How To Start a T-Shirt Business: 2024 Guide – Shopify Canada

The custom t-shirt printing market is expected to grow by 11% per year through 2030. With online tools to help you print and sell your tee designs, it’s never been easier to start a t-shirt business.

By selecting a target audience and designing t-shirts that delight customers, you can create popular clothing at a low cost.

This guide explains the seven main steps to starting an online shirt business that brings in extra monthly income.

How to start a t-shirt business: 7 steps

1. Choose a niche
2. Source materials and printing partners
3. Create t-shirt designs
4. Mock up your t-shirts
5. Validate your t-shirt designs
6. Register your business and write a plan
7. Set up your online store

1. Choose a niche

Successful online t-shirt businesses find ways to stand out from the crowd. One of the best strategies for differentiating your products from competitors’ is by catering to a specific audience or interest group.

Choosing a t-shirt niche can help your online shirt business attract these motivated customers.

Generally, niches like “t-shirts with funny slogans” are too broad for a new business to successfully compete. It’s not enough to design, say, “funny t-shirts” or “t-shirts for women.” Instead, look for sub-niches and use keyword research tools to find phrases that your target audience is searching for.

For example, sub-niches in the funny t-shirts category might be “t-shirts with slogans about doctors” or “funny t-shirts for dog owners.”

If you’re struggling to find your niche, start with a general interest topic. Then, using a mind map or brainstorming technique, think about how you can break your general topic into subtopics that have a consumer market.

For example, you might divide dogs into specific breeds, dog owner lifestyles (hiking with dogs, dog moms), or even different types of dog-related humor.

Once you have a niche in mind, estimate its market value. Here are some ways to gauge consumer interest:

• Use the Facebook IQ Audience Insights tool to gauge the size of your niche on social media.
• Visit a niche’s subreddit and check the subscriber count and level of engagement.
• Tools like Google Keyword Planner (free) or Ahrefs (paid) can help you see what people are searching for. Look for keywords with decent search volume, but that aren’t overly competitive.
• Analyze other successful t-shirt businesses to see how they cater to niches.
• Consider your own interests and the communities you belong to.

Remember, the more specific your niche, the easier it will be to target your marketing and connect with passionate customers.

2. Source materials and printing partners

The next step in starting an online t-shirt business is to source your inventory. You’ll need to partner with suppliers or manufacturers that can provide the type of clothing your customers won’t be able to resist.

If you plan on selling shirts made by brands and designers, you’ll want to work with a wholesale clothing supplier. If you envisage selling tees with original, unique designs and graphics, you’ll need a custom tee manufacturer.

Printing techniques

Not all t-shirt production methods are the same. Different printing techniques produce different results. With shirt quality paramount to your brand’s reputation, take time to choose the right type of printing.

There are three popular methods for printing t-shirts. Deciding which one to use will partially depend on your product pricing strategy.

Screen printing

Screen printing is an old technique that has stood the test of time for business owners who design and sell t-shirts online and in stores.

As one of the most popular methods for printing, screen printing can produce durable and long-lasting results. It also lets you print on products like canvas items, mugs, hats, and other things to make and sell if you want to expand your product line.

However, a labor-intensive setup means screen printing is most cost-effective when printing in bulk. Screen printing also poses issues when it comes to complex designs or designs with more than four to five colors, as each color increases costs and production time.

Heat transfer

Heat transfers exist in several forms. For example, you may have seen basic heat-transfer paper at your local office supply store.

Although this method makes it easy to print designs from your home computer and transfer them with an iron, a more complicated process is needed when running a small business. The advanced form of heat transfer is called plastisol transfer and is printed by professional printers on high-quality, heat-transfer paper.

The advantage of heat transfers is the ability to order a stack of prints from your local printer and transfer them to your t-shirts with a commercial heat press machine as you receive orders. Heat transfers can produce full-color images onto t-shirts easily and quickly, helping to make them an affordable option for small batches.

Though affordable in the long run, a heat press machine can be a large upfront cost. Also, the do-it-yourself approach requires you to invest more time making the t-shirts. The final result can be lower quality and less durable than shirts that use other forms of printing.

