How To Start An Online Hat Store

Start A Hat Business

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When it comes to starting a hat business, you may find yourself in a place where you have to make some big decisions.

You may be asking yourself:

  • What's the first step in establishing my business?
  • How much will it cost to start my hat business?
  • How do I price my hat business?
  • How do I market my hat business?
  • ... so much more!

We walk you through all of the steps; from idea → starting → launching → growing → running your business.

The purpose of this guide is to act as an outline for the steps you'll need to take to get your business running successfully!

market size
$1.71T
avg revenue (monthly)
$8.5K
starting costs
$17.2K
gross margin
40%
time to build
7 months
growth channels
SEO
business model
E-Commerce
best tools
Instagram, Facebook, Shopify
time investment
Side project
pros & cons
35 Pros & Cons
tips
4 Tips

💡 Introduction To Starting A Hat Business

How To Name Your Hat Business

It's important to find a catchy name for your hat business so that you can stand out in your space.

Here are some general tips to consider when naming your hat business

  • Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
  • Conduct a search to see if others in the space have the same name
  • Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
  • As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your hat business so important?

The name of your business will forever play a role in:

  • Your customers first impression
  • Your businesses identity
  • The power behind the type of customer your brand attracts
  • If you're memorable or not

It's important to verify that the domain name is available for your hat business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your hat business:

  • Clean Chapeau check availability
  • The Ice Capital check availability
  • Cervical Ceiling check availability
  • TyroleanHat check availability
  • The Der check availability
  • The Royal Headpiece check availability
  • TallCap check availability
  • OddHeadgear check availability
  • Hair Trading Co check availability
  • Shaped Chapiter Spot check availability
  • Red check availability
  • Green Chapeau check availability
  • Broadbrimmed check availability
  • Close Detonator Group check availability
  • Conscientious objector Headgear check availability
  • Ceiling Co check availability
  • Style check availability
  • Lector Headgear check availability
  • Fitting Beanie Spot check availability
  • RoundHat check availability
  • Beret Trading Co check availability
  • The Indian check availability
  • The Cervical check availability
  • Brim Headdress Pro check availability
  • SuitableHeadgear check availability
  • Starched Hat check availability
  • Dark Beret check availability
  • FrilledCap check availability
  • New Beret Spot check availability
  • Style Hairdo Collective check availability
  • Cartilaginous Ceiling check availability
  • Blue Hair Co check availability
  • The Big Headgear check availability
  • Bowler Jacket Co check availability
  • Metal check availability
  • Type Hairstyle Pro check availability
  • EnormousHat check availability
  • Yellow Crownwork Place check availability
  • White Hat Trading Co check availability
  • Clean Ceiling check availability
  • CrimsonCap check availability
  • Type check availability
  • Male Headpiece Co check availability
  • Formal Headdress Spot check availability
  • Projector Headgear check availability
  • SpecialHeadgear check availability
  • Protective Hairdo Collective check availability
  • BigHat check availability
  • Brim check availability
  • The Shaped check availability
  • FurCap check availability
  • Detonating Device Group check availability
  • MetalCap check availability
  • FeminineHeadgear check availability
  • Headset Group check availability
  • Horned Headwear check availability
  • BatteredHat check availability
  • Crab Cap check availability
  • WhiteHat check availability
  • The Standard check availability
  • Smart Fedora Pro check availability
  • Detonator Collective check availability
  • YellowHat check availability
  • Clean check availability
  • The Funny Jacket check availability
  • Sombrero Place check availability
  • Clean Capital check availability
  • Large Beanie check availability
  • The Coonskin check availability
  • BlueHeadgear check availability
  • The Tiny check availability
  • Straw check availability
  • Greasy Headdress Spot check availability
  • Beanie Pro check availability
  • Tyrolean Lid Group check availability
  • FantasticHeadgear check availability
  • Battered check availability
  • The Military check availability
  • Crystal detector Headgear check availability
  • Sun Helmet Spot check availability
  • Jab Cap check availability
  • Large Chapeau check availability
  • Overseas Capital Co check availability
  • Clean Cape check availability
  • The Shabby check availability
  • LacedHat check availability
  • Protector Headgear check availability
  • SmartHat check availability
  • Appropriate Chapeau Pro check availability
  • Shady Chapeau Group check availability
  • Sombrero Trading Co check availability
  • Ceiling Spot check availability
  • Soft Crest check availability
  • The National Helmet check availability
  • Formal Hair Spot check availability

Read our full guide on naming your hat business ➜

Is The Hat Business For You?

