The custom apparel industry in Canada is growing — and the barrier to entry has never been lower. Between print-on-demand suppliers, accessible wholesale blank distributors, and decoration technologies like DTF transfers and embroidery, you can launch a profitable custom apparel business in Canada with far less capital than was required even five years ago.
This guide covers everything you need to know — business models, decoration methods, sourcing, pricing, and how to land your first clients. Whether you’re starting from scratch or adding custom decoration to an existing business, this is your step-by-step roadmap to building a custom apparel business in Canada.
Who this is for: aspiring entrepreneurs, existing print shops looking to expand, and side-hustlers ready to turn a decoration hobby into a real business in Canada.
Step 1 — Choose Your Business Model
There are three main ways to structure a custom apparel business in Canada. Your choice determines your startup costs, equipment needs, and how you position yourself in the market.
Decoration-only (print or press shop)
You buy blank garments — either from your own inventory or sourced per order — decorate them, and sell the finished product. This is the most common model and gives you the most control over quality and margin. Low startup cost, fast to launch, and easy to scale.
Transfer supply model (no pressing required)
You supply finished DTF transfers or screen-printed transfers to other decorators, who press them onto their own garments. Lower overhead, no need for pressing equipment, but your customer is a business rather than an end consumer. This is a strong niche if you’re closer to the print side than the garment side.
Full-service decoration and blanks
You supply both the blank apparel and the decoration under one roof. This is the highest-margin model because you capture the wholesale-to-retail spread on the blank as well as the decoration margin. It requires more capital and supplier relationships — but clients love the simplicity of a single vendor. This is the Kode Garment model — and it’s the most defensible position in the market.
Step 2 — Register Your Business
Canada makes business registration relatively straightforward. Here’s what you need to get your custom apparel business started legally.
Business structure
Sole proprietorship is the simplest way to start — you and the business are legally the same entity. It’s fine for early-stage operations. A corporation limits personal liability and is better for tax planning once you’re making consistent revenue — expect $500 to $1,500 in setup costs depending on your province. Most decorators start as sole proprietors and incorporate when annual revenue exceeds $50,000 to $100,000.
GST/HST registration
You’re legally required to register for GST/HST once your revenue exceeds $30,000 in a 12-month period. Many businesses register earlier to claim input tax credits on equipment and supply purchases. Register at canada.ca/cra.
Provincial business name registration
If you’re operating under a name other than your own — for example “Lakeshore Print Co.” — register your business name in your province. Cost is typically $60 to $150 depending on the province.
Step 3 — Choose Your Decoration Method
Your decoration method determines your startup cost, the types of orders you can take, and your turnaround time. Most successful custom apparel businesses in Canada start with one method and add others as they grow.
DTF transfers — lowest barrier to entry
You don’t need a printer. Order finished DTF transfers from a supplier like Fabrik DTF, then press them onto garments with a heat press — entry-level quality presses run $300 to $800. No minimum orders, no setup fees, fast turnaround. This is the fastest way to get your first decorated garment out the door. Read our complete guide to DTF printing for more detail.
Embroidery
Commercial embroidery machines start at around $6,000 to $10,000 for a single-head unit. Embroidery has excellent perceived value — customers associate it with premium quality — and works particularly well on headwear, polos, and workwear. Digitizing artwork converts your logo into a stitch file and typically costs $60 per design.
Screen printing
A full manual screen printing setup costs $3,000 to $10,000 depending on the press size and number of colours. Screen printing is best for high-volume, simple-colour runs. Many decorators choose to outsource screen printing to a contract printer until volume justifies the investment.
Kode Garment tip: Starting with DTF pressing is the smartest low-risk entry point for a custom apparel business in Canada. Once you have a client base and consistent volume, add embroidery — then evaluate screen printing. We offer trade packages designed specifically for businesses at this stage.
Step 4 — Source Blank Apparel
Your blank supplier is one of your most important business relationships. Here’s what to look for when sourcing blanks for your custom apparel business in Canada:
- Canadian distribution — avoids cross-border duties and shipping delays. Fabrik Apparel carries 50 major brands and ships from Canada
- Brand variety — you’ll need basics like Gildan or ATC for budget orders and Bella Canvas, Shaka, Just Like Hero or Next Level for premium customers
- Low minimums — especially when starting out and not carrying inventory
- Consistent stock — running out of a colour mid-order is a serious problem — stick to distributors with reliable inventory depth
As a rule avoid buying blanks at retail — your margins will not work. Get a wholesale account with a Canadian distributor from day one.
Step 5 — Set Your Pricing
Under pricing is the most common mistake new custom apparel businesses make in Canada. Here’s a simple example of how to build a cost-plus price:
| Cost Item | Amount |
|---|---|
| Blank garment | $8.00 |
| DTF transfer | $3.50 |
| Heat pressing time | $2.00 |
| Total cost | $13.50 |
| Retail price at 2.5x markup | $33.75 |
A 2.5x markup on total cost is a reasonable starting point for retail and direct customers. For trade buyers — other decorators and promo agencies — a 1.8x to 2.0x markup is typical.
