How to Open a Small Boutique Business

A boutique store: Fashion for your entrepreneurial passion.

While a "boutique" can be almost any small, specialized seller of goods or services, most people use the term to mean an upscale retailer for clothing and accessories. The fashion industry is highly competitive and can entail significant start-up costs for a small business. But with passion, entrepreneurial drive and strong business acumen you can succeed in your own boutique shop. Choose your specialty carefully and take good care of your customers, and you can grow into an apparel icon like Nordstrom or Sak's, or stay small, local and independent.

Instructions

1. Determine your market niche. Conduct market research to see what types of shops are already in the area, how many potential customers you have and how much they typically spend on boutique goods, and how quickly the local economy is growing. Then match that information against your personal interests and passions. If you find that your area is full of women's apparel shops, the customers in your area are primarily young couples, and you've always loved baby shoes, an up-market children's consignment store might be perfect.

2. Register and set up your business. You'll need to file for a business license with your state, get a federal employer identification number (EIN), establish a business bank account and business credit if possible, and start applying for local permits (if you're remodeling or re-purposing a building) to open a shop in an area with a lot of foot traffic.

3. Find suppliers for your inventory. You'll need to find a range of apparel suppliers that can keep your shop full of a variety of clothing and accessories. Search for suppliers that are reliable in shipping to you on time, can handle small orders while you test new products, and can extend credit to you when necessary.

4. Open your store. You'll need to select an affordable store in a location with high foot traffic or close to your potential customers, and a good location for putting up a sign. Most landlords will want a year lease, which can be your major expense for the first year depending on your area, inventory costs, and whether you hire any employees.

5. Advertise your boutique. You can place ads in local circulars, purchase time on local radio or advertise in the mall's brochure if you're at a mall or plaza. Tailor your marketing message to your customers' needs. For instance, if your boutique sells local handcrafted bags, explain to your customers how they can add a unique accessory to their wardrobe at a low cost while supporting local artists.

References

• Entrepreneur magazine: "How to Start a Clothing Store;" Laura Tiffany; February 2001
• Forbes magazine: "How to Set Up A Clothing Retailer: Start-Up Costs;" Maureen Farrell; January 2007
• BPlans: "Women's Clothing Boutique Business Plan"