-shirt(s) and ship it straight to your customers.

While using a POD service might be the fastest way to start selling t-shirts, there are plenty of alternative routes, such as sourcing and manufacturing. You just have to choose the right one for you.

If you choose to source your own t-shirts and connect with local or international manufacturers, take some time to research the process and learn more about how to start a clothing line.  Some entrepreneurs use POD to test the market or establish their brands before switching to specific suppliers.

03. Pick a t-shirt niche

With billions of tees out there, why should shoppers buy yours? The answer: Because you made your product specifically for them.

To find your niche, you might use your personal interests and passions as inspiration when looking for your value as well as your unique selling proposition . Is there a specific group you identify with? Are you a diehard fan of a sports team, a TV show, an indie movie, a specific celebrity? Do you hold a specific political position or are you a member of a particular movement?

Or, discover your niche by researching what’s on-trend. What are people interested in and talking about? Use Google Trends  to find out what search terms are trending in your country or worldwide and use that information to inspire or validate your choice of niche.

start a t shirt business, choose a niche

Once you define your target audience, get to know customers better through channels like:

Reddit : On Reddit, users create posts that are voted on by the community. The site is broken down into sections called subreddits and there’s one for seemingly everything. Users subscribe to specific subreddits that interest them in order to see those posts. Discover what your target audience is posting. Explore feeds to see which content receives the most engagement and subscribers. Use this information as a springboard for creating designs and messaging for your t-shirts.

Facebook Groups : Find niche communities that share your interests. Engage with these users and see what receives feedback. Ask them for ideas and test out your designs.

Competitor sites : Many of your competitors have likely done their own customer research to inform product design and their marketing messages. Take a peek at their sites and observe what seems to be working well for them, versus what could use improvement. Check customer reviews, FAQs, and product descriptions for clues as to what your business could offer to make your customers happy.

T-shirt dropshipping  is also worth considering, as a low cost business idea.

04. Create stunning t-shirt designs

Make your t-shirts stand out from the pack with original designs.

Use your t-shirt to express a message, tell a story, or display an aspect of your personality. Your designs don’t have to be complex. A simple, trendy design can attract customers.

Modern Magnolia  sells hand printed t-shirts with illustrations and slogans that appeal to a broad range of female users. Its t-shirts have a strong American flavor (with a touch of humor) and target niche audiences like parents, music fans, and animal lovers.

Fortunately, you don’t have to be an artist to make a cool design. You can use pre-existing templates offered by some POD services or Wix's free logo maker . Alternatively, you can hire a designer from one of these platforms:

Wix Marketplace : Safely search through a list of vetted professionals. The Wix Marketplace serves as a directory for connecting with designers of various backgrounds and specialties, and features transparent rates and past work.

Fiverr: Connect with a freelancer to create a single design. You can search by the type of designer and filter by how much you are willing to spend.

Upwork: Use this platform to find long-term freelancers to help with numerous or ongoing projects.

Behance: Explore this designer-focused social media platform. Graphic artists use Behance to show off their work, gain inspiration and find jobs.

Dribbble: This is another platform where designers hang out. You can scroll through showcased art or filter by style to find designs you like. Then reach out to the artist to discuss your project.

Note that each manufacturer or POD service will have different image requirements that you'll want to read through carefully in order to ensure that your designs are printed correctly. For example, Printful has the following requirements :

Images should be at least 150 DPI (dots per inch). Some specific t-shirt brands may require a larger DPI, so double-check before uploading your design.

Your design can be uploaded in JPG and PNG formats.

Print files should be saved in sRGB, not CMYK.

05. Select high-quality materials

Nobody likes an ill-fitted, low-quality graphic tee.

Whether you’re using POD services or sourcing your own t-shirts, make sure to sample your products as part of your overall business operations . Ensure that you’re selling a product that meets your quality standards and prints exactly as you'd expect.

As another test: Go through the normal buying process as though you're a customer. Buy the t-shirts from your website, jotting down any hiccups with checkout, shipping, packaging, and more. As you test the product yourself, consider:

Is it comfortable to wear?

Are the colors vibrant?

How does it look and feel after a wash (e.g., does it shrink? Does the pattern crack?)

How does it wear over time?

Most suppliers will offer tees made out of regular cotton and ring-spun cotton. Some use organic cotton, grown without the use of pesticides, herbicides, or chemical fertilizers. Here’s what to consider when choosing your materials.

If your t-shirt business has a sustainable ethos, it’s worth choosing t-shirt manufacturers or POD services who offer t-shirts made from organic cotton or recycled fabrics, like cotton scraps and upcycled polyester. It’s likely that these options will have a higher unit price, but shoppers may be willing to pay more for more eco-friendly options.

Consider what size options you’ll offer customers, too. Do you want to build a size-inclusive t-shirt brand that is accessible to everybody? Or perhaps, for now, you want to limit your inventory and specialize in tees for a particular size range.

In short, treat your customers like you’d want to be treated. Make sure your product is made well so your customers keep coming back and become ambassadors for your brand.

06. Get feedback on your designs

It's always a good idea to validate your ideas. Once you have your design and tee picked out, you’ll want to make sure that it looks good when it all comes together.

Use a mockup generator to visualize how your design will look on products before it’s printed. Then, take some time to write engaging product descriptions that tell your shoppers everything they need to know about your t-shirts. Include product specs, sizing details, care instructions, and the story behind your t-shirt design. Some POD services will provide default product descriptions that you can edit and make your own.

So, you love your new tees, great. But will potential shoppers?

Post your mockup on your own social media pages and see what your followers think. Publish them in Facebook Groups to see how your community responds.

Remember those subreddits you found? Revisit them and request feedback from your fellow Redditors. Word your post in a way so that it doesn’t come across as a marketing ploy. Rather, ask people for honest feedback on your tee. (This is a great way to attract attention to your product while learning more about your target audience.)

You can even share your design on designer blogs or sites like  Behance  and  Dribbble . If your idea is particularly innovative, consider uploading your project to a crowdfunding site and asking people to invest in your t-shirt business.

Wherever you share your design, make sure to add a watermark to protect your designs from being copied.

07. Choose a printing technique

When it comes to inking your tees, learn about the different printing options available. Choosing the right printing technique is just as important as choosing the right material, though some POD services may only offer a certain type of printing by default.

Heat transfer: This is a good option if you want to print images yourself. The most popular type of heat transfer is called Plastisol Transfers. For this method, print your design with a professional printer on high-quality release paper. Then, use a heat press to “print” the image on your t-shirt.

Screen printing: This method is ideal for printing large quantities of t-shirts with the same design. Using stencil-like mesh screens, designs are painted onto t-shirts layer by layer. Each layer is limited to a single color. While you can add multiple layers and colors, doing so will drive up your cost. Because of the labor-intensive setup, this method is best suited to large batches of tees with the same design.

Direct-to-garment (DTG): This is currently the most popular method of printing designs onto t-shirts. Using an inkjet printer, your design is applied to garments. This is ideal for complex, detailed designs. DTG uses the same process for small or large quantities of prints.

All-over print (sublimated): If you want to create a truly unique t-shirt, you may want to print outside the seams. All-over print allows you to do exactly that. Create a design that will be printed all over your tee. Unfortunately, not all print on demand companies will allow you to do this.

Embroidery: Stitch a unique embroidered design on your tees for a more delicate look. While you’ll be limited in colors and sizes, well-designed embroidery can be all your shirt needs to make a statement. Both Printful  and Printify  offer embroidery for t-shirts, but pay close attention to their guidelines.

Here’s what to consider when choosing a printing method:

08. Manage your inventory

If you're not using a POD service, you’ll need to manage your own inventory and keep track of the necessary operating expenses . Keeping control over your inventory is key to building a profitable business.

Start off with a small number of t-shirts in a variety of sizes. Stick to one or two t-shirt colors to limit your risk and overhead costs . To keep initial investments low, consider buying small batches of t-shirts as the orders come in. Then, find a local printer that can ink your tees with a technique that works best for your needs.

Research how to find a manufacturer  and once you’re ready to buy a larger stock, source your t-shirts from reliable suppliers to ensure product quality. Find a wholesaler who can offer you an affordable rate so you can give your customers the best product possible at a good price.

At this point, you'll want to choose a printing company that will provide the quality and fulfillment services you need. If it’s within budget, you may want to consider investing in printing equipment yourself to have more control over the process.

As mentioned earlier, if you’re using a POD service, inventory, shipping and fulfillment will be handled for you. Nonetheless, it’s still a good idea to keep a small amount of stock on hand to sell in a pop-up shop or to local businesses. It can also be helpful for promotional offers, or to show potential customers and investors your product.

09. Calculate your costs

When it comes to learning how much it costs to start a business , calculating your costs is essential. Before you price your products, you’ll need to determine your expenses. Go through this list and estimate what you’re paying (if anything) for each service. This will give you a better sense of how much you’ll need to charge per tee to make a profit.

Online store - Website hosting, domain, business email  account

Design  - Website designer, logo, t-shirt designer

Printing - Printing equipment, extra charges for specialty POD services

Product - Cost of t-shirts, inventory, storage

Shipping - Offset the costs of free shipping, domestic shipping, international shipping

Branding and marketing - Promotional materials, social media marketing, digital advertising, branded packaging

If you make the t-shirts yourself, in-house, account for your labor costs too: time spent making t-shirts, packing, shipping, managing inventory and general business administration.

While you might not take a wage from your business when it’s in the startup phase, you’ll need to know potential costs as you grow and hire staff.

10. Set your price

How do you make sure you profit from each sale? To build a t-shirt business that makes money and can justify certain prices, you’ll need to research the market, identify a niche, and create unique products or powerful messaging that attract loyal customers.

Before you decide on the right product pricing strategy  for your business, take these three factors into account:

There’s a lot of competition

With low-cost products, your profit margins will be slimmer

It takes time to grow your business

As with all eCommerce business ideas, you'll need to be strategic in order to start making a significant profit, i.e., you’ll need to be creative, mindful with expenses, and market your tees well.

Before deciding on a price, do market research. Check marketplaces like Amazon or Etsy, alongside your competitors to see what’s a fair and profitable price to charge for a niche graphic tee.

Here’s a rough pricing estimate for graphic tees.

$5 - $15 : Unless you are selling huge amounts of t-shirts, you may find it difficult to make money selling tees at this price range. So, this range is only feasible if you create and print large amounts of the same design as one batch, or if you print t-shirts yourself.

$16 - $29 : This is roughly the average price range for graphic t-shirts. If you want to make a decent profit on each tee without scaring customers away, set your price within this range. This is helpful for scaling your business from the start, earning up to 50% profit on each tee, and selling products printed by a POD service.

$30 - $40 : T-shirts in this price range are usually specialty items or particularly unique. This range works best for tees that incorporate various printing techniques, high-quality t-shirts, and detailed or specialty designs (e.g., limited release tees).

Compare your tees to similar brands who sell shirts online. Think: what will the market pay for an organic cotton t-shirt with a unique hand-drawn illustration? Will you charge more or less than your competitors? If more, why would people pay more for your tees? If less, ensure you’re not undervaluing your product. That said, when starting a new business, strategically underpricing can be a good way to stand out and attract new customers if done responsibly.

Most businesses aim to make about 50% profit on each item. So, this simple formula can come in handy when determining your retail price:

Retail price of your graphic tee = cost of product x 2

In other words, you can start by charging your customers double the amount it cost you to create each tee.

11. Build your t-shirt brand

Now, it's time to start selling your t-shirts and getting your brand out there. Here are a few pointers for strengthening your eCommerce branding  and your eCommerce marketing :

Create a memorable logo  to represent your brand. Use a  logo maker , design one yourself using software like Adobe Illustrator, or hire a graphic designer to create one for you.

Get on the right social media platforms . Know your target audience and where they hang out online. Then create promotional campaigns to spread the word about your products. Consider influencer marketing as a way to connect with your audience. If social media influencers with hundreds of thousands of followers are out of your budget, find relevant nano influencers with a small but loyal following. Reach out to them and see if they would be interested in showcasing your t-shirts on their platform.x

Use advanced SEO tools to help customers find your site organically on Google. Include keywords relevant to your brand and products throughout your site pages, without stuffing them unnaturally. Consider investing in digital advertising, using tools like Google Ads to target high-intent shoppers searching for unique t-shirts online.

Create a unified brand from your products and packaging to your online store and ads. Think about what appeals to your audience. Build buyer confidence with a familiar look across all your sales channels that stands apart from your competition. Be inspired by this of clothing brand names .

12. Scale your t-shirt business

Scaling your business requires regular check-ins with your spending. When reviewing your finances, pay close attention to the following:

Your net profit: How many t-shirts are you selling per month? What are your total costs? How much money do you have left at the end of the month after expenses?

Overhead costs: What investments are not paying off? Can you minimize your production costs?

Consider the costs of expanding your business. Will you need to hire a designer? Will you need to buy more inventory? Will you need more storage space or equipment? Can you scale up using your own finances or will you need to take out a business loan or reach out to investors?

When you're ready to expand, here's how you can take your t-shirt business up a notch:

Write a business plan : Outline your brand’s mission, your niche, target audience, budget, financial projections and future sales goals set against a timeline.

Create more designs: Stay focused on your niche audience. Determine which t-shirts sold best and create more designs that are similar.

Expand your marketing strategies : Use email marketing to retarget previous customers. Use Facebook and Instagram Ads to target new customers on social media. Narrow down your audience by choosing specific demographics, like gender, age, location, and interests.

Create a pop-up shop: Partner with local businesses, markets, or fairs and sell your products in person.

Consider hiring a Wix Partner : Consult and hire a digital agency to help you reach more shoppers, market your products effectively and grow your business.

Ready to get started on your t-shirt business? Create your online store now.

What to keep in mind when starting a t-shirt business

Starting a t-shirt business can be an exciting venture, but there are several considerations to keep in mind to ensure its success. Here are some key factors to consider:

Niche and target audience: Identifying a specific niche and understanding your target audience is fundamental. Tailoring your designs and marketing efforts to a well-defined audience increases the likelihood of capturing the interest of potential customers.

Design and quality: The design and quality of your t-shirts play a pivotal role in attracting customers and building a positive brand image. Invest time and resources in creating unique, visually appealing designs and ensure that the quality of the t-shirts meets or exceeds customer expectations.

Online presence and eCommerce: Establishing a strong online presence is essential in today's digital age. A well-designed eCommerce website, supported by effective social media marketing, provides a platform for showcasing your products, reaching a wider audience and facilitating online sales.

Brand identity: Building a distinctive brand identity sets your t-shirt business apart from competitors. Consistent branding, including a memorable logo, cohesive visual elements and a clear brand voice, helps create a lasting impression in the minds of customers.

Customer service and satisfaction: Providing excellent customer service is crucial for customer satisfaction and repeat business. Respond promptly to inquiries, address concerns professionally and ensure a positive buying experience. Satisfied customers are more likely to become repeat customers and recommend your business to others.

How much does it cost to start a t-shirt business?

The cost to start a t-shirt business can vary depending on a number of factors, including the size and scope of your business, the type of printing method you choose, and the quality of materials you use. However, there are some general costs that you can expect to incur, including:

Design costs:  If you're not a designer, you'll need to hire a designer to create your t-shirt designs. This can cost anywhere from a few hundred dollars to several thousand dollars.