Direct to garment (DTG)

The direct-to-garment printing process operates like an ink-jet printer. It’s common in t-shirt printing businesses because it prints ink directly onto the t-shirt and can produce full-color images with accuracy.

DTG printing produces quality printing on par with screen printing, and is seen as more premium than heat transfer. Because it operates like an ink-jet printer, there are no setup costs, unlike screen printing. This means it’s easy and cost-effective to print small orders.

The major disadvantage of direct-to-garment printing is there’s no volume discount for large orders, as it takes the same amount of time to print each shirt.

Price vs. quality

It can be tempting to partner with a budget supplier and sacrifice quality for higher profits. But consider how product quality impacts a customer’s decision to make a second purchase or recommend your shirts to other people.

You can disappoint a customer once, but they likely won’t return to your store. A pattern that fades and cracks or a t-shirt that shrinks and rips won’t help your word-of-mouth marketing.

Higher quality t-shirts might cost more to produce but can also command higher prices. Choosing the right quality of t-shirt means considering factors including fit, sizing, material, softness, and weight. Once you narrow down your choices, order some samples to make an informed final decision.

Remember to base your product quality decisions on expected profit margin, not just the production costs.

3. Create t-shirt designs

Not every t-shirt business needs to sell original tees—but if you do plan to design your own line of shirts, now is the time to get creative.

Your designs don’t need to be complex—in fact, many of the bestselling graphic tees are simple. However, they do need to be unique.

Research designs

Already inspired to produce the next big t-shirt trend? That’s great! If you’re struggling to come up with t-shirt design ideas, however, it can help to look at what’s currently selling well. Try browsing graphic t-shirt marketplaces such as:

Another research tip is to use Google Trends to see which topics people are currently interested in. Use trending subjects as inspiration for your t-shirt designs.

Hire a designer

Once you have a general idea for t-shirt designs, start sketching some drafts. If you know how to use graphic design software, you likely can produce great designs yourself. However, it might make more sense to enlist some help.

There are several online sources for finding suitable graphic designers, including design communities, freelance networks, and t-shirt design marketplaces.

Design communities

Dribbble is a design community that’s home to lots of talent. Search for styles you like, then message the designer to see if they’re available for your project.

Searching for designs can spark inspiration and connect you with illustrators. Dribble

Behance hosts portfolios from creators around the world who specialize in illustrations and graphic design.

Freelance networks

General freelance networks like Upwork also contain listings of artists and illustrators. Find a qualified t-shirt designer, then check their past job successes and portfolio to see if they’re a match for your project. If you like someone, you can reach out through the platform and hire them on the spot.

T-shirt design marketplaces

Instead of hiring a designer, you can purchase pre-made designs for your t-shirt business. This route saves on upfront costs, but means other stores are likely selling your designs, so it may be harder for your products to stand out. Check out the following t-shirt graphic marketplaces:

• Tshirt Factory has a variety of vector images, from old school to punk designs.
• Creative Market has more than three million graphics and templates.
• GraphicRiver offers royalty-free Photoshop vectors and icon packs.

Keep in mind, you may need to purchase a commercial license for your images before you can use them on your t-shirts.

To ensure quality prints for your shirt-selling business, your design files should be at least 300 pixels per inch (DPI or PPI), have a transparent background, and be large enough to cover the actual print area of the t-shirt. Exact specifications will vary depending on the printer and printing technique used.

Need a logo for your t-shirts? Shopify has a free custom logo maker.

4. Mock up your t-shirts

Once you have final designs, the next step for your t-shirt business will be to produce mockup images. Mockups help you and your customers see what the final design will look like when it’s printed on a shirt.

You can create mockups using web software or with an image editor like Adobe Photoshop.

T-shirt mockup templates for Photoshop come with multiple layers that let you change the color of the shirt and apply your own design that will blend with the shirt’s creases, folds, and contours.

There are also web-based mockup software that will let you create similar images without having to download Photoshop:

If you don’t like the idea of creating digital mockups, you can always order samples of your shirts and take product photos yourself.

5. Validate your t-shirt designs

Before you invest in your new business idea, test the popularity of your designs. There are many ways to validate design popularity before you sell your t-shirts online.

Common methods for validating your design ideas include:

Reach out to personal social networks

Post a preview of your designs to your social media accounts and on feeds that your potential customers visit. Be careful when asking the thoughts of friends and family, however. Their opinions can come with a favorable bias.

