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How to start your own clothing store from scratch - a rough business plan. Tips for Starting a Women's Clothing Store What You Need to Know to Open a Profitable Store |
Where to begin? When we talk about sewing production, there are two possible scenarios for the development of events. In the first case, an entrepreneur buys equipment, hires personnel and picks up orders from various designers, companies and even other industries that do not have enough capacity to sew everything that is needed. In this case, there is no question of creating your own clothing and brand, you do not need to think about how to market the product. The second case - and this is just my situation - implies that first the products will be manufactured, the demand for them is studied and distribution channels are found, and only then will their own factory be launched. Both types of production can work in symbiosis, and each path has both pros and cons. The launch of a production that works with orders will require a large amount of investment and fixed costs. The advantage of the second way is that there are no fixed costs. But at the same time, you cannot control the production process and the timing of the order from the contractors in any way. If there were factories that were taken on time and with high quality sewing products, I would not open my own production. Poor choice of target audience and misunderstanding of its priorities can put an end to your entire business. Many of the jacket manufacturers closed down simply because they focused on fashion and sewed for young people. It was a road to nowhere, as young people would rather go to the market and buy a fake but well-known brand there, rather than quality clothing under a little-known brand. I immediately decided to go the other way and chose an older audience for myself - 30-40 years old. These are people who no longer care about clothing tags. It is important for them that the products are of high quality and convenient. A little later, we reoriented ourselves a little and now we sew clothes primarily for travel, but we also have urban models of jackets. Keep in mind that you should not immediately sew a large batch of products. For a start, it is better to make a small number of products and see how they will be sold. Having decided on the target audience and products, you need to think over the distribution channels. For example, you can sell your products both to wholesalers, who will already resell them in their stores, and to retail customers through their own chain of stores or an online store with delivery. We use both methods in our practice. But the main focus is still on retail buyers. You shouldn't spontaneously start launching your own production. Ideal if you already have some experience in the garment industry or light industry, entrepreneurial experience. In this case, you will have an idea of \ u200b \ u200bwork and certain connections in this environment. It is advisable to spy on how the work of other manufacturers is being built. In addition, it is worth immediately attracting professionals to your team who can be entrusted with solving highly specialized issues in which you are not entirely competent. Good technologists, designers and production directors will save you headaches. Investment size The amount of investment will depend mainly on what kind of production you want. If you plan to simply take orders from others, work on tolling raw materials, you need at least 20-30 machines to have a sufficient volume of production. With small volumes, such garment production will not be profitable. In addition to 20 ordinary sewing machines, you will need 10 more different devices: overlocks, button and rivet machines, and so on. The prices for such tools can be very different, but it is quite possible to count on an average of 15 thousand rubles for a used car. If you work on tolling raw materials, fabric, threads, accessories and other necessary things will be provided by the customer, so this item of expenses is eliminated. But keep in mind that workers will have to pay wages from the very first day of the opening of production, and most likely there will be no large orders at first. The biggest problem in any production is fixed costs. Personal experience I chose a fairly narrow audience - travelers - and began to act through it. Sewed a trial batch of jackets and distributed them to people who travel actively and are known in certain circles. They began to mention our products in their blogs, upload photos. But the real breakthrough came after one of the bloggers came to talk about jackets. The conversation was not so much about jackets as about business, and the guest asked for permission to record the conversation on a dictaphone. After that, he posted a recording of the conversation on his blog. I was surprised that the recording received a lot of positive feedback. After this publication, I began to receive offers of cooperation from federal newspapers and TV channels. So the coolest part of my brand's PR cost me almost nothing. One way or another, the entrepreneur has a question about where to get the money to start his production. After all, 2 million rubles are not lying on the road. The very first thought is to get a loan, but in today's conditions, loans are increasingly turning into a stone that drowns business. The smartest way is gradual funding. It is quite possible to collect a couple of hundred thousand rubles, and you can start something with this amount. This scheme is best used if you are launching your own brand. It is very difficult to apply such a scheme to garment production using tolling raw materials. Therefore, it is worth trying to attract an investor, for example, by promising him a share in the business. Although investors are very reluctant to invest in production, there are many risks, and the profitability is small. Step-by-step instruction So, at first, you need to decide on the type of garment production, target audience, calculate the amount of funding and find its source. After that, you can proceed directly to the creation of production. And the first thing you need is to find suppliers of equipment and raw materials. As you know, it is always easier to buy than to sell. There