How to start a lingerie business from the ground up

Starting a lingerie business is an exciting venture that combines creativity and an eye for design with solid business savvy. The industry is a multi-billion dollar market, with consistent demand for items for daily wear, special occasions, and loungewear.

This guide will take you through the practical steps of validating your business concept, building supplier relationships, and acquiring inventory to help you launch a successful lingerie business in the U.S.

Step 1: Plan your business and validate your idea

First, define your niche. Use Google Trends to compare search volumes for styles like "sustainable lingerie" versus "luxury silk sets." Also, explore platforms like Pinterest and Instagram for visual trends and customer desires. This research helps you avoid picking a niche that is too broad.

Next, analyze your competition. You can use the free versions of web analytics platforms to see what keywords successful online brands target. For a local focus, visit nearby boutiques to observe their product selection, price points, and overall customer experience.

Outline your startup costs

A clear budget is vital. Initial investments can vary, but planning for them sets a solid foundation. A common mistake is to underestimate inventory needs, so map out your first collection carefully. Expect to allocate funds across a few key areas.

• Initial Inventory: $5,000 - $15,000
• E-commerce Website: $2,000 - $10,000
• Branding and Marketing: $1,000 - $5,000
• Business Registration and Legal Fees: $500 - $1,500

Here are 3 immediate steps to take:

• Use Google Trends to compare search interest for three potential lingerie niches.
• Analyze the product categories and prices of two direct competitors.
• Create a draft budget that estimates your initial inventory and website development costs.

Step 2: Establish your legal and business framework

You might want to consider forming a Limited Liability Company (LLC). Many new owners start as a sole proprietorship for simplicity, but this leaves personal assets at risk if the business faces debt or lawsuits. An LLC provides liability protection for about $50 to $500, depending on your state.

Once you choose a structure, get a free Employer Identification Number (EIN) from the IRS website. You will need this for taxes, opening a business bank account, and hiring employees. The online application takes just a few minutes to complete.

Secure licenses and permits

Next, focus on state and local compliance. You will need a seller’s permit from your state’s tax agency to collect sales tax. This is often free but can take a few weeks to process. Also, check with your city or county clerk for a local business operating license, which may cost $50 to $200 annually.

For lingerie, you must follow the Federal Trade Commission's (FTC) regulations. Specifically, review the Textile Fiber Products Identification Act and the Care Labeling Rule. These dictate how you must label your products with fiber content and washing instructions.

Here are 4 immediate steps to take:

• Decide between an LLC and a sole proprietorship for your business structure.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Research your state’s requirements for a seller’s permit.
• Review the FTC’s Care Labeling Rule for product tagging obligations.

Step 3: Secure your business insurance

You will want to protect your new venture with the right insurance. General Liability Insurance is a good starting point. A policy with $1 million in coverage typically costs between $400 and $900 annually and protects against third-party claims like bodily injury or property damage.

Also, look for Product Liability Insurance. It is often included with a general liability policy but you should always confirm. This coverage is important for a lingerie business because it protects you if a customer has an adverse reaction to your fabrics or materials.

If you hold inventory, Commercial Property Insurance protects your stock from theft, fire, or damage. Once you hire your first employee, you will also need Workers' Compensation Insurance. This is a state requirement that covers medical costs and lost wages if an employee gets hurt at work.

When you shop for policies, consider providers like Hiscox, The Hartford, or CoverWallet. They specialize in coverage for e-commerce and small retail businesses and can help you find appropriate plans.

Manage unique business risks

A lingerie business has specific risks. Delicate fabrics like silk or lace can be easily damaged in transit or storage, so your property insurance should account for this. Supply chain delays for specialty materials can also halt production, so it helps to have backup suppliers identified early.

Here are 4 immediate steps to take:

• Request a quote for a $1 million general liability policy.
• Ask potential insurers if product liability is included in their general plan.
• Compare annual premiums from two providers, such as Hiscox and The Hartford.
• Identify a backup supplier for your primary fabric or material.

Step 4: Set up your location and get equipment

For an online store, you can start with a 100-300 square foot dedicated space in your home. Check your local city ordinances for home-based business regulations. If you need more room, consider a small commercial space zoned for business or light industrial use.

