Clothing store business plan with calculations 2021
Often, a small business starts with the creation of a small boutique or showroom. In this article, we will show you how to properly open your own clothing store from scratch and provide detailed instructions. The procedure is no longer limited to the development of a plan and paperwork. First, you should take into account other nuances characteristic of the modern market, analyze your own capabilities. Let's consider the key features, problems and answer the most important questions so that starting a business does not become the biggest mistake in the life of a novice entrepreneur, but, on the contrary, leads to development and prosperity.
What you need to start your own clothing store from scratch: step by step instructions
To begin with, let's note the main plus that has existed in this business since its inception - as soon as a society appeared, people began to buy clothes for themselves, which means that a properly created business is doomed to become successful.
However, there are some shortcomings, such as:
the need to invest a lot of money;
They are all surmountable, but they can bring a lot of problems with them. It is necessary to think over possible options for overcoming the crisis in advance, preferably at the preparatory stage.
What documents are needed to open a clothing store
First, you have to register as an individual entrepreneur or LLC and receive a certificate from the tax service. It is better to consider which form to choose in each particular case separately, since it depends on the expected scale of sales, the number of employees hired and many other factors. In addition, a businessman will need:
Conclusion of fire supervision and Rospotrebnadzor.
Certificates confirming the fixation of the cash register in accordance with the new rules.
We are figuring out how to open a women's clothing store from scratch: choose a suitable form of ownership, tax regime, write a detailed business plan. The article contains calculations and examples for download.
Before starting to form a business plan for opening a store, you need to decide what form of ownership your business will have. In small business, two forms prevail: a limited liability company (LLC) or the simplest option suitable for beginners is an individual entrepreneur (IE). It is recommended to register the second option.
Among the advantages of an individual entrepreneur over an LLC are:
Next, select the appropriate category from the classifier of activities (OKVED). In this case, it is 52. 2 - clothing retail trade. This category includes not only any clothing, but also related products, such as accessories.
Choosing the right tax regime
The second step after determining the form of ownership and choosing the type of activity will be an analysis of the tax regimes in force in the Russian Federation. There are three tax regimes suitable for a clothing store:
1. The patent system available to an individual entrepreneur consists in obtaining a patent (a document giving an exclusive right). The patent is acquired for a specified period. This tax system has a restriction for retail trade - the area of the premises in which sales will be made should not exceed 50 square meters.
2. Income tax (UTII), which is 15%, applies to individual entrepreneurs and LLCs. This tax is paid quarterly at a flat rate. In this case, the retail space should not exceed 150 square meters.
3. The simplified system (STS) exempts individual entrepreneurs from income tax. Here the rate is 6%. Sales income is taxed. This special mode is convenient for a women's clothing store, because the markup on clothes is often high.
The purchase of a patent is preferable: in most cases, women's clothing stores are small in size, that is, they are suitable for choosing this mode, and the patent does not imply the filing of tax returns. Consequently, the entrepreneur's time is saved.
Clothing is always needed by consumers, especially residents of small towns, where the choice is also limited. Sometimes, in search of the right things, people have to travel far, visiting retail outlets in neighboring settlements. Therefore, novice entrepreneurs should start selling manufactured goods. The main thing is to understand how to open a clothing store, where to start the process and how to use modern technologies. How difficult it is and whether the costs will pay off later.
How to start opening a clothing store ?????????
Opening a store is a complex but exciting process that consists of several interrelated stages. What makes small towns and villages so good is that there is little competition. If in megalopolises there are 2-3 identical establishments nearby, there is a chance to remain the only one. Key points from which the future entrepreneur should start:
- market research - customer demand;
- determine the direction of activity;
- select the location of the point;
- cost plan - renting premises, opening an individual entrepreneur, purchasing equipment, etc.
- search for the necessary capital.
In the village, most of the residents know each other, respectively, the future entrepreneur knows their problems and desires. It is necessary to use this information, make predictions for the future. What manufactured goods do people need now, what are they ready to buy. The amount of local income is also important.
Study of demand in the "market" ????
Conduct a survey of residents in any order - visit places of congestion, ask them a few questions. Record the answers. Explore local retail outlets - their range, pricing policy, location.
- how well off are the people living nearby;
- what clothes do they like to wear;
- population density;
- the number of stores with a similar focus;
- the pricing policy of competitors;
- the absence / availability of vacant niches;
- the presence of vacant premises in places suitable for the location of the outlet; li >
- the amount of rent they have.
Decide on the concept of your outlet - price, theatrical, "time saving" and informational and introductory:
It all depends on the demand among buyers. If most of the townspeople are middle-income people and need everyday everyday things, then it is better to focus on the availability, quality and democratic cost of goods.
The next thing is to decide on a niche for doing business:
Own clothing store is not the easiest business in terms of organizational issues and risks. Nevertheless, the demand for such a line of business among entrepreneurs, both professionals and beginners, is not decreasing. What is the reason? Let's look at the features of a clothing store business plan with calculations. This business plan can be equally effectively applied to an institution with women's and men's clothing - the amount of investment will directly depend on the types of goods, their cost, the scale of the enterprise and other factors.