are a lot of suppliers of equipment - from used to the newest and most modern - in Russia. At the same time, most of them are now extremely willing to make contact, because there are no queues of buyers for them. Finding such suppliers is not difficult via the Internet. The main thing is to decide what kind of equipment you need and what price you are willing to pay for it. When choosing a fabric supplier, you need to proceed from what kind of product you have. For example, if you are sewing clothes in the premium segment, it makes sense to spend money on expensive European fabrics. At the same time, there are a lot of suppliers on the market working with Russia and China. Fabrics made in these countries can be much cheaper, so if you work for a consumer with an average income, it is better to prefer them. But it is important that the quality of the fabric remains at a decent level, and it is not produced in a handicraft factory. If you have a large enough production volume, then you can contact the factories directly. Although the intermediaries are now also not much "wind up" prices. The main difficulty in the sewing industry is finding good personnel. To get started, you need a production manager who will strictly monitor discipline. He must be motivated to do his job well. In addition, it is important that he understands the production process itself and can suggest how to adjust something. You will also need a cutter who can not only cut according to ready-made patterns, but can also make changes to them. For large production, two cutters will be needed. An important figure is a technologist who will choose the optimal operating modes, control the quality of products, improve the production process, etc. If you plan to design clothes on your own, you will need a designer that will make patterns. But in the event that you are just going to work with third-party orders, it is also desirable to have such a specialist on the staff. Often the customer does not provide any patterns, but simply brings a sample of the finished product. Therefore, there must be a person in the production who, according to the appearance of the jacket, will recreate the pattern. I do not advise hiring young employees for production, since they are not motivated, and as a result, the quality of work suffers. The negligent attitude of the staff to work entails direct material losses: negligent employees can simply ruin good expensive material. As a rule, people of pre-retirement age approach their responsibilities more responsibly. And it's not just about experience or financial motivation. Most of these people are simply ashamed to do their job poorly. The advantage of the sewing industry is that the hours of operation can be almost any. The main thing is that the required number of products is sewn during the shift. When I opened production in St. Petersburg, we started working at 10 am. But having moved to Veliky Novgorod, I was faced with the fact that the workers wanted to "guess" the time of the shift so as to be in time for their personal plots. Therefore, in winter and autumn, we usually work from 8 to 5, and in summer we start even earlier. The question of how many shifts to introduce at your enterprise depends on its load and on the number of orders. When deciding where to open production, it is worth deciding not only on the area and infrastructure, but also on the city. It is best to open in small towns. As a rule, they are much cheaper to rent and also have a better chance of networking with local authorities, which can be very helpful. When it comes to location, you don't need good pedestrian traffic or a central area at all. Moreover, renting a room in the city center is quite expensive, so it is better to choose a location on the outskirts. But remember that employees need to be comfortable commuting to work. The floor space will depend mainly on how many jobs you have. There are no special repair requirements. The requirements for sewing production are detailed in SanPiN 5182-90, issued back in 1990. But many of the requirements in it are actually outdated. For example, the document states the requirement not to exceed the noise level of 80 dBA, but in fact, no separate measures to reduce the noise level are needed, since modern sewing machines operate quite quietly. The main requirement is good lighting. The sewing workshop should have natural light sources as well as fluorescent lamps. In addition, every workplace should be equipped with local lighting. To get started, no permission from SES and firefighters is required. All the necessary documents and contracts must be provided by the landlord. It is also advisable to certify the production in accordance with ISO 9001. Remember that current laws prohibit business audits for the first three years if you have not received any complaints. That is, you will have a spare time in order to calmly and without haste to collect all the documents, bring the premises in compliance with the standards, get certified and work. The documents In the case of a garment production, it is preferable to register an LLC, rather than an individual entrepreneur. Simply because in the eyes of the customer the LLC looks much more reliable. It is best to choose a simplified tax regime. In the event that you work on tolling raw materials, choose the "income minus expense" formula. The accounting will be stricter, but you will be able to save money, since the main item of expenses you will have will be staff salaries. How to start a clothing business?The clothing business has long been proven to be profitable. Things have always been bought, and will be bought, no matter what kind of business it is: a business selling women's clothing, men's or children's. Many aspiring entrepreneurs often face the question: "Which business format is better?", "Where is it more profitable to start?" The questions are really difficult, because you can open a wholesale organization and become a supplier, you can open a standard retail store, or you can start with a simple online store. The choice is sufficient, so you need to analyze this issue "from and to", so that later it turns out that the choice made is a big mistake. Clothing business formatsThere are three business options for selling children's clothing, men and women.
