Are you about starting a clothing store? If YES, here is a complete sample online clothing store business plan template & feasibility study you can use for FREE. There is hardly any human who doesn’t wear clothes. This is because of the need to cover up nakedness. This can also be the reason why so many clothes manufacturers have sprung up in the last centuries; this is so that they are able to meet the teeming population of people who wear clothes. Various clothing designs have evolved over the years too.

Therefore, the clothes move from the manufacturers to the consumers. In between there are [people who are mainly the ones who go between the manufacturers and the consumers. This is one of the reasons why a business such as a clothing store or a boutique as some folks would want to call it, are in existence.

A Sample Clothing Store Business Plan Template

1. Industry Overview

One of the reasons why clothing store (boutique) business will continue to thrive is the fact that people can’t do without putting on clothes. People that patronize clothing stores cut across the rich and the poor, the highly place in the society and the lowly placed; everybody need clothes to cover their nakedness.

The clothing store (boutique) industry comprises of small retail stores that sells a limited range of clothing and accessories. The industry is defined as single-establishment stores only. Clothing stores (boutiques) can be strictly designer based (i.e. only one designer’s collection is sold there), or they may sell a mix of designers’ labels (brands) that are specifically catered to the local market.

Players in the Clothing store (Boutiques) industry are defined as having only one location and typically focus on providing high-end or niche products to consumers. Changing fashion trends and of course consumer well-being is essential to industry growth because products are generally more expensive and rely on consumer discretionary incomes.

As a result, the start of the recession and its lasting effects on the US economy hurt industry performance. Per capita disposable income fell as many individuals lost their jobs; accordingly, consumer confidence plummeted and consumers cut spending, causing the industry to contract in 2009.

The clothing store (boutique) Industry revenue has since recovered; however, the industry is facing more stringent competition than ever before because of a rising number of imports and consumers’ shift to online shopping et al. The clothing store (boutique) industry is indeed a very large industry and pretty much thriving in all the parts of the world.

Statistics has it that in the united states of America alone, there are about 31,615 legally registered clothing stores (boutiques) responsible for employing about 65,810 employees and the industry rakes in a whooping sum of $28bn annually. It is important to state that, there is no company with a dominant market share in this industry.

The industry is projected to grow at 3.1 percent annual growth rate. Over the years, clothing stores (boutiques) have experienced tremendous growth in all cities in the United States of America and in most parts of the world. In response to the ever growing demand for clothes and other fashion accessories, clothing store owners have opened additional stores thereby creating chains of stores across different cities.

They are always ready to expanded into new markets and of course adapt to the ever changing trend in fashion and increase sales.

Over and above, the clothing store (boutique) industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets (chains of stores) in key cities.

2. Executive Summary

Mary & Mack Clothing Store™ is a neighborhood clothing store that will be located in a centralized area between a residential neighborhood and a busy business district in downtown Inglewood – Los Angeles, California. We conducted our feasibility studies and market survey and we came to the conclusion that Inglewood – Los Angeles is the right location for us to launch our clothing store (boutique).

We are in the clothing store (boutique) business to make profits at the same to give our customers value for their money and time whenever they patronize us. We want to give people who patronize our clothing store (boutique) the opportunity to choose from a wide range of both locally and foreign clothing designer labels (brands) at highly affordable prices.

We are aware that there are several small clothing stores and chains of clothing stores all around Los Angeles, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and our outlet is well secured and equipped with the various payment options available in the U.S. Beyond retailing quality and affordable clothes and fashion accessories in our clothing store, will ensure that our customer care is second to none in the whole of Los Angeles – California.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied and get what they are looking for whenever they visit our clothing store and also to become our loyal customers and ambassadors in and around our neighborhood.

Mary & Mack Clothing Store™ will ensure that all our customers are given first class treatment whenever they visit our store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions that will directly or indirectly affect them.

Mary & Mack Clothing Store™ is owned by Mrs. Marry Hennessey – Crowder and family. She has successfully managed several retailing business both in Los Angeles and New York prior to opening her own clothing store. She will run the business alongside her immediate family members. Mrs. Mary Hennessey – Crowder has a Degree in Business Administration from University of California.

3. Our Products and Services

Mary & Mack Clothing Store™ is going to operate a standard and registered neighborhood clothing store that will retail a wide range of clothes and fashion accessories from both local manufacturers and international manufacturers just like any other registered and standard clothing stores in the United States and in any part of the world.

