Actually, I am working on a side project at one of my businesses that will be 100% BTC funded.
What we're doing is offering to buy used but in good condition white cotton (bedsheets or old shirts, whatever), launder them by hand (no fiat), cut them down by hand (no fiat), re-sew them into new shirts, print on them and have them ready for pickup.
I'll pay my labor guy in BTC (he already approved), and we'll only buy the cotton with BTC from locals via word of mouth and craigslist.
I think I can keep the entire chain in BTC, especially since we're working on our own ink manufacturing, too.
Of course there are fiat-bought tools that are in the mix, but these were puchased for cash long before BTC arrived on the scene.