Wholesale clothing sale- this is a kind of store, the purpose of which is still the same: the sale of goods. Only the target audience is not buyers, but retail stores. That is, the process is as follows: a wholesale store buys goods in large quantities, becomes a supplier and starts looking for options for selling products. These options are retail stores. Thus, a small chain is formed: manufacturers from whom the wholesale company is purchased, - the wholesale company from which retail stores are purchased, - retail stores that sell their goods to customers. Retail- This is a regular store, in this case, specializing in clothing. The target audience is consumers. The main characteristics that are common to all retail stores are:
These characteristics are both distinctive and, thanks to them, the stores have their own personality. Online sale- a popular method today. It involves organizing and running an online business. Buyers can make purchases without leaving their homes. To do this, they just need to choose the right thing and pay for the goods either with a card or using a payment system. The main condition for organizing an online store is to make the shopping process as comfortable as possible for customers so that they want to return to shopping. Wholesale company opening processOpening a wholesale company, regardless of the type of clothing and the target customer (mono-brand or multi-brand store, stock, second-hand, boutique), has common components:
The first step is to get acquainted with competitors, collect the maximum information on sales in a given region, and identify its dynamics. It will not be superfluous to talk to dealers. Before opening a wholesale store, it is necessary to draw up the most detailed business plan that will reflect all financial information. Finding a location is not the most critical stage. When opening a wholesale company, an advantageous or favorable location is not required at all, since retail stores will either come themselves for the goods, or even provide all the work of the wholesale company. Therefore, the most important will be precisely the optimal location. The building can be found ready or built for specific purposes (depending on the availability of free funds). Before renting or buying a ready-made space, you must make sure that it is suitable for a warehouse. After the building is rented or bought out (built), you need to start arranging the premises: it is worth dividing it into sections (loading, unloading, receiving, assembling, storing goods). Equipment will also be needed, depending on the assortment, weight and dimensions. The stage of selecting suppliers is different for each type of store. If the target audience is stock stores, then you need to buy clothes either from manufacturers or from stores that have leftovers. Second-hand shopping is the most economical option (buying clothes is cheap, unlike others). Suppliers are companies that collect things. Multi- and mono-brand items, as well as expensive and elite items for a boutique, are purchased directly from manufacturers. A wholesale store will need employees.
To make things easier for retail stores, driveways need to be comfortable and clear. A good option is a building on the outskirts of the city, where you can easily and without traffic jams get there. Store opening processOpening a store begins with drawing up a business plan for the sale of clothing. After that, registration begins (LLC or individual entrepreneur). Next, the most crucial stage is finding a location. It should be in a walkable place where there is a large flow of people every day. This could be a shopping center or a free-standing store in the city center on a busy street. It all depends on the type of clothing sold and its target audience. The size of the room also varies depending on the type of clothing sold. For example, a second hand does not require a large room. After the premises are rented, the search for suppliers, the purchase of equipment and the hiring of personnel begins. By and large, wholesale companies will be suppliers. You can search for them either through friends or through advertisements on the Internet. Equipment also depends on the store. If it is a boutique, then everything should be expensive, and if it is second-hand, then you will not need a lot of equipment and, in principle, will not pay attention to it. Hiring personnel is another crucial moment, since the profitability of the business (its profitability) depends on the employees. And the last step is advertising. You can read more about opening a retail store (its stages, the main advantages and disadvantages for each type of clothing) in the previous articles. Opening an online storeThe business of selling clothes online is as follows. The first is finding suppliers. It is very important for an online store to have a quality product. You can create your own warehouse where clothes will be stored, or you can agree with the supplier that clothes will be picked up from their warehouse for each order. The second option is cheaper, regardless of the clothing, its quality and brand. To open an online store, you need a website. For the site - hosting and domain, for which you can find low prices. Hosting is paid every month. You will also need to register a legal entity (LLC or individual entrepreneur) in order not to have problems with the tax office. It is important to provide for payment and delivery methods, there must be a choice so that the buyer finds something suitable for himself. When suppliers are found, the site is created, you need to attract buyers. To do this, you need to start active promotion: contextual advertising ordered from Google or Yandex. It will attract to the store those who see this ad and follow the link. There is another option - advertising in boxes. You can create your own affiliate program so that buyers bring their friends and acquaintances and receive interest on their purchases. Promotion is a tool for building a base of regular customers. It is focused on sales (20% of repeat customers = 80% of sales). In order to retain customers, you need to hold constant promotions and discounts, give coupons and send messages with great deals. Online shopping has its pros and cons. Of the advantages, it is worth highlighting simplicity and minimal costs, and of the minuses, it is unlikely that it will be possible to achieve high income (of the three options, this one has the minimum profitability), unlike retail or wholesale stores. There is also a limitation on target audiences. Any clothing business can be profitable. All this will happen only for different periods of time. Fastest payback period for a retail store. And the simplest method of organizing is having an online store. A wholesale company, along with an online store, is not characterized by such high costs. But profit margins are also higher in retail. Each business option has its own positive and negative sides. Therefore, each entrepreneur must independently decide on the choice, based on his experience, opportunities (financial, including) and desires. |
We are opening a store selling women's clothing! The “Cleopatra” store started working on December 12, 2007, in the city of Nevyansk with the aim of providing the city residents with non-food products (clothes).