These are some of the products that we will retail in our clothing store (boutique);

  • Women’s clothing
  • Men’s clothing
  • Children’s clothing
  • Newborn clothing
  • Maternity Clothing
  • Footwear (Shoes, Canvas, Sandals and Slippers et al)
  • Other fashion accessories (belt, handbags, sun shades, caps, hats and wristwatches et al)

4. Our Mission and Vision Statement

  • Our vision is to establish a one stop clothing store (boutique) in Los Angeles – California and in other cities in the United States of America.
  • Our mission is to establish a clothing store business that will make available a wide range of clothes and fashion accessories from top brands at affordable prices to the residence of Los Angeles – California and other cities in the United States of America where we intend opening our outlets and selling our franchise.

Our Business Structure

Mary & Mack Clothing Store™ do not intend to start a clothing store business like the usual street corner clothing store (boutique) business; our intention of starting a clothing store business is to build a standard clothing store (boutique) that will be a one – stop shop for both old and young people, rich and poor people and male and female et al which is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more especially when we start selling our franchise or running chains of clothing stores.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Store Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Information Technologist
  • Accountants/Cashiers
  • Cleaners

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Store Manager:

  • Responsible for managing the daily activities in the store
  • Ensure that the store facility is in tip top shape and conducive enough to welcome customers
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Interfaces with third – party providers (vendors)
  • Control the sales floor inventory
  • Ensure that clothes and fashion accessories are properly arranged
  • Supervise the entire sales staff and workforce
  • Handles any other duty as assigned by the CEO

Merchandize Manager

  • Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Help to ensure consistent fashion trend and quality of clothes and fashion accessories on our rack
  • Responsible for the purchase of clothes and other fashion accessories for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Document all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Information Technologist

  • Manages the organization website
  • Handles e-commerce aspect of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manages the organization’s CCTV
  • Handles any other technological and IT related duties.

Accountant/Cashier

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the store manager in an effective and timely manner
  • Consistently stays abreast of any new information on Mary & Mack Clothing Store™ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to our customers when they make enquiries

Cleaners:

  • Responsible for cleaning the store facility at all times
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the store facility
  • Handles any other duty as assigned by the restaurant manager.

6. SWOT Analysis

Our intention of starting just one outlet of our clothing store in Inglewood, Los Angeles – California is to test run the business for a period of 2 to 4 years to know if we will invest more money, expand the business and then open other chains of clothing stores all over California and perhaps also sell franchise through the United States of America and Canada.

We are quite aware that there are several clothing stores all over Los Angeles and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Mary & Mack Clothing Store™ employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Mary & Mack Clothing Store™;

  • Strength:

Our location, the business model we will be operating on (one stop physical store and online store), varieties of payment options, wide range of clothes and other fashion accessories from local and international manufacturing brand, opening 24 hours a day and 7 days a week and our excellent customer service culture will definitely count as a strong strength for Mary & Mack Clothing Store™.

  • Weakness:

One major weakness that may count against us is the fact that we are a new clothing store in Inglewood – Los Angeles and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

  • Opportunities:

The fact that we are going to operate our clothing store in one of the busiest district in Los Angeles – California provides us with unlimited opportunities to sell our items to a large number of people.

We have been able to conduct a thorough feasibility studies and market survey and we know what our potential customers/residence within the location where our clothing store will be located will be looking for when they visit our clothing store. We are well positioned to take on the opportunities that will come our way.

  • Threat:

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing and spending power. Another threat that may likely confront us is the arrival of a new clothing store in same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

One major trend over the years in the clothing store (boutique) industry is that, clothing stores (boutiques) have experienced tremendous growth in all cities in the United States of America and in most parts of the world. In response to the ever growing demand for clothes and other fashion accessories, clothing store owners have opened additional stores thereby creating chains of stores across different cities.

They are always ready to expanded into new markets and of course adapt to the ever changing trend in fashion and increase sales.

As a matter of fact, it is common to find clothing stores located alongside a busy road, in a busy community, in an urban area, or near a railway or railroad station or other transport hub. In some countries like the United States, united kingdom and France et al, clothing stores are known to be opened 24 hours a day and 7 days a week.

If you keep tabs on the clothing store business and retailing business generally, you would have noticed that It is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies.

No doubt data collected from customers goes a long way to help retail stores serve them better. Another common trend in the retailing industry of which clothing store falls under is the pricing system.