Printing costs:  The cost of printing your t-shirts will depend on the type of printing method you choose and the quantity of shirts you print. Some popular printing methods include:

Screen printing : This is the most common and cost-effective printing method for large orders.

Direct-to-garment (DTG) printing : This is a digital printing method that is well-suited for small orders and custom designs.

Heat transfer printing : This is a versatile printing method that can be used for a variety of materials and designs.

Inventory costs:  You will need to purchase inventory, which includes the cost of blank t-shirts, printing supplies, and packaging materials.

Marketing and advertising costs:  You will need to market and advertise your t-shirt business to potential customers. This can be done through online and offline channels.

Other costs:  There are other costs that you may incur, such as website hosting, domain registration, and shipping costs.

Can a t-shirt business be profitable?

Yes, a t-shirt business can be profitable. In fact, the t-shirt market is a multi-billion dollar industry, and there are many successful t-shirt businesses of all sizes.

However, it's important to note that starting and running a profitable t-shirt business isn't easy. It requires hard work, dedication, and a good business plan.

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How to start a t-shirt business online FAQ

How can i start my own t-shirt business with no money.

If you want to start a t-shirt business fast with no money, you can use a print-on-demand  service. With a print-on-demand service, you don't have to buy any inventory upfront. You simply create your designs and upload them to the service. When someone orders a t-shirt, the service prints and ships the shirt for you. This is a great way to get started with a t-shirt business without any upfront investment.

Do you need a business license to sell t-shirts online?

What do i need to start a t-shirt printing business, related posts.

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How To Start a T-Shirt Business: 2024 Guide

Want to know how to start an online t-shirt business? Read these expert tips on finding customers, designing popular graphics, and selling your t-shirts online.

T-shirt business graphic

The custom t-shirt printing market is expected to grow by 11% per year through 2030. And with online tools to help you print and sell your tee designs , it’s never been easier to start a t-shirt business.

By selecting a target audience and designing t-shirts that delight customers, you can create popular clothing at a low cost.

This guide explains how to start an online shirt business that brings in extra monthly income.

How to start a t-shirt business

  • Choose a niche
  • Source quality material and t-shirt printing options
  • Create t-shirt designs
  • Mock up your t-shirts
  • Validate your t-shirt designs
  • Set up your online shirt store

1. Choose a niche

Successful online t-shirt businesses find ways to stand out from the crowd. One of the best strategies for differentiating your products from competitors’ is by catering to a specific audience or interest group.

Choosing a t-shirt niche can help your online shirt business attract these motivated customers.

Generally, niches like “t-shirts with funny slogans” are too broad for a new business to successfully compete. Instead, look for sub-niches and use keyword research tools to find phrases that your target audience is searching for. For example, sub-niches in the funny t-shirts category might be “t-shirts with slogans about doctors” or “funny t-shirts for dog owners.”

Red t-shirt with a white graphic of a pug and the text, “Keep calm and pug on.

Here are a few ways to estimate the value of entering a niche:

  • Scan this list of popular hobbies on Wikipedia for inspiration.
  • Use the Facebook IQ Audience Insights tool to gauge the size of your niche on social media.
  • Visit a niche’s subreddit and check the subscriber count and level of engagement.
  • Consider your own interests and the communities you belong to.

Once you find a niche, create a business plan that lays out opportunities to sell custom t-shirts to your niche audience.

2. Source quality material and t-shirt printing options

The next step in starting an online t-shirt business is to find a wholesale clothing supplier , or a custom tee manufacturer .

Not all t-shirts are the same. Different printing methods produce different results. With shirt quality paramount to your brand’s reputation, educating yourself on stock is essential.

It can be tempting to partner with budget supplier and sacrifice quality for higher profit margins. But consider how product quality impacts a customer’s decision to make a second purchase or recommend your shirts to other people.

Choosing a quality t-shirt encompasses several factors, including fit, sizing, material, softness, and weight. Once you narrow down your choices, order some samples to make an informed final decision.

3. Create t-shirt designs

After selecting a shirt supplier, you might choose to develop original graphic tees. Here are a few ways to get a head start:

Find the bestselling designs and niches

If you’re struggling to come up with t-shirt design ideas, look at what’s popular and currently selling well on graphic t-shirt marketplaces such as:

Another research tip is to use Google Trends to gain a sense of the topics people are currently interested in. Use trending subjects as inspiration for your t-shirt designs.

Hire a designer

Once you have a general idea for t-shirt designs, start sketching some drafts. If you know how to use graphic design software, you likely can produce great designs yourself. However, it might make more sense to enlist some help.

There are several online sources for finding suitable graphic designer, including design communities, freelance networks, and t-shirt design marketplaces:

Design communities

Dribbble is a design community that’s home to lots of talent. Search for styles you like, then message the designer to see if they’re available for your project.

Eight images showing T-Shirt illustrations on Dribbble below related search options and categories.

Behance hosts portfolios from creators around the world who specialize in illustrations and graphic design.

Various examples of graphics and images from Behance’s projects page.

Freelance networks

General freelance networks like Upwork also contain listings of artists and illustrators. Find a qualified t-shirt designer, then check their past job successes and portfolio to see if they’re a match for your project. If you like someone, you can reach out through the platform and hire them on the spot.

T-shirt design marketplaces

Instead of hiring a designer, you can purchase pre-made designs your t-shirt business. This route saves on upfront costs, but means that other stores are likely selling your designs, so it may be harder for your store to stand out. Check out the following t-shirt graphic marketplaces:

  • Tshirt Factory has a variety of vector images, from old school to punk designs.
  • Creative Market has more than three million graphics and templates.
  • Graphic River offers royalty-free Photoshop vectors and icon packs.

Keep in mind, you may need to purchase a commercial license for your images before you can use them on your t-shirts.

💡 Need a logo for your t-shirts? Shopify has a free custom logo maker .

4. Mock-up your t-shirts

Once you have final designs, the next step for your t-shirt business will be to produce mockup images. Mockups help you and your customers see what the final design will look like when it’s printed on a shirt.

A digital design menu beside a person modeling a white t-shirt with a custom graphic.

You can create mockups using web software or with an image editor like Adobe Photoshop.

T-shirt mockup templates for Photoshop come with multiple layers that let you change the color of the shirt and apply your own design that will blend with the shirt’s creases, folds, and contours.

There are also web-based mockup software that will let you create similar images without having to download Photoshop:

  • Printful Mockup Generator
  • Placeit Mockup Generator
  • Printify T-Shirt Mockup Generator

If you don’t like the idea of creating digital mockups, you can always order samples of your shirts and take product photos .

5. Validate your t-shirt designs

Before you invest in your new business idea, test the popularity of your designs. There are many ways to validate design popularity before you sell your t-shirts online.

Common methods for validating your design ideas include:

Reach out to personal social networks

Post a preview of your designs to your social media accounts and on feeds that your potential customers visit. Be careful when asking the thoughts of friends and family, however. Their opinions can come with a favorable bias.

Despite the community’s general aversion to marketing, Reddit is still one of the best places to get honest feedback on your designs . Through this process, you may earn yourself some future customers and gain some free marketing along the way.

Use crowdfunding

Crowdfunding sites have made it easier to test, validate, and collect money upfront for new business ideas. Launching a crowdfunding campaign can be time-consuming and requires preparation. However, if you have a particularly novel t-shirt business idea, crowdfunding might be for you.

🎧 Here’s why you should test your t-shirt designs before you invest.

6. Set up your online shirt store

With t-shirt designs commissioned, mock-ups created, and feedback acquired, it’s time to build your online store .

If you’re using a print-on-demand service to produce your tees, it’s easy to integrate your products with a Shopify store. Customers can visit your store to browse shirts. Once they make a purchase, print-on-demand apps will produce and ship the items.

Try these t-shirt printing apps that integrate directly with Shopify stores:

💡 Need advice on building your store? Here’s a step-by-step guide .

5 considerations for starting a t-shirt business

  • T-shirt printing techniques

1. T-shirt printing techniques

There are three popular methods for printing t-shirts. Deciding which one to use will partially depend on your product pricing strategy .

Whether you invest in your own printer or use a local supplier, it’s worth knowing how each printing technique works.

Screen printing

An industrial screen printing machine with eight arms in a large factory space.

Screen printing is an old technique that has stood the test of time for business owners who design and sell t-shirts online and in stores.

As one of the most popular methods for printing, screen printing can produce durable and long-lasting results. It also lets you print on products like canvas items, mugs, hats, and other things to make and sell if you want to expand your product line.

However, a labor-intensive initial setup means screen printing is most cost-effective when printing in bulk. Screen printing also poses issues when it comes to complex designs or designs with more than four to five colors, as each color increases costs and production time.

Heat transfer

Gray heat transfer machine being used to print the number 14 on a red soccer jersey.

Heat transfers exist in several forms. For example, you may have seen basic heat-transfer paper at your local office supply store.

Although this method makes it easy to print designs from your home computer and transfer them with an iron, a more complicated process is needed when running a small business. The more advanced form of heat transfer is called plastisol transfer and is printed by professional printers on special, high-quality heat-transfer paper.

The advantage of heat transfers is the ability to order a stack of prints from your local printer and transfer them to your t-shirts with a commercial heat press machine as you receive orders. Heat transfers can produce full-color images onto t-shirts relatively easily and quickly, helping to make them an affordable option for small batches.

Though affordable in the long run, a heat press machine can be a large upfront cost. Also, the do-it-yourself approach requires you to invest more time making the t-shirts and the final result can be lower quality and less durable than shirts that use other forms of printing.

Direct-to-garment (DTG)

Black garment with a floral graphic being fed into a direct-to-garment printing machine.

The direct-to-garment printing process operates like an ink-jet printer. It’s common in t-shirt printing businesses because it prints ink directly onto the t-shirt and can produce full-color images with accuracy.

DTG printing produces quality printing on par with screen printing, and is seen as more premium than heat transfer. Because it operates like an ink-jet printer, there are no setup costs, unlike screen printing. This means it’s easy and cost-effective to print small orders.

The major disadvantage of direct-to-garment printing is the lack of volume discount for large orders, as it takes the same amount of time to print each shirt.

The last thing a visitor wants to see in your catalog is a poorly plagiarized shirt design. Your designs don’t necessarily need to be complex—in fact, many of the bestselling graphic tees are simple. However, they do need to be original.

To ensure quality prints for your shirt-selling business, your design files should be at least 300 pixels per inch (dpi or ppi), have a transparent background, and be large enough to cover the actual print area of the t-shirt. Just note that your specifications will vary depending on the printer and printing technique used.

The next most important factor in starting an online t-shirt business is product quality. You can disappoint a customer once, but they won't return to your store. A pattern that fades and cracks or a t-shirt that shrinks and rips won’t create loyal customers.

Higher quality t-shirts might cost more to produce but can also command higher prices. Remember to base your product quality decisions on expected profit margin , not the product costs.

A strong, interesting brand is vital for starting a shirt business online. Your brand will tie together all of your choices, including your niche, designs, and shirt quality. From your t-shirt business name to the logo you use, building a unique and likable brand is important in a high-competition industry.

When customers have a choice of stores to shop from, businesses with a distinctive presence are more likely to capture attention. If you’ve chosen a niche for your online t-shirt business that embodies a certain lifestyle, you can incorporate it into your marketing and website to speak to these customers.

5. Inventory

T-shirt businesses can buy and hold inventory, taking advantage of bulk pricing and local printers. Or, they can use a print-on-demand service to take inventory management and shipping off their plate. You also can opt for a mix of both.

By holding your own inventory for your online shirt selling business, you can sell in-person, which could help improve your profit margins. With print-on-demand, you take on less risk because your production depends on your orders. Weigh the pros and cons before you start. If you’re unsure, print-on-demand is a good idea for smaller businesses .

Of course, if you have the budget, you can also invest in a printer and make your own in-house clothing line .

An online t-shirt business success story

Many entrepreneurs have been successful in starting a shirt-selling business. For example, Ryan McCarthy, founder of Imouri (formerly Sugoi), has used Shopify to run his anime-inspired t-shirt printing business since 2016.

Anime-inspired graphics on eight Imouri t-shirts of various colors, beside an options menu.

Ryan decided to create his t-shirt business when he couldn’t find anime-themed clothing that fit his personal style. He quietly launched what he thought would be a small clothing business, which has since turned into a six-figure print-on-demand apparel company selling streetwear inspired by Japanese pop culture and anime.

His secret to successfully starting a clothing line? Identifying winning designs early on by using Reddit and paid ads to test products.

Start your t-shirt business today

It's never been easier to express your creativity and sell t-shirts online

Whatever niche you choose to serve, and however ambitious you decide to be with your quality and designs, a t-shirt store can be a great first ecommerce business for new entrepreneurs.

Shopify can help you start selling and control your costs. Connect your store to a t-shirt printer in minutes and launch a catalog that your customers will love.

Illustration by Alice Mollon

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T-shirt business FAQ

Is a t-shirt business profitable.

T-shirts are a staple around the world, with global apparel sales reaching $1.79 trillion in 2024. Creating an online t-shirt business can be profitable thanks to low startup costs compared to other business opportunities.

How much does it cost to start a t-shirt business?

Starting a t-shirt business from home requires little investment. Print-on-demand services offer product manufacturing and shipping, and only charge vendors for products when they're sold. That means fewer overhead costs and little risk of overstocking.

What should I do before selling t-shirts?

  • Conduct market research on a niche and find a passionate community.
  • Come up with a t-shirt company name.
  • Make a business logo and set up an online shop.
  • Create your own t-shirt designs.
  • Set up your social media accounts.
  • Run paid ads for your online t-shirt business site.
  • Do blog outreach and free promotions with influencers.

How much can you make selling t-shirts?

The amount you make selling t-shirts depends on factors including your chosen niche, production methods, pricing, and marketing strategy.

How can I start my own t-shirt business with few upfront costs?

If you want to start a t-shirt business without an initial investment, create a Shopify store and integrate a print-on-demand app such as Printful.

Do you need a business license to sell t-shirts online?

Typically, you do not need a business license to sell t-shirts online. You may need a resale license to buy clothing from a distributor without sales tax. Check with your local revenue or finance department to learn more.

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How to Create a Business Plan for your T-Shirt Business

With advancements in technology and the internet, as well as the changing tides of commerce, starting your own business has never been easier. And it turns out, many are dipping their toes into the entrepreneurial pool by starting out with their own t-shirt or apparel campaigns.

The custom apparel industry has boomed in large part due to the low barrier of entry thanks to websites like Teespring, Teechip, and Represent to name a few. But as more and more people come aboard, the market is becoming oversaturated and it is becoming increasingly difficult for newbies to profit.

Unfortunately, many new entrepreneurs lack the experience or education to create the systems that will one day turn their business into a sellable asset, and the marketing wherewithal to beat out their competition.

Whether you’re looking to kickstart your first custom apparel campaign or are struggling to make your current one work, we’re breaking down how to create a business plan for your t-shirt business that will put you on the path to success. Even if you’ve found some success with your campaigns, implementing the following steps will likely improve your success, boost your profitability, reduce your current workload and turn your business into a sellable asset, so follow along.

Step One: Pick Your Platform

There are several platforms available for sellers to choose from including, Teepsring, Teechip, Teezily, Represent, Viral Style. These platforms offer online design tools that allow you to create custom products in a few short minutes.

Additionally you have access to marketing tools like URL tracking, third party analytics, and more, plus these platforms handle shipping so you don’t have to.

