How to Start Garment Business from Scratch with Low Investment

Ever looked at a trendy online clothing brand and thought, “I could do that too, if only I had the money”? You’re not alone.

For many aspiring entrepreneurs, the biggest roadblock isn’t creativity or passion, it’s the misconception that starting a garment business requires massive capital, a team of designers, or a retail showroom. But the truth is, with the right garment business idea and a solid plan, you can start small and still make a big impact.

Thanks to the rise of digital platforms and affordable sourcing options, launching your own readymade garments business, even from your living room, is more achievable than ever. Whether you want to sell custom tees on Instagram or are exploring how to start an online clothing business using drop shipping or private labels, the opportunity is real, and growing fast.

In this blog, we’ll show you how to start a garment business from scratch with low investment. From researching your local market to finding the right suppliers and building a brand that sells, this guide is your roadmap to turning your fashion dream into a profitable reality.

Tips on How to Start Garment Business with Low Investment

1. Start with Local Market Analysis

Before placing your first order or sketching out a brand name, take a moment to look around you, because your first big business clue is right in your own neighborhood. Understanding your local market gives you real-world insight into what sells, what’s missing, and where you can position yourself for success in the readymade garments business.

Here’s how to do it:

Understand Your Target Location: What’s trending in your city or town? Are people buying affordable daily wear, or are they more into premium ethnic sets or casual streetwear?
Start by observing shopping habits in malls, markets, and even college campuses.

Identify Your Ideal Customers

Ask yourself:

• Who do I want to sell to, students, working professionals, homemakers, or kids?
• What do they prefer, formals, casuals, ethnic wear, or fusion styles?

The more specific you are, the better you’ll be able to tailor your product offerings later.

Study Your Competitors

Check out similar businesses around you or online sellers from your city. Take notes on:

• What they sell
• Their price range
• How they package and promote
• Their customer reviews (if online)

Look for gaps. What are they missing that you can offer better? Faster delivery, better quality, or lower price? That’s your golden opportunity.

Visit Local Wholesale Markets

Even if you’re planning to launch an online store, don’t skip this step. Explore wholesale hubs in your area. Talk to vendors, check material quality, and ask about popular products.

It will help you:

• Learn local price benchmarks
• Discover trending fabrics and designs
• Build potential supplier relationships

Define Your USP (Unique Selling Proposition)

Now tie it all together. Based on your research:

• What value will your garment business offer that others don’t?
• Will you focus on affordable fashion, customized fits, or sustainable fabrics? Your USP is what will make your brand unforgettable, and help customers choose you over others.

Market analysis isn’t just a formality, it’s your secret weapon. Nail this, and you’ve already taken the first big leap toward building a brand that lasts.

2. Choose a Business Model That Matches Your Budget

Once you understand your local market, the next big decision is choosing how you’ll run your garment business. The business model you pick will define everything, from how much you invest upfront to how you operate day-to-day.

If you’re starting with limited funds, you need a model that aligns with your goals, skills, and risk appetite. Here are three beginner-friendly models to consider:

1. Manufacturing (In-House or Outsourced)

In this model, you produce garments yourself, either by hiring tailors, renting a small unit, or outsourcing to a local manufacturer.

Pros:

• Full control over design and quality
• Great for building a unique brand
• Possibility of offering custom clothing

Cons:

• Higher initial investment
• Requires quality control and vendor coordination
• More operational involvement

Best for: Those with tailoring knowledge or a vision for launching their own clothing line.

2. Reselling (Buy & Sell Ready-Made Garments)

You purchase garments in bulk from wholesale clothing manufacturers and sell them under your brand, online or offline.

Pros:

• Lower setup cost than manufacturing
• Easy to start from home
• Fast turnaround, no production delays

Cons:

• Limited customization
• Inventory risk (dead stock if unsold)

Best for: Beginners who want to start fast with low risk and minimal setup.

Many successful sellers on platforms like Meesho and Flipkart started with this model before scaling into private labels.

3. Dropshipping

In dropshipping, you don’t hold inventory. When a customer places an order, the product is shipped directly from the supplier.

Pros:

• Extremely low investment, no need to buy stock upfront
• No warehousing or shipping hassle
• Great for testing products before investing

Cons:

• Lower profit margins
• Less control over delivery time and quality
• Harder to build a premium brand

Best for: Online entrepreneurs testing the waters or running a side hustle with minimal capital.

Which Model Should You Choose?

There’s no one-size-fits-all answer. If you’re serious about how to start garment business and keep it sustainable, ask yourself:

• How much can I invest right now?
• Do I want control over product design?
• Am I willing to manage inventory and logistics?

Start small, test what works, and scale gradually. Many top clothing brands today began as small resellers or dropshippers before expanding into full-scale manufacturing.

3. Select a Niche with Focus

One of the most powerful decisions you’ll make when starting your garment business is choosing the right niche. It might seem like a good idea to offer everything, men’s wear, women’s wear, kidswear, ethnic, casual, and more, but trying to sell to everyone often leads to selling to no one. Instead, narrowing your focus helps you build a clear identity, attract a specific audience, and market your products more effectively.

When you select a niche, like men’s casual wear, kidswear, ethnic outfits, or loungewear, you simplify everything from product sourcing to branding. For example, if you focus only on men’s T-shirts or joggers, you’ll know exactly what fabrics, sizes, and styles to source, making it easier to find the right wholesale manufacturers and keep your inventory tight and purposeful. It also becomes easier to create targeted marketing campaigns, because you know who you’re speaking to, whether that’s young professionals looking for affordable formals or new moms in need of comfortable maternity wear.

