How to start your own clothing shop, basic to pro guide

Start your own clothing shop;

 

British clothing is a big business. Fashion-conscious consumers spend billions of dollars each year on their wardrobes. To supply this large spending habit, there’s a burgeoning retail clothing sector.

How to start your own clothing shop? There are many types of clothing shops in the United States. These range from large department stores like Marks & Spencer to high-street chains like Zara and Topshop, as well as independent shops that sell vintage, designer, and emerging brands.

It may appear that this market is perfect for budding entrepreneurs. It’s not so simple. The clothing sector is one of the most developed in Britain, and established brands are extremely competitive. You will need to search hard for a niche in this market and put in a lot of effort and resources to succeed.

Where are the gaps? What can a small clothing shop do that’s not already available in larger chains and stores? Specialization is the key. The larger stores generally offer the most choice for shoppers because they have the resources and space to stock a wide range of stock and the purchasing power and purchasing power to sell that stock at low prices. On the other hand, smaller independent stores can make a profit by specialising.

 

start your own clothing shop

 

It is crucial to find a niche. The niche may be based on the type or style of clothing that you are selling, as well as the customer you wish to attract. You might stock only suits or second-hand clothing, or ethical brands. You might choose to focus on clothing with a specific heritage or culture. For example, you could import clothing from Poland or sell South African clothes. You might also consider selling clothes for children, small-sized babies or schoolchildren. You should conduct market research to find your competitors and understand your customers. Also, get feedback about the products and price points you want to sell. This guide will help you calculate your target market. We also offer a free template for your business plan.

Mums, tell us about your business idea and what product range you want to sell.

Click here to view our general retail guide if you’re thinking about opening a shop.

 

The current fashion market

 

Clothing sales can be affected by weather and interest rates. The 2006 winter was mild and people didn’t need to buy new winter clothes. Consumer confidence is also affected by an increase in interest rates, which makes borrowing more costly. So, new clothes aren’t always necessary. This can make it difficult for stores that specialize in designer clothes to sell. This could be a good thing for second-hand clothing shops, provided they keep their clothes cheap.

Michael Goodmaker, an adviser to clothing retailers, is a member of The Institute of Business Advisers and works with small clothing shops in East London. He says that competition can make it difficult for clothing stores to survive.

“The supermarkets account for the majority of clothing sales. On the high streets, chains do a better job of selling clothes than independents.

As with any business decision, you must assess the risks and use your judgment to decide when to start.

 

Who are you suited to start your own clothing shop?

 

You don’t have to be a professional in order to open a clothing shop. To increase your chances for success, you’ll need to acquire certain skills.

Stock control

Fashion market trends change throughout the year. Clothes come in and out depending on the seasons and busy periods between March and May and September and December. It is important to control stock. It is important to keep enough popular lines on hand when you are busy. However, it is also important to ensure that the unsold clothes don’t pile up during trade slowdowns or seasonal changes.

To be able to predict fashion changes, you will need to be organized and have a good grasp of fashion. An electronic point-of-sale (EPoS), which records every item sold and calculates how much stock is left, can help you keep stock under control. This will allow you to stock your shop with the right products and quickly inform you of which lines are doing well.

Create an image

Clothes are about image. You need to make sure that every area of your shop reflects the image you want to project. This starts with the clothes. It is important to be knowledgeable about fashion trends and know what labels customers like.

The shop’s image extends beyond the clothes, fixtures and fittings, ambience, and name. A shop’s interior design can be a challenge. you should need the knowledge to start your own cloth shop or store 

Customer service

Smaller shops are able to differentiate themselves from larger stores by the level of service they provide their customers. Being a shop owner means that you will be there until the end and in constant contact. It is important to have the ability to get along with customers.

Your customers may feel welcomed by simply chatting with them and offering advice about fashion, colours, and fitting. Personal service can include taking measurements and making adjustments, so it is worth having some tailoring knowledge.

Bottega is a Cheshire-based ladies fashion boutique. Liz Urwin, the owner, says, “You have to connect to people and get along with them.” Surprised to find that independent shops are visited by people as much to meet the owner as the shop itself, was what I found. They will be disappointed if I’m absent.”

“You must be able to get along with people. It’s a close relationship. You have to be able to make alterations and stick pins in people. It’s important to feel comfortable with getting up close and personal.

How to run a business.