While many people choose to start out using websites like Teespring, some sellers are moving to Shopify to start their own brand.

Unlike the other platforms, with Shopify you are responsible for creating, posting, marketing and shipping your products independently. Though this may sound daunting to some, there are plenty of advantages to choosing Shopify as your platform, most notably, building your own personal brand.

If you want to grow a t-shirt business that is built on a completely unique and/or personal idea then Shopify is a great platform that will let you develop your brand. Your entire ecommerce store can be designed to reflect your vision and voice, and you will have full control over its design, layout, marketing and more.

Step Two: Choose Your Niche

One of the first questions you need to answer before worrying about marketing and design is your niche.

The niche you choose to move forward with can directly impact your audience size and potential sales. When making your decision you will want to choose something that has high levels of commerciality and little to no competition. Together these two factors can help you create viral campaigns and crush it in sales.

If you aren’t sure which niche is right for you there are a couple simple ways to test the market:

  • You could start a few test campaigns on platforms like Teespring to see which attract the most buyers, or
  • You can take advantage of the TeeGrasp Niche Analysis Tool , found on our website

With option one, you will likely end up investing several hours of your time and energy into the process, which is why we obviously prefer option two.

Our niche tool allows you to instantly compare up to 50 niches at one time. Once our tool has pulled all the data from each niche you can then view a chart containing several different metrics including how many campaigns have launched recently, sales made, total active campaigns in that niche, and social media data.

Choosing a niche blindly is not advised and can cost you time and money. Whichever route you choose to go down in terms of niche selection, make sure you have research and data to back it.

Step Three: Build Your Audience & Gain Traction

Building an interested audience is critical if you want your t-shirt business, but how do you go about it?

There are four main ways you can start to gain traction, make initial sales and build your audience:

  • Growing an email list
  • Creating Facebook pages/groups
  • Paid advertising

Many of these strategies intersect one another, for example, you can grow your email list via your Facebook page using the Call to Action button or via paid Facebook ads driving traffic to an email list opt-in page on your website.

Unlike an email list, Facebook page or paid advertising, SEO (short for Search Engine Optimization) refers to the basic behind-the-scenes tweaks you can make to your website that will increase your ranking in search engines like Google. The closer you are to ranking number one on Google, the more chances your website will be seen by customers searching for your products.

Regardless of which method you choose, the underlying need is to continuously reach new potential buyers and entice them to purchase your product.

Step Four: Create Systems and Processes

Perhaps one of the least glamorous aspects of growing your own business is creating the systems and processes that will allow you to organize it so it runs smoothly.

Systems and processes refers to things like SOPs (standard operating procedures) that are essentially step-by-step instructions for tasks. These documents are meant to be so detailed that even someone who is unfamiliar with ex. a website would be able to perform the task.

These also happen to be one of the golden tickets for turning your business into a sellable asset. In fact, this is a serious problem for most sellers. While they create a business that, for example, profits $1000 per day, they increase the valuation of their business. When it’s time to sell, having the right systems in place can be the difference between a big cash out and just quitting.

In fact, many online businesses sell for 20x their monthly profit. If you increase monthly profit by ex. $10,000, you can make that back PLUS $200,000, but only if you have a business based on systems. Find out how much your business is worth here .

Create systems, procedures and protocols for all of the tasks you complete in order for your business to function and not only will you be able to iron out any wrinkles in your daily operations, but you will save yourself significant time when you go to hire support staff or sell the business.

Step Five: Hire Staff To Support Your Business

Speaking of support staff, once you start making consistent sales you will want to invest in staff. There are plenty of successful t-shirt business owners who profit over $30,000 per month but want to quit because they’re sick of the grind.

Running the operation daily by yourself will wear you down and can eventually cause your business to fail. Start by hiring out smaller tasks like FB ads management and progress towards hiring someone for customer service inquiries or researching new design ideas.

The truth is, no one is Superman and we all need a break every now and again. Don’t try and do it all, create the systems (see Step 4) that will reduce your stress and burden, and still be able to earn money when you’re on that well-deserved vacation or living a digital nomad lifestyle.

As we mentioned above, creating a business plan for your t-shirt business doesn’t just benefit newbies, but can greatly impact a currently profitable business. What this plan does is reduce your odds of diving into a business blind and increases your chances of beating out your competitors and creating a future asset.

Did you start out with a business plan? If so, how has it helped shape your business?

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How to Start a T-Shirt Business: Everything You Need to Know

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Before you ask how to start a T-shirt business, take a minute to consider why you want to start a T-shirt business.

Do you have great designs that you want to share with the masses? Do you see that the promotional products or uniforms niche is under-served in your area? The reasons for starting your foray into the T-shirt business should be outlined from the jump, as with any good business plan.

business plan for tshirt business

How to start a T-shirt business: A step-by-step guide

One of the great things about the T-shirt business is it’s something of an equal-opportunity industry. It doesn’t take much to get started, and where it goes from there is up to you. In fact, with the rise of ecommerce, dropshipping, and home-based business, you can start a T-shirt business without a lot of capital.

“In this industry, you can do it small. You only need minimal overhead, and you could do it out of your basement without any issues,” says Steve Clark, an account manager for The Icebox, an Atlanta-based apparel company that now produces corporate swag and does creative services consulting. “Then you need the drive, you need to do the research, you need to see how you’ll differentiate yourself—the basic kind of rules that apply to any business.”

A quick internet search will bear this out: You’ll see no shortage of articles and videos that boast of how quick and relatively inexpensive it is to start a T-shirt business. But here are a few things to consider before you jump in.

Step 1: Identify your market

When starting a T-shirt business, you'll first want to establish what kind of T-shirt business you want to start—this, in turn, will determine the answers to questions like what the quality of your shirts will be or how much time to dedicate to your designs and business branding. For example, if you’re creating T-shirts for gym members, you’ll want performance fabrics, while lifestyle brands will want high-quality T-shirts that fit fashionably. Consider the needs of your future clients before moving forward.

Once you've established your niche market, you'll have a better idea of how you want to sell your T-shirts. If you’re interested in starting a retail line—which is more likely than creating a B2B (business-to-business) line if you’re starting up from home—Clark advises you take one of two avenues:

“You can go the boutique route, where you’re online as well as in the little local shops and stores around town. Larger brands, selling to major retailers like Macy’s, is an entirely different ball game—you need a lot more capital behind you to tackle that, since they’ll want to know what you’ve got lined up for next season if you show them a line they like. You need to be able to eat a lot of product. You’ll have to adhere to lots of specific regulations, and they’ll charge you if you make mistakes,” he says.

How much money does that initial run need? “If you’re willing to invest in the area of $5,000, you can create a retail line,” says Clark. “And then you have to get out there and show it.” You can go lower, but you run the risk of being “one and done” if the T-shirt line doesn’t pan out.

The direction you choose when starting your T-shirt business isn’t set in stone. The Icebox started in 2001 with the mission of simply doing things cooler, better, and friendlier than everyone else. It now has over 6,000 customers that order from them in a range of scopes and budgets. Being business-to-consumer or business-to-business is just a starting point if you have larger aspirations.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Design your T-shirt

Sounds simple enough, but once you decide who you're marketing to it's essential to start figuring out what your T-shirt (or shirts) will look like. As you're starting your T-shirt business, there may be a good deal of trial and error to figure out what resonates with customers. Just because you love your design doesn't mean your potential customers do too.

To avoid wasting money on failed designs, it helps to do your research before taking your T-shirt to be made. Think about your target market: What do they like to wear? How do they wear their T-shirts? When do they wear their T-shirts? Answering these questions will give you a better idea of how to design your product when starting your T-shirt business. Next, consider your T-shirts' fit, size, color, material, weight, and softness—then pick the materials you want to use to design your T-shirt.

While doing this, think about the quality of your product. If a customer buys a T-shirt from you and the shirt shrinks dramatically after one wash, or the colors fade, they probably won't buy from you again. This also means you'll be unlikely to benefit from word-of-mouth marketing. Using higher quality materials will safeguard against this happening—but will also cost you more money. So it helps to try and find the right balance—and remember, if your first design doesn't work, don't be afraid to scrap it and start again.

It's also important to make sure your design isn't trademarked or copyrighted to avoid future legal headaches.

Step 3: Make your business legal

Depending on where you're located, you may be required to get a permit or a license before you can start your T-shirt business. You want to be certain that your business is legal before you start operating to avoid a headache down the line.

It's also important to register your T-shirt business's name. You can do this by filing paperwork with your local secretary of state. If you plan to operate under a fictitious name, you'll need to file for a DBA (doing business as). Typically, only sole proprietorships and partnerships require a DBA, but in some cases, LLCs and corporations can also file one.

Which brings us to your business entity. When you start a T-shirt business, you'll want to decide what type of business entity you will be. Deciding between a sole proprietorship, partnership, limited partnership (LP), LLC, C-corporation, or S-corporation can be a difficult decision with legal and financial implications.

Step 4: Determine your overhead

The man responsible for the formation of The Icebox, Scott Alterman, started his apparel career by selling shirts out of the trunk of his car while he was still a graduate student. Suffice to say, the term “overhead” doesn’t mean as much in this industry as it does in others. That said, here are the startup costs you should consider when starting your T-shirt business.

Fixed costs

“You’ve got rent, insurance, and keeping the lights on. It’s almost like your house—your utilities, your space, and can you eat?” says Clark. “There’s not a lot that goes into it, if you start smaller. You then build expenses on top of that: If you don’t have a location, you invest in your web infrastructure, including search engine optimization.”

In terms of web presence, you can choose to create your own business website and ecommerce platform, or use third parties like Shopify or Etsy to help streamline the process. Some of the money you might have spent on a physical location can be put toward marketing your T-shirt business's website instead.

Paying for inventory

You also need to cover how you’ll source and create your shirts when starting your T-shirt business. You can find a vendor to sell your T-shirts in bulk, then choose from a number of printing options, such as:

Screen printing: A great volume choice, though less capable of complex, colorful images.

Heat transfer: You can print on demand, but expect poorer quality and the upfront investment of a heat press.

Direct-to-garment: Unlimited color options and great detail, though not recommended for volume runs.

One good way to find resources as you start your T-shirt business is to join a membership organization like SGIA , PPAI , or ASI . These organizations usually provide tutoring, mentoring, conventions, and good ways to save. Mentoring can be helpful when you're trying to work out your distribution strategy, for both online and in-person outlets.

“You’ll have to spend some money upfront, but memberships to those groups are cash forward,” says Clark. “You get your products, shirts, mugs, or whatever you want to print on, through the networks you join. As long as you have an EIN (employee identification number), you can become a member and buy shirts at good prices.”

Another option to help you pay for necessary supplies as you start your T-shirt business is inventory financing —but note that it can be difficult for a startup to qualify for.

Step 5: Market your business

Once you create your line and your website, the next step in starting your T-shirt business is getting the word out about your product. Even the most fantastic designs or best prices need buzz.

Before Clark joined The Icebox, he had his own apparel company called Zoink. Here's how he went about building a clientele from zero:

“Call and network,” he says. “When I started, I targeted certain markets, and I picked up the phone and I called. I got shot down nine out of 10 times, but one client is one client. Who you know plays such a huge role and you have to promote yourself constantly. No one is just going to find your website and think, ‘Sure I’ll buy from here,’ unless there’s some buzz around it.”

In order to battle the “drudgery” of the situation, Clark suggests setting a goal to reach every day when reaching out to prospective clients.

“Make 25 calls a day, to get five callbacks, to get one meeting, and hopefully one client. You need to have the perseverance.”

Another thing that will help market your product—especially in the fashion industry—is having a well-defined brand. There are so many different clothing options out there—so creating a brand that will resonate with your target audience is key. Ideally, you want to cultivate something that speaks to the uniqueness and quality of your T-shirts. Then, market your T-shirts in ways that reinforce your brand.

ZenBusiness

LLC Formation

Step 6: Don't overextend yourself financially

Starting a T-shirt business may have minimal startup costs, but that doesn’t mean you can’t overextend yourself with poor investments. During the Zoink days, Clark created a mantra that he still adheres to: “Don’t buy a pencil if you don’t have to.”

“When I started my business, I was very excited and very committed, I had employees and equipment and the whole bit. Everything was going great—but we were able to maintain it because if we didn’t need a pencil, we didn’t buy it. We were very conscientious. Every nickel you spend needs to go in the right direction. The marketing budget should be well-spent. If you can do some parts of the business yourself, do it yourself, even if it costs you some hours. Do anything you can do to save money on the front-end,” he says.

Just as important as not spending money is having enough in the first place , in case you need to weather any financial storms. Clark cites capital as the number one mistake he made in the early going.

“Don’t do it under-capitalized. I didn’t have the capital I needed behind me to get through the lean times, and I should have had more capital going out of the gate. I should've had three times the capital I started with.”

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Start a T-Shirt Business

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On This Page:

  • Starting Your T-Shirt Business

How Big is the T-Shirt Industry?

What are the key segments of the t-shirt industry, what external factors affect the t-shirt market, who are the key competitors in the t-shirt market, what are the key customer segments in the t-shirt market, what are the typical startup costs for a new t-shirt business.

  • Is Owning a T-Shirt Business Profitable??

What are the Keys to Launching a T-Shirt Business?

How to start a t-shirt business faqs, helpful videos, additional resources.

Starting a t-shirt business can be a fun and profitable way to make money. However, it’s important to have a well thought out plan before you get started. This guide will walk you through the steps necessary to start your own t-shirt business.

Importantly, a critical step in starting an t-shirt business is to complete your business plan. To help you out, you should download Growthink’s Ultimate T-Shirt Business Plan Template here .

Download our Ultimate T-Shirt Business Plan Template here

Start Your Own T-Shirt Business

Follow these steps to launch your own t-shirt business.

1. Make a T-Shirt Business Plan

A t-shirt business plan is a detailed outline of how your business will work. It is a document that you will use to help with everything from choosing a t-shirt business name, to making your own t-shirt designs, and determining how much money you need to get started.

To enhance your planning process, incorporating insights from a  sample t-shirt business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

2. Decide On Your Business Model

There are many business models to choose from, including using wholesalers, drop shippers, and/or running your own ecommerce t-shirt website. Wholesalers are businesses that will sell your t-shirts to other retailers for resale to consumers. Drop shippers are businesses that don’t have any t-shirts in stock, but instead sell t-shirts online through a catalog. An online t-shirt business sells its products through its website.

3. Choose The Best T-Shirt Printing Method For Your Business

There are different t-shirt printing options available including silk-screening, screen printing, sublimation, and heat transfer. The printing method that’s right for your business depends on how you plan to sell your t-shirts and how often you will be selling them. 

For example, if you are selling t-shirts through an ecommerce platform, then heat transfers are most likely the best choice since they are easy to use in an ecommerce environment. However, if you’re going to be selling t-shirts at a brick-and-mortar store, then silk-screening, screen printing, or sublimation might be better options because they produce more vibrant colors.

4. Design Your T-Shirts

Your t-shirt designs can make or break your business. It is important to choose t-shirt designs that appeal to the people who will be buying them. Find out what colors and styles your target audience like, and make sure your own t-shirt designs align with their preferences. You should also research fashion trends in order to stay ahead of upcoming trends and take advantage of them when they happen.

5. Find Funding

Once you have finished your business plan, business model, and preferred printing methods, it is time to find funding for your t-shirt printing business. Your funding can come from investors, business loans, credit cards, personal savings or small business grants. Grants are less common but may be available in your region.