When you look at leases, you might want to negotiate for a shorter term, like one to two years. This gives you flexibility as your inventory grows. Some landlords offer a "tenant improvement allowance" which can help pay for initial setup costs like shelving.

Find your suppliers and equipment

You will need some items for product photos and operations. A quality DSLR camera and lighting kit can cost between $500 and $1,500. Torso mannequins run about $100 to $300 each. Also, budget for industrial shelving, which costs around $100 per unit.

Once you have your equipment, you need products to photograph. You can find manufacturers on platforms like Alibaba or through domestic sourcing directories. A common misstep is to place a large order before you confirm the product quality. Always order samples first.

Be prepared for Minimum Order Quantities (MOQs). Overseas suppliers may require 300-500 units per style. In contrast, some domestic manufacturers might offer smaller runs of 50-100 units. This will influence your initial inventory budget and product variety.

Here are 4 immediate steps to take:

• Check your city’s website for home-based business rules.
• Price out a photography lighting kit and a torso mannequin.
• Request fabric samples from two potential suppliers.
• Compare the MOQs from one domestic and one overseas manufacturer.

Step 5: Set up your payment processing

Online and in-person payments

You will need a way to accept payments online. Most e-commerce platforms have built-in payment processors. You should look at the transaction fees, which often range from 2.5% to 3.5% plus a flat fee per sale.

When you select a payment solution, confirm it accepts all major credit cards and digital wallets. A clunky checkout is a common reason for abandoned carts, so prioritize a smooth customer experience.

For sales at pop-up shops or private fittings, JIM offers a streamlined solution. With JIM, you accept debit, credit, and digital wallets directly through your smartphone. Just tap and the sale is done.

At just 1.99% per transaction with no hidden costs or extra hardware, it is a cost-effective option. This is particularly useful for sales at markets or during in-home consultations where you need a mobile payment option.

To get started with JIM, the process is simple:

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available on your JIM card as soon as the sale is done, with no wait for bank transfers.

Here are 3 immediate steps to take:

• Compare the transaction fees for two different payment processors.
• Confirm your chosen e-commerce platform integrates with your preferred payment gateway.
• Download the JIM app to see how it works for potential in-person sales.

Step 6: Secure funding and manage your finances

Find your startup capital

You can fund your initial inventory and setup with an SBA Microloan. These government-backed loans offer up to $50,000. Lenders typically look for a personal credit score of 640 or higher and a detailed business plan. Interest rates usually fall between 8% and 13%.

Also, look into grants for women entrepreneurs. Programs like The Amber Grant award funds that you do not have to repay. Grant applications are competitive, so pay close attention to their specific requirements and deadlines.

Plan your working capital

With funding secured, you need to manage your cash flow. Plan to have $10,000 to $25,000 in working capital for your first six months. This covers ongoing costs like marketing and inventory replenishment before sales become steady.

A frequent misstep is to underestimate these operational funds. To stay on track, use accounting software like QuickBooks Online or Xero from the start. These platforms help you track expenses and handle your finances for around $30 per month.

Here are 4 immediate steps to take:

• Check your credit score to see if you meet the 640+ requirement for an SBA Microloan.
• Research the application deadlines for The Amber Grant.
• Calculate your estimated working capital needs for the first six months.
• Compare the monthly pricing for QuickBooks Online and Xero.

Step 7: Hire your team and set up operations

Build your initial team

You will likely handle most tasks at first, but your first hire should be a part-time E-commerce Assistant. This person can manage order fulfillment and customer service for $18 to $25 per hour. This frees you to focus on design and marketing.

Once sales reach a steady volume, consider a full-time E-commerce Manager. This role takes over digital marketing, inventory management, and website updates. Salaries for this position typically range from $50,000 to $70,000 annually, depending on experience and location.

Streamline your daily workflow

For customer support, platforms like Gorgias or Zendesk integrate directly with your online store. They help you manage all inquiries from one place. Some owners make the mistake of using a personal inbox, which quickly becomes disorganized and unprofessional as orders increase.

A good financial target for a small e-commerce brand is to generate $150,000 to $200,000 in revenue per full-time employee. This metric helps you decide when it is time to expand your team without over-hiring. No specific certifications are required for these roles.

