How To Start A Textile Business?

Textile Business In India

Arm yourself with knowledge when it comes to opening a garment factory. Dabbling in the textile business is an interesting way to be associated with fashion, and designs. Textiles will always be in demand as long as humans remain civilized (pun intended!), but you should also keep into account the fierce competition which is there in the business nowadays. By careful analysis of the market and knowledge of the know-how, you can start your business off in full swing.

First of all, think about the kind of fabric you want to make. Do you want to make woven fabrics, print and dye them? Talk to a successful business in the sector to know the challenges and setbacks.

When starting any business, you need to know about things like:

1. Product Demand 

You can’t start a woolen textile unit in, say, a hot city like Chennai, where the demand will be very poor. Your main buyer will be up north, factor the transportation and state tax costs at every barrier.


Competition is there a similar business running in your locality and they are doing extremely well? What can you do to make business even better? Think out of the box!

3. Customer Satisfaction

The customer is the King, always consider customer’s need and ensure the product matching their need.

4. Pricing 

Price your product competitively. Never under price your product!

5. Banking And Finance 

Money, money, money! Do you have the required capital? Apply for a business loan. Open a separate bank account for your business to monitor your cash flow

6. Personal Time Management 

Don’t keep all your time for your business! Personal time is equally important for success!

7. Time Management 

Are you running out of time constantly? Don’t have time to do a particular chore? Learn time management and be very earnest in practicing it!

8. Government Policies

Different types of tax, Labor Laws, Environmental Issues–You don’t want to run into penalties for not following the labor law, tax-related laws and environmental laws in your country, it is often heavy on the pocket!

9. Factory Location 

Be sure to get a place on the lease where there is plenty of water and electricity supply as well as plenty of ventilation, as there will be toxic waste material and dust from the fabric. Learn proper waste management

10. Rent 

Search, find out and strike the best deal. Ensure you are not spending too much initially for rent. Another option you could consider is, sharing a percentage with the building owner as an alternative to renting, that will not only help you in cost-cutting that will bring in additional contact for you.


An important issue which might affect your business adversely or positively. Do consider the transportation expenses related to the raw material and the finished product.

12. Costing 

Make an executive summary and factor the profits and losses. Make a report for at least one year and calculate the overall expenses of your factory. Take the help of an accountant.

13. Promote 

Advertise, advertise, and advertise, though ensure the advertising cost is within the planned budget and always calculate the Return on investment(ROI).

14. Profit or Loss 

Profit or Loss bearing capabilities. From the day one focus and run towards the break-even which is the first success for any business Ensure you can run the show for at least a couple of years without entering the profit zone.

And the list goes on. The above-mentioned points are some of the major things to be kept in mind. Buy the required manufacturing equipment from reliable companies. Do they cover the equipment for a long period of time? Do they offer services in case of a breakdown of equipment? Research and make a list of reliable companies.

Don’t forget about bulk storage! You would need a warehouse/to go down to store your fabrics. This is a very important factor, as you may run into losses if you don’t have space in order to store your fabrics properly.

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