Seasonal clothing collection sold to boutiques

Independent boutiques, gift shops and small retailers that buy your pieces to resell.

You sell at wholesale prices, usually about half the retail price, in minimum order quantities. Margins are lower per piece but orders are larger and more predictable.

• Collection planning and technical design
• Working with factories and suppliers
• Selling and relationship building with buyers
• Costing, pricing and managing cash flow

• Production costs are paid before retailers pay you, so plan your cash flow carefully
• Check FTC labeling rules and CPSIA rules for children's items
• Check whether your state requires a seller's permit or resale certificate handling for wholesale sales
• Retailers may pay on terms such as 30 to 60 days or return unsold items, so agree terms in writing
• Consider product liability insurance, since some retailers require it
• Trade shows and sampling can be costly, so test locally first

Startup costs are typically around $4,000 to $20,000, depending on sampling, production runs and any trade shows. Treat this as an estimate. Production costs are paid before retailers pay you, so plan your cash flow carefully.

Monthly revenue is typically around $1,000 to $5,000, depending on how many boutiques you sell to and your order sizes. This is revenue, not profit. Plan on at least 20 hours a week for design, selling and production.

Check FTC labeling rules and CPSIA rules for children's items, and whether your state requires a seller's permit or resale certificate handling. Agree payment terms in writing, since retailers may pay in 30 to 60 days or return unsold items.