Here are 4 immediate steps to take:

• Draft a job description for a part-time E-commerce Assistant.
• Research salary ranges for an E-commerce Manager in your area.
• Compare the features of Gorgias and Zendesk for customer service.
• Set a revenue goal for your first year based on the one-employee benchmark.

Step 8: Market your business and acquire customers

Focus on visual platforms and email

Your marketing should start on visual platforms like Instagram and Pinterest. Post high-quality photos and short videos of your lingerie. A consistent posting schedule, perhaps three to five times a week, helps build an audience before you even launch.

Also, begin building an email list from day one. You can use a service like Klaviyo to add a signup form to your website. Many new owners focus only on social media, but an email list gives you a direct line to your customers that you control.

Measure your marketing efforts

You will want to track your Customer Acquisition Cost (CAC). For fashion e-commerce, a CAC between $20 and $50 is a reasonable target. This number tells you how much you spend to get one new customer. A typical e-commerce conversion rate is 1-2%.

Consider collaborations with micro-influencers who have 10,000 to 50,000 followers. They often have strong engagement and can be more affordable. A successful campaign might involve them sharing an authentic review or a unique discount code with their audience.

Here are 4 immediate steps to take:

• Create a one-month content calendar for Instagram.
• Set up an email capture form on your website with a service like Klaviyo.
• Identify three micro-influencers in your niche for a potential collaboration.
• Calculate a target Customer Acquisition Cost (CAC) for your business.

Step 9: Price your products for profit

You might want to start with cost-plus pricing. Calculate your total cost per item, including materials, labor, and packaging, then add a markup. A typical markup in lingerie is 2.5x to 4x your cost. For example, if a bralette costs you $12 to make, you would price it between $30 and $48.

For unique or luxury items, consider value-based pricing. This model prices items based on their perceived value to the customer, not just the production cost. This works well for intricate lace designs or sustainable silk sets where brand story and quality justify a higher price point.

Analyze competitor pricing

Create a simple spreadsheet to track the prices of similar items from 3-5 direct competitors. This helps you position your brand. Some new owners try to compete on price alone, but this can hurt your profit margins and devalue your products in the long run.

Aim for a gross profit margin of 50% to 65%. This means if you sell an item for $60, your total cost to produce and acquire it should be around $21 to $30. This margin gives you enough room to cover marketing, overhead, and other business expenses.

Here are 4 immediate steps to take:

• Calculate the cost-plus price for one of your core products using a 3x markup.
• Create a spreadsheet to compare the prices of two competitors for a similar item.
• Determine a target gross profit margin for your first collection.
• Identify one product in your line that could support a value-based price.

Step 10: Control your quality and scale your operations

To maintain a premium brand, you need strict quality checks. Inspect every batch for seam integrity, sizing accuracy, and fabric consistency. Some owners only spot-check large orders to save time, but this can lead to inconsistent products and unhappy customers.

You should aim for a product defect return rate below 2%. For textiles, you might want to look into OEKO-TEX certification. This signals to customers that your fabrics are tested for harmful substances, which builds significant trust in your brand.

Plan your growth

Once your quality is consistent, you can plan for growth. A good benchmark for expansion is when your core collection achieves a 70% sell-through rate within a single season. This confirms strong demand and gives you a green light to introduce new styles.

As your sales increase, use the $150,000 to $200,000 revenue-per-employee metric to decide when to hire. With more inventory, you may want to use a platform like Katana or ApparelMagic to manage stock levels and production schedules more effectively.

Here are 4 immediate steps to take:

• Create a quality checklist for inspecting seams, sizing, and fabric.
• Research the OEKO-TEX certification process for your main fabric.
• Calculate the sell-through rate for your best-selling product.
• Review the features of an inventory platform like Katana.

Conclusion

You have the steps to launch your lingerie brand. Remember that success in this niche comes from the details—the quality of your lace, the fit, and the story you tell. Now, trust your vision and take that first practical step.

And when you make your first sales at a pop-up or fitting, a simple payment solution helps. JIM lets you accept cards right on your smartphone with no extra hardware, for a flat 1.99% fee. Download JIM and you are ready.