Anyone who steps into a mall in the middle of a large city may feel that the apparel industry is crowded. The truth is, there is always room for another clothing store, particularly if you offer consumers something unique and new to your area.
With e-commerce booming, setting up an online store is also a viable option to make your dreams of running a clothing business come true. However, success in the retail clothing industry requires motivation, hard work and a solid action plan.
Follow these 11 steps to turn your retail business idea into a successful e-commerce or brick-and-mortar clothing store.
Figuring out your niche is an essential process of starting any business. You want to provide a product or service that connects with your target audience’s wants and needs.
For example, what type of clothing will you sell in your store? Evaluate whether your market will respond to a new men’s, women’s or children’s clothing store, or a combination of these offerings.
Then you can choose a specialty, such as vintage clothing for women, boutique items, maternity clothing, sportswear or accessories. You can even create your own clothing brand as a fashion designer.
Identifying your target audience goes hand in hand with finding your business niche. You must identify who will purchase your clothes.
What type of potential customer are you targeting, and what clothing would they buy? Do you want to target those looking for a high-end fashion brand, or to those looking for more affordable clothing?
Identifying your target audience will help you make these choices and narrow your brand identity.
A competitive analysis assesses your current or potential business competitors. To perform a competitive analysis, you must identify the other companies in your market that currently offer a similar product and then analyze how their products are positioned.
The results of a competitive analysis help you learn about current market trends, product and service pricing, market saturation, industry best practices, market gaps, and business opportunities. Although a competitive analysis is necessary when you start a business, you should also routinely perform them throughout your company’s lifecycle to keep your business competitive.
Although it may not always be legally required, don’t skip writing a business plan. Every owner should create a business plan for their company. It serves as the blueprint of your business and helps you see the complete picture of your company’s mission, vision and feasibility.
Look to the U.S. Small Business Administration (SBA)’s website to determine the most appropriate legal structure for your business You can incorporate your business online or work with a lawyer to ensure you take all the necessary steps.
An expert can help you obtain a tax ID number and advise you on the business licenses you need. You will also want to obtain the appropriate business insurance.
The costs of starting an online business are often reasonable. However, starting a clothing store — online or offline — can be pricey. In fashion, you must spend money to make money.
You’ll likely need to choose a business loan to fund your business. Consider working in the fashion industry or at a clothing store to learn the ropes of the industry and save money to fund your company.
Don’t underestimate the financial capital you’ll need to get started. You must purchase merchandise, pay employees, buy marketing materials, and furnish the store with fixtures and lighting, to name just a few expenses.
If you’re starting a brick-and-mortar clothing store, location is one of your most vital decisions. You must commit to a storefront in a specific town and state and consider the neighborhoods and streets that will bring foot traffic and a large consumer base interested in (and able to afford) your merchandise.
Once you’ve narrowed your location options, you must find the right building. Consider storefronts in strip malls and standalone locations, or look into mall leases if they suit your type of clothing store.
You must keep inventory numbers in mind and consider the following questions:
Whether or not you’re opening a brick-and-mortar store, you will also want to create an online clothing store to sell your items. If you use e-commerce exclusively to sell your merchandise, getting this step right is even more imperative.
You can build an e-commerce website yourself or hire someone to handle the web design process. Many startups and small businesses turn to the best website builders and design services for help developing, building and maintaining e-commerce websites. It’s crucial to find a platform that’s affordable and easy to use.
Some companies offer retail-specific web design templates, which can simplify the e-commerce store-building process. Look for a solution that supports your current product quantity and can scale with your business as you grow.
You must purchase merchandise from designers or manufacturers to fill your clothing store. Consider the following tips:
Anticipate problems or questions concerning employees, store hours, customer service, loss prevention, damages, returns and other day-to-day operations for your clothing store. Consider best practices from other established stores and distribute materials explaining these procedures to all new employees (if you hire any).
When you’re ready to open your doors (physically or virtually), share the news with everyone, including friends, family and social media connections. Create a marketing plan focusing on your store’s unique aspects and what your target customers will gain from shopping with you.
Consider the following marketing tips to get started:
Like any business, starting a clothing store can bring enormous benefits and significant challenges.
The pros of starting a clothing store include the following:
The cons of starting a clothing store include the following:
Julie Thompson and Skye Schooley contributed to this article.