How to Start a Hat Business (25 Best Ways & Tips)

You will learn how to start a hat business from reading this helpful article.

It shows up to 25 best ways and tips that will help you start and even succeed with a hat business.

 

Importance

There are many products manufactured today that are created to be used in a practical manner.

Some of those manufactured items can include different types of clothing, shoes, various types of accessories, and so forth.

Often the manufacturing of these items are used to clothe us, protect us from the elements, and provide a practical purpose such as a belt in keeping our pants where they need to be.

However, today, not only is the clothing, too, accessories, and hats that we wear important in a practical manner but also can be fashion statements or indicators of us enjoying a particular event in our life.

A prime example is the hats that we wear.

Often the hats that are worn can take a statement about our being a fan of a sports team, share a message, represent an occupation, and so forth.

The manufacturing and wearing of hats is a major industry in America and around the world.

Consequently, starting and succeeding at a hat business can be a moneymaking venture when certain steps are taken in starting the business and pursuing that business to success.

 

25 Best Ways & Tips to Help You Start a Hat Business

 

1. Research

One of the important preliminary steps when considering the starting of a hat business is to conduct your research.

Your research should involve the expenses related with the hat industry, the projection of sales for hats in America, whether you will make your own hats or you will find a vendor to supply the hats for you.

In addition, you’ll want to do your research on the community in which you live as well as going online to see what companies are involved in the hat business and determine what will be your uniqueness or niche in the hat industry.

 

2. Budget

An important component before starting your hat business is to devise a draft budget or preliminary financial projections.

On the expense side of the ledger would include overhead such as building space, how you will handle inventory and whether rental units are needed, utilities, etc.

Also as part of the budget expense side of the ledger will be any staffing that you will be hiring, insurance needs, supplies, and so forth.

Then based on your expense side of the ledger you will then need to look at the income side and see what you are unit price will be for individual hats sold, customers needed, etc.

The obvious bottom line is that the income, including profitability, should be greater then the expenses.

 

3. Competition

Another important analysis that should be accomplished is to evaluate your competitors.

As part of this evaluation you will understand what their pricing is, any uniqueness that they offer as a hat as this, terms of delivery, how they make their hats, etc.

All of this information about your competitors will provide you the needed dynamics so that you can compete with those in the business and provide, perhaps, a better quality product, faster shipping, and so forth.

 

4. Business Plan

At this stage of starting your business it is important to formulate a business plan.

A business plan is composed of a number of actionable items that will formulate a plan for success in your hat business operation.

Some of those components of a business plan would include:

• Executive summary
• Budget
• Strength weakness opportunities and threat analysis
• Marketing plan
• Staffing
• And so forth

The business plan is essential for you as the owner as well as proved to be a document that perhaps will gain you financing as individuals understand that you have thought thoroughly before business plan of action and are confident in your success.

 

5. Business Structure

Another important decision that you need to make before opening the doors of your business is how your company will be structured and what legal model you will utilize.

The various legal models that are possible to structure your business under would include:

• Limited liability Company
• Sole proprietorship
• SCorp
• And others

Your decision on what legal model to utilize should be dependent upon your research and what is in yours and the company’s best interests.

The ramifications of correctly utilizing the right legal model have implications on taxes, reporting, etc.

 

6. Insurance

Another important action step that needs to be taken is the decision on ensuring your company.

It is best to speak with an insurance agent and find out what plans would be best suited for your business.

Some of the insurance policies that you may choose could include:

• General liability
• Worker’s Compensation
• Product Liability Insurance
• Commercial Liability
• Or others

 

7. Staff

At first you may not need support staff but as your company grows and become successful you may need staff to perform other functions within the business.

Some of those other functions could include involvement in social media communication, taking orders, handling the accounting, etc.

You can choose to hire individuals as regular employees or you can contract out to these positions if you find that they are needed within the operation.

There are a number of ways that you can find freelance employees with one of those ways being the logging onto a website such as www.upwork.com.

 

8. Target Audience

With in your hat enterprise it is important to determine what your target audience who your target audience will be.

You can focus just in on the provision of ball caps or you can provide hats for special occasions including informal and formal affairs.

Therefore, your target audience may be both men and women, sports enthusiasts, and so forth.

 

9. Understand the Industry

Another important consideration when starting in the hat industry is understanding fully the dynamics of this industry and what are your options and how to take full advantage of all that is available.

• Some of your areas of learning could include suppliers, request for printing or logos on the hats
• Shipping
• Utilization of dropship
• And so forth

 

10. Start-up Costs

As with all things it is important that not only when you have a budget to give you an idea of what the ongoing expenses and income will be it is important to know that startup money for any business will be required.

To determine what the startup money will be this important to do your research and understand the expenses of creating inventory, working with a supplier, purchase of any equipment or needed supplies, and so forth.

 

11. Profitability

By searching the website and looking at other hat businesses you can get an idea of the profitability of this venture that you are embarking on.

As it relates to profitability you want to make sure that with each hat that are sold there is a profit that is made and all of the expenses associated with the selling of one unit is recouped plus profit for your time, effort, and as the owner of the business.

 

12. Business Name

Just as our personal names are unique and specific to us so should your business name for your hat enterprise.

Just as our own personal names are unique and special to us so should be your business name for your hat enterprise.

Suggestions for names should be something that should not surprise the customer as to what product you are selling and also should the catchy as it relates to the customer remembering the name of your company.

Also, the name should be unique and when registering the name and your company a site that can help you formulate a need for your business can be found at

 

13. Suppliers

Before you inaugurate your hat business it is important that you have an idea of who your suppliers might be.

he obvious identifiers for the sourcing of your hats would be what they have to offer, their cost, are there any minimum amounts that need to be ordered, etc.

