Are you a fashion passion person and want to know how to open a clothing store? So this is the best place that you got. In this article you will get to know how to open a clothing store step by step.
Many people are getting into fashion and are passionate about the clothing line. They are willing to work for their passion and just willing to be their own boss!
Starting a fashion business is the ultimate solution for them! But it is not so easy to be the boss of a renowned clothing company! You must need a lot of pre plans and thoughts before stepping up toward opening a clothing store. You might be querying about the necessary guidelines that may help you to know how to open a clothing store.
First of all, you should find out your target audience and the niche that your store will fill. Then you should find a perfect location. Adding all your anticipated costs up and applying for a loan if needed should be your next priority. You have to go for online marketing to increase your sales. Then you are ready for the grand opening of your clothing store.
Now let’s discuss on details how to open a clothing store step by step –
1. Researching the Market
Identifying your target audience
The most important step is identifying your target audience. You have to select your target customers that you would love to market to. This step will determine the product categories, product types and the location that you should serve to your customers.
Think big at first. First you need to think if you are willing to make products to serve men or women. After that be more specific regarding which age you want to serve. You have several options to choose along with.
It will be better for you if you try to enter into a market that you are already known to. Let’s say, you have ideas on a market that your close relative has already experienced or you were in a store that you got some experience from there as well.
You have to find out the more profitable segment as your target audience. Work on this step carefully because only having a bit of experience will not fulfil your profit target. You have to fix your target customer and the niche accordingly for the profitable segment.
Investigate potential location for your store
Try to find a nice and suitable location for your store. If you get a perfect good foot traffic to get your first customers, it will be a beneficial pro for your business. If the business is small, a clustered location with other business stores like you will be perfect.
Try not to locate your store with other identical stores like you. For example, if you are marketing tourists then locate your store near to any attraction area.
Think about the rent before locating your store.
Find a specialty for your store’s merchandise
Try to bring some specialty for your store that will attract the customers.
If your other recent and close competitors bring something like good brands then try to capture the niche market in that area by collecting something completely different than those stores.
For example, if your competitors are showcasing and focusing on men and women’s clothing which are pretty available in your area then going for some maternity collection or kids’ collection will be the right option. Again, you can specialize yourself by providing designer and customized items than providing casual designs like others.
Develop a backup plan if your business is not successful
Many small businesses get dismissed just because of the failure in the starting. So always try to keep some backup plans in case your clothing business does not give the expected outcome. Try to have a 6 months emergency savings to cover up a 6 months living expense for any kind of emergency.
Clothing business usually has a lower margin of profit. You must bear it in your mind when you are counting your business profits for further stay.
2. Financing and Incorporating the Business
- Before opening up your store think about your fixed costs as in your operating costs. This is the minimum cost that you must keep aside before starting your clothing store. Because this cost is fixed. The ideal fixed/operating cost should be 6% of your sales.
- Now think about your variable cost or inventory/labour cost. This cost will differ according to the inventory you store.
- Draw up a proper business plan. You need to make proper planning before you start your clothing business. Make sure you have consulted with a finance analyst regarding your thoughts and your business’s milestone. Make an outline to fit in the market beforehand.
- Form a legal business entity. Achieving a legal business identity will help you to protect your personal savings. Also, you will get more opportunities to work with professionals.
- Apply for a business loan or find a private investor. If you don’t have enough financial backup, a financial investor or bank loan will be the best option for you. But, usually private investors want more return on investment than bank loans.
3. Stocking and Staffing the Store
Contact clothing suppliers for quotes on merchandise. Try to find the products with the best price and place the orders for the initial stock. Bulk buying will be more cost effective in this case. Try to contact the clothing manufacturers directly rather than buying from the wholesalers.
Hire employees in need. Try to have a trustworthy employee who can run the store when you will be absent there. Keep the expense of the employee in your mind too.
4. Marketing the Business
Have a grand opening event. After all the hard work you have done, try to reach more people with a grand opening. Try to invite more family and friends who are more socially active. You should invite some social media influencers as well who have more reach to the mass.
Offering a discount for the opening is a good shot.
Contact local media people to cover the event and also invite politicians or local established renowned personalities. That will make more reach.
You can also make online service. That will lead you to reach more sales.
Those were all the necessary guidelines that you need to know before starting a clothing store. So let’s wait for the next content…