Introduction to how to start a saree business
Saree business is one of the high demanding business in India all time. Saree business has a lot of potential to grow. Saree business considered as evergreen business saree pattern may change sari designs may change but demand for saree will never change. There are so many varieties of sarees in India. So before starting your saree business make sure that are you selling specific types of sarees or selling all types of sarees. Starting any business can be overwhelming but if you have a good business strategy and you know what you need to do then it might become a lot easier than what you have thought. This article will cover a few steps which will help start a saree business!
Starting a saree business is one of the most lucrative business options. Saree is one of the most popular apparel for Indian women. The cost of saree varies from Rs.100 to Rs.10000 and more. Saree comes with a variety of fabric, patterns, and designs. It is easy to start a saree business from home. The capital needed for starting a saree business is moderate.
A step by step guide to start a saree business
Starting a saree business from home includes lesser risk because your infrastructure expense will be zero as you will be operating from home. The very basic advantage of starting a saree business from home is that you can directly make your purchase from the sarees manufacturers or wholesalers. Saree is one of the traditional dresses of our country and it gives an elegant look to the bearer. With modernization, a lot has changed in our society but the value of saree is still supreme and is preferred by women not only in family gatherings but is also considered as Indian formal wear.
Step 1: Determine the cost of starting the saree business
Every business requires capital so you have to make sure that you are aware of the investment cost required by this business. You will have to think about the cost of sarees, the cost of marketing strategy, and if you are renting a shop that is another expense.
After you have determined the cost of starting the saree business you will further need to estimate the running cost. The ongoing or running cost of a business is one that will be required throughout the business to keep it running. It includes the bills, the rent, money required to buy new sarees as well as the salaries of employees (if you have hired any!).
This will give you a brief idea about the cost that is required by the business and see if you are financially stable to invest the money or you will have to apply for a loan.
Step 2: Build your business plan
This is the first step of starting any business so you will have to give a little more effort and your 100 percent focus in planning your business. This is like the starting point and you have to make it right. A well-formulated business plan is required to secure funding or other support and to start by nailing the basics. It is not easy to predict the fashion industry; your plans need to be flexible and you need to be up for the challenge. It is sensible to have a rough plan in the background in case your idea takes off and you want to expand your business pretty quickly.
You may also check this: How to Start a Jewelry Business in India.
You will need to give an overview of your business in the plan, including an executive summary and a clear routine of how your clothing line is going to start, grow, and prepare to scale. Your plan should also outline who is involved in your business and what they do. Plan your branding, sales, and marketing as well as operations. Finish off with a solid section clearly outlining your business’ current financial position, priorities for growth, and how funding and investment will help things to fly.
Step 3: Do some research about the business you are going to start
This is also a crucial step for starting your saree business. You will have to know what goes on in a saree business and how you handle the business. Your research should also contain aspects like what is trending, the needs of the customers, and what cloth material is best! Apart from this, you should also find out what are the other requirements for a saree business.
Research the demographics of the area you plan to trade-in. You may find it difficult to make a success of your business, if your state or county doesn’t have a large Indian community. This won’t be so much of a problem if you plan to sell your sarees online.
Step 4: Select a location to work and sell sarees
You can start the saree business at home, but you will need a clean space that is large enough. You will also need some office space for files and administrative tasks.
You can also sell your items in online e-commerce markets. This will help you in reaching out to a larger crowd. Also, sell your items to local retail stores that sell embroidered sarees.
Step 5: Create a website
It is very important to have a website for your saree shop. If you have a website for your saree shop, you can showcase your new collections of sarees, display catalogs, showcase currently running offers and deals in your saree shop. If you want you can sell your sarees online as well.
Step 6: Gain some experience
Experience is very important in the saree business. And the best way to gain experience in saree business is to work in a saree shop. That way you will learn how to talk to a customer, how to sell the sarees, and what are the other things that you need to acquire.
