Common Mistakes Why New Wholesale Clothing Businesses Fail


The wholesale clothing business has boomed since the time that fashion clothing lines have become the largest trend in the world. Left and right, the business minded side of the community is starting their own business of wholesale clothing sharing a single goal of gaining a lot of profits.

But apart from profits, another reason why a wholesale clothing business is very popular is because of its maintenance. Among of the many lines of businesses today, a wholesale clothing business is among of the easiest to maintain. Another reason is that clothing is always on demand, so wholesalers are sure to profit even if the competition is hard. Though this is true, then why is it that there are a lot of wholesalers that fails in their attempts to be successful.

A large percentage of wholesalers fail in their first year because of several mistakes that new wholesalers have overlooked and failed to notice. Here are some of those common mistakes that cause a wholesale clothing business to fail.

Mistake #1: Lack of Experience

Number one in our list is the lack of experience. Because of the small amount of capital used for starting a wholesale clothing business compared to other wholesale businesses, many entrepreneur wannabees can easily start a wholesale clothing business even without having any kind of experience in managing a business. This is one of the many mistakes that new wholesalers have easily overlooked.

We have to remember that a wholesale clothing business is still a business that needs to be maintained properly and systematically, and this can only be achieved with enough experience in handling a business.

Though a lot say that one can learn it from a book, its still much preferable to get a hands-on experience on handling a business. May it be from assisting a friend on their business, or may it be from working on a retail clothing store or on a wholesale clothing shop. Whatever experience it is, it can still provide assistance in handling a wholesale clothing business, especially when faced with potential risks that may render a business bankrupt or it may help a business to be successful.

Mistake #2: Poor Planning

Planning about the business is important, and many newcomers have failed to notice this importance. Though they do make plans about their business, lack of experience may leave out important aspects of planning which includes the type of business would it be.

Planning about the type of business beforehand is important. Would the business run as a partnership or would it run as a sole proprietorship? Not planning about this important aspect of business firsthand can induce huge problems in the future. One of them is shifting a business from a partnership to sole proprietorship which could take a lot of time and money.

Business permits are also important for planning out a business. Business running documents and other paperwork such as taxation documents and business permits should be properly arranged before starting the business itself. Making such arrangements firsthand can avoid bigger problems in the future.

Mistake #3: Poor Location

Though location is not of big importance when starting a wholesale clothing business, planning about it could still prove very beneficial, especially for the smaller wholesale clothing businesses.

There are many reasons as to why choosing the right location is important for a wholesale clothing business. One of those reasons are the cost for shipping and transport. Shipping cost is not a problem for those larger wholesaler that has been in the business of long time, but for the smaller business, this could prove to be a big problem.

Choosing a location that is near from the clients and from the manufacturer can cut the cost of shipping goods from suppliers to retailers. This could also help in maintaining credibility when it comes to the speed of delivery.

Mistake #4: Poor Communication with Clients

Another thing that new comers of the wholesale clothing business industry have failed to realize is the importance of communicating directly with clients. Clients such as retailers are the wholesaler’s source of income. It is with them that wholesalers can get to sell their goods to the public and introduce new clothing lines to the public.

Communicating with clients are the key element that strengthens the bond between wholesaler and retailer.Checking on the status of their business, talking about what’s in demand and what’s hot in the world of fashion, and taking inputs about the business can build their trust. This in turn will create more opportunities such as distributing new products in the public that other retailers wouldn’t take, better deals, and loyalty.

Letting them face a secretary or talk to answering machines are the reasons why many wholesalers loose their clients. So making sure that the clients are taken care of, provided by trust more than just business but of friendship, and caring can gain their trust and loyalty.

Mistake #5: Poor Operations

One of the reasons why many wholesale clothing businesses fail in their start-up phase is because of their business operations. Because of the lack of experience that some entrepreneurs have in managing a business, defining a customer base and locating reliable sources of product are sometimes left out until the time they realize the importance of planning this in the first place.

Wholesalers are charged with the responsibility of matching up the manufacturer and customer by obtaining quality products at a reasonable price and then selling them to the companies that need them. Doing this poorly could lead the business to failure in which many inexperienced wholesalers have already suffered.