6. Register Your T-Shirt Business

Your t-shirt business must be registered with your local government before you begin your business operations. Registration will ensure that you are complying with laws and protecting yourself from lawsuits. Research business regulations in advance and register your business accordingly.

Finish Your Business Plan Today!

7. market your business.

It’s important to choose marketing tactics that suit your t-shirt business and your t-shirt business designs. There are many t-shirt digital marketing techniques out there, including networking, blogging, social media accounts, and search engine optimization (SEO). Your business should have a great marketing plan to help bring in new customers. Try blogging to help get your t-shirt business noticed. This will also help you sell t-shirts online.

8. Sell Your T-Shirts

There are many different selling options for t-shirt businesses, including brick-and-mortar stores, wholesale, home parties, physical t-shirt catalogs, and ecommerce platforms. Whichever selling method you choose for your t-shirt business, remember that it’s best to have a solid base of repeat customers in order to keep your business running smoothly.

9. Keep Up With New Trends and Technology

It is important that you keep up with what is new in the world of t-shirt businesses. This will help your business stay relevant and help you create and sell shirts that other customers want. In today’s fast-changing world, it is important to make sure your t-shirt business stays on the cutting edge of t-shirt technology – from design software to printing methods.

When your business becomes successful, don’t stop and pat yourself on the back. Instead, try to figure out how you can be better than ever in order to maximize your profit margins and customer satisfaction.

The t-shirt business is huge. The worldwide t-shirt business currently has annual sales of $3.96 billion and is expected to grow at a compound annual growth rate (CAGR) of 9.7% over the next decade.

Businesses selling t-shirts have been increasing over the past several years and will only continue to do so. This means if you enter the t-shirt business, there’s a good chance you’ll see success.

The t-shirt business can be segmented into the following categories: unisex, male, female, and kids.

Unisex t-shirts are those where design and color can be suitable for both men and women. For unisex tees, the neckline is round. Unisex t-shirts generally have a regular fit and come in all sizes: XS – XXL

Men’s t-shirts can be segmented as follows: slim fit, regular fit, relaxed fit, big and tall, athletic/muscle fit. For males, the neckline can be crew or V-shaped. The sleeves of male t-shirts may vary from long to short sleeves depending on the product type such as polo shirts or athletic wear. Male tees can be available in a wide range of sizes: XS – XXXL.

There are two different types of female t-shirts: regular fit and maternity fit. For female tees, the neckline can be round or curve-shaped. The sleeve length can vary from short to long sleeves depending on the product type such as polo shirts or athletic wear. Female tees can also come in a variety of sizes: XS-XXXL for regular fit and S – XXL for maternity fit clothing items.

Tees made specifically for children include infants, toddlers, children’s tee, boys’ tee, girls’ tee, and baby gift sets. Depending on whether it is considered a gift item or not, these items can come in different sizes ranging from newborn to youth.

Since the t-shirt business has been around for a long while, there are numerous factors that have affected it. This includes government policy changes in manufacturing or importation of t-shirts, natural elements such as seasons and weather, industrialization which caused mass production of clothes among other factors.

Manufacturing and Import Policies

Government policies can affect the t-shirt market because it determines how many shirts to import or produce domestically. For instance, if there are government policies that favor the local t-shirt manufacturers over t-shirt importers, then you will not see many products imported into the country instead produced domestically. This is because of reduced competition between importers and manufacturers forcing them to reduce prices significantly to stay competitive with each other.

On the other hand, if there are government policies that favor imports rather than domestic manufacturing or even both, then you will have a lot of competition especially among importers which increases overall volume making it easier for buyers to get what they want at affordable prices. So whenever this happens, you have a thriving t-shirt market in your country.

Industrialization

Since clothing is a major part of our daily lives, you can expect that as we advance and move forward into the future, it will be more industrialized. For example, if there were no industrialization at all, people would not have enough clothes to wear which means selling t-shirts in the market will be difficult. However, this is not the case today because we now live in a highly industrialized society where most manufacturers produce tons of shirts every day putting them up for sale to meet demand. This makes t-shirt prices low especially when they are imported from China or Bangladesh.

There are a few key competitors in the t-shirt business. Some of the largest t-shirt manufacturers are Gildan, American Apparel, and Hanes. These companies have been in the t-shirt business for many years and have a large market share.

Gildan is known for its premium t-shirts that can be found in many different sizes, colors, and styles. Gildan t-shirts were founded by a couple of brothers who decided to open up a t-shirt manufacturing business out of Canada. Today the company has grown and produces t-shirts all over the world.

The main factor that sets Gildan apart from other t-shirt companies is its use of premium cotton. The cotton is soft and comfortable against your skin allowing you to feel like you’re wearing nothing at all. Selling t-shirts made out of such high-quality material will cost more though; therefore, it’s important that you consider price when choosing the products that you sell on your website.

American Apparel

American Apparel is known for its t-shirt basics—a cut with thicker material, but it doesn’t have any special print designs or anything. You would wear this t-shirt under another shirt because the t-shirt is so thick. A large number of t-shirts sold by American Apparel are white t-shirts.

Hanes is known for its t-shirt basics as well. Hanes t-shirts are typically used as undershirts. They’re made out of soft cotton and fit tightly against your skin. They have t-shirts in many different sizes, colors, and styles which you could mix and match to create an interesting t-shirt store.

The t-shirts that Hanes offers range from t-shirts with a cotton/polyester blend, all the way to t-shirts made of 100% cotton. The price will vary depending on the type of t-shirt material you choose to sell.

When starting a t-shirt business, you have to know who your t-shirts are going to be marketed towards. While t-shirts are used by almost everyone at one point or another, t-shirt business owners should know that not every t-shirt is suitable for every customer.

The t-shirt market can best be broken down into three distinct segments:

Youth & Teen Clothing Industry

This industry incorporates those between the ages of 12 and 24. Youth prefer t-shirts with graphic print designs and fads to show off their personality and style. Their favorite motifs include pop culture icons as well as brand names and logos from the latest craze. The youth t-shirt business is the most profitable segment.

Adult Clothing Market

Adults generally prefer t-shirts that reflect their personal interests, including favorite sports teams and artists. Adult t-shirts are available for both men and women in a wide variety of colors, styles, weights, fabrics, necklines, and lengths. While t-shirts aren’t as popular with adults as they are with teens, t-shirt sales account for approximately 40 percent of the overall dress t-shirt market.

Employee & Corporate Wear Market

Companies spend hundreds of thousands of dollars each year on printed or brand t-shirts to allow employees to show off pride in their work or boost morale during events like company picnics or holiday parties. While t-shirts are largely used as a promotional tool for businesses, sales only account for three percent of the industry’s overall revenue.

When starting a t-shirt business, there are a few things you’ll need to invest in. In addition to the cost of shirts and printing, you’ll need to factor in the cost of marketing, website development, and more. You should also have some money saved up for unexpected costs. Here’s a breakdown of some of the typical startup costs for a startup t-shirt store: Inventory : You’ll need to purchase shirts in bulk, so your startup costs will be relatively high.

Marketing and Advertising : You’ll need to invest in digital marketing and advertising to get the word out about your t-shirt business.

Website : A professional website can be expensive, but it’s essential for any successful t-shirt business.

Printing Equipment : You’ll need a t-shirt printer or other equipment depending on your chosen method to produce the shirts you sell.

Office/Manufacturing Location : You’ll need a space in which to conduct your business operations.

There are many other costs you may incur when starting a t-shirt business, so make sure you do your research before diving in.

Is Owning a T-Shirt Business Profitable?

  • Follow Trends: You can find out what’s popular by checking out best-selling shirts on sites like Amazon and eBay. Once you identify a trend, try to come up with a shirt design that incorporates it. While following trends can be risky, if you get it right, your sales could skyrocket.
  • Market Your T-Shirts: You can reach potential customers by setting up a website, maintaining social media profiles, taking out ads on Facebook and Google, and more.
  • Invest in Quality Shirts: Shirts that are made with high-quality fabric will last longer than those with cheaper material. It’s also important to make sure your shirts are high-quality if you plan to sell them online.

Starting a t-shirt business is a lot of work. It requires a great product, appealing t-shirt designs, and high-quality t-shirts. However, there’s more to it than that! To ensure the t-shirt business’ success, make sure you know how to start a t-shirt business by keeping these keys in mind:

Business Plan

First and foremost, you need to have a great t-shirt business plan . This document will outline your business goals, strategies, and how you plan on achieving them. Without a solid plan, it will be very difficult to make your t-shirt business successful.

Legal Documentation

In any business, you will need a business license, permit, or other legal documentation that allows you to do business in your area. You also need to get the proper insurance that covers your shirt inventory and printing equipment (if applicable).

Another legal requirement for t-shirt businesses is insurance. If your shirts are damaged or lost while in the possession of a customer, you will be liable for those losses and need business insurance to cover them. You will also have insurance to cover any lawsuits you may be sued for in connection with the shirts that you will sell. If your business involves printing, you will also likely need business liability insurance. This type of insurance provides protection against claims that may arise from someone being injured by one of your products.

Supplies & Inventory

You’ll need t-shirts (obviously), but depending on how you plan on selling them, you may also need packaging supplies, display stands, and clothing racks. This is just another reason why having a great t-shirt business plan is vital—it will tell you what supplies are needed before launching your business.

Shipping Materials

If you plan on shipping your products, you will need shipping boxes and packaging materials. It’s important to pack shirts in shipping boxes when sending them to different places. T-shirt packages are heavy in bulk, so be sure to protect your shirts in transit by wrapping them with packaging material before they go in the shipping box.

Online Presence

Don’t forget to create a business website and social media pages. Selling t-shirts online will help potential customers learn more about your t-shirt business before making a decision to buy from you or not. 

Social media is another way to reach customers. For example, Facebook allows anyone to set up a page for their company, product, or service for free, so if your t-shirt business doesn’t have its own Facebook fan page yet, create one.

You can also use Pinterest as a visual billboard for your t-shirt line by creating boards that showcase the styles and sayings you offer.

Customer Service & Outreach

Once your shirts are in stock, you’ll need to promote your business so that customers will know about it. Your t-shirt business plan should outline how you plan on reaching potential customers and turning them into loyal fans.

How to Finish Your T-Shirt Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your T-Shirt business plan?

With Growthink’s Ultimate T-Shirt Business Plan Template you can finish your plan in just 8 hours or less!

Is a t-shirt business profitable?

A t-shirt business can be profitable, but it will take some work., it can be hard to make a t-shirt business into a profitable business, but there are several things you can do to increase your chances of success., you should always try to push yourself out of your comfort zone and use all the resources available to t-shirt designers., what makes a high-quality t-shirt.

It is important that t-shirts are manufactured to a high standard. To succeed in the industry you have to consider the following when choosing t-shirts for printing:

  • Material - This is the main fabric that creates t-shirts and will determine whether you can wash and dry them without them shrinking. Cotton t-shirts are well known for their durability and versatility.
  • Stitching - Bad stitching will lead to t-shirts with loose stitches that can wear holes in them or break after a few washes. Get t-shirts with taped seams to avoid this problem.
  • Labeling - Unlike most other clothing items, t-shirts don't usually have labels actually stitched into the side seam. If the t-shirt has a label printed onto the fabric, make sure it's securely sewn onto the shirt - otherwise, it could peel off after a few washes.
  • Color - T-shirts come in different colors that vary in their ability to hide stains and last through the laundry. White shirts get dirty easily, while other t-shirt colors like black and navy blue stay looking good longer.
  • Fit - Your t-shirts should be comfortable and not too tight or too baggy; find the right fit for your target customers.

Which printing method is right for my t-shirt business?

You can get t-shirts printed using many different printing methods, but the costs of these methods vary greatly. If you're just starting out in your t-shirt business, it's best to stick with direct screen printing or digital printing because they cost significantly less than other types of t-shirt printing, like embroidery or transfers. These lower-cost options make it easier for you to make a profit especially when you sell custom t-shirts.

Do I need copyright permission to sell my t-shirt designs if they're not original artwork?

If you're using someone else's copyrighted work for your t-shirt business without permission, you could be liable for copyright infringement. If your t-shirt designs are based on someone else's copyrighted work, you'll need to get written consent from the copyright owner before you can sell them.

To protect yourself legally, use only designs based on original works that you've created or for which you have permission to use. You can also seek out t-shirt design contests where the designers retain all rights to their work, allowing you to reproduce it as a t-shirt design.

What is the best printer for a t-shirt business?

There are a few different things to consider when looking for the best printer for your t-shirt business. The most important factors are the quality of the prints and how quickly the printer can produce them. Some printers can produce high-quality prints very quickly, while others may be a bit slower but offer better quality. You'll also want to consider the price and whether or not the printer offers any design software that makes it easy to create your designs.

Most t-shirt printing businesses focus on printing shirts in bulk, rather than one at a time like screen printers. The major benefit to this is that you'll be able to print shirts much more quickly. This will save you money and allow you to grow your business faster. You also won't have the high costs of buying or maintaining an expensive printer, although these can cost more upfront it may end up saving you money over the long run if you're printing shirts for lots of different purposes (promotions, company shirts, etc.).

If the printer only prints one t-shirt at a time, then transfer paper should be used. This is a special shirt that makes it much easier to place t-shirts on the printer bed. If you just use t-shirts, even if they're blank shirts, then it can be very hard to get the shirt onto the bed of the printer correctly. Using shirt transfer paper makes this process much simpler.

How much should a t-shirt's price be?

A t-shirt business prices shirts depending on where they are sold or what brand they are associated with. You can typically find shirts for as little as $5 and as high as $200+ for designer shirts. The t-shirt's base fabric type typically dictates the t-shirt price; for example, many businesses sell shirts from $5 -$10 apiece because they're made with polyester, rayon, or cotton fabrics. 

Other factors include the shirts' color, print, and type of print process – screen printing or digital printing – also matter in determining what a t-shirt's final selling price might be.

Where can I buy wholesale clothing for my t-shirt business?

There are a few different places you can buy wholesale shirts for your t-shirt company. You can find t-shirts at wholesale prices on websites like Alibaba, or you can buy them from suppliers in your local area. Be sure to compare prices and quality before making a purchase, and always ask for a sample t-shirt to ensure that you're happy with the quality of the product.

How can I promote my t-shirt company online?

One great way to promote your t-shirt business online is by setting up a website for your business. Your website can be your online t-shirt store. This will give customers a place to learn more about your t-shirts, see your designs, and place orders. 

You can also use social media marketing on platforms like Facebook and Twitter to promote your t-shirts, and you can even post photos of people wearing your t-shirts on Instagram. Use hashtags to make it easier for people to find your business online. You can also take advantage of online marketing tools like Google AdWords to reach more people.

What are the best fabrics that I can use for my t-shirt company?

You'll want to use fabrics that are high quality and durable. Cotton is a good choice as it is comfortable and breathable. Polyester is another popular fabric choice as it is strong and wrinkle-resistant. Depending on what the shirts are being used for, linen can also be an affordable and breathable alternative to cotton shirts.

Where Can I Download a T-Shirt Business Plan PDF?

You can download our t-shirt business plan PDF template here. This is a business plan template you can use in PDF format.

How to Start a T-Shirt Business at Home | Key Things to Know!  

