How to Start a Hat Business: A Step-by-Step Guide

If you woke up today thinking “I want to start a hat business!” then this guide is for you. Starting your own venture can be an exciting time, but even more so when it’s something that you are passionate about. If you love hats and you want to share that love with others, then starting a hat company could be right up your alley. In this guide, we’ll show you exactly how to start a hat business.

Starting A Hat Business


Why Start a Hat Business?

Maybe you’re thinking “I love hats but is it really worth starting a whole business around them?” The answer is yes! There are plenty of reasons why starting a hat company can be a great idea.

  • Passion. As mentioned before, if you have a love for hats, then turning that passion into a business can be incredibly fulfilling. Not only will you get to work with something you enjoy, but you’ll also have the opportunity to share that love with others.
  • Market Demand. Hats are not just a fashion accessory, but a functional item that people use year-round. Whether it’s for protection from the sun or to keep warm during colder months, there’s always a demand for hats.
  • Versatility. Hats are worn by people of all ages, genders, and backgrounds, making them a versatile product with a wide market appeal. This means there is potential for a strong customer base and plenty of opportunities to expand your product range.
  • Low Cost. Starting a hat business does not require a significant amount of capital. Yes, they’re a little more expensive than a T-shirt, but you won’t need to break the bank to get started. This makes it an accessible option for those who may not have a large budget.
  • High Profit Margins. Hat businesses can be highly profitable. By effectively managing costs, negotiating beneficial terms with manufacturers, and providing a high-quality final product with great customer service, you can set your business up for long term success and high profitability.

Step-by-Step Guide: How to Start a Hat Business

If you’re convinced that you have some great hat business ideas, then here’s everything you need to know about how to start a hat company of your own:

Step 1: Do Your Market Research

Before you start making your hats, it’s important to get a good look at the market you’re about to enter. Understanding the market is key when figuring out how to start a hat brand. You need to figure out not just who might want to buy your hats, but also who you’re up against and what makes your hats stand out.

Figure Out Who Your Hats Are For

First off, think about who you’re making these hats for. Is there a particular age group, lifestyle, or place you’re targeting? It’s helpful to explore the finer details of what these potential customers like, what they’re looking for in a hat, and how they decide to buy one.

Check Out the Competition

Take a look at other small hat brands. What are they getting right? Maybe more importantly, where are they missing the mark, and how can you step in to fill those gaps? This step will help you refine your hat business ideas into a working business model.

Define What Makes Your Hats Special

Finally, what’s your brand’s Unique Selling point (USP)? It could be their unbeatable quality, their unique designs, or maybe they’re made for a special group of people who are usually ignored by other brands. Your USP is going to be a big part of why people choose your hats over others, especially when you’re starting out.

Business Planning

Step 2: Create a Business Plan

Now that you’ve got a clear picture of the hat market, it’s time to put pen to paper and outline your business strategy. Creating a business plan is like drawing a map for your journey. It outlines where you’re starting, where you want to go, and how you plan to get there. Here are a few pointers to get you started:

  • Set your goals. What do you want to achieve in your first year? How many hats do you want to sell? What kind of revenue are you aiming for? Having clear objectives will help guide your decisions and keep you focused.
  • Decide what types of caps or hats you will sell. Do you want to sell trucker hats, bucket hats, embroidered hats or something else?
  • Factor in your costs. How much will it cost to produce each hat? What about other expenses like marketing, shipping, or renting a space? Laying out these costs will help you price your hats appropriately and forecast your budget.
  • Consider your marketing strategy. Which marketing channels will you use to reach your target audience? Social media, online ads, or local events? Sketching out a marketing strategy will help you attract customers and grow your brand.
  • Decide where you’ll sell your hats. Will you open an online store, sell at local markets, or both? Your sales channels should cater to where your target customers like to shop.

Step 3: Choose Your Business Model

With your market research done and business plan in hand, it’s time to decide how you’ll bring your hats to the world. Let’s take a look at four options: dropshipping, print on demand, custom manufacturing, and creating the hats yourself.


You’ve probably seen dropshipping businesses all over the Internet. These are stores that sell products without actually keeping inventory. With dropshipping, you work with a supplier who fulfills orders on your behalf. People usually choose this option because they want a quick and easy way to start a business, but the reality is that you’ll have no control over the creative process and in many cases, dropshipping companies offer quite low quality products.

Print on Demand

Print on demand (POD) is similar to dropshipping, but instead of buying and selling pre-made hats, you work with a supplier to print your designs onto blank hats as they’re ordered. This option gives you a little more control over the creative process and allows you to offer unique and custom products, but it can also be more expensive than dropshipping.

Making Hats Yourself

Making the hats yourself is the most creative option, but it’s also the most time and resource intensive. You’ll have complete control over the design and quality of your hats, but you’ll also need to invest in materials, equipment, and time to make each hat by hand. This means you’ll need to sell the hats at a much higher price point to make a profit. If your business does well, it may be quite difficult to scale up production and meet high demand.

Custom Manufacturing

Custom manufacturing involves working with a manufacturer to create hats according to your specific design and specifications. This option allows for complete creative control, as well as the ability to mass produce high-quality hats at a lower cost per unit. If you partner with a custom manufacturer with low minimum order quantities, then you won’t need to invest in large quantities of inventory upfront either. In many ways, custom manufacturing combines the best aspects of all the other options. You get creative control, high quality products, and potentially lower costs.

Design Custom Hats

Step 4: Design and Produce Your Custom Hats

This is the fun part! You might already have a design in mind for your hats, or you might need to brainstorm and come up with a concept. Before you can finalize your designs, you need to know what type of hat you’re going to create. At The/Studio, we can help you create two types of headwear:

Custom Beanies

Beanies are a winter favorite. They’re warm, comfortable, and stylish. With The/Studio, you can customize everything from the structure, the cuff, the material, the color and whether or not you want a custom patch, knitted design or any other motif.

