Do you want to know exactly how much it cost to start an online clothing boutique? If YES, here is a detailed cost analysis for starting an online clothing store and raising finance.
Having provided you with a:
- Boutique Industry Overview
- Market Research and Feasibility
- Online Boutique Business Plan
- Online Boutique Marketing Plan
- Online Boutique Name ideas
- Clothing Store Licenses and Permits
- Cost of Starting an Online Boutique
- Clothing Store Marketing ideas
We will consider how much it cost to start an online clothing boutique from scratch including the operating costs.
Few factors affect the total start – up capital required to start an online retail clothing store business. Some of the factors that can influence the startup capital required to start an online retail clothing store business are; the cost of acquiring a warehouse, shipping arrangement and re – stocking your store regularly so you won’t run out of stocks.
How Much Does It Cost to Start an Online Clothing Boutique?
When it comes to starting a small scale online retail clothing store business in the United States, the following expenditure should guide you;
- The Total Fee for incorporating the Business – $750.
- The budget for Liability insurance, permits and license – $2,500
- The Amount needed to acquire a suitable Office facility and warehouse (Re – Construction of the facility inclusive) – $30,000.
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
- The Cost of Launching a standard and well secured and user’s friendly Website (the cost of managing the website and graphics is inclusive) – $1,500
- The Cost of stocking your warehouse / store with the need clothes and fashion accessories – $5,000
- Budget for paying at least two employees for 3 months and utility bills – $10,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous – $1,000
Going by the report from the research and feasibility studies conducted, you will need about $50,000 to set up a small scale online retail clothing store business in the United States of America. You will need over a hundred thousand U.S. dollars to successfully set – up a medium scale online boutique.
If you are considering starting a large scale online retail clothing store that will be involved in shipping items to all the parts of the world with a wide range of fashion, then you should look towards budgeting from 1 million United States dollars and above.
Sourcing for Finance for Your Online Clothing Boutique
If you want to start an online retail clothing store, one of the reasons why you probably would have chosen this form of business is to escape some of the cost involved in running bricks and mortar boutiques et al. It is pretty much cheaper to run an online retail clothing line as against running a conventional boutique. So you may not have to break the bank to source for start – up capital.
No doubt when it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan in place, you may not have to labor yourself before convincing your bank, investors and your friends and family members to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your online retail clothing store business:
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for loan from your bank / banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends.