Costume design and retail businesses are popular home businesses for many reasons. While Halloween is a major source of revenue for customers, there is a steady demand for costumes for parties, conventions, and fairs. Here are a few tips on how to start your own costume business.
Differentiate Yourself
Determine how you’re different from the mass-produced options and advertise the reasons why customers would want to work with you. For example, your costumes may be period authentic for medieval recreationists or modest yet within character for various fictional universes. Or, you may offer licensed costumes not available at the big box store. Be careful about competing on price since big box stores and big-name retailers tend to undercut the small business. However, you could compete on the basis of selection for sizes the major chains don’t support like tall or heavy people.
Consider Your Legal Requirements
A business license is a necessity in nearly any jurisdiction. If you’re making costumes, you’ll have to meet FTC regulations for labeling clothing. If you’re buying used costumes for resale, some areas require you to follow strict information collection guidelines so that you don’t inadvertently subsidize thieves. Resale certificates and sales tax certificates are often required for costume businesses. Understand what paperwork you need before you officially open for business.
Market Yourself
You could advertise your service through parenting magazines and online forums for parents if you’re marketing costumes for children’s dress up. You should market your services in the late summer for custom Halloween costumes. If you sell or rent cosplay outfits, advertise on the websites visited by fans or even set up a booth at the conventions to connect with future clients.
If you have any costumes that would be great for plays, connect with school theater departments and non-profit theater groups. You could offer a custom homemade pirate costume for a Peter Pan production or offer a fully assembled kit so members can make their own with personal touches. If you have an overflow of robes, reach out to churches well ahead of their Christmas plays so they rent outfits from you instead of drafting moms to make outfits.
Cultivate Customer Relationships
One way to generate business is to cultivate customer relationships. If you’re willing to buy used costumes to rent out to others, you have a low-cost source of new inventory while the person selling you the outfit worn once is very likely to buy from you. If you offer a quick turnaround for princess parties and school theater groups, you’ll generate goodwill and many positive referrals. Note that if you donate the costume or rent it out to the theater troop, you can request a mention in the program. And, you can ask to be an official sponsor of the event if you donate items to the organization on a regular basis.
Conclusion
Starting a costume business can be very lucrative when done the right way. Remember to determine your niche from the get-go, identify the legal requirements for your business, start marketing yourself, and look for the unique opportunities that you may not have thought of before.