Custom Hats

Caps or baseball hats are a classic and versatile style that can be worn year-round. With The/Studio, you can create custom baseball hats with your choice of fabric, brim shape, closure type, and more. You can even add embroidery or a sewn-on match.

Once you have decided on the type of hat you want to create, it’s time to design your own cap or beanie! You can sketch designs by hand or use design software to bring your vision to life. Run your ideas by family and friends to get some feedback and make any necessary revisions. At The/Studio, we can send you a sample of your hat design before going into full production. This way, you can make any final adjustments to ensure your hats are exactly how you want them.

Step 5: Set Up Your Online Store

Once you have your custom hats ready, it’s time to start selling them! There are many platforms available for creating an online store, such as Shopify, Etsy, or WooCommerce. These platforms offer easy-to-use templates and tools for setting up your online store, accepting payments, and managing orders. You can also customize your store to match the branding of your custom hats.

If you feel like that’s too much work, you can also sell your hats on social media platforms like Instagram and TikTok. You can create posts and videos showcasing your custom hat designs, and interested customers can message you to place an order. Alternatively, you can sell on marketplaces like Amazon, eBay, or Etsy. It’s easy to set up shop on these platforms, but you’ll need to keep in mind that they will take a small percentage of your profits. Once you have a good following and customer base, you could then consider creating your own website for selling your custom caps and hats.

Step 6: Market Your Custom Hats

Marketing is the next step if you want your business to be successful. You can’t skip this step, no matter how great your custom hats are. Here are a few marketing tips to get you started:

  • Create a strong brand identity. This includes your logo, website design, and overall aesthetic. You want customers to recognize your brand and remember it next time they want to buy a hat. Having a brand identity also makes your business look more professional.
  • Use social media to your advantage. Social media is a powerful tool for promoting your custom caps. Set up a social media profile, start producing regular content, and use relevant hashtags to reach a wider audience. Funny, quirky or creative content is a great way to gain a following without investing too much in paid advertising.
  • Team up with influencers and collaborators. Collaborating with popular influencers can help expose your custom hats to a larger audience. You could send them free custom hats to wear and promote or offer them a discount code for their followers.
  • Attend events and markets. Participating in local events and markets is a great way to showcase your custom hats, meet potential customers, and network with other businesses. This can also help you gain valuable feedback and insights on your hat designs. From there, you can make any necessary tweaks or improvements.
  • Have excellent customer service. Word of mouth is one of the most powerful forms of marketing. Make sure you provide great customer service and ask for reviews and feedback from your customers. Positive reviews and recommendations can go a long way towards attracting new customers.

How To Start A Hat Business - Online Store

Step 7: Sell Your Hats!

Now is the time to start bringing in some profit. Before you officially launch your custom hat business, there are a few things to keep in mind:

How do you plan to fulfill orders? Will you charge extra for shipping? Do you have a returns policy? These are important logistics to consider and communicate clearly to your customers.

Pricing is also a crucial aspect of selling your hats. You want to make sure your prices cover all costs, including materials, labor, marketing expenses, and leave enough room for profit. You’ll have to calculate this carefully and potentially adjust your prices as you learn more about the market and customer demand.

When you get those first few sales, you’ll feel a sense of accomplishment and it will motivate you to continue growing your business. So go out there, be creative with your designs, market your brand, and start selling those hats! It could only be a matter of time before you see people wearing your custom hats on the street.

Partner with The/Studio for Custom Hats

Starting a hat business is a journey that involves careful planning, creativity, and boldness. But the most important thing is that you have a reliable partner to help you build your business. At The/Studio, we specialize in creating high-quality custom hats with low minimum order quantities. It’s perfect for businesses just starting out or those looking to expand their merchandise.

We offer a wide selection of hat styles and customization options, including embroidery, patches, and more. And if you need any help with the design process, our team of experts is here to assist you. Simply create an account on our website, upload your design, and we’ll take care of the rest!


How much does it cost to start a hat business?

Starting costs can vary widely based on your business model. If you are planning to manufacture your own hats, initial costs can range from a few hundred dollars to several thousand. However, partnering with a company like The/Studio can significantly lower the starting costs as we handle all manufacturing and production processes.

Is hat making profitable?

Yes, hat making can be quite profitable. If you can balance production costs, set competitive prices, and effectively market your products, then you have a good chance of making a profit.

How do I start a cap business?

How to start your own hat business:

  1. Identify your niche
  2. Do your market research
  3. Choose a business model
  4. Design your caps
  5. Partner with a manufacturer like The/Studio
  6. Set up sales channels
  7. Market your business

Is hat making difficult?

If you’re making hats by hand, it can definitely be a difficult process. But ordering from a custom manufacturer like The/Studio is easy! Simply upload your design and our team will turn it into a beautiful, high-quality hat for you.

Where can I sell my hats?

Online platforms like your own website, Etsy, or Amazon are great places to start. Social media can also be a powerful tool. Offline, you could sell at local markets, craft fairs, and consignment deals with boutiques.

How do you put designs on hats?

At The/Studio, we can add your designs to your hats in lots of ways. For example, we can add a custom patch to the front, embroider your design directly on the hat, print a design all over, knit a design into the fabric, and more. Whatever way you choose, we’ll make sure your design looks amazing on your hats.

What companies make hats?

Here at The/Studio, we specialize in manufacturing custom hats for businesses and individuals. We offer a wide range of styles, materials, and customization options to suit any needs. Our hats are fully customizable, which means everything from the size, structure, shape, color and materials can be designed to fit your vision. With low minimums, you can order as many or as few hats as you need.



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