Let's look at the pros and cons of starting your own hat business

Pros:

  • Flexibility: One of the biggest advantages of starting a hat business is that you can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
  • Ability to start your business from home: It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
  • Little startup costs required: The cost to start a hat business costs significantly less money than most businesses, ranging anywhere from 1,763 to 32,509.
  • Rewarding work: Starting a hat business can be really rewarding and fun work. After all, you're bringing joy and excitement into peoples lives.

Cons:

  • Crowded space: Competition is high when it comes to your hat business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
  • Finding the right supplier: Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Creating a successful hat business means that you will have the ability to sell, provide stellar customer service, communicate with vendors and motivate your team (even if it's down the road)!

Players

Big Players

Small Players

Search Interest

Let's take a look at the search trends for hats over the last year:

Brick & Mortar vs eCommerce Business Model

https://media.giphy.com/media/kgV9aRgKU77zkCO1GC/giphy.gif

When deciding whether or not to start a hat business, it's important to first decide what type of business model you want (brick and mortar, eCommerce, or both)!

Here are a few things to keep in mind when considering a Brick & Mortar store:

Brick & Mortar Model

If you do plan to open a physical store, it's important that you find a spot in a high-traffic area. This is a great way to gain exposure for your business and also get new customers.

It's also important to consider the higher costs associated with operating a physical store (ie - employees, rent, utilities, etc) and the long days/hours associated with running a store.

The main benefit, however, is that customers love being able to see products in person. It's important to recognize that although some people enjoy shopping online, there will always be the shopper persona that likes to touch, feel, and see the product they're buying.

eCommerce Business

One of the main benefits of operating online is that you are exposed to the entire world, versus just one local area. Rather than depending on foot traffic, you have all the tools at your disposal to create exposure for your store online.

Additionally, there are much lower costs to operate an online store - fewer employees, you can operate from your home, and you get to create your own schedules (yes, holidays included!)

Although you are operating online and have the ability to connect with people all over the world, it's important to consider that you will need to invest marketing money upfront in order to promote your store to the right audience.

So, which business model should you go with?

Each model has their benefits, however, the consumer trends for hat business are shifting towards e-commerce businesses.

🎬 How To Start A Hat Business

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Setting Up Your Hat Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

  • LLC: All income and expenses from the business are reported on the LLC personal income tax return.
  • S corp: Owners pay themselves salaries + receive dividends from profits.
  • C Corp: C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness.

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

  • Location - Is your bank close enough that you can easily make deposits or get cash?
  • Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
  • Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
  • Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
  • Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Revenue Expectations

We've interviewed several different founders in the hat business and asked them how much $ they're making today.

Truffaux

  • $180K/year in revenue
  • Sells extraordinary panama hats
  • 2 founders
  • 2 employees

Snappies

  • $24K/year in revenue
  • Sells hats.
  • Solo founder
  • 1 employee

How Much Does It Cost To Start A Hat Business

If you are planning to start a hat business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a hat business and outline the costs you should expect for each:

  • The estimated minimum starting cost = $1,763
  • The estimated maximum starting cost = $32,509
Startup Expenses: Average expenses incurred when starting a hat business. Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs. Max Startup Costs: You have started with 1+ other team members.
Office Space Expenses
Rent: This refers to the office space you use for your business and give money to the landlord. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space. $500 $5,750
Utility Costs For Office Space: Utility costs are the expense for all the services you use in your office, including electricity, gas, fuels, telephone, water, sewerage, etc. $200 $1,150
WiFi & Internet: Whether you work from home or in an office space, WiFi is essential. Although the cost is minimal in most cases, it should be appropriately budgeted for each month! $50 $100
Total Office Space Expenses $750 (min) $7,000 (max)
Equipment & Supply Expenses
Technology Office Equipment: This includes (but is not limited to) physical items such as: laptops, cameras, monitors, microphones, speakers, headsets. Technology needs grow as your company evolves, so to minimize costs, try and only purchase what is needed for you to run your business at the time. $500 $5,000
Total Equipment & Supply Expenses $500 (min) $5,000 (max)
Inventory Expenses
Upfront Costs For Inventory: This includes all upfront inventory you will need in order to launch. Be sure to compare prices of wholesalers to ensure you're getting the best deal and margins remain high. $300 $5,000
Inventory Storage: If you decide to have a physical space for your hat business, whether it be used for inventory or as a showroom, you may have monthly rent payment or a large down payment associated with renting/buying the space. $0 $5,000
Package Design: Packaging refers to wrapping and protecting products during distribution, shipping, and sales.Your package design is your customer's first impression of your brand, so it's important you spend some time and energy to get this right from the start.Many businesses design their own packages using design software and tools. There is always the option to outsource this to a design expert, but that route tends to be much more expensive. $50 $3,000
Shrinkage: Shrinkage refers to the loss of inventory at any point between the purchase from your supplier and the purchase by your customer. Although you will try to avoid this at all costs, this does happen sometimes (especially in the learning stages of your business), and it's important to plan ahead financially in case this happens. Fortune states that retail shrinkage costs U.S. retailers approximately 1.4 percent of their total sales. $0 $1,000
Distribution costs: Depending on what distribution plan you choose, expenses such as renting vans, hiring delivery drivers and gas costs can add up. If you are looking to save money upfront, you may want to consider conducting distribution on your own. $0 $750
Total Inventory Expenses $350 (min) $14,750 (max)
Software Expenses
Design Programs & Software: These programs might include the Adobe family of design tools: Photoshop, Illustrator, InDesign and others. This is typically a monthly subscription ranging from $10-$50/mo. $0 $50
Email marketing tool: If you plan to grow your email list and email marketing efforts, you may want to consider investing in an email marketing platform (ie. Klaviyo, MailChimp). We put together a detailed guide on all of the email marketing tools out there + the pricing models for each one here $0 $100
IT Support: IT support installs and configures hardware and software and solves any technical issues that may arise.IT support can be used internally or for your customers experiencing issues with your product/service.There are a variety of tools and software you can use to help with any technical issues you or your customers are experiencing. This is a great option for businesses that do not have the means to hire a team of professionals. $150 $2,000
Accounting & Invoicing Software: It's important to have an accounting system and process in place to manage financials, reporting, planning and tax preparation. Here are the 30 best accounting tools for small businesses. $0 $50
Project Management Software: You may want to consider using a project management and collaboration tool to organize your day-to-day. This can also be very beneficial if you have a larger team and want to keep track of everyones tasks and productivity. For a full list of project management tools, check out this full list here. $0 $25
Internal Communication Tool: If you plan to have multiple members on your team, you may want to consider an instant message tool such as Slack or Telegram. The cost is usually billed per month (approx $5/user/month) or there are freemium versions available on many platforms. $0 $20
Social Media Management Tools: If you plan to do social media marketing for your hat business, you should consider investing in a social media automation or publishing tool. This will save you time and allow you to track performance and engagement for your posts. Here is a list of 28 best social media tools for your small business. $0 $50
Payroll Software: The main purpose of payroll software is to help you pay your team and track each of those payments (so that you don't have to do it manually). If you do not have any employees or have a very small team, payroll software may not be necessary at this stage. Here are the 11 best payroll tools for small businesses! $0 $200
Online data storage: It's important to make sure the information for your hat business is stored and protected should something happen to your computer or hard drive. The cost for this is affordable and depends on how much data you need to store. To learn more about the different options and pricing on the market, check out this article. $0 $299
Total Software Expenses $150 (min) $2,794 (max)
Website Costs
A Domain Name: Your domain name is the URL and name of your website - this is how internet users find you and your website.Domain names are extremely important and should match your company name and brand. This makes it easier for customers to remember you and return to your website. $12 $200
Business Email Hosting Service: An email hosting runs a dedicated email server. Once you have your domain name, you can set up email accounts for each user on your team. The most common email hosts are G Suite and Microsoft 365 Suite. The number of email accounts you set up will determine the monthly cost breakdown. $1 $15
Total Website Costs $13 (min) $215 (max)
Advertising & Marketing Costs
Customer Research & Surveys: Many hat business's conduct industry and consumer research prior to starting their business. Often times, you need to pay for this data or hire a market research firm to help you in this process. $0 $300
Affiliate Marketing Commission & Fees: If you want to increase revenue for your hat business, affiliate marketing is a great way to promote your product to a new audience. When determining affiliate commission rates you will offer, you will want to take into account the price and margin for your product to ensure affiliate marketing is worth it for your business. According to Monitor Backlinks, the average affiliate commission rate should be somewhere between 5% to 30%. To learn more about how to set commission rates, check out this article.. $0 $250
Influencer Marketing: Partnering with like-minded influencers is one of the most effective ways to grow your social media presence. Many small businesses simply gift a free item in exchange for an influencer post, or pay the influencer directly. $0 $750
Press: If your business and story is unique enough, press and media attention may come to you, but odds are, you may need to do your own outreach and budget for this. We put together a guide here that discusses different press opportunities (both free and paid). $0 $500
Google Ads: With Google Ads you have the ability to control how much you spend by simply setting a monthly budget cap. Additionally, with these ads you only pay for results, such as clicks to your website or phone calls! It's okay to start with a small budget at first and make changes accordingly if you see valuable returns. $0 $300
Facebook & Instagram Ads: With Facebook and Instagram ads, you set your budget and pay for the actions you want (whether that be impressions, conversions, etc).You can learn more about pricing based on your impressions here. $0 $350
Total Advertising & Marketing Costs $0 (min) $2,450 (max)
Other Expenses
Credit Card Processing Fees: If you process credit cards then you will need to deal with interchange fees - which is usually around 3% of total charges. These fees are often forgotten about and can hurt cash flow if not taken into account. $0 $300
Total Other Expenses $0 (min) $300 (max)
Total Starting Costs $1,763 (min) $32,509 (max)

Raising Money

Since the startup costs to start hat business range between $1,763 - $32,509, there are ways you can raise money to cover these costs.