Aside from having varieties and quality of the items in a convenience store, one of the easiest ways for players in this line of business to sell the items on their racks as fast as they can and keep re – stocking is to ensure that the prices of their items are a bit lower than what is obtainable in elsewhere. For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4.00, $100 and $200.

8. Our Target Market

When it comes to selling items that are found in clothing stores, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in the locations where we intend opening our clothing store.

One thing is certain; we will ensure that we only retail quality and affordable clothes and other fashion accessories in our clothing store. In view of that, we have positioned our clothing store to service the residence of Los Angeles – California and every other location where our clothing stores will be located all over the United States of America and Canada.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our clothes and fashion accessories to the following groups of people;

  • Households
  • Male and Female
  • Toddles and Newborn Babies
  • Bachelors and Spinsters
  • Corporate Executives
  • Business People
  • About to wed couples
  • Expectant Mothers (Maternity Gowns)
  • Sports Men and Women
  • Students
  • Celebrities

Our competitive advantage

Mary & Mack Clothing Store™ is launching a standard and registered clothing store that will indeed become the preferred choice of residence of Inglewood, Los Angeles – California and in every other locations where our chains of clothing stores will be opened.

Our clothing store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Los Angeles and few meters away from a busy business district. We have enough parking space that can accommodate well over 25 cars per time.

One thing is certain; we will ensure that we have a wide range of quality and affordable clothes and fashion accessories from top fashion labels available in our store at all times. It will be difficult for customers to visit our store and not see the cloth or fashion items that they are looking for. One of our business goals is to make Mary & Mack Clothing Store™ a one stop fashion shop.

Our excellent, highly experienced and qualified management team, customer service culture, online store, various payment options and highly secured facility with enough packing space will also serve as a competitive advantage for us.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups clothing stores in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Mary & Mack Clothing Store™ is established with the aim of maximizing profits in the clothing store (boutique) industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of clothes and fashion accessories from a wide range of fashion labels to a wide range of customers.

Mary & Mack Clothing Store™ will generate income by retailing the following items;

  • Women’s clothing
  • Men’s clothing
  • Children’s clothing
  • Newborn clothing
  • Maternity Clothing
  • Footwear (Shoes, Canvas, Sandals and Slippers et al)
  • Other fashion accessories (belt, handbags, sun shades, caps, hats and wristwatches et al)

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.

One thing is common with clothing store business, the larger a clothing store (including varieties of quality clothes and fashion accessories at affordable prices), the larger the numbers of customers that will patronize them. Although we may not be as large as the biggest clothing stores or retailers in the United States.

But we will ensure that within our capacity we make available a wide range of clothes and fashion accessories et al from different brands both local and foreign manufacturers in our store. Below are the sales projections that we were able to come up with for the first three years of operations;

  • First Year-: $75,000
  • Second Year-: $250,000
  • Third Year-: $700,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Mary & Mack Clothing Store™, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Los Angeles – California and in every other cities where our chains of clothing stores will be opened.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the clothing store / retailing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Los Angeles – California.

In other to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Mary & Mack Clothing Store™ will adopt the following sales and marketing approach to win customers over;

  1. Introduce our clothing store (boutique) by sending introductory letters to residence, business owners and organizations in and around Los Angeles – California
  2. Open our clothing store with an open house party for people in the community
  3. Advertise our business in community based newspapers, local TV and radio stations
  4. List our business on yellow pages ads (local directories)
  5. Leverage on the internet to promote our business
  6. Engage in direct marketing
  7. Encourage word of mouth marketing (referrals) from satisfied and loyal customers

11. Publicity and Advertising Strategy

Despite the fact that our clothing store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our clothing store.

Mary & Mack Clothing Store™ has a long term plan of opening chains of clothing stores in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Los Angeles – California before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the public. Here are the platforms we intend leveraging on to promote and advertise Mary & Mack Clothing Store™;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations all around Los Angeles – California
  • Engage in road show from time to time in and around the location of clothing store
  • Distribute our fliers and handbills in target areas in the community where our clothing store is located
  • Position our Flexi Banners at strategic positions in the location where our clothing store is located.
  • Advertise our clothing store in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to clothing stores and retailing business generally, it is normal for consumers to go to places (clothing stores) where they can get good quality clothes and fashion accessories at cheaper price which is why big players in the clothing store / retail industry like attract loads of consumers.