The Cleopatra store serves a contingent of customers with different income levels. Basically, the store is aimed at customers with an average income level. The trade organization has a very convenient location in the city center, close to schools, a clinic, a savings bank, a cafe, a chain of stores. This means that there will always be buyers in it. By examining the tables below, you will understand how profitable it is to open a clothing store. Sales forecast for 5 years, thousand rubles
Operating expenses by quarters for 2011, thousand rubles Profit forecast, thousand rubles
Learn more: is it profitable to open a clothing store and download a business plan for a women's clothing store, you can
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Stage | Jan | Feb | Mar | Apr | May |
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registration | |||||
Working with the room | |||||
Equipment purchase | |||||
Team search | |||||
First purchase | |||||
Advertising | |||||
Opening |
How to Open a Clothing Store: Launching a Startup Step by Step
The success of a business directly depends on the entrepreneurs themselves:- how carefully they approached starting a business;
- were you able to choose the right concept (thrift store or new clothes sale);
- how long it took to complete all the documents;
- have you managed to save money at the initial stage, for example, on the purchase of equipment;
- whether a passable place was found to open a clothing store;
- whether the assortment and pricing policy have been reasonably formed;
- and even from the choice of the form for registration: individual entrepreneur or LLC.
Doubting where to start?
Of course - from the registration procedure and the selection of a suitable premises.
registration
You should start to deal with the registration procedure by choosing the form of your future business: individual entrepreneur or LLC.
Remember that the area of your store should be up to 150 square meters, otherwise you will need to open an LLC.
Yes, you don't need a market larger than 150 squares to open a clothing store from scratch - it's too risky a startup.
By registering as an individual entrepreneur, you can choose a simplified form of taxation, for example, UTII. After that, you register with the Pension Fund, presenting all registration documents.
And you definitely need to take care of the legalization of your outlet.
It is advisable to draw up documents before purchasing equipment and delivering goods.
To legalize a point, you will have to:
- Register with the Chamber of Commerce.
- Design the "Buyer's Corner".
- Register the cash register.
- Obtain permission from the Fire Service and SES.
- Conclude contracts for garbage collection and so on.
It is even more difficult, because you will also have to conclude an agreement for each accepted unit of goods, so it makes sense to open a new clothing store, and not a commission one.
Location
You cannot open a business motivated only by cheap rent.With such success, you can start opening a clothing store at home in the hope that suddenly customers will find you.
Climbing far to the outskirts, you must understand that you will have to spend a lot of money on an advertising campaign and form such attractive competitive advantages, for example, low prices, so that customers are not too lazy to get to you so far.
The choice of a place with high traffic plays a really important role in opening a clothing store (and, not even the point, whether you run a commission or not).
The ideal place is:
- Shopping center.
- Premises on the ground floor of a high-rise building in the city center.
- A sleeping area where the houses of people with decent income are located.
You also need to worry about:
- There were no direct competitors nearby.
- It didn't take long to find your clothing store (it's located on the main street, not somewhere in the courtyards).
- Equip parking. If you are opening an elite boutique, then you should draw up the documents so that only your customers can park their cars in this parking lot, and not everyone who wants to.
Premises
To open a clothing store from scratch, and so you will have to spend a lot (only for the first purchase you need at least 400,000 rubles, plus equipment, plus rental costs, etc.), so it is better to find a room that does not need major repairs.The dimensions of the premises depend on how large a clothing store you decide to open, but it is better not to rent an area less than 50 square meters, as you will create inconvenience for yourself and your customers.
