How to Start a Small Boutique
Strolls down the streets of college towns like Austin, Texas, and cities like Minneapolis will reveal small boutiques aplenty. While most consumers are focused on retail chains that sell furniture and clothing, niche boutiques sell handmade products that focus more on quality than quantity. Small boutique owners who want to stay competitive with retail giants need to focus on narrow product lines. Whether it is a candle shop or a women's clothing boutique, owners need to present clear product themes before flipping the open sign on the first day of business.
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Instructions
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Write a business plan for your small boutique that recognizes the limitations on your potential earnings. In addition to profit goals for the first year, this plan should narrow the boutique's focus on specific products that can be marketed to fill a market niche. Explain where every dollar of business loans, credit cards and personal finances are used to ease concerns by potential partners.
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Secure several sources of inventory for your boutique that are unavailable through other boutiques. For example, a clothing boutique owner should speak with fashion designers around the country to find fresh lines that have been overlooked. In addition to New York Fashion Week, clothiers rely on events through groups like Fashion Denver to find the next big designer.
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Produce a standard consignment agreement and solicit local artisans to sell their ways through your boutique (see Resources for example agreement). Your consignment agreement should outline the maximum time an item will stay in your boutique as well as fees taken from consignment purchases. Furniture and clothing boutiques in particular can earn 20 to 40 percent on each sale while encouraging local artists through consignment sales.
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Hunt down a boutique storefront in a neighborhood that matches your target market and style. Boutiques in downtown districts and courtyards are more successful than stand-alone boutiques due to large amounts of foot traffic. Your storefront should have a large display window to showcase merchandise for passing pedestrians.
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Decorate your boutique with unique displays and comfortable furniture to create an atmosphere that encourages shoppers to stay. Spread a handful of armchairs and couches in your boutique as well as thought-provoking art to keep consumers engaged. Frequent smaller stores like Furniture Boutique in Miami, Florida, to support your fellow boutique owners while creating a stylish retail space.
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Expand your boutique's reach beyond local customers with a well-designed website. Basic boutique websites showcase samples of products and snapshots of store interiors to pique the interests of potential customers. Successful boutiques include information on packaging, shipping and customization of products for out-of-town shoppers.
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Cultivate relationships with other boutique owners and retailers at events like the Specialty Retail Entrepreneur Expo and Conference (SPREE; see Resources). This event is held every spring in Las Vegas to help kiosk, boutique and cart owners learn about the latest business practices. Boutique owners should look at local groups like the Chamber of Commerce to collaborate with nearby boutiques and small businesses.
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Tips & Warnings
Choose accounting software that is right for your small boutique before completing your business plan. Once you have figured out your starting budget, insert this figure into a program like QuickBooks and account for every expense and revenue source in your business. Network with high school and college students in your community to cultivate the open mindedness of younger customers. Boutique owners can hire students for part-time sales positions, offer college discounts and host displays of up-and-coming artists to add local faces to their businesses.
Resources
- Photo Credit Photo by nicephore (Flickr)
