Nine Steps To Start A Clothing Alterations Service Business

Congratulations on taking the first and most crucial step in starting your new business - learning what you need to do to get started.

You've come to the right place and are now ready to take that first step in starting your own clothing alterations business.

Here are the steps to getting your business up and running.

1. Form A Business Plan

The first step to starting a clothing alterations service business is to form a business plan. This is your roadmap to success, so take the time to make it as thorough and detailed as possible. The more comprehensive and detailed your business plan, the more likely you will succeed when launching your business.

The first step in creating your plan should be to research the market and determine the number of competitors in your area. You can find this information by searching for "clothing alterations" or "tailor." You may also want to visit some local businesses offering these services and ask how they operate their businesses.

Once you have determined how many competitors there are in your area, it's time to decide what type of customer base you want for your business. Will you focus on men's suits or women's clothes? Do you want to specialize in just one type of clothing, or will you work on all kinds? Once you have answered these questions, write down everything during this planning phase.

Next, think about what equipment you need for this type of business. If you're sewing garments from scratch, you will need sewing machines and other tools like scissors and cutting shears.

All of these details should go into your business plan. The more detailed your business plan, the better your chances of starting a successful and sustainable clothing alteration service business!

2. Form a legal entity

You may have already formed a legal entity for your clothing alteration service business. If you haven't, you should consider forming an LLC to protect yourself from liability and make it easier to get financing.

An LLC is a business structure that protects your personal assets from any claims against the company. Suppose someone gets hurt on your property or sues you for any reason. In that case, they can only go after the LLC, not your personal bank account or other assets.
You can form an LLC by filing the correct paperwork with your state's Secretary of State (often called "the Secretary of State"). The process varies by state and how much money you want to invest in the business structure.

For a simple and affordable solution for creating an LLC, we suggest exploring the services offered by LegalZoom.

Please consult a licensed attorney for for help choosing the best entity structure for your unique market and circumstances.

3. Open a business bank account & funding.

You've decided to open a clothing alteration service business. Before starting, you need to open a business bank account and determine how you will fund your business.

Open a Business Bank Account

If you don't already have one, open a business checking account at one of the prominent banks in your area. Your bank will also offer small-business loans, which can help you start or expand your clothing alteration service business.

Determine How You Will Fund Your Clothing Alteration Service Business

Once you have opened your business bank account, decide how much money you will need at launch and during the first six months of operation. Once you have this information, determine how much funding from personal savings, friends and family members, and other loans will be available for startup costs and ongoing expenses. If possible, try to secure enough funding for at least six months in case sales do not meet expectations immediately after opening day.

4. Register Your Business

You will need a federal Employer Identification Number (EIN) and a State Employer Identification Number (SEI). If you're operating as a corporation or LLC, you'll need to obtain one from the IRS.

If you're registering for taxes as an individual, here's how to do it:
Go to the IRS website, and fill out Form SS-4. Submit this form to the IRS.

Also, register with your appropriate state and local government business regulation agencies.

5. Apply For Licenses & Permits

Your clothing alteration service business may require special permits or business licenses. This all depends on your state and local government agencies.

You'll need to check with your local government to find out what it requires for your type of business. For example, some locations require that any person who performs alterations on clothing have a license. In addition, some places require that companies obtain a special permit to perform alterations to ensure the quality of the work done and the safety of those working at the shop.

What licenses and permits you need may depend on more factors than just your industry. For instance, you may need specific licenses depending on the size of your business or the machines and materials you use (for environmental purposes).

Here is a great resource to check and see if you might require a license or permit for your clothing alterations business.

6. Rent a space

Next, you must rent a commercial space to operate your clothing alteration service business. This may be challenging because you will have to find a place with sufficient storage, workroom space, and parking space for customers who come in for alterations.

You can either lease or purchase a building or storefront in which you can operate your business. Your location must be big enough for the number of machines and employees working there. In addition, it should have adequate parking spaces for customers and an accessible location where people can easily find it when looking for your services.

It may be wise to rent a commercial space in a mall or strip mall. But if you want to be more visible and attract more customers, consider renting a standalone building on a property.

7. Buy Machines, Tools & Equipment

Next, you must buy all the machines, tools, and materials for your clothing alterations service business.

For example, you will need things like:

A sewing machine with a good selection of thread and needles
A pressing iron (or a dry cleaner)
Sharp scissors or shears
A tape measure (preferably one that you can use to take waist and hip measurements)
An ironing board or ironing mat
Bamboo pins or safety pins (optional)

As a business, you can buy these things through a distributor or supplier. You may find it convenient to buy items through retail outlets. Still, you may get better pricing through a manufacturer or distributor that sells directly to clothing alteration service businesses.

Here is an example of the type of B2B supplier you may want to buy from:

B&G Lieberman

8. Get Insurance

Protecting your business from potential liability is vital by getting adequate insurance for your clothing alteration service business.

Here are some things to consider when purchasing insurance for your clothing alteration service business:

General liability Insurance: This type of insurance can be a good idea if you have any customers or employees come into your store or shop. General liability insurance covers you in case someone slips and falls on the premises or if they are injured during the alteration process. It also protects you in case a customer makes a complaint against you, even if it's not your fault.

Workers' Compensation Insurance: If you have employees, then workers' compensation insurance is almost always required by law. Suppose someone is injured while working for you. In that case, workers' compensation insurance will pay out medical bills and lost wages while they recover. Workers' compensation probably won't cover any injuries sustained by customers. This coverage is typically only available for employees who work directly for the company rather than independent contractors or subcontractors who may occasionally visit your store or shop.

Commercial Auto Insurance: Commercial auto insurance covers any vehicles used in connection with your clothing alteration service, including delivery trucks and cars driven by employees between locations or clients' homes and businesses.

If you're running a clothing alteration service business, you must ensure that you're protecting your business. Insurance is an integral part of any small business and is essential for protecting your business and its employees.

This information is general insurance information. Please consult a licensed insurance professional and/or attorney to find the correct insurance for your business.

Hiscox is a great resource for small business insurance coverage.

9. Promote Your Clothing Alteration Business

When trying to build a clothing alterations business, it's essential to get your name out there. A simple website and an up-to-date Google Business profile are good places to start. This will help new clients find you online and learn about your services.

Create a simple website

Your clothing alteration business website should have the following:

An image of your clothing alterations business
A simple design that looks professional
Your address and phone number
A list of services offered by your clothing alterations business (e.g., tailoring, hemming, pockets)
Include an email address where customers can email your business.

Optimize your Google Business listing.

Always ensure that your contact information is up-to-date on your Google Business Profile. You can also add other details like opening hours, parking information, and even photos of your workspace. Any information will help customers decide whether or not to choose your service the next time they need clothing alterations.

Conclusion

Hopefully, this post has given you some ideas for starting your own clothing alteration business. There are more significant opportunities today than ever in the clothing alterations service business. Alterations shops are very profitable and stable small businesses, and there is a lot of work available for a dedicated sewist or tailor.