You will need to be able to deal with fashion and clothes but also have some business knowledge. To calculate stock levels, determine profit margins, negotiate prices, and file tax returns, you will need to be proficient with numbers.

You must be able to work six days per week and for long hours, especially during the Christmas season. All of this must be underpinned by a passion and enthusiasm for the clothes that you sell. To sell your stock, you must be enthusiastic about it. Urwin says that customers should be excited about the new stock they see, not just the first week but for the next couple of months.”

 

How to make your clothing shop stand out

 

Next, think about the type of shop you want to open. Most small independent shops specialize, as we have already stated.

Michael Goodmaker, of the Institute of Business Advisers, says that “Niche-market retailing is generally considered the only growth area in retail.” He suggests that you might be looking in the mirror if you’re unsure which area you should specialize in.

One way to find a niche is to be a niche customer. Imagine that you’re 6’7″ and can’t find trousers that fit you in London. Realizing that others have the same problem as you, you realize that there is a market for your product.

You must be very clear about who your customers and what they want in order to make your clothing store a success. You can target any segment of society. This could include teenagers, wealthy women, and outdoor enthusiasts. Even if your business is limited to one type of clothing such as school uniforms or suits, you should still be capable of defining your customers.

You should stock clothes that aren’t available elsewhere in your area. You may not have much choice because many suppliers agree to exclusive agreements with the shops they supply. This means that they will not sell the same clothes to any other shops within the area.

This may mean that your stock limit is not as broad as you would like. This is not necessarily a negative thing. You can build a loyal customer base if you offer clothes that are both fashionable and exclusive to your shop.

Location of business

After you have decided what kind of shop you want, it’s time to search for premises. The first step is to find a location. Goodmaker says this is crucial. “And it’s not worth being in the best locations. You can’t get people around the corner to buy clothes.”

To attract passing trade, all the major clothing store chains are prominently located on the high streets. A superstore is a great place to locate your shop.

These are the most expensive properties to rent. Do some market research to determine if you could locate your property near High Street without affecting your business. This will help you save a lot of rent.

You might consider opening a shop near another small independent shop that stocks similar, but not identical, fashion items. This could be a great way to attract customers, as clothes shoppers love to shop at multiple shops before purchasing.

Promotion of your clothing shop

After you have found the right premises, it is time to start thinking about how you can promote your shop. You will need to make sure that all garments are displayed clearly and kept current inside. Keep the shop looking fresh by moving the new ranges to prominent locations. A striking window display and mannequins throughout will help you attract trade.

Your customers will expect to feel at ease when they visit your shop. If they don’t, they won’t stop shopping or take the time to buy clothes. You need to ensure that your shop caters to the needs of your customers. While glitter balls and pop music are important in attracting teenagers, they will look strange in formalwear shops.

Advertise to as many people as you can in the area. Advertise in local newspapers and ensure that your details are included in the Yellow Pages.

Your shop can be promoted through a website that displays what you have to offer and keeps customers informed about new stock, sales, and other details like opening hours and phone numbers. An online shop can also increase your sales, especially if you sell products that don’t need a try on such as T-shirts, socks, or ties.

Liz Urwin, a Cheshire-based lady fashion boutique, suggests that you might also consider creative ways to promote your shop. Fashion shows work well, especially when they benefit charity. People are more likely to attend them.

Use the internet to replace a physical storefront

You don’t have to invest a lot in clothes shops if you are passionate about clothes. There is an alternative: selling clothes online, via mail order, at shows, or through a website.

Mike Dene, who has lived in the country his entire life, knows how important it is to have special clothing for working outdoors. He also knows the difficulties of finding high-quality outdoor clothing at high-street shops.

Mike and his wife decided to start Denewear, which imports specialist outdoor clothing from around the world, including Australia, New Zealand, and Scotland. Dene believes that any budding entrepreneur could build a business from this point.

All small businesses need to find unique products not available on the high street. This product will be key to your success.

“I spend six months on the shows, six months marketing the catalogues and six months on the shows. The shows used to generate 50% of our turnover, but the mail-order has reduced that to 40%.

After 18 years in business, Dene is a testament to the fact you don’t have to own a shop to sell clothing. “Many people would rather avoid the shop and get better known through the exhibition and show circuit. If you don’t have the capital to do it, there are other ways.

Dropshipping may be an option to physical stock if you are starting an online clothing store. Dropshipping is an alternative to holding physical stock.

 

What is the cost of starting and running a fashion company?

 

The set-up cost of a physical clothing shop will depend on its size and location. Rental costs are a significant expense. Renting will depend on the location of your shop.

A shop floor will also need storage. You will need to equip your shop with shelves, chairs and mirrors, as well as changing facilities. These items can be purchased second-hand. However, remember that the image of your shop will reflect in the clothes so don’t use cheap equipment.

Liz Urwin, who owns Bottega, a Cheshire-based ladies fashion boutique, had her shop completely remodelled when she took control of the business. Although the renovation cost was high, it was not expensive and required a new floor as well as all-new fittings and fixtures. The floor and shelves cost PS5,000 each. She explained that the clothes were expensive so they need to be displayed in an attractive environment.

A cash-till is required. It can be as simple as a stand-alone machine or as complex as a software-enabled machine. To manage the business’ administration, you will need a printer, a computer and basic accounting software. Clothes shops can be vulnerable to crime so it’s worth investing in security cameras and security tags.

The stock must be purchased. This can be costly initially because suppliers might refuse to provide credit for a new company. Urwin says, “If you place a PS5000 order using 30 or 60-day credit, the supplier must take out credit insurance. They can’t always get insurance when they supply a new company. It is possible to get stuck with complicated payment terms. This doesn’t necessarily mean they won’t supply you with the goods, but it could lead to you having to pay upfront which can severely impact your cash flow.

A clothing supplier might ask these questions:
Do they require a minimum order?
What does the shipping cost?
-Do they accept a proforma, 30-day instalment structure or upfront payment?
What terms do they have?

Although the cost of your initial investment will depend on where you live, how you furnish your shop, and what stock you have, you can be sure that it will exceed PS50,000 to get started.

You may find our free business plan template useful in preparing your clothing shop business plan.

 

What are the potential earnings for a fashion to start your own cloth shop?

 

The stock you have and the amount you sell will affect how much turnover you get. You will make a larger profit on the more expensive items, but these items are likely to be sold less often. Stocking accessories and jewellery can help you increase your income. These items will usually have a higher mark-up than clothing.

Michael Goodmaker, of the Institute of Business Advisers, believes it is not unusual for people to make a good profit with this type of business. You can succeed if you do it correctly. While the risks are great, so can the rewards. These days, the rewards are much more difficult to find.

Tips, Guides, information to start your own clothing shop or store

 

Success tips

You need to find a niche. Smaller shops should not compete with larger stores by carrying large quantities of clothing. Fill a niche in your market. High street locations close to supermarkets have the highest passing trade, but they are also expensive. Find the best location for your budget. Fashion is about selling your image.

Customers must be drawn to your shop, not only for the clothes they buy. You can be creative – think of innovative ways to stand out among the crowd, such as organizing fashion events and writing editorial pieces for local newspapers. You must control stock. Your marketing efforts will not be effective if there aren’t enough clothes in the right sizes for your customers.

Startups member “Where can I source wholesale designer children’s clothes?” Do you prefer to buy directly from the manufacturer or to use UK wholesalers instead? Is there anyone who can recommend wholesalers/suppliers for designer clothes at trade price?

Here are some helpful web contacts. However, don’t discount the possibility of visiting wholesale clothing supplier showrooms in person. For example, in London’s Eastcastle Street or in Manchester’s Piccadilly Gardens and Great Ancoats Street. For information on clothing manufacturers, another tip is to check out clothes labels. To start your own clothing shop, first you have enough knowledge, otherwise don’t start your own clothing shop or store.

Another member said, “I’ve been considering setting up an online shop for fashion accessories and clothing – both authentic designer items and cheaper ones.” If I do manage to find someone, they will be looking for people who are able to buy large quantities of their products. Do you have any tips on how to locate fashion clothing suppliers?

One member replies, “My first business was a Yorkshire ladies’ boutique selling designer clothes. After trading for a few months, I started an online boutique. I ran into the same problems you did. If you’re just starting out, it can be difficult and expensive to keep stock. I decided to use cash to buy my goods and then to carry wholesalers so that I could purchase what I wanted when I wanted. You can find wholesalers in London at Portobello Road, as well as fashion/trade fairs (e.g. Birmingham NEC, where you will find both small and big traders. You can often get in free of charge. In this article, we discuss starting your own clothing shop if you are interested feel free, follow the above step and start your own clothing shop or store.

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