4. Legal Setup & Documentation

Before you start selling, it’s important to give your garment business a proper legal structure. Don’t worry, it doesn’t have to be complicated, especially if you’re working with a small budget. Start by choosing a business structure. For beginners, a sole proprietorship is the easiest and most affordable option. It’s simple to register and gives you full control.

Next, register your business name. This adds professionalism and protects your brand identity as you grow. You’ll also need to apply for GST registration, especially if your revenue may cross the exemption limit or if you’re planning to sell via online marketplaces. Even if you’re starting small, it boosts credibility with suppliers and customers.

Registering under the MSME Udyam portal is highly recommended. It opens doors to government benefits, priority in bank loans, subsidies, and easier access to credit, all helpful when you’re trying to keep costs low.

Finally, open a current business bank account to keep your finances organized and separate from personal expenses.

Quick Checklist:

• Choose a business structure (start with sole proprietorship)
• Register your brand name
• Apply for GST and MSME registration
• Open a business current account

With these essentials in place, your business will not only look professional but also be ready to grow with legal clarity and financial discipline.

5. Source Materials and Products Efficiently

Getting your sourcing strategy right is crucial when building a successful garment business. The quality of your products, the pricing you secure, and the consistency of your supply chain all start with one decision: choosing the right wholesale partner.

India is home to several renowned wholesale hubs. You can explore large textile markets such as:

• Gandhi Nagar in Delhi – known for a wide variety of men’s wear at competitive prices
• Surat – a leading market for affordable and fashionable ready-made garments
• Tirupur – ideal for knitwear, casualwear, and custom manufacturing

If you’re based in North India or nearby regions, don’t miss Bansal & Sons in Chandigarh. As a trusted supplier of wholesale men’s wear, Bansal & Sons offers high-quality shirts, trousers, T-shirts, and ethnic pieces, making it an excellent sourcing destination for new businesses looking for both affordability and style.

When evaluating suppliers, focus on the following:

• Compare pricing, product variety, and MOQ (Minimum Order Quantity)
• Check product quality, inspect stitching, fabric, and finishing
• Review delivery timelines and return policies to avoid delays and disputes

Request samples before placing any bulk order. This small step helps you validate product quality and vendor professionalism without risk.

If you’re planning to build your own brand, you can also explore private label clothing suppliers. These suppliers allow you to customize garments with your brand name, logo, and packaging, giving your store a unique identity without the cost of full-scale production.

Whether you choose a large manufacturer or a local partner like Bansal & Sons, the goal is the same: source consistently, maintain quality, and build supplier relationships you can rely on as your business grows.

6. Setup: Decide Your Selling Channel

How and where you sell your garments can make a big difference, especially when working with a tight budget. Begin by assessing what’s more accessible and profitable in your area: selling offline or online.

If you’re starting small, you can operate right from home or a small rented space. For those leaning digital, platforms like Shopify, Meesho, or even Amazon India offer easy ways to launch your store with minimal tech skills.

Use Instagram and WhatsApp to post your products, respond to inquiries, and manage orders. Social selling works wonders, especially when paired with attractive visuals and timely replies.

7. Keep Branding Simple but Strong

Even if your budget is small, your brand shouldn’t feel that way. A clear and memorable brand helps build trust and recognition.

• Create a meaningful name that reflects your style or audience
• Design a logo and color scheme that feels cohesive and modern
• Use affordable tools like Canva or hire freelancers from Fiverr or local design students

Don’t forget the details, simple branded packaging, thank-you cards, or personalized tags can create a lasting impression.

Customers remember brands that look and feel professional, even if they start small.

8. Promote Smartly with Low-Cost Marketing

You don’t need a big marketing budget to get attention, you just need creativity and consistency.

• Share your products on WhatsApp groups, Facebook Marketplace, and Instagram Reels
• Partner with local micro-influencers who can promote your products to a targeted audience
• Offer discounts or referral bonuses to early customers
• Encourage reviews, unboxing videos, and word-of-mouth to build social proof

Real people recommending your brand are more powerful than any paid ad.

9. Manage Finances and Inventory Carefully

Money mismanagement can kill even the best ideas. Keep your finances transparent from day one.

• Use simple tools like Google Sheets, or small business apps like Vyapar or Zoho Books
• Avoid overstocking, start with limited inventory and build slowly
• Reinvest profits smartly into marketing, sourcing, or improving packaging instead of rushing expansion

The goal is to stay lean, efficient, and sustainable as you grow.

10. Scale When You’re Ready

Once you start getting regular orders and positive feedback, it’s time to think big.

• Expand your product range or launch new categories (like adding formals if you started with casuals)
• Partner with additional wholesale suppliers to improve variety and pricing
• Explore bulk orders or B2B deals with schools, small retailers, or corporates
• Consider registering on B2B platforms or attending local fashion or textile trade shows to network and grow visibility

Scaling is not about rushing, it’s about being ready to handle bigger demand without losing quality or service.

Conclusion: Build Smart, Grow Strong

Starting a garment business from scratch with low investment may seem intimidating, but with the right approach, it’s absolutely doable. From analyzing your local market to choosing the right niche, sourcing quality products, building a strong brand, and promoting it wisely, you now have a roadmap to guide you.

Remember, every big fashion brand started somewhere. It wasn’t about huge capital, it was about smart moves, consistency, and connecting with the right audience.

Ready to get started? At Bansal & Sons, we help emerging businesses source high-quality wholesale men’s wear at competitive prices. Whether you’re just starting out or looking to scale, our Chandigarh-based team is here to support your journey.