Here are a few ways you can secure additional funding:

Evan Waldenburg discusses how the $9K raised on Kickstarter got their business up and running:

We decided to do a Kickstarter to mitigate the need for investing a lot of personal capital or taking on debt upfront.

Our Kickstarter was by no means a smashing success, but we hit our goal, raised $9k, and it was enough to get the wheels going and move into production.

There are a million things I’d do differently or try to do better if I were to do it again. Sometimes when I start to look back at my Kickstarter I start to cringe, but hey, it got the ball rolling and I don’t think we’d be in the solid position we’re in now had things not gone how they went.

Of the $9k raised I spent about $3k to fulfill the orders placed through the Kickstarter as well as a little extra inventory. I used $2.5k to hire a Shopify developer to help build my store. I had worked with him previously for another online store initially found him on Upwork.

About 55% of the Kickstarter money came from Family and Friends so take from that what you will.

-  
Evan Waldenberg, on starting Junk In Your Trunks ($25,000/month) full story ➜

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

  • Draw Your Initial Design on Paper
  • Form pieces of fabric together
  • Consider Taking A Generic Product And Putting Your Own Brand On It
  • Try Making the Product Yourself
  • Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here.

How To Find A Supplier For Your Hat Business

Here are the steps to consider when finding a supplier/manufacturer:

Know your design

One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.

Sketching is one of the most simple ways to get started in the design phase.

What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.

To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.

Decide your supplier type

You'll want to identify the type of supplier you are looking for.

Here are some questions you may want to ask yourself prior to searching for a supplier

  • Are you looking for a manufacturer to produce your product idea?
  • Do you want to find a supplier that can simply purchase existing products for you?
  • Do you want a drop-shipper to supply and fulfill orders?
  • Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here

Where to start your search

Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:

Domestic Suppliers

Overseas Suppliers

Burly Vinson, founder of Snappies discusses the process of designing and prototyping his product:

Creating the initial prototype took a bunch of tinkering. I liked the idea of snapback hats, but I thought I could create something more comfortable than what was out there.

My first prototype was just a standard hat that I attached a piece of leather to and punched some snaps along the side. As simple as that sounds, it was harder than I initially thought. I had never worked with fabrics or leather - I didn’t even know what kind of materials to even start experimenting with.

In the end, I went to a local leather shop to find the right materials and ask around for tips. It was my first attempt at designing a physical product, but it proved the design could work. During prototyping, I was able to narrow in on what worked and what didn’t. How thick should the leather be? How many snaps are adequate for sizing? What hat sizes would fit the majority of my future customers? These were all questions I had to keep in mind while also creating something people would see and want to wear.

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Once I was done successfully creating a rough prototype, I had to find a manufacturer. Because my hats are more custom than your typical hat, I initially had trouble finding a manufacturer. Domestic manufacturers were cost prohibitive and samples I received from overseas were lacking in quality. After speaking with and receiving samples from multiple manufacturers, I found one that met my quality standards.

A mistake I made early on was not being super granular with the design specifications. Assuming a manufacturer would use the correct materials or size it correctly cost me unnecessary sample expenses.

Some samples would come back with less-than-desirable leather or cheap metals passed off as Brass. I was only able to get a suitable sample after speaking with a manufacturer at length and using previous samples for reference.

-  
Burly Vinson, on starting Snappies ($2,000/month) full story ➜

Oska Truffaux, founder of Truffaux dives deep into the process of designing and prototyping their product:

I visited the local hatmakers, and after a few poor starts, finally found someone who would make a hat for me. It was rough, but everywhere I went people stopped and stared. I got used to people saying ‘great hat’. I started to take things seriously, did intensive market research, and finally worked out a plan.

You can become a world expert, in pretty much anything, in just a few years.

I would make only one hat, but it would be just right and would come in twelve different colors and weaves.

Being on extended holidays, we took our time and slowly learned how hats worked, what people liked, and most importantly, how to ‘see’ a hat.

