How to Start a Retail Clothing Business
People start clothing businesses for many different reasons. Some can't find fashions they like in their home town, while others want a place to display and sell their own designs. Whatever the reason, starting a clothing store is fairly simple, but running it successfully can be quite demanding. With proper preparation and plenty of hard work, you can start a retail clothing business that makes you money and allows you to sell the clothes you enjoy.
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Instructions
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Decide what your intended market will be. This could mean narrowing down your product to women, men or kids. Will you cater to high-end shoppers or sell more affordable clothes? Finally, determine whether you will sell new or vintage clothes.
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Determine how you will obtain clothes to sell. You could choose to design and make all your own clothes, or license your designs to a wholesale manufacturer. Another option is to set up accounts with major clothing designers and choose items from their line to sell in your store. If you plan to go vintage, you can buy clothes from your customers or locate them yourself in vintage or thrift stores.
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Find a location for your store. Look for a spot with plenty of foot traffic and adequate parking to support your business. Try to find a location where the demographics match your intended market. This means that a high end store should be located in an area that can support higher prices, and more affordable stores should be located in shopping districts catering to bargain shoppers.
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Develop a written business plan. Free templates can be found online at the U.S. Small Business Administration's website (see Resources below). By writing your plan, you will be able to see any potential problems before they occur, and this plan will be helpful if you need to secure financing for your business.
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Apply for financing, as needed. Some entrepreneurs are able to self-finance their business out of savings or with help from family. If this isn't the case for you, you can apply for loans at your local bank or through the U.S. Small Business Administration.
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Purchase or produce your inventory. If you plan to make the clothing you will sell, allow yourself plenty of time to get this done before opening day. If not, purchase merchandise from designers and wholesalers, and allow time for this material to reach your store.
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Take care of legal issues such as incorporation, setting up tax accounts, and obtaining a business license. A list of websites where you can learn more about how to set up a business in your state can be found in Resources below.
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Stock your store and open for business. Spread the word among family and friends, and consider low-cost marketing such as an opening day celebration, or offer discounts and deals to shoppers who visit during the first week of operation.
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Resources
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