How to Create a Clothing Store

Major clothing retailers such as Gap, Old Navy and Brooks Brothers began as simple clothing stores. The competition among clothing stores, tailors and specialty boutiques means that a select few can expand to the regional or national level. While your aspirations may not be as grand as these mall fixtures, you will need to plan carefully as you create your clothing store. Every aspect of operations from mannequins to signage must be covered before opening for business. The ultimate arbiter between success and failure for a clothing store is whether the racks and shelves are filled with the latest styles.

Things You'll Need

• Business plan
• Mannequins
• Racks and shelves

Instructions

Build Your Clothing Store From Scratch

1. Conduct research into the market for clothiers in your community as you prepare your business plan. Your plan should detail comparable retailers within an hour's drive of your proposed location to show the niche filled by your store. Define whether your store focuses on high-end men's apparel, wedding dresses or seasonal wear to further demonstrate the need for your clothing shop.

2. Register your clothing store with local and state government agencies to meet sales and employment tax obligations. State agencies like the New Jersey Division of Revenue require businesses to file their company names and addresses to determine if similar business names exist. You will need every employee to fill out state and federal tax forms to ensure that you pay the right amount in employment taxes. Your business identification number will help the state track your employment tax contributions and sales tax payments when applicable.

3. Search for a commercial bank in your community with long hours, devoted account representatives and a plethora of account options. Your clothing store should be able to deposit daily cash and check counts at your bank in late afternoons and weekends. Look for a bank that offers savings, retirement and investment plans for any full-time employees in your clothing store.

4. Rent retail space that is consistent with your budget as well as the budgets of your target consumers. Clothiers offering tuxedos, dresses and suits should find locations near luxury car dealers, cafes and high-end book shops to attract walk-in traffic. Vintage clothing shops, T-shirt stands and other budget clothiers can focus on universities and malls where consumers are looking for deals.

5. Acquire racks, shelves and mannequins that will display your inventory properly. Smaller clothing store should opt for wall shelves rather than tables and floor displays to keep space clear for consumer traffic. Use a handful of mannequins from Mannequin Madness to add some character to your store while bringing your clothes to life.

6. Hunt for a signature clothing line that is exclusive to your store but reflects your sensibility. Look at art schools and fashion shows to find a designer with the skills to produce a full line. Offer a novice designer upfront payment and a portion of sales in exchange for the ability to build a brand name close to home.

7. Fill your clothing store with T-shirts, sweaters and pants from a clothing wholesaler like Apparel Showroom. Establish an account with your wholesaler to deliver clothes biweekly or monthly that prove to be popular among your regular customers.

8. Employ a small group of part-time sales people to stock your store, check out items and handle returns. Interview prospective employees at least a month before opening your shop and ask hired applicants to help in the week ahead of your opening. Your sales people can fold shirts, dress mannequins and assemble shelving units before your store opens.

9. Devote a section of your clothing store to vintage clothing and handmade clothing on consignment to give your business an eclectic identity. Develop a checklist used when investigating vintage clothing to ensure that jackets, pants and shirts can be turned around quickly. Create simple displays for consigned sweaters, scarves and shirts to increase chances of getting your consignment fee.

10. Attract visits from regular customers by establishing discounts and specials for every day of the week. Offer percentage discounts on certain colors, brands and clothing styles to surprise first-time customers. Use an ongoing volume discount to encourage customers to buy that tenth T-shirt or fifth pair of jeans.

11. Purchase inventory control systems from companies like Wasp Barcode to keep track of your shirts, pants and accessories from receipt to purchase. Wasp Barcode Systems have inventory control packages that allow clothing store owners to print off distinct barcodes, scan these barcodes and track daily numbers on spreadsheets.

12. Shop for business insurance from a company like Safeco that covers your inventory from natural disasters and theft. Your business insurance should at least have coverage for general liability and property loss to anticipate the most common problems for any clothing store. Safeco and other insurers offer optional coverage for employee dishonesty, loss of electronic records and damaged outdoor signs.

Tips & Warnings

• Promote your clothing store online to expand your consumer base. Create a website with samples of your clothing, staff choices and information on special orders from your store. Encourage clothing fans to check out your inventory and meet fellow shoppers by creating pages on Facebook and MySpace.

Resources

• Apparel Showroom
• Display Warehouse
• Mannequin Madness
• Wasp Barcode Technologies
• State of New Jersey Division of Revenue