We know we don’t have the capacity to compete with other bigger clothing stores and retailer, but we will ensure that the prices of all the items that are available in our clothing store are competitive with what is obtainable amongst clothing stores (boutiques) within our level and in our location.

  • Payment Options

At Mary & Mack Clothing Store™, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

  • The Total Fee for Registering the Business in California – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
  • Marketing promotion expenses for the grand opening of Mary & Mack Clothing Store™ in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • Cost for hiring Business Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
  • Cost for Shop remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits – $2,500.
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide range of both locally and imported quality clothes and fashion accessories from different manufacturing brands) – $70,000
  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • Cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of Launching a Website – $600
  • The cost for our opening party – $7,000
  • Miscellaneous – $10,000

We would need an estimate of $250,000 to successfully set up a standard and well stocked clothing store in Los Angeles – California. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding/Startup Capital for Mary & Mack Clothing Store™

Mary & Mack Clothing Store™, is a family business that is solely owned and financed by Mrs. Marry Hennessey – Crowder and family. They do not intend to welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $75,000 and soft loan from family members $25,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Mary & Mack Clothing Store™ is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our clothes and other fashion accessories a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mary & Mack Clothing Store™ will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the shop: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of designers’ labels and fashion accessories that will be available in our clothing store: Completed
  • Establishing business relationship with vendors – wholesale suppliers of various brands of clothes and other fashion accessories that we intend retailing: In Progress

Frequently Asked Questions

  1. How Do You Legally Start An Online Boutique?

It takes hard work and a little know-how to legally set up, fund, and operate an online boutique. Here are steps to legally start your online store.

  • Decide What To Sell
  • Create A Business Plan
  • Register Your Business
  • Choose An ecommerce Platform
  • Choose A Payment & Shopping Cart Solution
  • Build Your Website
  • Establish Shipping Logistics
  1. How Much Do You Need To Start An Online Boutique

There are a lot of variables, with your product line and income goals being the prime factor. However, it’s safe to say you can start an online boutique for less than $5000. That’s a low cost of entry into what can be a very lucrative marketplace.

  1. How Do You Make Your Online Boutique Successful?

Effective ways that will help you get lots of traffic without spending a huge budget include;

  • Create a beautiful store
  • Social media activity
  • Customer care
  • Promos
  • E-mail marketing
  1. How Do You Find A Vendor For Your Online Boutique?

The simplest way to find wholesale vendors in the US is by Googling the company of the product you want to sell, going on their website, and finding out who their wholesale distributors are. Note that small companies sometimes tend not to have distributors and will sell to you directly.

  1. How Much Do Online Boutique Owners Make?

As of Apr 12, 2021, the average annual pay for an Online Boutique Owner in the United States is $72,160 a year, and this works out to be approximately $34.69 an hour.

  1. Physical Product Model And Drop Shipping Model, What You Should Choose?

There is no definitive way to best choose a distribution model. In general, both the physical product model and drop shipping model have significant benefits and challenges. Choosing between these two models will depend largely on the details of your specific business. Many online retailers employ a mix of these supply strategies, as well as logistics from other distribution models.

  1. How Profitable Is An Online Boutique?

Starting and running an online boutique is a very profitable business with the industry making $90 billion-a-year in revenue. Industry reports note that the apparel and accessories online retail sector in the U.S. will generate about 138 billion dollars in revenue by 2022.

  1. Should You Sell On Etsy, Or Build Your Own Ecommerce Site?

While Etsy is great for so many reasons, the main issue with it is the amount of competition on the platform (and how accessible your competitors shops are while customers are browsing your shop) and the lack of brand awareness.

Notably, if you intend to grow a strong brand that people will remember and follow and talk about to their friends, it’s very daunting to establish that if you’re just using Etsy. The platform is full of distractions and your competitors’ listings, as well as having limited design options for your shop front.

  1. How Do You Start An Online Clothing Business From Home?
  • Choose Your Niche
  • Choose Your Products
  • Choose Your Business Model
  • Outline Your Business Plan
  • Create Your Store
  • Launch Your Online Clothing
  1. Where Do Online Boutiques Buy Their Clothing?

Most online store owners buy boutique clothing from wholesale suppliers that offer a competitive price, various styles, and high-quality clothing. But they will also go to the trade show and grab the opportunity in it.

  1. How Do You Start An Online Boutique Without Inventory?

It is possible to start an online boutique without stocking any inventory, and it will be a fair business, not a fraud. The possible models to choose from include;

  • Launching an affiliate store
  • Employing print-on-demand services
  • Using 3PL/FBA
  • Dropshipping
  1. Where Can You Buy Wholesale Clothing Online?
  • Wholesale Central
  • CC Wholesale Clothing
  • Aliexpress
  • Chinabrands
  • Tasha Apparel
  • Stylepick
  • LAShowroom
  • Boulevard Apparel
  • Wholesale Fashion Square
  • FashionGo
  • OrangeShine
  • Chase USA International Inc
  1. When Starting A Boutique, About How Much Product Should You Have When You Launch?

This will depend on your financial capabilities and your marketing and sales strategy. Often, a particular item will come in multiple styles, differing in colour, size, pattern, or arrangement. Experts recommend 10 to 12 styles for your first collection. As for how many items to produce within each style frame, test out the waters first.

Your first few seasons you are testing and investing a lot into marketing and getting the word out there, don’t bog your business down with inventory if you don’t know how you are moving it.

  1. How Do You Choose The Best Products For Your Online Store?

Here are practical ways to find products to sell in your online store.

  • Solve a customer pain point
  • Appeal to enthusiastic hobbyists
  • Go with your personal passion
  • Consider your professional experience
  • Capitalize on trends early
  • Read customer reviews on existing products
  • Find product opportunities in keywords
  • Litmus test before you launch
  • Browse what’s trending on online marketplaces
  • Research products with higher profit margins
  • Start your search with related products
  • Always be on the lookout
  1. Is It Hard To Start An Online Boutique?

Yes, however, with careful planning, strategic financing, and a little hard work, you can start and operate your own online boutique.

  1. Should I Register For An EIN First Before Registering An Online Boutique As LLC Or Register Under LLCs And Then Apply For EIN?

Ideally, it is best to get an EIN for your LLC after your LLC is approved by the state. The reason for this is that you want to make sure your LLC name is approved before “attaching” an EIN to it.

  1. Should I Start A Boutique Store If I Make My Own Products?

Yes, if you have the skills and creativity, you can create your own clothing line and sell it via your own store. This is a bit of a gamble since customers like traditional brands, but it lets you pocket more of what you sell when it comes to your own stuff.

  1. How Much Inventory Is Needed To Start A Boutique?

This is indeed a variable cost because the more you order, the more you’ll pay. At the same time, however, the greater variety of clothes you have to offer, the more customers you can appeal to, so a healthy starting inventory is good.

  1. How Do You Price Clothes For An Online Boutique?

Figure out a pricing strategy that aligns with your market. Here are top pricing strategies to consider;

  • Keystone pricing
  • Multiple pricing
  • Penetration pricing
  • Loss-leading pricing
  • Psychological pricing
  • Bundle pricing
  • Economy pricing
  • Cost-plus pricing
  • Premium pricing
  • MSRP
  1. Can You Market a Dress Design and Not Designed Dress?

If you mean the designs themselves, then you may not really, unless you intend to sell them as just pretty drawings. If you mean producing your designs and selling actual garments, you can put them up for sale on any ecommerce store for a grand fee.

  1. When Starting An Online Facebook Boutique How Much Inventory Do You Buy?

Online shoppers prefer to shop from fully stocked stores, as opposed to stores with limited options. Unlike brick-and-mortar stores, online stores allow customers to peruse through an entire collection in a matter of seconds. To fill up a page, aim for at least 9 to 12 pieces.

  1. How Much Does It Cost To Build A Clothing Store And How To Sell Clothes Online?

The exact costs of opening a clothing store vary based on your size and location. Some veteran boutique owners recommend not starting with anything less than $50,000 in financing, while others claim that $150,000 or even $200,000 are much more appropriate. However, here is the most up-to-date list of the best places to sell clothes online today.

  • ASOS Marketplace
  • Etsy
  • The RealReal
  • Refashioner
  • GREAT FOR
  • Poshmark
  • eBay
  • Depop
  • Facebook Marketplace
  • Tradesy
  • Vinted
  • Instagram
  1. How Can You Start A Small Boutique?
  • Plan your business
  • Form a legal entity
  • Register for taxes
  • Open a business bank account & credit card
  • Set up business accounting
  • Obtain necessary permits and licenses
  • Get business insurance
  • Define your brand
  • Create your business website
  1. How Much Money Do You Need To Open A Small Boutique?

