How to Start a Children's Clothing Store

To start a children's clothing store, you'll need more than a love of kids and a bit of fashion sense. Starting your own business requires hard work, sacrifice, a sound business plan and a solid source of financing. With focus and determination, and a little bit of luck, you can make your dream of opening a children's clothing store become a reality.

Instructions

1. Research the clothing business and gain experience in the industry. You'll need to learn the basics about clothing suppliers and designers, as well as gain a general understanding of how the business works and what to look out for. The best way to gain this experience is by working in a children's clothing store or for a designer or manufacturer of children's clothing.

2. Decide what kind of clothing you'd like to sell. Think about whether you'll sell your own designs or purchase clothing designed and produced by others. Decide whether you'll sell new or used clothing. Determine what kind of market you'll focus on. You can sell high-end clothes or concentrate on more affordable merchandise.

3. Lease or purchase your store. Choose a store location that will bring in the right traffic for your merchandise. If you're going to sell high-end clothing, open your store in a high-income area that can support the prices you will charge. Make sure your location is accessible and easy to get to.

4. Create a business plan. You'll need a written business plan when applying for business loans and grants. Free business plan templates are available online and from the Small Business Administration.

5. Obtain financing for your business. You'll need money to pay for your store, purchase inventory and pay your bills until you start to make a profit. Apply for small-business loans, borrow from friends and family, or turn to your personal savings to help fund your business.

6. Purchase inventory from manufacturers or produce your own designs. Be sure to obtain enough inventory to fill your store and keep buyers interested.

7. Complete the legal steps to business formation. These include incorporating, creating federal and local tax accounts, and filing for applicable business licenses. You may want to consult a lawyer for help with these items.

8. Open your store for business. Tell friends and family to spread the word about your store. Plan kid-friendly events at your store to increase traffic. Try radio and newspaper advertisements, as well as nontraditional marketing ideas to increase sales.

Tips & Warnings

• Don't underestimate the amount of money you'll need to keep your store running. Having too little money is the No. 1 reason that businesses fail.

Resources

• Free Business Plan Templates
• US Small Business Administration