Our first order was for 12 hats ($140), which we lost on a bus ride through the Amazon jungle. Truthfully our early hats were pretty odd. The process of learning how to ‘see’ a hat, took a while to refine. It is a subtle, delicate process of working with a very powerful and obvious clothing item. Like the cut of a suit, the subtle lines and details make all the difference in how it looks and performs.

In the early days it was obvious that most hats looked terrible, but working out why took a lot of practice. When we got it right, business flourished.

Strangely enough, after years as a hatmaker, I discovered that my grandfather was one too. He was making and distributing Stetson through New Zealand, and manufacturing hoods for the international hat trade. I believe that all the experiences of our ancestors are stored within us. My passion was born from an old ancestral leaning, that was waiting to be activated - and so it was.

how-we-created-a-15k-month-panama-hats-brand-while-traveling-the-world

-  
Oska Truffaux, on starting Truffaux ($15,000/month) full story ➜

Purchasing Inventory For Your Hat Business

When first starting out, it's important to start small with your overhead to get a gauge for what people want.

Just remember - if you order a line of items that don't sell, it's nearly impossible to recoup the money lost.

Buying the right inventory takes research and planning in order to get it right.

  1. Identify your target audience: Identify the age, gender, annual income that you will be selling to. This is a defining factor in ordering the right inventory that will sell.
  2. Research your competition: Conduct market research and identify the different types of styles, price points, and materials being used. This will help you see what's trending and ways that you can improve/stay ahead of the competition.
  3. Create an inventory wishlist: Identify what you need for the launch of your business and create a budget that you will stay within. Remember, it's okay to start small.
  4. Find a supplier Make sure to first compare prices and analyze different options.
  5. Delivery timing: Schedule the inventory delivery to match with seasonality and trending buying seasons

Pro-tip: It's easy to become biased based on your own fashion preferences on what types of shoes/apparel to purchase. This is where a lot of fashion businesses go wrong. It's important to base purchase decisions on current buyer behavior, trends in the market, and specific to your niche.

Erin Hooley, founder of Bailey's Blossoms tells us how poor inventory projections led her to lose over $2M

When we first launched Peyton Bre we did so in a social or direct sales model.

Through poor inventory projections we were forced to change models but only after losing $2 million dollars.

It was a devastating time for us and one we were not sure we could survive.

I have since become very intentional about the way that we project our inventory needs and we continue to refine that quarterly and even monthly. We have created a KPI for the cost of goods sold to help us hold ourselves accountable.

Ultimately, the better we manage our inventory the less we have need to discount and the healthier our profit margin becomes.

This is, of course, a very high-level overview of the importance of inventory control.

To see the full breakdown on how to manage inventory, check out my guide over on my blog..

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-  
Erin E Hooley, on starting Bailey's Blossoms ($0/month) full story ➜

How To Price Your Hats

One of the most challenging aspects to starting a hat business is determining how much to charge for your hats.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price, this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

  • Customer demographic: Age, gender, location, etc.
  • Buying habits of your customer: What they buy + when they buy
  • Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your hats, it's critical that you first identify all of your costs and consequently mark up your hats so you can factor in a profit.

The actual cost of your hats may include things like:

  • The actual cost to make the product (ie. raw materials, supplies, manufacturer).
  • Shipping + overhead fees
  • Rent
  • Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your hats, you'll want to create goals for revenue + how much profit you want your hat business to make.

This process is simpler than you may think:

  1. Think about your breakeven cost (by completing the above step).
  2. Create a revenue goal based on your break-even cost
  3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
  4. Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your hats is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your hats fits best in the marketplace.

All of these factors play an equal part in pricing your hats, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:

I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.

The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.

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Lauren Costanza, on starting Bluminary ($500/month) full story ➜

🚀 How To Launch Your Hat Business

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Traditional Launch Strategies For Your Hat Business:

There are various different ways you can launch your hat business successfully.

Here are a few different strategies to get customers excited about your hat business:

  • Set up a Facebook page for your business. This is a great way to establish an online presence
  • Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
  • Get Press! Pitch your story to the media and you may just land in an amazing publication
  • Live sales to get customers excited
  • Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

Cameron Manesh, founder of Cameron's Seafood was able to land in the New York Times just by sending a cold email:

I started calling all the large newspapers pitching their food critics, their startup business writers and even pitched the angle of immigrant-run companies.

My first hit was with the New York Times. "I googled “New York Times Food" and learned Florence Fabricant was their critic. I then googled “Florence Fabricant email” and asked her to sample our food.”

I read she is a stern critic so we were worried but to our surprise she loved the food and when the article came out we did close to $40,000 in sales in three days and could barely handle the volume. That was an intense week but made it happen.

