How to Start a NASCAR Apparel Business
In this article you will learn the steps involved in starting your own retail apparel business based on the NASCAR brand. It will take you from the basics of starting a business and licensing through advertising and keeping pace with the competition. It will also provide a list of the things you will need to start such as trademark registration, apparel tags and product liability insurance. Finally, it will provide tips on ways to gauge changes in market demand.
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Things You'll Need
- NASCAR license
- Screen printer
- Trademark registration
- Computer
- Software
- Phone line
- DSL line
- Office supplies
- Packing supplies
- Apparel tags
- Product liability insurance
Instructions
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Steps to Starting a NASCAR Retail Apparel Business
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1
Put together a winning (and accurate) business plan to line up the proper funding. A winning plan consists of a three things, 1) a unique selling proposition, 2) a succinct investment opportunity profile; and 3) a financial model that shows you understand the operational relationships and their effect on the bottom line. A unique selling proposition will most likely be location or demographic targeted. The opportunity profile should target both investors and bankers. It should discuss return on investment as well as risk mitigation. Finally, the financial model should be easy to duplicate yet robust enough to highlight key drivers of operational efficiency. Once the business plan is completed, it will serve as your primary marketing document as well as a reference for future decision making.
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2
Decide on a location. Will you be online, have a traditional brick-and-mortar shop or both? Perhaps it might be easier to start out online and then build up to a physical location. Either way, outside of your business name, this will be one of the most important factors in differentiating yourself from the competition.
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3
Purchase an official license to sell the clothing line. You will also incur costs for screen printing, trademark registration, computer, software, phone line, DSL line, office supplies, packing supplies, apparel tags, product liability insurance and advertising fees. There are also many trade shows to attend in both the U.S. and abroad. If you plan to exhibit, be sure to factor in the costs of the booth design and fabrication.
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4
Identify the market. Identifying this audience is easier than most businesses, but you will still need to determine what garments to make and study the fabrics to use. Market research will help to further refine your target audience.
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5
Talk to store owners and textile suppliers for information about businesses that produce apparel. Understand who your competition is, what sells the best, and what they are not offering. Pricing will also be an important consideration and what you charge will be a function of the cost of the fabric, manufacturing and desired profit margin. A mark-up of 25 to 50 percent is not unusual.
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Remember to edit your designs occasionally. As a retailer, you are closer to the customer than the manufacturer, so your ability to adapt to change will play a key role in your success. Keeping pace with key trends is critical in retail. In general, the closer you are to the customer, the faster you need to adapt to changes in consumer demand.
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