How to Start a Dressmaker Business

Start a dressmaker business by following these 10 steps:

1. Plan your Dressmaker Business
2. Form your Dressmaker Business into a Legal Entity
3. Register your Dressmaker Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Dressmaker Business
6. Get the Necessary Permits & Licenses for your Dressmaker Business
7. Get Dressmaker Business Insurance
8. Define your Dressmaker Business Brand
9. Create your Dressmaker Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your dressmaker business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a dressmaker business?

A dressmaking business can be launched for a fairly small amount. Most dressmakers operate out of their houses, so you most likely won’t spend money renting an additional space. If you don’t already have sewing equipment, or need to upgrade to more professional strength machines, you’ll need to factor in those costs.

You’ll also want to pick up business insurance to cover liabilities associated with customers who come into your house for measurements and fittings. And, you’ll need to budget for advertising, internet, and a website. Your grand opening needs to be announced far and wide and should direct customers to your website to show your wares.

What are the ongoing expenses for a dressmaker business?

A dressmaking business can maintain fairly low overhead costs, since much of your materials and sewing accessories are bought as needed for customer orders. If you’re working out of your home, you can designate a portion of the utilities, internet, and phone to the business. You’ll also want to keep business insurance for when customers visit for measurements and fittings. Website hosting and maintenance is also a necessary ongoing expense.

Who is the target market?

Dressmakers appeal to individuals with a decent amount of disposable income. They may be commissioning for a child or for themselves. Upper-middle class women ages 35-65 are a reasonable demographic to target.

How does a dressmaker business make money?

A dressmaker makes their money from the sale of the custom dresses they create.

How much can you charge customers?

A custom dress can range anywhere in price from hundreds to thousands. Material, design, and specific ornamentation can really add to a dress maker’s price. Research competitors and similar businesses to see how they price their work.

How much profit can a dressmaker business make?

Since there are few outlets for this work, dressmakers can command premium prices. If you have steady clients, you could earn $60,000-75,000 annually.

How can you make your business more profitable?

Alterations and repairs are excellent methods for supplementing your income and can happen more often than full dress orders. Offering alterations on existing garments requires much less time to complete and can still command a good price.

Consider offering sewing or pattern-making classes. Sewing and clothes making isn’t nearly as prevalent as it used to be, but that doesn’t mean people don’t want to learn these skills.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your dressmaker business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

If you have experience as a seamstress or tailor and enjoy creating unique pieces of custom clothing, a dressmaker business can be a great enterprise for you. It helps to be a people person who enjoys conversing with clients, as your personality will become one of your selling points.

What happens during a typical day at a dressmaker business?

Dressmaker businesses rely on customer orders. Most days, they will focus on taking orders, completing measurements and fittings, creating the dresses and clothing for clients, and shipping out or fitting the finished dresses on to clients in the store.

You’ll also need to spend a solid amount of your time promoting what you do. Since this business is so niche, you have to really show off your work. Social media and the internet are excellent broadcasters. Your business website will also need to be regularly updated and full of pictures and testimonials.

What are some skills and experiences that will help you build a successful dressmaker business?

Your biggest skill test will always be your sewing/seamstress/tailor abilities and how they translate to what customers want. You’ll need to be able to work fast yet accurately and meticulously.

Your customer service and communication skills should also be top notch. One pitfall to this business is fickle customers who commission work but then change their minds. You’ll need to learn to ask questions, in different ways, to different customers. And, you’ll need to consistently communicate progress and expectations.

Finally, you’ll want some experience in small business management. Having the technical skills to do the work is essential, but these skills do not matter if your business fails to exist. Running a business will require you to learn many different facets of business management.

What is the growth potential for a dressmaker business?

Dressmaking businesses are specific and attract customers looking for one-of-a-kind creations. You can earn a good living if you connect with customers and charge an amount that makes it worth your time, plus some. The challenge will be to maintain a level of output and customer demand.