How to Start a Sewing Business

Last Updated on

Quick Reference

There’s something so satisfying about repairing a damaged garment so that it looks new or creating your very own custom garment from scratch. It’s a skill that few people have today, but it’s a valuable skill to have. If you enjoy sewing, you don’t have to only pursue it as a hobby. By starting a sewing business of your own, you can transform that hobby into a career. Sewing businesses have minimal startup costs, and you can even start your business part-time out of your own home. All of these benefits make for a business venture that’s accessible and practical, and that could help you become self-sustaining so that you can pursue your sewing business full-time.

Business Overview

Sewing businesses can take on many different forms. Some of these businesses provide services to other businesses in need of products or samples, creating items to spec. Other businesses specialize in selling the garments and goods that they design and create. Many home-based sewing businesses are run entirely by the business owner, while other businesses expand to hire multiple employees for larger volume work.

In addition to sewing, businesses may branch out into other areas like pattern design and production, garment tailoring and repair, embroidery, furniture upholstery, sewing machine repair, handmade product retail, and more. Some businesses specialize in hand sewing, while other businesses may be equipped with multiple sewing machines, embroidery machines, and other tools.

Industry Summary

According to Data USA, the sewing machine operator workforce totals 144,000 sewers who are an average of 47.1 years old. The average female salary in the industry is $25,549, while the average male salary is $30,975. The highest-paying locations were in Rowan County, North Carolina; Franklin, Vance and Warren Counties in North Carolina; and Brighton Park, New City, Bridgeport and McKinley Park, Illinois.

Sewing machine operators most frequently world in the apparel accessories and manufacturing, textile product mill, fabric mill, and furniture industries. Of those industries, operators working in the apparel piece goods, leather tanning and finishing, and dry cleaning and laundry services tended to make the highest incomes. Sewers who make goods to sell may choose to sell them through stores, but increasingly sewers are selling their goods online through sites like eBay and Etsy.

Industry Trends

The sewing industry continues to change, thanks to the trends that are shaping this industry. The San Diego Union-Tribune reports that sewing clothes at home have made a comeback. That interest is partially driven by increased awareness of the ethical issues behind fast fashion. With more people interested in where their clothes come from, and the products used to create them, there’s an increased opportunity for handmade goods and small businesses. Sewing has always been an art, but many members of the younger generations haven’t learned this craft. This also creates an opportunity for talented sewers to offer courses and instruction to those who want to learn the art of sewing so they can make their own clothes.

The Strategic Sewing & Quilting Summit reports that the COVID-19 pandemic has also greatly affected the sewing industry. Sewers who have relied on brick-and-mortar sales are being forced to pivot to online sales and course offerings. There’s been an increased need for virtual sewing classes and complimentary services, like sewing machine repair, as more people want to volunteer to help create personal protective equipment. Sewers have responded by offering more online products and services and sending out more newsletters with project ideas.

Target Market

Sewing businesses’ target markets will depend on each business’s specialty. Potential target markets include clothing designers who need sample garments created, consumers who want to purchase handmade garments or goods, custom made wedding dresses, entrepreneurs looking to outsource some of their manufacturing, and home sewers who want to take classes and learn more about the craft.

Skills, experience, and education useful in running a sewing business

Starting a sewing business doesn’t require a business degree, but certain skills and experiences are valuable in both starting and running this business.

Sewing experience. Plenty of sewing experience is a must when starting a sewing business. A business owner needs to be knowledgeable in sewing concepts, machines, fabric properties, and more.

Attention to detail. Detail is so important in sewing, and a business owner with an eye for detail will be able to produce quality goods and use quality control to ensure that all of their products represent the business well.

Troubleshooting skills. Problems and challenges will arise in the sewing industry, whether working with uncooperative fabric or identifying an issue with a pattern. Any business owner will benefit from troubleshooting skills.

Creativity. A creative nature can be beneficial in this business, from developing new products to choosing great looking color schemes.

Awareness of fashion trends. A business owner needs to be aware of the changing fashion trends to select appropriate fabrics and products to create.

Customer service skills. Experience in working with customers, addressing concerns, and fixing problems can help a business owner to earn a strong reputation.

Teaching experience. If a sewer decides to branch out into instruction and teaching, previous teaching experience will be an asset.

Equipment repair skills. An understanding of mechanics and the ability to perform basic sewing machine repairs will be an advantage and can save the business owner some repair bills.


Costs to Start a Sewing Business

One of the great benefits of starting a sewing business is that there are minimal startup costs involved. It’s possible to start this business right out of your home, saving you on rental costs. Plan to spend about $2,000 to get the business up and running; you can then expand the business later on.