Printing United Alliance  

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

How to Start a $41K/Month T-Shirt Business (2024)

business plan for tshirt business

Have you ever wondered how to start a t-shirt business? Starting a t-shirt business only requires a little investment and some technical skills. You can start a clothing line and make a great living. We’ll show you how.

One of our success stories is about Sanford Booth. He started his own t-shirt printing company by buying a Big Frog franchise and turning his original investment of nearly $200K into a profit in only four months. He took home $80K the first year, and this year he’s expecting to make $550K! We’ll share his advice for starting a t-shirt company.

1. Which Business Model Is Easiest 2. Skills You Need to Create Your Own T-shirt Designs and Sell Online 3. What Makes a Great Business Name 4. Elements of a Good Business Plan for an Online T-shirt Business 5. Where to Go to Establish Your Business Structure 6. Steps to Take Before You Start Selling T-shirts Online 7. Choosing a Location to Sell Your T-shirts 8. What You Need to Know About Equipment 9. Resources for Team Building 10. How to Manage Your Small Business Finances 11. Paying Taxes 12. Marketing Your Business

Now get ready to learn how to start a tee shirt business.

Step 1. What’s the Best Way to Start a T-Shirt Business?

man measures the t-shirt upflip logo on heat press machine

The first step is to decide what t-shirt business model is right for you. Your t-shirt business should stimulate your creativity, but it should also appeal to your customers’ needs and wants.

Some t-shirt business ideas include:

  • Focusing on a specific target market, such as small business t-shirts.
  • Performing graphic tee design work and printing them yourself.
  • Starting an ecommerce store using Print-on-Demand companies.

You aren’t limited to just one type. Which t-shirt business model(s) you choose will impact every business decision you make.

Sanford’s Big Frog Portland t-shirt franchise focuses on producing and selling custom t-shirt designs made to his customers’ specifications. He decided to get a Big Frog franchise after the 2008 housing market crash caused his real estate career to slow down. He told us:

It cost around $180 to $200K in startup costs, but I was breaking even after the fourth month.

Many consumers start their shopping experience online, so a t-shirt business that can sell clothing in person or online is recommended to start your clothing line.

Keep reading for different types of t-shirt companies.

How to Start a T-Shirts Franchise

A t-shirt franchise like Big Frog gives you a head start on your small business journey. The application process is similar to the interview process for a job.

How to Start a T-shirt Printing Business with Big Frog

screenshot of franchising from bigfrog website

Follow these steps to apply for a Big Frog Franchise:

  • Request information .
  • Get to know the franchisor on a business call.
  • Attend a webinar that goes into more detail about the responsibilities of an owner.
  • Fill out disclosure documents to prove you have the resources necessary to start a t-shirt business franchise.
  • Meet other franchise business owners.
  • Get to know the corporate team.
  • Learn to press T-shirts.
  • Learn about their customer support.
  • Start the franchise.

Every franchisor will have different requirements, but most franchises require a minimum of $100,000 to $300,000 to get you through the first year. This is consistent with Big Frog’s requirements of:

  • No less than $50K liquid assets
  • At least $40K working capital
  • $300K net worth (varies based on regional construction costs)

These numbers are in place because the following are consistent across all of Big Frog’s franchises:

  • $39,500 initial franchise fee
  • Initial investment of $188,344 to $247,944
  • A 6% royalty paid monthly on revenue
  • 1.5% of revenue for marketing costs

Ultimately, this pays off because you have access to proven methods to make a great living printing t-shirts. The top ⅓ of stores open for more than a year make more than $600K in revenue with a 63.5% gross margin. This is comparable to what Sanford told us:

Before you start reading, check out our interview with Sanford. He shared lots of advice about how to start your own t-shirt business that you can use as a step-by-step guide.

How to Start a Brick and Mortar T-Shirt Business

We’ve all been to a brick-and-mortar store. Their business model is selling t-shirts in a building where people can come to the store, try them on, and buy what they like. These stores may sell a single clothing line, multiple clothing brands, or custom t-shirts.

With the rise of ecommerce, this part of the industry is hurting. Closures of retail stores have been increasing for at least the last three years, according to Moneywise . Despite this, Digital Commerce says retail sales have increased around 3% per year since 2007, meaning the stores that stay open are making more money.

This business model works with franchises and stores that run a tight ship. They tend to need sales of $40K per month to be safe. Otherwise, you’ll probably want to start a different way.

Sell Custom T-Shirts

T-shirt companies that run this way focus on a specific brand. This type of business can be a physical retail clothing store, fashion design, e-commerce, print-on-demand service, manufacturing, or a combination of these. A business plan using this model typically focuses on a niche market to satisfy their needs and may expand into other markets later while keeping the brand image.

As a franchise owner, you may want to try to find clients like this to provide printing services. They can become steady clients.

Sell T-Shirts Online

An online t-shirt business focuses on ecommerce through an online store. According to IBIS World, there are 278 business owners selling $582.4 million in t-shirts online for a combined $18.1 million in profit margins. This doesn’t include businesses that don’t classify themselves as an online t-shirt business. Check out their full list of specialized reports .

You can sell t-shirts through lots of websites. Here are the top places to list your t-shirts online:

  • Amazon is the largest online marketplace on the planet. You have to be listed there.
  • Facebook and Instagram Marketplaces are also massive. Some functions can be done through one platform and then work on both, but others have to be done separately. 
  • eBay is another great place to sell t-shirts online. Learn about selling on eBay .
  • Shopify offers an easy experience to set up your own clothing store and connects with most of the bigger marketplaces directly from your shop.
  • WordPress and WooCommerce work great together for super fast ecommerce stores.
  • Etsy is another great marketplace for an online t-shirt business. Check out our guide on creating an Etsy shop .

How to Sell Shirts Online with Print on Demand

tshirt and a computer on a table

You may wish to consider starting a Print-on-Demand (POD) t-shirt business because you don’t need inventory to start selling t-shirts. POD is perfect if you’re wondering how to start a t-shirt business at home.

You simply create a t-shirt design, add it to the print-on-demand company’s garment design software, and connect it to your ecommerce platforms to start selling it. Shopify has a great blog about the top print-on-demand companies.

My favorite is Printful because the graphic tees design software is easy to use, fast for delivery in the U.S., and easily integrates with Shopify, WooCommerce, Facebook, and Amazon. You might want to consider Amazon Merch to sell your t-shirt business designs because they have fast shipping and a huge number of customers.

If you run another type of t-shirt design business, you could hire a developer to drive more revenue by providing printing and shipping services to your client’s customers.

Fashion Designers

Fashion designers focus on designing new clothing that is both stylish and unique. They are primarily focused on the art of their products. When a t-shirt design business reaches this level, the brand is typically at the top of the fashion industry.

They are typically artistic people who make designs and accessories that stand out. They can be self-trained or go to fashion design schools. If you are interested in fashion design education, here are the top 50 schools.

man holding a box full of clothes

Wholesale is focused on selling t-shirts in bulk orders. To do this, you will typically need to offer retailers t-shirts at 50% of MSRP. You might want to implement this strategy once you develop a reputation for your own online t-shirt store. eCommerce solutions have made it easier because you can combine this strategy with print-on-demand services for selling t-shirts.

Here’s a great list of apps that will make wholesaling easier for your t-shirt brand.

Manufacturing

Manufacturing t-shirts is focused on creating t-shirts from field to thread to final garment. This is the most cost-intensive portion of the t-shirt industry because you’ll need a warehouse, fabrics, employees, and machines. That can add up to hundreds of thousands of dollars.

I’d only recommend this strategy at the point in which you are a solidly profitable company, when the only way to increase gains is to buy the machines to produce the garments yourself. Make sure to reach out to a financial expert who specializes in t-shirt manufacturing before doing so.

In case you didn’t gather it from the list of t-shirt business ideas, an online t-shirt business is the most likely way to reach success. After your ecommerce business sees success, you can start expanding and adding other business models to your operations.

Step 2. Learning the Skills

man working on a tshirt design in front of a computer

You can’t start a t-shirt business without learning the necessary skills. There are five basic skills you need to sell t-shirts online successfully:

  • Production and printing
  • Business skills

Let’s dig deeper into each of these to see how they impact a custom t-shirt company.

Design Skills

Before you can sell tees, you need t-shirt designs. T-shirt designs are typically created by someone with graphic design skills. This person takes t-shirt business ideas and makes them a reality.

T-shirt designs will typically include several steps in the design process. The steps to design your own t-shirts include:

  • Draw t-shirt designs using digital software, like Photoshop , Canva , or Illustrator .
  • Have a pattern maker cut the patterns for the design.
  • Build a prototype.
  • Make alterations.
  • Create a tech pack . A tech pack is just the design specifications you give to a clothing manufacturer.
  • Source the materials and begin manufacturing.

This process will change some based on what types of machines you are using. For instance, Sanford uses a direct-to-garment printer (DTG) to print his designs. He told us:

The DTG printer is the most important piece of equipment and costs $22,000.

The printer plus software makes it so the process goes straight from design to print.

I’m not going to go into all the details of each type of printer because it is a highly technical field, but some of the most common printing techniques are:

  • Embroidery machines
  • Sublimation
  • Screen printing

man working on a laptop

There are a ton of great resources on how to design clothes. Here are some useful ones:

  • Best Fashion Design Schools
  • Best Free Online Classes
  • Best Fashion Design Software
  • Best Print-on-Demand Companies

Another crucial step is learning the technology you’ll use. Paying a developer to create a website selling t-shirts online can be expensive. I’ve seen people spend $25K to not get what they want. It’s possible to get good work without understanding how to use the following tech, but you should probably learn about them first.

  • An ecommerce platform (Find Investopedia’s review of the best ones here .)
  • Payment processors
  • Editing software
  • Marketing software

Most tech companies offer free trials or low-cost tutorials on how to use their software. Make sure to use them. They were built to help you make the most of their offerings.

marketing team working together

Relevant marketing will help you reach your target audience and let them know about your t-shirt printing. Without it, finding customers can be a real challenge. Marketing can be done both online and through other channels.

The largest marketing companies expect digital marketing to make up over half of all ad spending for the foreseeable future. To read more of their insights, check out this blog .

You’ll need to be familiar with the three largest ad markets for your t-shirts:

  • Facebook and Instagram

Make sure to familiarize yourself with them; otherwise, you’ll be operating in the dark and wasting a lot of money.

It’s important to have social media accounts connected to your online t-shirt business to build an online presence that will help sell t-shirts online and in person.

Big Frog collects 1.5% of revenue and uses it for marketing franchises. Sanford told us:

One of the big differences between a franchise and an independent t-shirt print shop is that Big Frog has well-defined marketing processes in place that, if you follow them, make it easier to succeed.

Watch the full interview here to see what else Sanford has to say about marketing.

Built-in marketing costs make custom t-shirt printing easier than without a franchise.

Production and Printing Skills

Your t-shirt business will need to produce t-shirts, which can be done through a manufacturer, or you can print your own t-shirts and other apparel products. If you are going to print t-shirts, you’ll need to learn how to make a shirt with different types of machines.

Some of the typical techniques you’ll need to learn include:

  • Direct to garment
  • Transfer printing
  • Cad cut vinyl

Sanford walks you through the direct-to-garment printing process at the 6:28 mark of the interview .

Printsome offers a good infographic on deciding what kind of technique you want to use.

t-shirt printing technique infographic

You’ll want to know screen printing and heat transfer techniques, which means purchasing your own machines or finding someone to teach you hands-on. If you are running a franchise or printing shop, you’ll need to learn which ways work best for t-shirt businesses.

Business Skills

Business skills cover a wide range including accounting, pricing, shipping, and managing inventory. We’ve provided a list of useful resources by business topic:

  • Accounting : Udemy , edX
  • Pricing : Coursera , Udemy
  • Shipping : Shopify , BigCommerce
  • Inventory Management : Quickbooks , Unleashed

Sanford told us that franchises provide you with lots of guidance for your own business.

I get discounts from a ton of places because Big Frog has discounts that save me money on things like payroll, payment processors, and other companies that Big Frog has discounts with.

Step 3. T-Shirt Business Name

You’ll want to choose a name for your own online store t-shirt company. The name shows your personality and voice. Your t-shirt business should take into account the following considerations about brand presence:

  • Will the name indicate your business sells shirts?
  • Is it easy to spell?
  • Will you focus on local sales? If you do, consider including the name of the location.
  • Is the .com domain available ?
  • Is the business name unique?
  • Does your name fit your branding? Check out Big Frog’s logo:

branding logo design of big frog

Big Frog Custom T-Shirts, Inc is the full name of Big Frog. The name clearly states what it does: create custom T-shirts. In addition, it’s memorable. There are not many companies with similar names.

Try out our business name generator . Next, register your business name with the government.

Step 4. Write a T-Shirt Business Plan

You need a t-shirt business plan to define and guide your vision for the t-shirt company. Your plan will drive your t-shirt business by:

  • Guiding decisions
  • Securing financing
  • Developing partnerships with other businesses 

One of the benefits of buying a t-shirt printing franchise is simplifying decision-making because the franchise will specify or help you with:

  • Location selection and lease negotiation
  • Design and layout of the store
  • Recruitment

According to Sanford:

The royalty is the big negative about franchises, but Big Frog really makes it worthwhile.

Your plan should evolve to allow your t-shirt business to change with the market. Check out some of our favorite resources for planning.

We’ve gathered templates to help you develop your business plan. Here are some of the best:

  • One-page business plan
  • U.S. Small Business Administration (SBA) business guide
  • State-specific templates
  • Business plan template for a startup business
  • How to Write a Business Plan
  • SCORE’s free plans and startup assistance resources
  • The Complete Business Plan Course (includes 50 templates)

Check out our interview with Mike Andes to get step-by-step instructions on business planning:

Step 5. Establish a Legal Structure

Starting a t-shirt business requires getting a business license, tax permits, and choosing how to classify your business:

  • Sole Proprietorship : Most franchises will not allow you to run a sole proprietorship because there is no liability protection, but it’s the least expensive way to start a business. Fill out a Schedule C to get started. Consider joining the American Independent Business Alliance .
  • Limited Liability Corporation (LLC) : Each state has different requirements. Check your state’s requirements . You might choose to register in a different state than where you live to reduce the cost of doing business. Check out the top 10 states to get an LLC.
  • Corporation : If you intend to sell stock or raise funds by selling equity, you might want to become a corporation. Otherwise, stick to an LLC.
  • Partnership : Normally, legal firms operate as partnerships. Unless there is a specific reason you need a partnership, it is better to do a multi-person LLC. Investopedia has good information about partnerships and corporations here .
  • Franchise: Buying the right to use a company’s processes and intellectual property to run one of its locations. Franchising.com has two franchise opportunities to start a t-shirt business in the United States. Big Frog is the only Direct to Garment (DTG) t-shirt franchise.

For best results, hire legal representation with experience starting a business, like an attorney, accountant, or tax specialist. They’ll help you start your custom t-shirt business and start selling designs faster.

Learn more about business structures .

Get an Employer Identification Number (EIN)

You’ll need to apply for an EIN from the Internal Revenue Service. It’s free, but you must go online during normal business hours. An EIN is necessary if you want employees or financing for your online t-shirt business.

Licenses, Permits, and Tax Forms

woman holding a licenses and permits brochure

Each location has different licenses, permits, and tax forms required. Use the SBA License and Permits page to identify what your custom tees company needs. Keep reading for information on different legal structures.