Don’t forget to factor in shipping to your customer, any art setup fees such as digitizing for embroidery or vector conversion, and your time for order management.
A note on volume pricing: always offer tiered pricing for larger quantities. Most customers will choose a higher quantity when they see the per-unit price drop — which improves your economics too.
Step 6 — Build a Sample Portfolio
Before you approach any client build a sample portfolio first. Press 10 to 15 samples across different garment styles and decoration types — these are your sales tools.
Photography matters. Flat lays on a neutral background with good natural light convert far better than shirts hanging on a hanger. Invest one afternoon shooting clean product photos before you launch.
Step 7 — Land Your First Clients
These are your three easiest first client categories for a custom apparel business in Canada:
1. Minor sports teams and leagues
Hockey, soccer, baseball, and basketball teams need jerseys, practice wear, and fan merchandise every season. Coaches and team managers are easy to find through local arenas and parks departments. A single team order of 20 to 25 pieces is a solid first job — and teams come back every season.
2. Schools and student groups
Grad hoodies, school spirit wear, club shirts, and sports teams all need decorated apparel regularly. Approach student council advisors and athletic directors in September for fall orders and January for grad season.
3. Small local businesses
Every restaurant, trades company, retail store, and service business eventually needs staff uniforms or branded merchandise. Walk your local commercial strip. A 12-piece polo order with embroidered logos is a straightforward first corporate job and often leads to repeat orders.
Step 8 — Build a Simple Production Workflow
Even at low volume document your process — how orders come in, how art is approved, how jobs are queued, and how finished goods are packaged and shipped. A simple spreadsheet tracking order status saves enormous time and prevents costly mistakes.
Step 9 — Know When to Expand Your Decoration Offering
Add a new decoration method when:
- You’re consistently turning away work because you can’t offer that service
- A single client represents enough volume to justify the equipment investment
- You’ve stabilized your existing production workflow
The power of offering multiple decoration types
A customer who comes to you for DTF-pressed tees and discovers you also do embroidered headwear and appliqué and twill is a customer who has no reason to shop elsewhere. Vertical integration — blanks plus decoration plus fast turnaround under one roof — is the single biggest competitive advantage in the custom apparel business in Canada.
Step 10 — Build Repeat Order Systems
The easiest way to grow a custom apparel business in Canada is to keep existing clients reordering. Save every client’s specs — garment style, colour, sizes, decoration method, thread or ink colours, and placement measurements. Make reorders effortless and clients will never leave.
Frequently Asked Questions — Starting a Custom Apparel Business in Canada
How much does it cost to start a custom apparel business in Canada? With a DTF-press-only model you can get started for as little as $1,500 to $3,000 — heat press plus initial blank inventory plus transfer orders. Adding embroidery requires $6,000 to $10,000 for a commercial machine. Full-service setups with screen printing can run $20,000 to $50,000 or more.
Do I need a business licence to sell custom apparel in Canada? Requirements vary by province and municipality. Most areas require a basic business licence costing $50 to $200 per year for home-based businesses. Check with your municipal office. You don’t need a licence to sell but you need one to operate commercially in most jurisdictions.
Can I run a custom apparel business from home in Canada? Many Canadian decorators start from home. A heat press and some blank inventory take up minimal space. Check your municipality’s home-based business bylaw — most allow it as long as you don’t have customer foot traffic or signage. Embroidery machines can generate some noise which is worth considering in a condo or townhouse.
How do I handle art files from clients? Ask for vector files — AI, EPS, or SVG — where possible. For raster images like JPEG or PNG you need at least 300 DPI at the intended print size. If a client can’t provide print-ready art charge an art setup fee — $25 to $60 is typical — for vectorizing or digitizing.
What is the best decoration method to start with in Canada? DTF pressing is the best starting point for most new custom apparel businesses in Canada. Low startup cost, no minimum orders, fast turnaround, and works on virtually any fabric. Once you have consistent volume add embroidery for workwear and corporate clients.
How do I find wholesale blank apparel suppliers in Canada? Fabrik Apparel is Canada’s leading wholesale blank distributors — 50 brands, 1,800+ styles, ships from Canada.
Ready to Start Your Custom Apparel Business in Canada?
Whether you’re placing your first decorated apparel order or building out a trade account for your new decoration business — Kode Garment is here to help. We offer trade packages built for decorators, fast turnaround on DTF printing, embroidery, and screen printing — and the full range of decoration services under one roof.
📍 Based in Newmarket, Ontario · Shipping Canada-wide 📞 905-235-9444 · Toll free 1-877-788-5633 ✉️ info@kodegarment.com
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