Common startup costs for a sewing business:

  • Sewing machine
  • Inventory, including fabric, thread, buttons, needles, zippers, etc.
  • Sewing supplies, tools, scissors, rulers, measuring tape, etc.
  • Furniture, including work tables and a sewing table
  • Shipping supplies

Steps to Starting a Sewing Business

Step 1: Write your Business Plan

After coming up with the idea, the next step in starting your business should be to write a clothing line business plan.  Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.

How to write a business plan
Free sample business plans

Step 2: Form a Business Entity

A business entity refers to how a business is legally organized to operate. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC).  Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

Related: Comparison of Business Entities

Step 3: Name the Business

Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for naming a sewing business

Step 4: Select your Location

Many sewing businesses start out as a home business from a spare room in the house, but it may be necessary to rent a workspace or a storefront as the business grows.  Additionally, being located in a visible and high-traffic location may help to bring in new customers.

Related: Choosing a business location

Step 5: Apply for Business Licenses and Permits

The types of business licenses, permits, and registrations that will be required to start a business vary on the activities of the business in addition to where it is located.

Some of the common local, state, and federal registrations most sewing businesses need include a sales tax permitEmployer Identification Number, Occupancy Permit, among others.

Related: Common business licenses, permits, and registrations by state

Step 6: Find Financing

Many sewing businesses start without needing outside funding since the cost to start a sewing business is relatively low.  If a small business loan is needed, the borrower(s) will need to have good credit and personally invest 15-25% towards the total start-up costs.

Related: Finding the money to start a business

Step 7: Open a Business Bank Account

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier to track the business’s income and expenses.

Step 8: Get your Marketing Plan in Place

Sewing businesses have a number of different marketing options. Common marketing techniques include handing out flyers and business cards with local fabric shops, social media marketing on platforms like Facebook, Pinterest, and Instagram, online advertising, and print advertising. If making your own products, you may also want to consider creating your own website, creating an Etsy shop, and even hitting craft fairs.

Establishing a referral program can also help to bring sewers new business. Marketing costs will depend on the type and volume of the activity that’s performed. In addition to creating a website, sewers who sell their own goods may want to invest in some photography equipment to capture quality photos to advertise their goods online in the best light possible.

Related: Low-cost ideas to market a new business

Step 9: Get Business Insurance

A sewing business will need several types of insurance for full coverage:

  • General liability insurance helps to cover expenses that can result if a customer is ever injured while on the business’ property.
  • Commercial property insurance helps cover expenses if the business’ inventory and equipment are ever lost or damaged in an event like a fire.  This insurance is often overlooked when working out of the home.  Most homeowner’s policies won’t cover damages to business inventory and equipment.
  • Worker’s compensation insurance can cover expenses like lost wages and medical bills that the business might face if an employee is ever injured while working.

Many factors will affect insurance policy costs. To get the best idea of what insurance will cost, request quotes from multiple providers. When comparing the quotes, look at the difference between insurance premiums and consider other factors like coverage limits, exclusions, and deductibles.

Related: Types of insurance your business may need

Step 10: Hire Employees

When just starting, a business owner can probably perform all of the sewing work that the business requires. As the business grows, it may be time to hire employees. reports that hand sewers earn an average of $50,574 per year, though salaries can range from $16,505 to $37,404. According to PayScale, sewing machine operators earn an average of $26,400 per year, though salaries can range from $20,000 to $34,000.

Employee salaries are just one expense that comes with hiring staff. A business will also need to budget for expenses like paid time off, health insurance contributions, and worker’s compensation insurance.

Related: Hiring your first employee


How much can you potentially make owning a sewing business?

While data on the profits of sewing businesses isn’t currently available, keep in mind that many factors can affect a business’ income. A sewing business that establishes multiple income streams, such as by selling goods, providing services, and selling training and education courses, can appeal to multiple audiences and achieve higher income. Other factors include how long a business has been in operation, its rates and profits, and whether the owner runs the business full-time or part-time.

Things to consider before starting a sewing business

If you’re considering starting your own sewing business, look for a niche where there’s an unmet need. The industry can be competitive, but if you’re creative and find a way to do things differently, you can reduce the competition and provide a good or service that consumers both need and want. Sales platforms like Etsy are already heavily saturated with handmade products, so consider how you can make your products stand out or provide a service to an industry that needs your work.

You don’t have to jump into your sewing business on a full-time basis. Instead, this is a business that you can start slowly on a part-time basis while maintaining other employment. Create a business plan and set some goals to work toward, and you may be able to turn your business into a full-time venture soon.


American Sewing Guild
Association of Sewing & Design Professionals

Subscribe Now to the 60-day Startup Challenge!

Subscribe Now to the 60-day Startup Challenge!