Step 6. Getting Ready for Customers

Your t-shirt business is now an entity, but there’s more. 

The order you complete the rest of the steps, you’ll depend on your resources, skill sets, and the type of t-shirt company you start.

There are six areas of business you’ll need to make decisions about:

  • Location: Where will you be working?
  • Inventory: What will you sell, and how will you pay for it?
  • Employees: Will you have employees, and how will you make sure it is a safe environment?
  • Finances : How will you keep track of transactions and financial records?
  • Insurance : How can you protect what you are building?
  • Marketing : How will you find customers?

Step 7. T-Shirt Business Location

woman holding a tablet with laptop and a coffee on a table

You might need a physical t-shirt business location. Connecting with local business owners is easier if you are near your target market. If you have enough products, you’ll need a business location or fulfillment center . Otherwise, you may want to choose the location based on the wealth distribution of the area, the price of space, or choose a central location that is convenient for more people.

When deciding to rent a space for a clothing line, consider:

  • Do you need space for screen printing equipment and inventory?
  • Are you running an online t-shirt business? If so, you can run it from home.
  • Will customers be coming to your small business?
  • Does your t-shirt store have inventory?
  • How will you display your t-shirt designs?
  • How much space is needed to store your t-shirt designs?
  • Will you host a traveling pop-up t-shirt store?

When opening a t-shirt company, you should rent space if you store inventory. You’ll want to plan ahead based on whether the space is a warehouse for an ecommerce store or a storefront where you can display your own t-shirt designs.

Franchises will typically help new business owners find a spot that works based on their previous experience. This can make a huge difference as every town seems to have locations that are just cursed to cycle through businesses.

To find spaces to rent in your area, contact a local commercial RE agent .

How to Start a T-shirt Business From Home

Each city and state has different requirements for where a business is allowed to be located. Local ordinances and franchises might not allow a t-shirt business to be home-based.

How am I supposed to start my t-shirt brand with so many rules for a small t-shirt business? Just search the Municode Library to find your city regulations.

Finding a Good Spot

When looking for a space to rent, consider your ideal client and what stores they might frequent. For instance, a t-shirt printer might do well in a high-traffic mall or a space with a high density of local businesses. Finding the right place will take some research, which will be much easier after considering your marketing efforts.

Step 8. Inventory, Screen Printing Machines, and Product Displays

man holding a mobile phone with an inventory screen

A new t-shirt store needs inventory unless you are starting an online t-shirt business with print-on-demand. You’ll need the t-shirts you’ll be selling, product display stands, registers, computers to design t-shirts, and the machines for adding designs for shirts. You may need several machines based on the many different types of t-shirts. These can range from heat presses to DTG printers to embroidery stations.

Sanford uses the DTG printers for most of his work. He told us, 

I even work with other print shops on a referral basis to let them earn revenue on small print runs that they’d normally lose the revenue because they can’t afford the setup.

I have found that kit.co is a good starting point to see what others suggest.

Startingaclothingline.com offers a list of manufacturers by location and type of clothing. It’s a great place to start when looking for manufacturers.

Used Printing Machines and Product Displays

Printing machines and product displays can often be found at huge discounts if you buy them used. You can find printers and product displays through online markets, pawnshops, going-out-of-business sales, and other places.

When buying a franchise, they may specify the exact machines you should use. For instance, Big Frog uses Brother DTG Printers.

Considering buying an existing business? The equipment and inventory should be included in the purchase price. Learn more about valuing an existing business in our guide about buying businesses. Then check our business listings for available print shops .

Step 9. Employees

bearded-guy-working-on-heat-press-machine

Sanford emphasized the importance of hiring people who are better at their assigned roles than you are:

You’ll need employees. Big Frog wants its owners to build the business rather than work in the business. Keep reading for more information.

Tax Filing and Withholding

Federal and state tax filing requirements apply to new employers. You must keep records of employment taxes for a specific duration, including special forms and accounting for state taxes. (Please remember: I’m not licensed to give legal advice on the duration, and the IRS has been known to change things.)

Don’t worry! We’ve got you covered! Check out the IRS guide for employers .

Federal Employment and Labor Law Posters

All employers must display Workplace Posters , which you can download from the website.

Other requirements include:

  • Employment Eligibility Verification (Form I-9)
  • State’s New Hire Program
  • Worker’s Compensation Insurance
  • Disability Insurance (varies by state)
  • Occupational Safety and Health Administration (OSHA)

Job Posting

office chair and a hiring sign

Hiring people requires posting “now hiring” signs and posting on prominent job boards. Some places you can start posting job requirements are:

  • Zip Recruiter

Sanford told us:

I prefer LinkedIn because it lets me set up screening questions before I post the job posting. That really helps me screen candidates better.

Prepare a list of questions for interviews and simplify your hiring process. Indeed offers a resource guide to help you make better hiring decisions.

Sanford suggests including your employees in the interviews. He told us:

It helps give them ownership, and it’s important they like who they work with.

Compensation

woman holding a cheque and a cash

Employees are typically a company’s biggest expense. There are three common pay structures in business. Each fits a different scenario. Let’s take a closer look:

  • Salary: You might want to assign yourself a flat weekly or monthly rate for budgeting purposes.
  • Hourly: This pay structure tracks the hours an employee works and pays them a set hourly rate, but it doesn’t reward performance.
  • Commission: If you only want to reward performance and not time, a percentage of revenue is the way to go.
  • Hybrid Models: Hybrid models combine two pay structures. Combining hourly and commission encourages employees to help drive sales.

I pay my employees $14 to $16 per hour.

The article “How to Create a Pay Structure That Promotes Team and Company Growth” offers some insight into pay structures.

Step 10. Financial Management

income statement, calculator and a marker

A successful t-shirt business manages the financial aspects. Sanford emphasized the benefits of managing margins:

Your margin is crucial. If you don’t manage it, no matter how much you sell, you’ll lose money. I typically aim for 65%.

He also discussed the importance of following up with your clients: 

During the slow months, January, February, and into March, I’ll reach out to my routine customers and make sure they don’t need anything. Following up makes a huge difference in how much you make.

You may need some extra funds to start your clothing brand. To find banks that work with small businesses, use this resource .

Let’s look at some tricks you can use to help your clothing line become profitable.

Budget! Budget! Budget!

A budget is the most important tool you can use in business. Without it, your high-quality t-shirts might not make enough money during the first few years.

However, be careful using spreadsheets. According to Ray Panko , professor of IT management at the University of Hawaii, “ 1% or more of all formula cells ” contain errors. 

Try using accounting automation to save money over hiring a full-time accountant to deal with paperwork. Some of the best free budgeting software include:

  • dsBudget : This open-source software requires some development experience.
  • QuickBooks: This popular resource is used by millions to make their accounting easy by setting up rules, connecting with their bank(s) directly, and more.
  • Xero : I was introduced to them through an Australian client, and people love them. In my experience, it allows you to automate most of your processes but is meant to be set up by an accountant and software developer so that the platform works specifically based on your location(s) tax needs.

If you’re running an online t-shirt business, such as print on demand from home, you’ll need to make far less. My break-even point is 35 t-shirts for every $100 of expenses. You need to review your costs often because material pricing changes regularly.

How to Start a T-shirt Business with No Money

man showing an empty pocket

Starting a t-shirt company doesn’t cost a fortune. While it cost Sanford “$180–$200K for the franchise fee, equipment, and building with remodeling,” other shirt entrepreneurs have started a t-shirt printing business for less than $1,000.

In our interview with Marcus from Portland Gear, Marcus suggests beginners use the following to start a t-shirt business:

  • Shopify : Get a free 30-day trial of Shopify with our affiliate link.
  • A print-on-demand company : I prefer Printful.
  • Social media marketing : This might be less than $500 per month and is typically more economical than other options.

Hear more from Marcus below:

Common Funding Paths

eCommerce entrepreneurs often fund their t-shirt online store with personal funds, but you can also consider taking on:

  • Loans from family or friends
  • Business partners
  • Government programs

The SBA offers free courses on financing options and funding programs . For info on using personal funds to start a business, check out this article from The Hartford.

Alternative Sources of Funding

You might also want to consider the following ways of getting into the t-shirt printing industry.

  • Crowdfunding  
  • Credit cards
  • Home equity loan
  • Rollover for business startups (ROBS)

Develop a Pricing Structure

How you price your clothing brand will impact how people view it. If your prices are too high, customers will go elsewhere. Too low, you’ll lose money. Based on the rules of thumb presented by Marcus in his interview:

Direct-to-garment typically charges 60-70% margins or around 45-50% for screen printing, but it fluctuates monthly based on how many non-profits I’m working with.

You can use this online calculator to estimate your price points:

[forminator_form id=”32022″]

Increase Prices Every Year

Inflation occurs every year. You might need to raise your prices by 5% per year to keep up. In this high-inflation environment, you may want to increase your prices quarterly or monthly. It gives you room to increase wages and make some extra money for your online t-shirt business.

It’s easier to raise prices when your customers expect it. One way to help prepare customers is to follow this process:

  • Send an email in November letting your customers know that prices will be going up at the beginning of the year.
  • Book enough online t-shirt business to keep you busy through the slow months (January to March).
  • Raise prices on January 1st. 

Step 11: Sales Tax and Insurance

sales tax and insurance stamp

Sales Taxes

All but five states, and some cities (or counties), require sales tax. You can find a guide on applying for sales tax on TaxJar . After you register to pay sales taxes, you will need to keep track of the sales to pay them according to state laws. I would highly recommend speaking with an accountant that specializes in taxes to help you comply with your business’s unique needs.

Get the insurance you need based on the type of business. You’ll need unemployment insurance and workers’ compensation if you have employees. You may also want general liability and cybersecurity insurance to protect against unforeseen events that could cause your clothing line business substantial losses.

Step 12: Marketing

woman-working-on-a-laptop

Now you’re ready to sell shirts. You have the location, equipment, inventory, and employees—but no clients!

How are you going to let people know about your online t-shirt business?

Marketing is crucial for a custom shirt business. Franchises have an advantage here because they already have built-in clients and a marketing budget. They’ve also figured out what works. 

Sanford told us: 

I started with print media, radio commercials, a TV commercial, and tons of direct mailers, but that got expensive. Then I started cold calling, following up with previous customers, then digital marketing has really made a difference.

More Marketing Tips for T-Shirt Businesses

He also suggests:

  • Building relationships. Networking is what makes a business pay off.
  • Continually focusing on SEO for your ecommerce business. Start by familiarizing yourself with Google requirements .
  • Checking customers’ previous print jobs to give you ideas on how to sell more shirts.
  • Following up! It makes a difference.
  • Using analytics.

Use software like Hootsuite to manage your online t-shirt business and social media accounts easier. You can schedule posts, assign team members to manage specific sites, and access all your platforms in one place. In addition, they keep up with the requirements for each platform and update you on developments via a dashboard.

Hubspot CRM also makes managing clients and vendors easier. You can integrate it with almost everything, including emails, invoicing, inventory, and your accounting to make sure that you know what is going on with every client. 

Influencers

young female influencer filming a video

Want to know what styles and designs are trending? Follow suppliers, competitors, and influencers to see where communities are heading. Some of the top influencers to follow are:

  • Elon Musk : Let’s face it, both Sanford and I think he’s a rockstar. He mixes jokes, insight, and enthusiasm to spread his message. He’s the founder of six companies and the CEO of Tesla and SpaceX. We can all learn from him.
  • Screen Printing Blogs : Want a list of 40 blogs focused on t-shirt printing? Check out this one. 
  • SEO Influencers: Rand Fishkin , Danny Sullivan ,and Neil Patel

Go Forth and Start Your Own T-Shirt Business!

Whether you’re selling online or have a storefront, ask yourself the following questions:

  • Do I know how to start an ecommerce store?
  • Is it worth it for me to sell online?
  • Will I be comfortable speaking to clients?
  • Am I starting a clothing line this year?
  • Why am I starting a clothing business?
  • Do I need employees or advice to get started?
  • What will I need to feel successful?

Now that you know how to start a t-shirt business, take the next step. Start your own!

The truth is, all it takes is a great idea, some skills in graphics design, and a good marketing strategy to get started. As Sanford told us:

When I went to see the people at corporate, I knew a Big Frog Franchise was right for me.

Once you’ve mastered the art of selling shirts, you can expand to hats, jackets, socks, or anything else that will go well with your collections. Where do you get inspiration for your collection?

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business plan for tshirt business

Brandon Boushy

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business plan for tshirt business

Fantastic blog! I've been mulling over the idea of launching a t-shirt business, and your post offered some invaluable guidance. I'm eager to learn more about sourcing trustworthy suppliers for t-shirts and printing services. Additionally, could you share some beginner-friendly marketing tactics for this field? Your insights would be greatly appreciated! if you're interested in screen printing, check out this link: https://screenprintdirect.com/

business plan for tshirt business

Thank you for this insightful guide on starting a t-shirt business! I've been considering venturing into this industry for a while now, and your article has provided me with a solid foundation to kickstart my journey. However, I still have a lingering question in my mind regarding the most effective marketing strategies for a niche t-shirt business. Do you have any specific recommendations or case studies that highlight successful marketing tactics for reaching target audiences efficiently? Any additional insights would be greatly appreciated. Thanks again for the valuable information

business plan for tshirt business

Did leave one stone unturned. Shopify is only a penny a month for your first 3 months. Free trial is only for 3 days. Update the article

business plan for tshirt business

Hey Brandon! Very throrough post. I can see you went to work and left no stone unturned. Keep up the great work! Cameron in Corona http://www.PriorityScreenPrinting.com

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10 Step Guide for Setting up a Custom Tshirt Business in the USA

The manufacturing of custom t-shirts has become popular in the United States in the recent times, making the business a viable venture. Here’ a step-by-step guide focusing on the essentials if you’re looking to start your own custom tshirt business in the USA. Look no further, we’ve got you covered!

Get 10 steps closer to setting up your own custom tshirt business:

1. market overview and research.

The custom tshirt printing market in the USA has demonstrated a remarkable growth pattern, and the forthcoming forecasts also state the same. Estimates place the size of the U.S. market for custom tshirt printing at USD 857.5 million in 2023, with a compound annual growth rate (CAGR) of 11.8% from 2024 to 2030. The market is expanding due to the growing need for custom T-shirt printing, which is needed to produce personalized clothes including t-shirts, jerseys, and sweatshirts. Additionally, consumers’ preference for fashionable clothing and one-of-a-kind items is driving up demand for custom printing.

2. Business planning

A business plan, encompassing your goals, target customers, competitor assessment and finance forecast must be sketched out. Your business plan should be a strategic guide to the business and would be helpful in mapping where funding or investment is required.

3. Finding the right manufacturer for your custom tshirt business

It is crucial to tap in the right resources for your business in order to find the right manufacturer for your needs. You can leverage online platforms such as Maker’s Row that will connect you with the best ones out there. Referrals from the industry can also go a long way and help you get one step closer to your dream venture.

Compare aspects of fabric including the quality of the material used, as well as the density when choosing your fabric. Research thoroughly and get to know who the right supplier could be. For any custom t-shirt business to be successful it is paramount to bring the best fabric to the table. Also, consider hiring professional designers to deliver nothing but the best!

4. Legal considerations

It is crucial to incorporate your business, i.e., to come up with your company’s legal framework. Discuss with an attorney to find out the right legal structure of the business to start, whether it is a sole trader, LLC, or corporation business. Also, ensure that all state, local and federal laws are met this include acquiring the necessary licenses and permits.

