How to Open a Small Business in Hand-Me-Down Clothes
If you love clothing and can tell the difference between clothes purchased at a discount store and designer duds, opening a used clothing business could be a lot of fun, as well as profitable. Minnesota Public Radio Online points out that, "Goodwill stores across the state are seeing an increase in shoppers--and revenue." This is because used clothing stores can hold their own in any economy. In the case of clothing resale shops, they also offer an opportunity for members of the community to make a few dollars from selling clothes they no longer wear.
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Things You'll Need
- Clothing racks
- Computer
- Cash register
- Washing machine
- Clothes dryer
- Clothes steamer
Instructions
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Locate a retail space in an area frequented both by your potential customers and, if you buy clothes from the public, by people who might sell you clothes. Ideally, your shop will be in an area where there is significant foot traffic. You'll also need space to store out-of-season clothes.
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Write a business plan. According to the Small Business Administration, a good business plan should have a market analysis (is there a need for your product in your area?); a description of your company, how it will be organized and managed; how you will market your product; and a detailed description of what you will be selling. You will also need to include a snapshot of expected income and expenses. Writing down your business plan will help you clarify your business goals, and you will need it if you apply for a loan. In your plan, note whether you are going to take clothes on commission or buy outright from used clothing warehouses, from customers, online or a combination of these three. Also, factor in the cost of cleaning the clothes, as well as the cost of your space and paying employees.
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Obtain financing for your business if necessary. If you are having a difficult time getting a loan from a bank, fill out an application with the Small Business Administration. They act as a guarantor, ensuring the bank that your loan will be repaid.
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Give your business a name. Focus on the potential of the clothes you are selling, rather than their past. For example, "recycled clothing" might appeal to people living a green lifestyle, and "vintage" is a term for clothes that are at least a generation old. According to Fashion Era, "many sellers and buyers use vintage as a term to describe almost all previously owned second hand clothing of 25 years or more years age." Register your business name with the county clerk.
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Buy the equipment you need for your business. You should have a variety of clothing racks, a computer for keeping track of inventory and expenses, and a cash register. You can buy these things at a retail supply store or online. But you might be able to save a bundle if you buy them from a store that is going out of business. You'll also need a large-capacity washer and dryer; buy them used or buy one of the larger sets from an appliance store. And you'll need a steamer to keep the wrinkles out of clothes. Buy a commercial model; home steamers don't pack enough punch.
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Purchase inventory for your clothing resale shop. You can do this by making the rounds at garage sales, picking up deals on online auction sites, going to used clothing warehouses in your area, or buying directly from the public in your shop.
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Advertise your new business in your community. Put a sandwich board outside your shop so that people will notice that the space has changed. Put ads in the newspaper, and include coupons for potential buyers. Let everyone in your social networking communities know that you have opened a new business, and alert people to sales and deals.
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Tips & Warnings
Inspect clothing carefully for stains and holes before you buy; most customers want clothing that is in excellent condition.
Clean every item of clothing thoroughly before putting it on the floor for sale. Not only will it look and smell better, but you will eliminate pet dander, musty smells and other unpleasantness that can reside in used clothing.
References
Resources
- Photo Credit clothing rack image by Gina Smith from Fotolia.com