The interior of the premises depends on the concept of your business:
- Use bright colors for decoration.
- An elite boutique should amaze with luxury.
- Fashion designer house - with creative ideas.
- For a market of inexpensive clothes, it is enough to do everything carefully, while choosing discreet colors.
- But if you decide to open a thrift store, then the interior is not too important, the main thing is the correctly selected assortment and prices.
Equipment
The cost of purchasing equipment directly depends on the size of your future store.
If the area of your market is large and you are focused on wealthy customers, then you will have to pay a large sum to purchase all the necessary equipment and fully equip your clothing store.
But even a small boutique (area - 50 squares) implies the purchase of the following commercial equipment:
Expenditure item | Amount (in rubles) |
---|---|
Total: | RUB 250,000 |
Racks and shelves | 30 000 |
Showcase for accessories (jewelry, etc.) | 20 000 |
Racks and hangers | 20 000 |
Equipment for two fitting rooms | 20 000 |
Mannequins | 10 000 |
Cash machine | 10 000 |
Laptop + printer | 25 000 |
Bathroom equipment | 15 000 |
Service room equipment | 40 000 |
Other | 60 000 |
Staff
Naturally, any store needs sellers who will:- polite, helpful, smiling;
- be well versed in the product that is being sold;
- have strong nerves and are tolerant of clients' shortcomings, such as nervousness, impatience, tactlessness, etc.
Today, it is rare for clothing stores to close for the weekend, so form two shifts of sellers at once.
The number of consultants per shift directly depends on the size of your store and the range of goods in it.
If we are talking about a modest corner in a shopping center, then one employee is enough.
If the area of the trading floor is more than 25 squares, then it is better to hire 4 sellers at once (2 per shift).
To motivate your consultants to better sell a product, don't put them on a bid. Such a scheme of work is more effective: a small rate (for example, 5,000 rubles) +% of sales.
In addition to sellers, you need to hire 1-2 cleaners (if you want your clothing store to always be clean, it is better to hire two cleaners so that they also work in shifts) and an accountant (alternatively, an agreement with an outsourcing company).
If you decide to open a large clothing store from scratch and are not too limited in funds, then you can hire a manager who will help you understand all the nuances of a new business.
Or you can manage on your own if you feel you can handle it.
On the salary of staff, you expect the following monthly expenses:
As you can see, salary costs will not be the same every month due to the fact that sellers do not have a fixed rate, their earnings depend on the amount of sales made.
How to open a clothing store: expenses
Naturally, entrepreneurs who decide to open a ready-made dress market are interested in the question "How much does it cost to open a clothing store?"You will receive an accurate answer to this question only when specifying specific amounts for equipment, rent, repairs in the premises, depending on its condition, etc.
Before making such a plan, study the pricing policy in your area in order to operate with accurate, not indicative figures.
If we talk about the opening of a 50 square store on the first floor of a multi-storey building in the central part of the city with a population of 300-400 thousand people, then the costs will be approximately as follows:
This amount will increase due to the fact that you will have to include the costs of maintaining the clothing store in the financial plan until your monthly profit covers these expenses.
To maintain the normal operation of the boutique, you need at least 150,000 rubles a month.
That is, in order to open a clothing store from scratch, it is desirable to have 1.5 million rubles.
Is opening a clothing store profitable or not?
Both financial analysts and seasoned entrepreneurs, answering the question: "Is it profitable to open a clothing store?" say: "It is profitable if you choose the right place for business, sell quality goods at affordable prices and constantly remind customers of yourself with sales and interesting promotions."The average payback rate for this business is 1.5-2 years.
Let's try to explain how numbers work with a specific example.
Let's say you sell 4 items a day for the amount of 8,000 rubles.
Let's immediately subtract the% of sellers who persuaded customers to make a purchase, let's say it's 10%, that is, we have 7,200 rubles left. For a month, the profit of the clothing store (already with the deduction of a% of the consultant) will amount to over 200,000 rubles.
Remember that the amount of mandatory monthly expenses is 140,000 rubles (we take the minimum amount, because we have already allocated% to the consultant), that is, you have 76,000 rubles of profit left.
At least 20% of this amount should be set aside for the next purchase.
Little remains?
Then you have to attract more customers so that your personal income as a boutique owner is even higher.
Now you know almost everything about how to open a clothing store.
It remains only to collect the amount of start-up capital and think over all the nuances of launching a startup in order to avoid disappointment.
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