5. Printing methods for your custom tshirt business

There are several methods of printing that can be used on the t-shirts depending on the needs of an individual and company and the drawbacks of each are discussed below. Invest the time and effort in studying each method to find out which one will most likely suit your business the most. Common techniques include:

  •         Screen printing: Perfect for ordering quantities and bright images.
  •         Direct-to-garment (DTG) printing: For detailed and full-colour designs, relatively smaller number of   T-shirts to be printed.
  •         Heat transfer: Flexible to use and inexpensive especially when compared to large-scale production.
  •         Sublimation: Ideal for multi colored printing, this range incorporates the use of polyester fabric.

6. Setting up your online store

Consequently, in the current fast growing business world that is triggered by technological advancement, the use of internet as a marketing tool is paramount in extending the market space. You may use Shopify, WooCommerce, BigCommerce, etc to get an appropriate online shop for your required niche. All these tools are easy to use, have customization options, and include features such as payment gateways. 

7. Website design

The basic requirements for any website are that it should be aesthetic, easily navigable and should be designed in such a way that it can easily adapt to any mobile devices. Make sure that your customer is able to see your product through appropriate photos and detailed descriptions. Ensure that the respective checkout system is easy to use to reduce instances of cart abandonment while increasing the possibility of making a sale.

8. Product description

Write effective product descriptions that would allow people to appreciate the peculiarities of your t-shirts. Describe in detail the aspects such as fabric type, fit, washing and other care directions, and the peculiarities that distinguish it from other similar goods should be incorporated. Pick an appealing tone to spread out the value proposition of your products.

 9. Marketing and promotion

The primary way for enhancing organic visibility of your custom tshirt business is by appropriately configuring your website and leveraging Social Media platforms.

Increase organic traffic by improving the visibility of your website and the specific product listings. Keyword research involves determining the specific words that users type into search engines and adding these into the content on the website, the products sold, and the meta tags respectively.

It goes without saying that marketing and promotion of products on social networking sites include social media marketing. Publish your designs on Social Networking Sites, including Instagram, Facebook, and Pinterest, for the purpose of attracting potential customers. Attract people’s attention, as you advertise your products or services to the specific audience and potentially collaborate with celebrities, fashion bloggers, or other popular accounts on social media platforms. You can also always create engaging social media posts for the potential clients to tap in!

10. Setting up the logistics

It is also important to organize an effective order processing system so that customers’ orders could be fulfilled promptly. Inventory management could be carried out by using Inventory Management software to update stocks and orders automatically. Also, let’s not miss out on the other key elements for your custom tshirt business:

  • Shipping and Delivery: Connect with good shipping companies to ensure that reasonable and efficient delivery services are given. Provide a variety of delivery options since customers prefer a specific way of delivery and ensure that a tracking system of the orders is provided.
  • Returns and Exchanges: Policies and standards should also be developed through which one can make the buyers trust by providing them a fair rate of return policy. This should be communicated well on your website and there should be proper channel to follow when customers require to return or exchange any product.

Starting a custom t-shirt business in the USA constitutes a high potential for success in an ever-emerging industry. So, it is eminent for the entrepreneurs to emphasize on quality products, the distinctiveness of designs, and promotion of the clothes to target customers and meet the increa sing need for personalized clothing. With planning, accuracy, and focus on the client’s needs, a custom t-shirt business can be successful in this highly saturated market.

If you’re wondering where to go for dependable manufacturer who share your passion  for sustainability and high quality? Look no further, as Maker’s Row has got you covered!

Maker’s Row is a marketplace that brings together premium manufacturers and brands, so it has never been easier to turn great ideas into reality. Maker’s Row boasts of a vast network of high-quality and reliable manufacturers who are willing to work with new and established brands seeking for sustainable solutions for production or startups that want to launch their first clothing line. So, visit Maker’s Row today for an opportunity to identify the right production partner for you!

business plan for tshirt business

Meet Awnica, a dynamic content strategist with a keen eye for detail and a passion for crafting social media content. Beyond her professional pursuits, Awnica is passionate about traveling, which helps her gain perspective and creativity for content creation. She draws inspiration from her adventures around the globe, infusing her work with fresh ideas and unique insights that connect with audiences on a personal level. Awnica's blend of strategic thinking and her love for exploration makes her a valuable asset in the ever-evolving landscape of digital marketing.

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ProfitableVenture

Tshirt Design and Sales Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Fashion Industry » T-shirt Printing

TShirt Design Business

Are you about starting a T-shirt Business online ? If YES, here is a complete sample T-shirt printing business plan template & feasibility report you can use for FREE .

Starting a T – shirt design and sales business is of course one of the many businesses that can be started in any part of the world and the owner of the business can still penetrate the world market once the design is good and it meets a need in the fashion market; everybody whether old or young have need for clothes most especially T – shirts for casual wears.

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Entrepreneurs who intend starting a clothing line business can start their own T – shirt design and sale business from their home on a small scale and service a customized market or big time investors can open a clothing factory and dominant both the U.S. market and the international market.

The bottom line is always that there is always a ready market for manufacturers of clothes. All a designer need to do is to ensure that he or she carves a niche for his business and they work hard to build their brand name to be accepted beyond his / her city of operations.

T – Shirt design and sales business just like most businesses, thrives on creativity, branding (media hype and what have you) and good business skills. Any aspiring entrepreneur can start a T – shirt design and sales business, as long as they are creative, they can get people to promote their brand and they have good business skills.

The starting size of this type of business doesn’t really matter as long as the business is built on the right foundation and with the right combination of skills and talents; after all, a world renowned clothing line – Coco Chanel started from a little hat shop in a street in Paris and today they are all over the world.

One thing is certain, once you are creative, you will be able to come out with a unique style. In the clothing line industry, you signature is your style. Another important factor that counts in this line of business is the brand name and perhaps the logo of the clothing line.

If you look at the leaders in the clothing line business you will realize that they deliberately choose a name and create a logo that best communicate how they want people to perceive them. Once you are able to secure a good name for your T – shirt design and sales business and then hire experts (graphic artists) to help you create a compelling logo; if you don’t mind, you can follow the trend in the industry.

A Sample T-Shirt Design & Sales Business Plan Template

1. industry overview.

The fashion industry is indeed a highly thriving industry all over the globe for obvious reasons and T – shirt design and sales is a subset of the industry. There are various clothing label; some are national brand and some others are international brands.

The fashion industry, especially cloth / T – shirt making business was not as easy as it is now; before now, clothing was handmade based on demand by individual. In the 20 th century after the invention of sewing machines (industrial sewing machines) it became pretty much easier to produce T – shirts en mass.

Technology indeed is responsible for opening up the clothing industry. T – Shirts can now go through factory system of production and still maintain good quality and standard sizes. With that, it is easier for retailers to order and sell T – shirts at fix prices in department stores and boutique et al without stress.

The fashion industry is a creation of the modern age and fashion style changes with rapid astonishment and in most cases people go back to the past to re – introduce old fashion. The fashion industry is indeed a rapidly changing industry; fashion trend will always come and go at different season.

The bottom line is that successful clothing labels (T – shirt designers) have a thorough grasp of the market and they know how to meet their needs or cajole them to accept what they have to offer; they are always creative, flexible and ready to either detect the trend or move with the trend.

No doubt, a retailer or wholesale distributor of T – shirts can order for various sizes of clothes from anywhere in the world and sell in his or her country without even visiting the production factory. As a matter of fact, any clothing line based business is one business that has the capacity to survive regardless of what is happening in the economy of the world.

Economic downturn or even a galloping inflation does not in any way affect the sale of clothes; people can’t do without wearing clothes. For instance, you can’t find even the homeless people in America not wearing clothes.

From time immemorial, the fashion industry is known to be one of the largest employers of labor (both directly and indirectly) in the united states of America.

Some of the leading labels in the fashion industry are from the United States of America. Although, some clothing labels outsource the production of their clothes to other parts of the world; predominantly Asian countries, just in a bid to cut cost.

Some cities of the world are considered to be fashion hubs; they dictate what happens in the fashion industry. The cities are Paris, Milan, New York City, Tokyo and London. These cities are known to host fashion exhibitions; designers who want to play at the global stage ensures that they exhibit their clothing collections to fashion enthusiast during fashion week in any of the cities mentioned above.

As a T – shirt designer, once your brand / label is accepted in any of the fashion capitals of the world, it won’t be too long before you become a globally recognized clothing label – brand.

2. Executive Summary

Richards Peal™ is an international clothing line with a bias for designers T – shirts that will be located in Beverly Hills, California.

We have been able to secure a large warehouse in a strategic part of town that will be converted to our T – shirt production factory. We were able to out rightly buy over the facility with the help of our bank and support from family and friends.

Richards Peal™ will be involved in the production of T – shirts and other casual cum sport clothes, and the likes, that will meet the needs of male, female, young adult and children. Our business goal is to become one of the leading T – shirt designers in the United States and we will make sure that every T – shirt or clothes that leaves our factory can favorable compete with the best brands in the industry.

Our workers are going to be selected from a pool of talented T – shirt designers in and around Beverly Hills, California and also from any part of the world as the business grows.

We will make sure that we take all the members of our workforce especially T – shirt designers through the required trainings that will position them to meet the expectation of the company and to compete with leading T – shirt designers in the United States and throughout the globe.

We have put plans in place to build a state of the art clothing line production factory in Beverly Hills, California, which is exactly why we have entered agreement with some manufacturers of sewing machines to produce customized sewing machines for us that will give us the quality of clothes that we want to be known for. Our factory will be well equipped and we will ensure that we follow the trend in the industry.

Richards Peal™ will manufacture high quality T – shirts for both the high end customers and also for low income earners; we want to become one of the people’s choice whereever our T – shirts are put up for sale. Apart from mass production of T – shirts, we will also be engaged in customized production of T – shirts for customers based on their demands.

We are quite aware that there are some clients such as sporting clubs, political parties, schools, churches and organizations that would need quality customized T – shirts for specific purposes and we are well prepared to deliver as requested.

  • Ownership Structure/Founder’s Biography

Richards Peal™ is owned by Richard Crespo – Pablo and family. Richards Crespo – Pablo is an Italian – American fashion enthusiast with over two decades of experience in the fashion industry. He will occupy the position of the chief executive officer (CEO) / President of the organization.

Richard Crespo – Pablo has Degree in Fashion Designing from Milan School of Fashion and also an MBA from Harvard. He is a well – respected figure in the fashion industry, prior to starting Richards Peal™ he was the creative director in one of the world’s leading fashion label that is based in Milan, Italy.

He will run the company with two of his children and also some protégées (core T- shirts designers and market and sales experts) of his that he has trained over his working years as a fashion icon in both Italy and the United States of America.

3. Our Products and Services

Richards Peal™ was established with the aim of producing high quality and highly fashionable T – shirts for men, women, young adults and children. We know that quality is a key factor that will help us sell our brand which is why we have but in place a competent quality assurance team that will ensure that all our T – shirts meet and even surpass our customers’ expectations.

We will work hard to ensure that Richards Peal™ is not just accepted nationally in the united states of America, but also in other parts of the world.

4. Our Mission and Vision Statement

  • Our vision is to establish a T – shirt design and sales company whose brand will not only be accepted in the United States of America, but also in other parts of the world.
  • Our mission is to establish a T – shirt design and sales company that will design and produce high quality T – shirts and casual clothes for male, female, young adults and children; a T – shirt label that will compete favorably with international T – shirt labels like Ralph Lauren, Polo by Ralph, Tommy Hilfiger, Hugo Boss, Gap, Lacoste, Nike, Levi Straus, Adidas, Diesel, Nautical, Puma, Prada and Rebel (Children’s T – shirts) et al at the global stage.

Our Business Structure

Richards Peal™ T – shirt design and Sales Company, is a company that intends opening small, but hope to grow big in order to compete favorably with leading T – shirt design and sales labels in the fashion industry both in the United States and on a global stage.

We are aware of the significance of building a solid business structure that can support the picture of the kind of business we want to own. This is why we are committed to only hire the best hands that we can attract.

Despite the fact that Richards Peal™ T – shirt designs and sales company will start operation from a single factory in Beverly, California, we have a holistic view of the kind of business we want to build; we want to grow to the level where we will build factories in Thailand and China.

Our T – shirt brand is going to be specifically designed to penetrate not just the United States market, but also the world’s fashion industry.

We want people of all walks of life across the globe to someday put on our T – shirts; we want to see our T – shirts being worn in Paris, in London, in Tokyo, in Lagos, in Madrid, in Johannesburg, in Buenos Aries, in Sao Paulo, in Port Elizabeth, in Dubai and all over the nooks and crannies of the world.

At Richards Peal™ T – shirts design and sales company, we will guarantee that we hire people that are qualified, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner), General Manager, Human Resources and Admin Manager, Sales and Marketing Executive, Accountant, Fashion Designers (With Bias in T – shirts design and casual clothes), Quality Control Officer, Tailors, and Factory Workers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

General Manager:

  • Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Responsible for fixing prices and signing business deals
  • Responsible for recruitment
  • Responsible for payment of salaries
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Contributes to team effort by accomplishing related results as needed.
  • Responsible for managing the daily activities in the factory
  • Responsible for supervising all the employees
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.

Human Resources and Admin Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manage external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyzes the volumes of transactional data generated by customer purchases
  • Creates new markets cum businesses for the organization
  • Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

  • Receives payments on behalf of the organization
  • Issues receipt to customers
  • Prepares financial report at the end of every working week
  • Handles all financial transaction on behalf of the company
  • Interfaces with the organization’s banks
  • Responsible for payment of tax, levies and utility bills
  • Any other duty as assigned by the CEO / store manager

Fashion Designers (with bias in T – shirt designs)

  • Responsible for designing T – shirts and casual clothes) to meet the latest trend
  • Stays abreast with the dynamics of the fashion industry with key interest in T – shirts and casual clothes
  • Research and advice the organization on style, size and other trendy fashion statements.

Quality Control Officer

  • Ensures that all the T – shirts and casual clothes in our production line meets the required quality before they are released in the market
  • Make certain that production and manufacturing lines perform efficiently, coordinate employee efforts, and facilitate communications between management and production departments.
  • Devises ways of improving the manufacturing process to ensure higher-quality and durable T – shirts
  • Ensures that manufacturing production lines run smoothly and generate a consistently suitable output for their employers
  • Ensures that the organization work in line with international best practices
  • Handles any other responsibility as assigned by the general manager

Tailors (Industrial Sewing Machine Operators)

  • Responsible for sewing T – shirts and casual clothes as instructed by the supervisor / fashion designer
  • Responsible for cutting clothing materials to fit the expected design and size
  • Handles any other duty as assigned by the general manager

Factory Workers:

  • Responsible for ironing and packaging of T – shirts and casual clothes
  • Responsible for movement of equipment and raw materials as required
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the factory, machines and other equipment
  • Handles any other duty as assigned by the general / floor manager.

6. SWOT Analysis

Richards Peal™ intends to build a world class T – shirts design and sales business that will manufacture T – shirts and casual clothes for men, women, young adult and children. We will be based in Beverly, California, but we will not restrict the sale of our T – shirts and casual clothes to the U.S market alone, we will sell our product in other parts of the world.

In other to achieve this in a highly competitive industry like the fashion industry, we must ensure that we critically look through our strength, our weaknesses, the opportunities available in the industry and the threats that we will are likely going to face.