On average, small boutiques can cost up to $100,000 to open. When it comes to opening a boutique, consider the necessities and priorities, and budget for those items. The rest can come later with growth.

  1. How Much Does It Cost To Start A Boutique?

According to reports, initial start-up costs for a brick-and-mortar boutique can average around $48,000. This doesn’t include items that vary based on your geographic location such as the first month’s deposit, insurance, utilities and licensing fees.

  1. How Do You Start A Clothing Boutique?

If you have a solid background in retail sales and a passion for fashion, you might find lucrative opportunities as a clothing boutique owner. Here are steps to follow;

  • Prepare a Business Plan
  • Prepare a Marketing Plan
  • License and Insurance
  • Capital and Financing Requirements
  • Find the Right Inventory
  • Supplies, Materials and Equipment
  • Set Up a Merchant Account
  • Hire Qualified Staff
  1. Magento Commerce Vs. Shopify Plus, Who Comes Out On Top?

Both are of the most highly appreciated options at the moment, however, Shopify Plus is more suitable for stores that are quickly growing and require less complex, customized and integrated solutions. It is especially the best option if your website is already on Shopify.

But for those looking to build their portfolio on a large, international scale and are close to generating $5 million in revenue per year, Magento Commerce would offer more flexibility.

  1. Where Can You Buy Wholesale Clothing For A Boutique?
  • Local Wholesale Market
  • Fashion Events and Trade Shows
  • Online Wholesalers
  1. How Much Does A Clothing Boutique Owner Make?

According to Payscale, the average retail store owner made around $51,000 per year as of 2018, with a range of $23,751 to $140,935+. These numbers may be very different in 2020, but no conclusive data on boutique owner salaries in 2021 has been gathered yet.

  1. Can You Buy Wholesale Without A Business?

Yes! Although buying wholesale is easier for businesses than it is for individuals, you don’t need to be a business to buy products wholesale. You only need to apply for a business license if you plan on reselling wholesale goods regularly.

  1. What Are The 6 Things That Are Going To Affect The Cost Of Your Boutique?
  • Fabrication
  • Construction
  • Location
  • Quantity
  • Extent of Competition in the Market
  • The Utility and Demand
  1. How Do You Sell A Product Without Inventory?
  • Multi-Level Marketing, or MLMs
  • Sell Print on Demand
  • Third-party fulfilment centres
  • Drop Shipping
  1. Where Can You Buy Quality Wholesale Clothing?
  • Sugarlips Wholesale
  • Bloom Wholesale
  • Wholesale Fashion Square
  • Tasha Apparel
  • Magnolia Fashion Wholesale
  • LAShowRoom
  • Chinabrands
  • Aliexpress
  • Alibaba
  1. What Are The Strengths And Weaknesses Of An Online Business?

Strengths

  • Low Financial Cost
  • 24/7 Potential Income
  • Easy to Showcase Bestsellers
  • Sell Internationally
  • Personalized Online Experience
  • Affordable Employees
  • Easier to Encourage Impulse Buy
  • Easy to Retarget or Remarket to Customer
  • Customers Get a Less Invasive Experience
  • Gain Access to Customer Data Easily
  • Able to Process a High Number of Orders
  • Grow Your Business Organically with Content
  • Can Scale Business Quickly

Weaknesses

  • No One Can Buy During a Site Crash
  • Customers Can’t Try Before They Buy
  • Ecommerce Is Highly Competitive
  • Customers Can Be Impatient
  • Shipping Times Can Be Lengthy
  • Physical Retail Is Still More Popular Despite Decline
  1. How Long After Launch Do You Expect To Make Significant Money?

Have it in mind that it takes time before you start making money. However, putting together a well detailed business plan will help you come up with the time it will take you to become profitable. Although a business plan is not a seer of the future, understanding your profit numbers and creating a break-even analysis is an important of your business plan that will give you some idea of when you will be profitable.

  1. WordPress Is Used By Beginners And Developers Alike, But Is It Right For You?

Yes, WordPress is the most popular way to build a website for a reason. If you want to build any type of website, from a blog to an ecommerce store, WordPress is a great option. The beautiful part about WordPress is that it adapts to your needs.

It can be as easy and simple as you want, or as complex and sophisticated as you need it to be. Since you are completely in charge and in full ownership, you can make things simple, control the cost, and efficiently run your website.

Ajaero Tony Martins