Step 7: Register your saree business
Since you have sorted out the financial needs of a saree business as well as you have gained the experience, now it’s time that you take vital steps to start a saree business. And the first thing you will need to do is to select a name for your business and register your saree business as a legal entity. For registration, you will need a GST number and PAN card Number.
Once you have registered the business you will get the necessary permits and license to run the business. You will also have to register for the taxes as well. It’s a pretty simple step but varies from one state to another. So look for the policy of your state’s business. Once you get that you need to open a bank account. You can register as a sole proprietor or partnership firm. This is as per your requirement.
Step 8: Get business license and insurance
Contact your local licensing authority to inquire about what licenses you will need to start this business. Although requirements will vary from state to state, you can expect to have to apply for a reseller’s or a sales license. To register for sales tax, you’ll also need to contact your local department of revenue office.
To avoid any mishappening in the future, you will have to buy the business insurance. Since it’s a saree business there are a lot of things that can go wrong such as fire, theft, and any other damage. You can also buy a workers compensation insurance.
Step 9: Create a store on the website or social media
Create a website dedicated to your business with the help of a professional. The website should contain all information related to your business and contact information. It is a part of your promotion strategy as it helps you to interact with a large number of customers who stay far away from your locality.
Post quality images of the sarees in the site so that the customers can view them properly before buying. The website will also provide you with valuable feedback and reviews. It will also help you to manage the business from home easily.
Step 10: Define your target market
The customers whom you sell your products will determine the type of clothing and accessories you produce, which will help you to choose equipment and supplies and also help you to focus on your advertising and marketing activities. Your target customers can include businessmen who sell all types and varieties of saree.
The target group can be extremely large, and you may not be able to fulfill the demands of one and all. So, the best option is to limit your target customers when you start. Just try to fulfill the demands of one or two kinds of customers. You can easily get references and recommendations from this group.
Step 11: Fix the price of sarees
It is important to set a competitive price for your sarees. In this digital world, customers can easily find out the saree price from other sources. If they find that your prices are more than the price of other stores that will discourage your customer from buying. Hence, always try to set a competitive price for your saree.
You may need a professional’s help to decide the price of saree. Although it’s predetermined according to the design, material, and pattern of the saree and if it’s a designer saree then you will have to sell at the price it has featured on the saree.
Step 12: Market your saree business
Nowadays the profit margin of any business depends on the marketing strategy. Market your products strategically to make your business successful. A marketing plan of saree business is a document that gives a clear vision of what you want to achieve in your business. A well detailed promotional strategy can determine the success and failure of your business. The quickest way to get started is with word of mouth advertising.
Use popular social media platforms to promote your saree business. Promote your products with daily deals like discounts, special launching prices, cashback etc.
Marketing techniques can include building an attractive website, business networking, and partnership, referrals, leveraging social media platforms, and traditional advertising strategies, using marketing materials, and satisfied customers’ testimonies.
You must let your friends and business associates know that you are starting a saree business, spread the word around your locality to create awareness and excitement among potential customers before it is launched.
How to obtain a maximum profit margin?
Your profit margin will depend on various factors which include the material, color, design, and the trend that is set. If your saree seems outdated or not up to the level of trends that are existing in the market, then you probably have to bear some losses. You need to be substantially aware of the latest trends in the saree market to keep up with the competition. Women like to stay updated with the trends and will never accept the outdated trend which also gives your saree business from home an upper hand. 20-25 percent profit can be obtained with ease if you do follow all the needed things then.
The bottom line of starting a saree business
It might be a good idea to open a saree business. Although the saree business isn’t just buying sarees in wholesale and selling them! It will require hard work, a good marketing strategy, understanding the needs of the customers as well as sorting out the financial needs of the business. Your business will also generate income for men and women who are skilled. Research the market to find out the designs and sarees which are popular and the wholesalers from whom you can buy the raw materials at a cheap rate.
Above are some of the steps you need to follow before starting a saree business. Keep your prices in a medium-range, don’t keep it too low to avoid losses. Be patient and build your business skillfully, never compromise with the quality of your products.
In case if you are interested in this: Low-cost Agriculture Business Ideas for Beginners.