Because of the nature of the business we are involved in and the brand we want to build, we were able to hire the services of an HR and Business consultant with bias in fashion and retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Richards Peal™ T – shirt Design and Sales Company;

Perhaps one of our strongest strength could be attributed to the quality of employees and the latest machines and equipment that we have in our T – shirt production factory. Our chief executive officer, Mr. Richards Crespo – Pablo will be bringing his vast wealth of experience to the table and that is indeed a huge positive for Richards Peal™ T – Shirts Design and Sales Company

A major weakness that may count against us is the fact that we are a new T – shirt design and sales company and we don’t have the financial capacity to compete with multi – billion dollars fashion label like Ralph Lauren, Polo by Ralph, Tommy Hilfiger, Hugo Boss, Gap, Lacoste, Nike, Levi Straus, Adidas, Diesel, Nautical, Puma, Prada and Rebel (Children’s T – shirts) et al when it comes to controlling the market or detecting the trend.

  • Opportunities:

One thing is certain, whether good or bad- people will always look for clothes to wear and on the average they go for T – shirts simply because it is cheap. Besides, the opportunity for clothing line to sell their clothes is massive and we hope to leverage on these opportunities to sell our T – shirts.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new T – shirts design and sales company in same location where our target market exist who may want to adopt same business model like us.

7. MARKET ANALYSIS

  • Market Trends

In recent time, the fashion industry relies more on mass market sales for them to make the kind of income that will sustain the business.

The mass market takes care of a wide range of customers that cuts across both the rich and the poor. Most of the new clothing lines that are trying to catch – up with the market often produce ready-to-wear clothes using trends set by leading fashion labels.

What they do is that, they try to see the direction of the trend as established by renowned fashion brand before producing their own versions of the original look by making use of cheaper fabrics and simpler production processes which can easily be done by machines.

They can comfortably sell such product at a cheaper price to the masses who can’t afford to by the original which is often way too expensive for the common man.

T – Shirt designers and fashion designers now leverage on the runway – fashion expo to promote and attract market for their products. Any fashion designer who is recognized in Paris, Milan, New York City, or London can comfortably become a global recognized fashion label.

Small start – up T – shirt designs and sales companies leverage on small markets such as companies, churches, schools, organized groups and sport fans to sell their T – shirts. This group of people can order large numbers of customized T – shirts for special purposes.

For example, a political party enters into a business deal with a T – shirt design and sales company to help them produce shirts to be used by their supporters during political rallies and campaigns.

8. Our Target Market

No doubt the clothing line industry has the widest range of customers; everybody on planet earth wears clothes howbeit different designs, quality and style. In view of that, we have created strategies that will enable us reach out to people that cut across different classes in the society; we will produce T – shirts and casual clothes for male, female, young adults and children.

We have conducted our market research and survey and we will ensure that our T – shirt label is well accepted in the market place. These are the different group of people that we will be producing T – shirts and casual clothes for;

  • Young Adult
  • Corporate Executives
  • Sports Men and Women (sport clubs)
  • Churches (Customized church robes)
  • Political Parties

Our competitive advantage

Our competitive advantage as a T – shirt design and sales company is the fact that we are going to produce T – shirts and casual clothes for a wide range of people; we will produce for both the rich and the poor.

Another competitive advantage for Richards Peal™ T – shirts Design and Sales Company is the quality and robust wealth of experience of our management team. The management team comprises of professionals who have worked with some of the leading international brand in the fashion industry.

Our latest machines and equipment also count towards our advantage especially when it comes to competing with other T – shirt designs and sales companies within the same category that we operate. The quality of every T – shirts and casual clothes that comes out of our production line must be certified okay before they are released to the market.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Richards Pearl™ T – shirt Design and Sales Company will be involved in the production of high quality T – shirts and casual clothes that will meet the needs of male, female, young adult and children and that will be our major sources of income.

In future, we hope to open a standard fashion design school in Beverly, California. A school that will meet and surpass the needs of aspiring fashion designers in and around California. We will also go into fashion consulting business as a means of generating additional income for the business.

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.

It is important to state that people buy T – shirts and casual clothes for different purposes and clothes sell all through the calendar year albeit different designs for different seasons / weather. If it is winter, the demand for winter clothes will increase and if it is summer, the demand for summer clothes will increase.

Below are the sales projections that we were able to come up with for the first three years of operations;

  • First Year-: $ 500,000
  • Second Year-: $1,000,000
  • Third Year-: $2,000,000

N.B : This projection is done based on what is obtainable in the clothing line (fashion) industry and with the assumption that there won’t be any major economic downturn and there won’t be any T – shirts design and sales company that will adopt our unique business model . Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Owing to the fact that we are a new T – shirts design and sales company that want to take on the international market, we have decided to model some of the leading international clothing manufacturing brand. We will ensure that we interact with our target market (customers) and sample their opinions to know what they want before mass – producing T – shirts and casual clothes.

It is easier to penetrate the market when what you produce is exactly what the people wanted. The fashion industry is indeed a very competitive industry, every T – shirt designer and clothing line must ensure that they are always on their toe and in touch with the trend if indeed they want to continue to be in business.

We are aware of this fact which is why we hired business consultant with bias in marketing and sales to help us craft a winning marketing and sales strategy. In summary, Richards Pearls™ T – Shirts Design and Sales Company will adopt the following sales and marketing approach to promote and sell our T – shirts and casual clothes;

  • Introduce our T – shirt label by sending introductory letters to churches, schools, corporate organizations, political parties, groups, and other establishment that wears T – shirts and casual clothes.
  • Attend fashion expos in the U.S and in other parts of the world
  • Organize our own fashion show; in order for us to display our designs / clothes
  • Advertise our clothing label in newspapers, TV and radio stations
  • Canvass celebrities to wear and help us promote our clothing label
  • List our business on yellow pages ads / local directories
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Leverage on word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Publicity and advertising as it relates to the fashion industry involves being in touch with the organizations target market and being very creative and proactive. Beyond every reasonable doubt the media plays a very big role when it comes to helping a clothing label gain international significance.

The social media also plays an important role in modern day fashion publicity and advertisement; it gives fashion label the ability to reach out to a wide range of customers all over the world within a short period of time and of course at a very cheaper price when compared to other publicity and advertising platforms.

Any T – shirt Design and Sales Company that wants to take on the market must be deliberate when it comes to building brand awareness and credibility. Most often than not, big – time clothing labels ensures that they create great hype whenever they are about to release any unique design from their stable.

Social media, such as blogs, micro blogs, podcasts, photo and video sharing sites are some of the tools fashion designers leverage on to promote their labels.

Some of the preferred social media platforms that are used in the fashion industry are Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites. Here are the platforms we intend leveraging on to promote and advertise Richards Pearls™ T – Shirt Design and Sales Company;

  • Place adverts on both print (newspapers and fashion magazines) and electronic (radio and TV) media platforms
  • Sponsor relevant community programs like school fashion shows et al
  • Leverage on the internet and social media platforms like; Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites.et al to promote our brand
  • Attend local and intentional fashion expos
  • Organize our own fashion show
  • Promote our clothing label on our own official websites and online fashion community
  • Build relationship with celebrities especially in the entertainment industry and sports to endorse of clothing label.

12. Our Pricing Strategy

Richards Pearls™ T – Shirts Design and Sales Company will make sure that we design and manufactured T – shirts and casual clothes that will meet the financial capacity of different classes of people in different parts of the world. The prices for all our T – shirts and casual clothes will be affordable and at the same time competitive with what is obtainable in the fashion cum clothing line industry.

  • Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets where our T – shirts and casual clothes will be sold;

  • Payment by cash
  • Payment via Point of Sale (POS) Machine
  • Payment via online bank transfer (online payment portal)
  • Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without little or no difficulties.

Equipment & Tools

These are the machines, equipment and tools that we would need to start our T – shirts design and sales business;

  • Industrial sewing machines
  • Pattern makers for crafting designs.
  • Women and men dress forms used for garment building.
  • Hole punchers
  • Straight and curved rulers
  • Measuring tapes
  • Notchers for marking seams.
  • Dotted pattern paper.
  • Sewing machine needles
  • Hand sewing needles.
  • Sketching books.
  • Drapings tools.
  • Dressmaking Stick pins
  • Style tapes
  • Fabric shears
  • Soft lead pencil
  • Marking pen
  • Pattern plotter.
  • Pattern making software.
  • CAD tools for designs
  • Digital drawing tools
  • Digitizer board for pattern scanning.
  • Heat transfer machines for T-shirts.
  • Print tables.
  • Labels and Tags.
  • Packaging materials
  • Industrial pressing irons
  • Supply of fabrics

13. Startup Expenditure (Budget)

These are the key areas where we will spend our start – up capital on;

  • The Total Fee for Registering the Business in Beverly, California – $750.
  • Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) – $4,500.
  • Budget for publicity and advertisement of our T – shirt brand – $50,000
  • Cost for hiring Business Consultant – $2,000.
  • Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,800.
  • Cost of accounting software, CRM software and Payroll Software – $3,000
  • Cost for acquiring facility for our production factory – $500,000.
  • Cost for facility remodeling – $50,000.
  • Cost for purchasing initial supply of fabrics, racks, hangers and packaging materials – ( $100,000 )
  • Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for Start-up inventory – $15,000
  • Cost for sewing machines and other sewing equipment and tools – $250,000
  • The cost for the purchase of furniture and gadgets (Printers, Telephone, vacuum cleaner, tables and chairs et al) – $30,000.
  • The cost of Launching a Website – $600
  • The cost for our grand opening party – $5,500
  • Miscellaneous supplies – $10,000

We would need an estimate of $3million to successfully launch our T – shirt design and sales business in Beverly, California.

Generating Funding / Startup Capital for Richards Pearls™ T – Shirts Designs and Sales Company

Richards Pearls™ T – shirts designs and sales company is a private business that is solely owned and financed by Richards Crespo – Pablo and family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • The Chief Executive Officer who happens to be the lead partner will contribute 20 percent of the start – up capital from his personal savings and other sources
  • 30% of the capital will be generated from other family members
  • 50% of the capital will be sourced from banks as a loan facility

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Richards Pearls™ T – shirts designs and sales company will make sure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more. This will enable us secure their loyalty and services for a long period of time.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of all that we do at Richards Pearls™ T – shirts designs and sales company.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit licenses (Health department license and business license, Fire department permit, Air and water pollution control permit, and Sign permit et al): Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from business partners / investors:  In Progress
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of sewing machines and sewing equipment / tools: In Progress
  • Purchase of furniture and gadgets (Printers, Telephone, vacuum cleaner, tables and chairs et al): In Progress
  • Creating Official Website for the Company: Completed
  • Creating Awareness for the business both online and in the neighborhood: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress

IMAGES

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COMMENTS

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    Industry Analysis. The global T-shirt market size was an estimated $206B in 2018 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.0% by 2027. In the United States, the T-shirt market reached an estimated $43.47B in 2022 and is expected to grow at a CAGR of 3.9% by 2026.

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    Market your online t-shirt business. 1. Choose a niche. Start by picking a specific topic or market for your online t-shirt business. This will help you attract the right customers without spending too much money. Successful t-shirt businesses stand out by focusing on a particular group of people or interests.

  7. T-Shirt Business Plan Template [Updated 2024]

    T-Shirt Business Plan Template. If you want to start a T-Shirt company or expand your current T-Shirt business, you need a business plan. The following T-Shirt business plan template gives you the key elements to include in a winning T-Shirt company business plan.

  8. How To Start A T-Shirt Business (2024 Guide)

    Step 2. Register Your T-Shirt Business. Whether you intend for your new venture to be a side hustle or full time, you should register your business as a sole proprietorship or a limited liability ...

  9. How to start a t-shirt business in 12 steps:

    01. Build your online store. A professional eCommerce platform gives your customers the trust they need to complete their purchase. It's also an important reflection of your brand's identity. Start your online t-shirt business journey by creating and customizing an eCommerce website that embodies your brand.

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    Once you find a niche, create a business plan that lays out opportunities to sell custom t-shirts to your niche audience. 2. Source quality material and t-shirt printing options. The next step in starting an online t-shirt business is to find a wholesale clothing supplier, or a custom tee manufacturer. Not all t-shirts are the same.

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    T-Shirt Business Plan Template. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their t-shirt businesses. Get our t-shirt business plan template and step-by-step instructions below to quickly and easily create your own t-shirt business plan today.

  12. How to write the business plan for a t-shirt company

    There are seven key sections that every good business plan should have. In the following sections, we cover them in detail. 1. The executive summary. When writing the executive summary of a t-shirt company business plan, it is important to include a comprehensive overview of the business venture and its goals.

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    4. Develop a Marketing Plan. Craft a comprehensive marketing plan that outlines how you'll promote and sell your T-shirts. Utilize a combination of online and offline strategies, keeping in mind ...

  14. Start Your T-Shirt Business: Step-by-Step Strategy

    Financial Plan: Estimate your startup costs, pricing strategy, and revenue projections. Marketing Strategy: Plan how you will promote your t-shirts. Step 3: T-Shirt Design. As your business' soul, the t-shirt designs should be a masterpiece. Create these by using graphic design software. If you are not a designer, just look for a freelance ...

  15. Sample T-Shirt Business Plan

    A t-shirt business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The t-shirt business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your t-shirt business ...

  16. How to Create a Business Plan for your T-Shirt Business

    Step Four: Create Systems and Processes. Perhaps one of the least glamorous aspects of growing your own business is creating the systems and processes that will allow you to organize it so it runs smoothly. Systems and processes refers to things like SOPs (standard operating procedures) that are essentially step-by-step instructions for tasks.

  17. How to Start a T-Shirt Business

    Step 3: Make your business legal. Depending on where you're located, you may be required to get a permit or a license before you can start your T-shirt business. You want to be certain that your ...

  18. How to Start a T-Shirt Business

    A t-shirt business plan is a detailed outline of how your business will work. It is a document that you will use to help with everything from choosing a t-shirt business name, to making your own t-shirt designs, and determining how much money you need to get started. To enhance your planning process, incorporating insights from a sample t-shirt ...

  19. How to Start a $41K/Month T-Shirt Business (2024)

    For instance, a t-shirt printer might do well in a high-traffic mall or a space with a high density of local businesses. Finding the right place will take some research, which will be much easier after considering your marketing efforts. Step 8. Inventory, Screen Printing Machines, and Product Displays.

  20. 10 Step Guide For Setting Up Custom Tshirt Business

    Business planning. A business plan, encompassing your goals, target customers, competitor assessment and finance forecast must be sketched out. Your business plan should be a strategic guide to the business and would be helpful in mapping where funding or investment is required. 3. Finding the right manufacturer for your custom tshirt business.

  21. How to Start a T-shirt Business

    It's tempting to charge into your exciting idea, but creating your business plan will help you avoid the not-so-exciting mistakes many small businesses make. Step 2: Choose your T-Shirt Business Structure. Two common choices for structuring a T-shirt business include a limited liability company (LLC) and a sole proprietorship.

  22. Tshirt Design and Sales Business Plan [Sample Template]

    A Sample T-Shirt Design & Sales Business Plan Template 1. Industry Overview. The fashion industry is indeed a highly thriving industry all over the globe for obvious reasons and T - shirt design and sales is a subset of the industry. There are various clothing label; some are national brand and some others are international brands. ...