One of the options that you can undertake is, if there is a required minimum amount to purchase, is to follow the drop shipping business model.

If you think that this is the best option for you at this time you can go with www.aliexpress.com.

 

14. Online Sales

An opportunity to showcase, market, and sell your hats would be through a website such as www.shopify.com.

By registering on this site you are provided a virtual store in which you can take pictures of your different types of hats, and allow for people to browse your through your store and order if they so choose.

 

15. Marketing

In order to make people aware of the quality product that you are offering through the selection of hats you need to pay specific attention to your marketing strategy and plan.

The reality is that you need something unique and distinguishing about your hats in order to differentiate yourself from the significant number of hat retailers available.

Your marketing plan should consist the fully utilization of social media platforms, having a quality website, perhaps a blog site, and best of all, the most effective form of marketing, is through satisfied customers and word of mouth.

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16. Pricing

When considering pricing it is important to take into account all of the expenses.

Those expenses would include:

• Material
• Time
• Advertising
• Costs associated with posting the product
• Adding in a percentage for profit
• Etc.

A comparison of other companies would be indicated to see what they are charging for similar products to make sure you are not charging too much or too little.

 

17. Online Course

To provide the uniqueness that you may be looking for in your hat business is to create your own hats.

You can learn the technique by enrolling in an online school or you can register with a local community college that may be offering the hat making craft for individuals.

One such online website that offers these courses can be found at https://hatacademy.com/.

 

18. Supplies

If you choose to make your own hats, once you start going through the online class, you will need to order millinery supplies.

These supplies will be needed in order to design and create the hats while you are taking the course and also as you move into inaugurating your business and making your own hats.

The best way to shop for these millinery supplies is to go online and do a word search on your search engine for millinery supplies.

One such site can be found by clicking here.

 

19. Pictures

It is important to post pictures of your hats that you not only make but have available that can be utilized and purchase by the broad customer base that you are trying to reach.

The pictures should be clear, detail oriented, and provide different angles so that the full scope of the beauty of the hat and the way that it has been accessorized can be viewed.

 

20. Wear Your Hats

When you are in the community the best way to advertise your hat designs is to wear the various hats that you offer.

This will give everyone an opportunity to see your product line and ask you where you got your hat from.

When doing this it is important to make sure that you have business cards that contain your contact information, website, and name of your company, you as the owner, your social media sites, and blog location.

 

21. Charity

Many charities in your community have a variety of special events in order to raise money for the services that they provide to the underserved.

Often they have what is known as a silent auction and which I donated items are viewed by attendees at the event and bids are placed with the person bidding the highest receiving the item.

As a manufacturer of hats you can donate a couple of your hats and have people bid on those hats and use the occasion not only to help others but to showcase the hats that you have designed.

Additionally you will be able to have your hats on display and market to those in attendance as well as the word getting out about your product.

 

22. Banking

An important aspect or component of your accounting with the selling of hats and receiving income will be the need to set up a checking account for your business.

As local or online banking institution, will provide the services that you need and will not charge or only have minimal fees as it relates to banking.

This is a good strategy because you want to make sure that you do not intermingle your personal banking with your business banking.

 

23. Accessories

As part of your business model you may wish to offer accessories that can accent the beauty of your crafted hats.

Accessories can include ribbons, bows, etc.

 

24. Company Name

An important dynamic of starting and being successful in your hat creating business is to have a name that will resonate with your customers and potential customers.

The name of the business should be something to do with hat creations, wearing or availability of all types of hats.

For example, if the designs of your hats are for a broader customer base a possible suggestion could be Hats Off to You.

A business name generator website can be found at https://businessnamegenerator.com/.

 

25. Networking

In your local community a good way to market is to network by joining a number of associations, the Chamber of Commerce, and attending as many social events as possible.

Examples of membership associations to join would include:

• Kiwanis Club
• Rotary
• Lions
• Soroptmists

 

Personal Story

I have always enjoyed wearing hats.

I would love to wear a cowboy hat but quite frankly I am not the cowboy type as I don’t wear the other associated clothes that one would consider a cowboy wearing nor do I have cowboy boots, a big buckle nor do I have a horse or ranch.

Therefore, even though I would love to wear a cowboy hat it certainly doesn’t match my look or personality.

However, I do love to wear ball caps and typically the ball caps have the logo of my favorite various sports teams.

Also, I am the proud owner of a number of hats that were given in appreciation to various charitable events that I have been involved with.

I guess you could say that if we own a number of ball caps that we have done that and got the ball cap.

 

Starting a Hat Business FAQs

 

How Big is the Hats Industry?

According to Ibis World, the hat industry, as indicated by revenue, is at $2.5 billion

 

How Many Ball Caps Are Sold on an Annual Basis?

It is estimated that 43 million baseball caps are sold annually in America.

This statistic according to Mult Briefs.

 

You Can Do It

If you are looking for a starting business opportunity than that the possibility of entering into the hat making business has potential.

The reality is you can manufacturer various hats for sale or you can you outsource the creation of hats to various companies that will affix any particular design or message and then these hats can be delivered to your customers.

Hats off to you if this is a business venture that you wish to participate in

 

Conclusion

The hat industry is a thriving business opportunity that one can be involved with minimal upfront costs.

Hats are popular today and cover the gamut of stylish and dressy hats, hats that reflect a profession, hats that are given out in appreciation for involvement at charitable events, hats that have a quote or message, and hats that reflect a fans favorite team or activity.

Hats not only serve a practical purpose but can also reflect different types of statements.