To read the exact email we sent to get in the NY Times, check out the full story ➡️ here

To contact the press, I recommend:

  • Targeting macro press (i.e. USA Today).
  • Google indirect competitors or vertical companies (ie. Hello Fresh) to see who wrote their articles
  • Google the writers contact info and send an email introducing company
  • Offer samples, be personal, discuss your food, follow up!

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Cameron Manesh, on starting Cameron's Seafood ($300,000/month) full story ➜

Oska Truffaux, founder of Truffaux dives deep into the process of launching the business:

Returning to Australia in 2008, Imogen was heavily pregnant, and we placed our first big order. Drawing against our mortgage, we bought $15,000 of hats and waited patiently for them to come - delay, after a delay, taught us about the realities of working with 3rd world artisans.

When they finally arrived, it was Christmas eve. Two days later, we opened our first pop-up store in beachside Sorrento and began selling our creations. It was a crazy ride - we met so many people, learned how to style, reshape, fit, and sell hats - and felt incredibly supported by everyone we met. I refined the website, designed flyers, printed signs, and organized additional markets.

Our biggest lesson was that most people just want a simple good hat, that fits properly. Our initial product range evolved rapidly until three years later, we had more than 150 models and 5 stores on three continents.

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Oska Truffaux, on starting Truffaux ($15,000/month) full story ➜

Marketplaces

There are various different marketplaces that you can effectively sell and promote your hat business, whether that's local or online!

Here are some of the most common ones:

  • Your own website! Shopify is known to be the best for e-commerce stores
  • Local places! Gift shops, farmers markets, festivals, grocery stores etc
  • Etsy - E-commerce website for craft supplies
  • Craft is Art Marketplace to buy and sell handmade crafts & fine art
  • Aftcra Online marketplace where you can buy and sell handmade products
  • Storenvy Marketplace for authentic brands
  • Amazon

Make Sure You Get The Package Design Right

The way you package your hat business is often the first impression your customer has - so it's important to get it right.

You may want to ask yourself these questions:

If my product is on a shelf next to hundreds of other similar products:

  • Will my hat business stand out?
  • Will the branding/packaging create a connection with my customer, and hence, lead them to buy?

There are hundreds of tools you can use to help with packaging and design:

  • Canva - Allows non-designers to create beautiful Instagram/Pinterest posts, flyers, business cards, etc.
  • Stickermule - High quality custom stickers you can include on or in your packaging.
  • Noissue - Custom tissue paper and compostable mailers
  • Rollo Label Printer - A great tool to print all shipping labels at home

Consider Selling On Amazon

In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.

Here are some pros and cons of selling on amazon:

Pros

  • Easy and seamless process to get your product listed on Amazon
  • There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
  • Can help grow your business exponentially and reach new audiences

Cons

  • You may encounter some "copycats" and counterfeit products
  • Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
  • If you already have a low-markup, amazon may not wrth your while and you could end up losing money
  • Commissions and listing fees are high - it's easy to lose control of your offering

Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:

Cory Stout, founder of Woodies ($250K/mo) provides us with specifics on how to rank better on amazon:

Our main product is walnut wood sunglasses that I sell for $25 on Amazon and Woodies.com.

I dedicated myself to becoming an Amazon expert. I listened to all the podcasts and read all the blog posts I could find. Shoutout EcomCrew I took the basic fundamentals that are out there and I added a couple of my own twists.

Amazon brings me, 100 brand new customers, every day for very little acquisition cost. If I tried that on my own, it would take a TON of work and it wouldn’t be nearly as effective as Amazon, so I took the easy road on this one.

Here's an article I wrote on how to rank better on amazon (30+ Tips):

5/5: ESSENTIAL

  • Beautiful images (minimum 5 images) especially lifestyle images I use UpgradedImages.com for product photography (hey Ken!)
  • Keywords in your title (but it still needs to sound human)
  • Competitive price (contributes to high conversion rate)
  • NOT having 1-star reviews
  • DON'T STOCKOUT: it's such a killer and if you DO stockout, definitely DON'T raise your price right before you do, if anything LOWER your price for the last 10-20 units before you stockout, each ASIN has a 'memory' for when you do get back in stock so that will help you regain ranking quickly
  • DON'T VIOLATE AMAZON TOS: just don't
  • Perform QC on your stock before you send it in (I sent in a wrong box once and I had to 'remove' over 3,000 pieces so I could sift through them and remove the 150 contaminated pieces 0/7 would not recommend

4/5: Pretty Friggin Important

  • Minimum 10 5-star reviews (do this before you do anything below this)
  • Well optimized PPC campaigns (could do a whole post on this, keep ACOS under 40%) here's a screenshot of some of my campaigns I use a combination of manual campaigns with exact phrases and high bids...and auto campaigns with a broad range of products and very low bids
  • Turning on FeedbackGenius for auto review requests (it's not as good as it used to be, but it's still worth it)
  • Get a trademark and get Brand Registry, this protects you from hijackers and other unscrupulous sellers
  • Quick response to customer messages (under 12 hours) here are my stats my mom does all my customer service "Employee of the Year" status
  • Drive outside traffic (amazon loves outside traffic because they don't have to spend so much to acquire customers) Facebook, Instagram, and Google Adwords are the usual suspects
  • Use ocean shipping to save mucho $$$ on unit costs (use flexport)

Read more about amazon tips here.

