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Business Pian for Garment Manufacturing Start-ups
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Business Plan for Garment Manufacturing
Start-ups
Needless
jon that you can't
ignore making a project plan before
you jump into the business set-up
Everyday I get mais asking ‘haw to start
garment businessin small scale’ and
many other questions related to
business start-up in garment industry
Most of the email senders seem
completely new to garment
manufacturing
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IF you are looking for ideas fr starting
small business in the germent
indus
in Garment industry before you start
reading fllowing business plan.
read 10 Small Business ideas
This article is written to give you an
idea how to make 2 business plan for
{garment manufacturing tarp.
‘What all things you can start working
before the approach for an expert's
help Instead ofteling you how to
start garment business, wil share
‘what are primary things you need to
know, when you ae reac to start your business. There are two ways toa start business.
One, fist get customers (buyers) and make products according to them and sell. Second,
‘make your product fist and then get customers to sll your product, Whatever way you
choose ta do business, you need to work onthe following things
successful
make your project,
Read the step-by-step guide for making your busines plan. In some steps you might
need expert's advice Inthe article, | have included link for your further reading to
understand the business beter
Select Product Category
‘what type of garments you are going to make? if you plan to make kits garment >
Shirts, Palo}, you would nat try to make woven products (Shirts, Trousers) atthe same
time. Again in woven and knits there is wide range ef product categories. Narrow you
product profile as much a possible, Lets say, you ae gong to make woven shirts
Formals and Casuals Write name ofthe product in your note book and mave tothe
second point
Estimate Production Requirement.
How many pieces ae you planning to make daly? 50 shirts or 500 shies per day? it
Would be difficult ta decide the igure a thi stage but you have to estimate a rough
number. Later you can macity tis igure depending onthe bucget and customer
‘demand. Otherwise you can't move forward making your business pian. When my clients
_ask me question how many machines and what all machines they need to buy fo their
garment manufacturing set up | ask them what (product name or type) de they want to
make and how many pleces of garments they are planning to make per day. Read "How.
hipsluw oniineciotingstudy.com/2013/12business-plan-fr-garment-marefacturing him
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15130272015 Business Pian for Garment Manufacturing Start-ups
to Caleulate Production Capacity of a Factory.
Number of Machines
(On the above | have said to you to estimate production requirement Ifyou have decided
‘the production figure, and product type, numberof sewing machines and other
‘equipment requtement can be calculated, Calculation can be also done in reverse Wa.
In case you have a plan of setting specific number of machines, and product type,
estimated production per day canbe calculated, Mere isthe resource “How (0
Determine Machine Requirement fora New Factory" for your Turther reading,
‘Type of Machines
Nest step sto find what types of machines are required ta make garments that you have
selected from the wide range of product categories. For example, read Types of
[Machines used by Shirt Making Factor. Its aso important to find numberof machines
tobe purchased in each machine type. This step would help you to calculate capital
investment in machines
With sewing machines, make alist of other essential machines, equipment and set up
requirements. For example, pressing tables, cutting room machines, Boller (steam
‘generator for pressing table, diesel generator for power back-up, finishing room
equipment, furnishings et.
Raw Materials Requirement
You have already selected the product that you are going to make. Now make a list of
‘aw materials required to make the garment with average consumstion. This would help
you to prepare your budget on material sourcing, A sample material it for kitted
garment with projected cost has been published her
Factory Space Requirement
[Now move one step ahead. How much space is required for installing machines and
office for staff? To setup factory you need space for installing machines, office space and
setting up departments for production and associated processes. Calculate space
requirement, Aecording to that you have can plan for a factory building or rent a space
Estimate rent amount forthe project budget.
Manpower Requirement
You have already planned for machines and materials. Now plan forthe requirement of
‘manpower forthe business. Manpower is one of the primary resources fora business. In
‘manpower planning include number of staffs, supervisors and workers {operators and
helpers) you need to hire to make projected garments and to run business smoothly.
Aso estimate salaries for each employee and add to your budget to running cost. Get an
Idea from the market how much salary you need to pay to managers and workers.
Project Cost
frequently get asked by peopl, how much money one needs to invest forthe small size
‘garment business? Here itis. To know the estimated budget you have to prepare cost of
the project. You need to calulte total capital investment, Rent, EMI amount ifyou are
taking loan, salary for staff, workers wages and running costs. Als include nance
required for sourcing raw materials for Iti months and other expense ete. Torun you
business without financial problem, prepare monthly cashflow requirement for atleast
one year.
‘Toestimate project cost you can seek help from an expert.
Internal Process Flow
Make detailed process flow of an order. This wil help you to decide wht all
‘departments you need to set up and you can plan hiring people accordingly. You can
«ss check about your equlpment requirement process by process. Read the Garment
Manufacturing Process Flow Chart fr the export order. f you are new to garment
‘manufacturing, read Apparel Manufacturing An Overview
‘Supplier Listing
‘This process i not essential at first place. But you can start working on fining good and
reliable suppliers for fabrics, trims and other necessary items required to manufacture
‘your garments. Start establishing suppliers with your region, then go to other state and
leven you can source from international markt forthe quality and costefective
hipsluw oniineciotingstudy.com/2013/12business-plan-fr-garment-marefacturing him
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