Ask Reddit

Despite the community’s general aversion to marketing, Reddit is still one of the best places to get honest feedback on your designs. Through this process, you may earn yourself some future customers and gain some free marketing along the way.

Use crowdfunding

Crowdfunding sites have made it easier to test, validate, and collect money upfront for new business ideas. Launching a crowdfunding campaign can be time-consuming and requires preparation. However, if you have a particularly novel t-shirt business idea, crowdfunding might be for you.

Here’s why you should test your t-shirt designs before you invest:

6. Register your business and write a plan

Typically, you don’t need a business license to sell t-shirts online. But, you may need a resale license to buy clothing from a distributor without sales tax.

Check with your local revenue or finance department to learn about the types of licenses or registration requirements that you may be required to get.

Business registration

Registering your business is a way of formally recognizing your t-shirt store as a legal entity. This can protect your personal assets and provide tax benefits, as well as enhance credibility with business partners, like your supplier.

The type of business structure you choose affects how your business will be taxed, and how much of your personal assets are put at risk. Common structures include:

• Sole proprietorship: A sole proprietorship is the simplest form of business entity, with one owner who pays personal income tax on profits earned from the business.
• Limited liability company (LLC): The LLC structure provides a small business with the protection of a corporation, shielding owners from debts and liabilities accrued by the company.

Business plans

While not essential, drafting an official business plan can help solidify the goals of your t-shirt business. Business plans serve as roadmaps, helping you outline your aims, target market, budget, and long-term strategies.

A well-thought-out business plan can also be invaluable if you ever seek funding or partnerships.

7. Set up your online store

With your t-shirt designs commissioned, mock-ups created, and feedback acquired, it’s time to build your online store.

Setting up an online store might sound daunting, but it’s really just a series of simple steps that anyone can follow.

Domain names

Think of a domain name like your home address on the internet—it’s how your customers find you.

Choose a name that’s short, catchy, and easy to remember. Ideally, your domain should reflect your brand and the fact that your store specializes in t-shirts. Once you’ve picked a name, register it to make it officially yours.

Building your site

Creating a website is your chance to make a great first impression, so it’s important to get it right. Use a drag-and-drop store builder to build a professional-looking site, complete with product pages, collections, and information about your brand. Choose a store theme aligned with your shirts’ style.

Focus on making your site easy to navigate, with clear categories and a simple checkout process.

Need guidance on building your online store? Here’s a step-by-step guide.

Other sales channels

While your website will become the main hub for your brand and product collection, don’t overlook other platforms where you can reach customers.

Marketplaces like Etsy, Amazon, and eBay are great for expanding your presence. When you run a Shopify store, you can quickly list your products on marketplaces and manage them from your store dashboard, using the Marketplace Connect app.

Connecting a print-on-demand app

If you’re using a print-on-demand service to produce your tees, it’s easy to integrate your products with a Shopify store. Simply choose and download a print-on-demand app.

Once integrated, customers can then visit your store to browse your tees. When they make a purchase, your print-on-demand partner will produce and ship the items.

Try these t-shirt printing apps that integrate directly with Shopify stores:

Success story: An anime-inspired t-shirt store

Many entrepreneurs have been successful in starting a shirt-selling business. For example, Ryan McCarthy, founder of Imouri (formerly Sugoi), has used Shopify to run his anime-inspired t-shirt printing business since 2016.

Ryan decided to create his t-shirt business when he couldn’t find anime-themed clothing that fit his personal style. He quietly launched what he thought would be a small clothing business, which has since turned into a six-figure print-on-demand apparel company selling streetwear inspired by Japanese pop culture and anime.

His secret to successfully starting a clothing line? Identifying winning designs early on by using Reddit and paid ads to test products.

Start your t-shirt business today

It’s never been easier to express your creativity and sell t-shirts online.

Whatever niche you choose to serve, and however ambitious you are with your quality and designs, a t-shirt store can be a great first ecommerce business for new entrepreneurs.

Shopify can help you start selling and control your costs. Connect your store to a t-shirt printer in minutes and launch a catalog that your customers will love.

Illustration by Alice Mollon