This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
ok so i no many of you have had t-shirt printing and designing businesses for years and i am hoping to use some of this expert experience.
If you were starting all over again would you set up a shop and sell that way straight out or would you set up at home and sell mainly on the internet and through other retailers?
I am an accountant so my perspective is a little more toward the financial end. I would expect it would cost more to have a shop and all the rents and utilities. Also to consider is if you have a shop, it needs to be open normal retail hours, which cuts down on flexibility. You may have to employ someone just to give you the hour coverage and then you are committed to them.
However, there is alot of competition on the internet and you may or may not be found. Tshirts and embroidery can be a pretty impulsive business with a large percentage of business coming from walk-in. Internet is more deliberate I would think. They have to come looking for you.
I like the flexibility of the internet personally.
IMHO, if you are in the position to be able to afford the overhead and extras that go into maintaining a rick and mortar shop, then more power to you. I am forced to work out of home (or homes, lol), but I am saving money as well that way. Sooner or later things might change for me, but it is what it is for now. But if you've a choice, and you are ok with going at it from home, I would do that, and use the money you save to go back into your business.
I think Birdsboy covers 2 of the BIG considerations.
Another thing too, having had both types (although the brick and mortar was a baby shop... no baby accessories type.. not real babies lol)
Is that location is so important. I got involved in an informal "networking/small businees" group that was basically just a few of us who had started a new business having coffee and sharing ideas etc. VERY worthwhile but it was so hard to get across to one particular person that the location she wanted for her shop was a REALLY bad idea... but the rent was soooo cheap she couldn't look past it (nearly half of where we all suggested she went)... well her costs were low but almost zero walk in... cost her more in advertising just to try to get the traffic the other site would have given her.
If I can offer some tips to anyone thinking of going down this route.... look at what else is there... Give people a reason to already be coming to where you are, don't believe that your so great they will come to you.. they might but then the novelty wears off or a competitor opens in a more convienient place... I'm not saying go get a shop in a major shopping centre they are VERY expensive.. but they can charge that sort of rent because of the traffic
In all honesty that was something we found to be our biggest problem on deciding to.
so we decided to take avenues in both directions. we're working on an ecommerce site as well as marketing our products to shop owners that are already established.
That way we cover most basis
1. we have our own retail operation
2. we generate marketing for ourselves by selling to retailers that already have stores
3. we generate marketing from our site for retailers that buy from us
4. we cut out the overhead of having a brick and mortar store
5. we have more profit to save up towards the dream of opening an actual tangible location.
perhaps it's your dream to have your own store but the best way to start up and get your name out there is to open a website first? if you decide to open a website build strong relationships with people who can get your name out there, if you have a store be prepared to pay all the extra costs owning a real location comes with. it's all a numbers game, just decide which side is best for you and go with it. there's opportunities on both ends it's just a matter of finding them and fighting for them.
If I had a great location I would jump right into a shop but a great location is hard to find.
__________________ Daniel Slatkin, SBE Multi-Media, LLC Print On demand Fulfillment with free web store included. You Design Apparel T-shirts Hats and more.
Hi. In practical terms a shop is a physical entity, that has strong customer visibility. They can clearly see your shop on the high street and walk into it. A web site on the Internet however, can literally lay undiscovered there for years.
As well as the financial considerations you also have to look at the practical considerations. Working from home means finding somewhere dry to stow all of your stock away. If you plan on selling in volume, this becomes much more of an issue.
Selling to retailers is wholly dependant on them actually purchasing from you. You cannot assume they will automatically buy your products, it's sadly not that simple.
There are advantages and disadvantages to both options. Neither route is right, or wrong.
There are advantages and disadvantages to both options. Neither route is right, or wrong.
thank you for putting it in better perspective i guess i was just tapping in on the basics.
of course a actual shop does provide more customer visibility however w/ a shop like daniel said it's all about location. A shop is a form of advertising in itself but not everyone can afford the rent for "good advertisement"
and yes going w/ what i mentioned earlier does assume retailers will buy from you, but that's why you have to make sure you're spending your money and time to market yourself to the right retailers just as you would when advertising to your clients.
when marketing you need to think outside the box, make a word-association list and start from there. For example if you made baby clothes you wouldn't just market yourself to shops like children's place or baby gap, also look into dropping a card off at maternity shops or even baby furniture shops. (most retail buying is impulse, so the more places you have your product -if properly placed - the more chance you have of someone buying it)
what i meant earlier was that there are many options to each path you just need to look at them and assess what is best for you and your budget.
I like have my shop at home.It allows me to work at my own pace and schedule. I don't waste time or gas driving to and from location. I also have the ability to work in my PJ's(this is awesome). I like to have the shop at home to cut down on my overhead, I still have fixed cost,but less than a regular store. I deal mainly with Corporate accounts and most business is through the net or face to face, so I don't deal with the lookers and the onesie stuff. I'm sure I miss some sale, but I miss a lot of the lookers and pricers too. This allows me to concentrate on work and not waste my time.I have been working in a home based shop for 13 + years and have no plans to change. ..... JB
well thanks a million guys for all the comments which were all helpfull. after some deliberation i think our set up will be webpage based untill we have a name for our selves and also till we can afford a shop in a good location.
Shop v Home 
Daniel Slatkin, 