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Cory Stout, on starting Woodies ($190,000/month) full story ➜

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

  1. Pick a domain name that's easy to remember and easy to type
  2. Choose a Web Hosting Plan (ie. Shopify, Squarespace)
  3. Make sure you choose the right theme and design
  4. Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide.

Web Design

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

🌱 How To Grow Your Hat Business

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Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site, and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your hat business.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

  • Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
  • Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
  • Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
  • Ensure pages load quickly - This will also help with engagement and time spent on your website
  • Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

  • Trello
  • Airtable
  • If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

  • Create infographics with relevant data that people want to share
  • Promote your content on different sites/look into "guest blogging"
  • Contact influencers/journalists/bloggers and ask them to mention you!
  • Write testimonials for other sites in exchange for a backlink
  • Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Jeff Phillips, founder of Grown Eyewear discusses the importance of SEO

We have played with running ads and retargeting and find that most of our customers are coming to us organically, we have the unique opportunity to keep ad costs minimal.

This works just fine for us, so we keep focusing on SEO and allowing our potential customers to find us, rather than trying to throw out a wide net. That would cost a lot and let’s be honest, not everyone wants wood or bamboo sunglasses!

Specifically, we make sure we know what people are searching for. In Australia for example, potential customers search for ‘wooden sunglasses’ while in North America ‘Wood Sunglasses’ is used as the search term much more.

This kind of understanding of our keywords only comes with time and research, and it does change also! We apply the keywords to the site in an organic and non-forced way by integrating into descriptions and page names.

While this may seem like SEO 101, there is an art to it and making sure you aren’t too heavy on your keywords or placements.

Take a chance and follow your gut. If you have an idea and you really do like it, chances are other out there will too. Go for it!

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Jeff Phillips, on starting Grown Eyewear ($25,000/month) full story ➜

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

  • Ebook
  • Fascinating case study
  • Video series
  • Free week of the product
  • Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here.

Alex Nerney, founder of Create and Go discusses how the key to growing your email list is through your email opt-in:

Along with being transparent, we put a lot of emphasis on building an email list. We knew the power of email marketing from our first blog and by collecting emails, we were able to really connect with our audience and build trust with them before ever promoting our products.

The biggest factor for growing our email list was finding the perfect email opt-in. By offering something to your audience, you’re able to entice them to sign up for your email list.

We offered a blogging bootcamp and not only did it serve as an awesome list builder but it also gave people a taste of what it would be like to learn from us. launch, what has worked to attract and retain customers?

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This is an example of our currently designed email opt-in for Create and Go

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Alex Nerney, on starting Create and Go ($100,000/month) full story ➜

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

  • Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
  • Newsletters - a great way to give customers updates or send out your latest content
  • Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
  • Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
  • Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Advice On Newsletters From OceanZen

Once launched, I thought all of my bikinis would just sell… well they didn’t.

I didn’t have a strong way of getting my product out there in the world, and I also didn’t understand influencer marketing at the time, no marketing experience or marketing budget.

We didn’t really understand the importance of having a newsletter list until recently, and now with Instagram changing their algorithm, it’s the best way to get your brand/product direct to your customer, literally straight to their mailbox.

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Steph Gabriel, on starting OceanZen ($25,000/month) full story ➜

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to hat business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

  • Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
  • Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
  • Twitter Advertising- Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
  • Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
  • LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

  • Do I want to simply drive brand awareness?
  • Do I want to drive users to my website to gather information?
  • Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here.

Consider Working With Instagram Influencers

Partnering with like-minded influencers (within your industry) is one of the most effective ways to grow your social media organically.

Industry influencers already have an established and loyal following. With one post, your product immediately establishes a connection with a brand new audience. It's that powerful.

When finding influencers to promote your product, do your research and make sure that their following will actually be interested in your product.

It's easy to be blinded by any influencer with a huge following, but if those followers don't resonate with your product, there may not be any value there... so make sure you do your research!

