Starting A Retail Clothing Business

How to Start a Retail Clothing Business - Background Info:

One of the greatest things about starting a retail clothing business is the amount of specialties or niches you can go into. You most probably don't want to be 'just another clothing store' that rivals cheap clothes

carried at places such as Walmart. Chances are, you're looking, or should be looking, for starting a retail clothing business to sell clothing that Walmart doesn't have.

To be successful with a retail clothing business in your area, you need to take a look at the community you live in. Is it "down-home rural," "upscale classic," and full of cute babies and trendy teenagers?

Or, perhaps you may consider selling retail clothing that meets a need, such as for older adults, uniforms, or other types of clothing that is hand-made by local or international seamstresses.

Storefronts can also vary: strip-mall space, full retail store, permanent vendor booth at a specific location, small boutique, or an online-only retail clothing store.

How to Start a Retail Clothing Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a retail clothing business:

Bookkeeping

Advertising/Marketing

Importing

Computer literacy

Answering machine

Storefront and/or website presence

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a retail clothing business:

Clothing sales

Handle cash and credit transactions

Work with and order from clothing wholesalers

Keep the store clean and appealing to the eye

Change displays according to season

Price (tag) clothing

Handle inventory/bookkeeping

Work well with the public

How to Start a Retail Clothing Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - Depending on your location, this business runs according to retail sales hours: Monday-Saturday, 10 a.m. to 6 p.m.

Hours Needed to Prepare - Before Opening and After Hours Activities - Plan to spend about an hour to make sure the store is clean and displays are visible. Count and stock registers. At the end of the day, plan on spending closer to two hours to clean, track stock, and do bank deposits.

Number of Employees Needed To Run This Business:

Minimum Number of Employees - During the Start Up Phase: You can start this business yourself on a full- or part-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Sales staff

Advertising/Marketing/Promotions

Customer service

Ordering of stock

Cleaning crew

Bookkeeper/payroll officer

Skill Requirements for This Business:

Retail sales and marketing

Merchandising

Fashion knowledge

Business ownership

Clothing import

Stock display

Licenses:

You will need a business license. Check with local municipalities to determine which permits and licenses are required to run a clothing business in your state.

You will also be required to have a tax i. d. number in order to order from clothing suppliers.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost may vary form a couple hundred bucks if you have an online-only store, up to $5,000 - or thousands more - to get your foot in the door of a brick and mortar retail establishment.

Some clothing business owners have been able to start up with as little as $30,000, while others recommend no less than $50,000 to get the ball rolling. A number of clothing business owners have said it took them $150,000 to get their business off the ground.

Another business owner recommends that you have at least $200,000 for an average sized clothing business. Start up costs depend ultimately on the type and location of the clothing business you desire.

Minimal exposure - Due to its competitive nature with discount stores, plan to spend a minimum of $2,000 on newspaper ads, local business directories, network group memberships, and other types of advertising and promotion for your own retail clothing business' exposure.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Acrylic displays

Countertop displays

Clothing racks

Clothing forms and mannequins

Display cases and counters

Glass displays

Gridwall

Hat racks

Jewelry displays

Slatwall

Shopping bags, tissue paper and gift boxes

Price gun

Tagging gun with tags

Size rings

Security mirrors

Shopping baskets

Cash register(s)

Credit card processor

Computer/fax/printer

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Retail sales software

Dressing rooms/mirrors

Warehouse

Additional display furnishings

Draperies, floor coverings

Speaker system (music)

Seating (small couches, chairs)

Restroom/baby changing area

Van or truck

Monthly Expenses To Consider:

Answering and/or cell phone service
Warehouse or other storage rent
Wages
Stock (clothing)
Commercial bank account charges
Internet access
Electricity
Advertising/Marketing
Heating and air conditioning
Lease/rent

Special Requirements For This Business:

You may decide to obtain additional certification in a specialized area of fashion or related area to the type of clothing you carry.
You need to have an eye for fashion and know what trends to tap into.
You need to have excellent sales and marketing skills.

Pros And Cons:

The Pros of Running a Retail Clothing Business:

Running a clothing business can be fun as well as fill a need in your community

A versatile occupation where you can carry coordinating items such as jewelry

This business is completely expandable such as with renting small booths at other establishments

Depending on your niche, you have the opportunity to participate in a wide variety of trade shows

The Cons of Running a Retail Clothing Business:

Full-time job that may require you to work 12 to 14-hour days

A clothing business is a risky investment as sales often fluctuate with the economic climate

Carrying the wrong types of clothing will put you out of business fast

Type of Customers You Need to Attract:

The target market of the retail clothing business is as wide and varied as the people in your community.

The niche you are catering to or need you are filling will determine your clientele.

You may focus on business attire, wedding or formal wear, children's and infant's clothing, trendy clothing, high-end fashion, imported clothes, designer creations, or any type of sector.

Thus, your retail clothing business will reflect the type of clothes you carry for what types of people: business-oriented, brides-to-be, new mothers, college students, and so forth.

Be sure your advertising also lines up with your customer base!

Retail Clothing Business Statistics:

See Valuation Resources and BizStats to find statistics for retail clothing business types, locations, and trends.

Revenue:

West Coast Retail Clothing Business Up 15% to 20%

Citing stronger consumer fashion awareness and a better economy overall, West Coast department and specialty store retailers reported strong 5 to 20 per cent increases in their tailored clothing business over last year at this time.

Although unpredictably mild weather on the West Coast left top coat and outerwear sales dismal, retailers said this didn't seem to hurt the clothing business, particularly suits, which posted the strongest gains at most stores.

See Valuation Resources for retail clothing forecasts and outlooks.

Resources:

Industry-Specific Websites:

Cato Fashions

Patagonia Outdoor Wear

Courses:

Your Business Startup Workbook: Start A Retail Clothing Business

Retail Marketing and Sales Training

Wholesalers and Supplies:

TradeKey

Apparel US

Wholesale Central

Suppliers of Fashion

Clothing Retail Directory

Wholesale DIR

Forums:

Fashion Networks

Franchises:

Children's Orchard

StretchaLicious

Books:

Start Your Own Clothing Store and More

You Can Compete: Double Sales Without Discounting

Become a Boutique Owner

Start Your Own Clothing Store

Software:

Apparel Retail (Microsoft)

Other:

Starting a Clothing Line and Working with Suppliers

Home Business Center

Related Businesses:

Cosmetics
Jewelry
Footwear
Tourism
Fashion photography