Evan Marshall, founder of Plain Jane discusses how "micro-influencers" have impacted his business:

Influencer marketing has been huge for us. Our approach is pretty simple. We give out samples of our products and ask people to post about us on social media aka a micro-influencer strategy.

We really like this approach because we get authentic stories and content. We cannot really control the messaging so the product has to speak for itself. We don’t really take product photos at all. Our customers take the photos and we ask to reuse them.

With any influencer strategy, you have to be very sure you’re targeting the right people and engaging with them. You can make sure you’re targeting the right influencers by looking through their posts and then looking through the profiles of their engaged followers.

It takes more time per influencer but the payoff is certainly worth it. Make sure their followers look like your existing customers.

It takes a ton of time and work to grow a social media following this way but it’s worth it. Other accounts have tried to grow themselves through botting or other manipulations. As a CBD company, we didn’t want to give Instagram any reason to shutdown our account so we’ve done everything through content and real engagement. It’s not magic to make this happen. You just have to post consistently and then reply or like every single comment you get. It takes months but it works

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Evan Marshall, on starting Plain Jane ($275,000/month) full story ➜

🏃🏼‍♀️ How To Run Your Hat Business

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How To Retain Customers For Your Hat Business

Retaining customers is one of the most effective ways to grow your hat business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your hat business:

  • Responding to comments on social media
  • Send discounts (or freebies) to loyal customers
  • Provide valuable content, for free
  • Write a hand written thank you note
  • Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Burly Vinson, founder of Snappies dives deep into the process of attracting and retaining customers:

My first customers came from Instagram. I didn’t really do anything crazy or out of the box here. I’d share photos of my products, interact with early fans of my page, and try to like or comment on people who I thought were interesting.

Slowly but surely, fans - and customers - began to grow. Instagram is a great platform to get exposure, but these days it’s really hard to stand out. Eventually, it’ll end up like Facebook, where organic reach is virtually killed.

I would have started sooner. They say the best time to plant a tree is 20 years ago, and the second best time is today. I believe the same goes for creating a business.

My main source of traffic and customers comes from Facebook ads. For visual products, I think it’s the cheapest and most effective way to get your brand out there. It takes a lot of tweaking, but once you have something that works, it’s worth it. The key is following the numbers. The devil is in the details. Conversion rates, impressions, relevancy scores, etc are all things you must track constantly. If there’s one thing I’ve learned from Facebook ads, it’s that just because an ad worked in the past doesn’t mean it’ll work indefinitely.

My other piece of advice with Facebook ads is to create warm audiences instead of cold ones. Instead of targeting people based on interests, create lookalike audiences based off of previous customers. Set up retargeting campaigns for website visitors. If you take this approach, you’ll have higher conversions at a cheaper cost.

There’s already a lot of really useful and free guides online for how to tackle creating ads. I would avoid paying for any class or “guru”. Just throw something out there and see what sticks.

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Burly Vinson, on starting Snappies ($2,000/month) full story ➜

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Customer service is huge for us. Like I talked about, building a community has been one of the best bi-products in the shop.

We want everyone to feel loved, cared for, and appreciated.

If we have a customer that comes in quite a bit, we will begin to notice what they buy and reach out to them if something new comes in if we think they will like it. We also try to call people by name and greet them as if they were entering my home, not just the shop.

Another great way we retain customers is through a loyalty point system. When a customer gains enough points through their purchases, they are rewarded with a discount. It’s our way of saying “thank you” for having them be a great customer.

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Emilie Casseday, on starting Blush Boutique Co ($25,000/month) full story ➜

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

  • Meeting the needs of your customers
  • Establish yourself as a top provider in your industry and stay ahead of the game with competition
  • Resistance to downturns/trends fading
  • Create new revenue streams

Diversifying Product Example: Joah Love

The future for JOAH LOVE is bright! Customers have been telling us that they’ve been coveting their kids’ wardrobes for years, and this season, we’re going to make a collection just for them with the launch of a new line for adults.

It will include Mommy + Me and Daddy + Me collections, complementary clothing for parents and their kids.

We’re also in the early stages of exploring clothing options for children with special needs. There’s growing demand for sensory-sensitive apparel to help outfit these children and support their parents, and we’re excited to reenvision how our incredibly soft materials can help these families.

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Ahyoung Kim Stobar, on starting Joah Love ($39,000/month) full story ➜

Resources

We put together the best resources on the internet to help you start your hat business.

Tools

Books

Web Resources

Videos

Case Studies

Pat Walls,  Founder of Starter Story

Want to start your own business?

Hey! 👋I'm Pat Walls, the founder of Starter Story.

We interview successful business owners and share the stories behind their business. By sharing these stories, we want to help you get started.

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  • Connect + get advice from successful entrepreneurs
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