Analysis of the market and the level of competition in the field
The modern market offers a large selection of clothing store formats: with the right approach and competent setting of tasks, each of them can bring great profit. One of the necessary questions that should be solved before starting to work on starting a business is market analysis, as well as analysis of competitors.
Important: Many people believe that starting your own store requires a large amount of initial investment. This is a misconception - some store formats require very little initial investment, therefore, the level of competition in the industry is not small.
The whole variety of clothing outlets can be roughly divided into two large categories:
- Real-time stores. The format of outlets that is more familiar to us - you see these in every shopping center. A customer can come here, try on clothes and make a purchase.
- Online stores. A new format of stores that are rapidly gaining popularity. Online commerce is relevant both in large and small cities - more and more people prefer virtual purchases, noting their convenience and benefits.
A clothing store can be multi-brand or mono-brand. As understood from the names of the categories, the first involves the sale of clothing from different manufacturers, while the second - from only one. A multi-brand store is a more flexible and dynamic business that you can make changes based on the seasonality and preferences of your customers. A single-brand store is the best type of business for those who want to open a retail outlet for a franchise. Also, this option will be preferable if the businessman has direct access to the supplier.
Now let's look at the large store formats mentioned above in more detail.
Traditional clothing store.
A few years ago, this format was the most widespread, but in the last two years it has been replaced by online stores. In this category, it is important to consider two types of outlets:
- A store located in a shopping center. In the presented outlets, clothes for the middle and low price segment are exhibited. But low product costs aren't the only benefit. Another important plus is a noticeable reduction in advertising and promotion costs, because visitors to shopping centers visit several departments depending on the purpose of their arrival. Therefore, it is recommended to give preference to those shopping centers that correspond to your products and price category.
- A store located in a separate building. This is the ideal location for a retail outlet where items belonging to the more expensive segment, the boutique, are sold. Attracting customers is one of the important steps in this enterprise. However, by selling branded, luxury, creative clothing models, an entrepreneur can expect a higher level of profit.
An interesting format of a point of sale belonging to the category of "real time" will be a home showroom. These types of stores have become popular in the last couple of years. By opening a similar one, you significantly reduce costs - you no longer need to pay rent, and also there are no payroll costs. Customer acquisition will be a problematic issue: as a rule, home showrooms have a very narrow circle of buyers. A good solution would be to open such a point if you, for example, provide services at home - do a massage or a manicure. This will be a source of additional income.
Online clothing store.
Clothing is a product that is bought regardless of the economic situation in the country. There is always a demand for it, there may be a decline in the niche of expensive products of well-known world brands, but if we talk about the middle and low price segment, then, despite the drawdown in sales, you can earn, the main thing is to approach the process correctly. Even at the stage of the formation of the online sales market, there were many rumors that there would be a lot of problems with dimensional nets and fittings, and the quality of the clothes themselves in the photo may not correspond to reality. But in practice, these tasks have long been solved, as evidenced by the formed entire brands and large Internet sites that work in this niche. You shouldn't think that the market is formed and the entry is closed for beginners. Yes, if you are planning to launch another clothing store from China, then due to over competition it will be very difficult for you to promote your resource and start making money on it. But if we are talking about a unique assortment of our own tailoring, or cooperation with designers and ateliers that have not yet gained popularity in the mass market, then this is a completely suitable option that can work.
Starting a business in the format of an online clothing store is better gradually, and if you expect to get rich quickly, then this is not the way. There is a planned reinvestment of funds in business expansion, a range of products, advertising and other areas that will help form your brand in this niche and fill a base of regular customers.
You ask how and where to start? First, you need to form a concept, solve all the organizational issues and only after that start implementing this business idea. You do not need to immediately run to the developers and order a website, think over everything better and only after that start spending funds from your start-up capital. In this article, we will provide you with step-by-step instructions on starting your own online clothing store from scratch, we will give you tips for beginners, and you can choose the approach that is right for you.
Step Choosing the direction of clothing style
Your path on the way of selling clothes through the Internet site will begin with analyzing the market and finding a separate category of clothing with which you will start your store. You should not spray and buy a huge assortment of goods from various categories, for example, from socks to warm jackets for the winter. If you are new to online trading, it is better to allocate a small budget for the initial purchase of goods, and then expand the list of categories and add new positions to your site. For example, a narrow niche is jackets, and depending on the season, you can sell insulated winter options, or lightweight windbreakers in the off-season. But the general concept of where your store will move can be defined as outerwear and in the future add hoodies, pants, hats and gloves and other wardrobe elements in addition to jackets.
Here are a few areas in which you can work.
- Youth clothing. This is the so-called street wear style. This includes jackets, T-shirts, sweatshirts in bright colors or the popular khaki print. Additionally, you can sell joggers, jeans and other items of clothing for girls and boys.
- Sportswear. Suits, sweatshirts, pants, T-shirts and jackets. This is the core of the assortment, but there are many complementary products that fall into this niche, such as tracksuits, running clothes and more.
- Clothes for every day. The so-called casual style. There is a wide selection of products that, in their style, are more directed towards classic fashion, but with elements of a sporty motive.
- Business clothes. Suits, shirts, pants, blouses and more. There are many garment factories that produce quality products, you can contact them and sell their clothes online.
- Overalls. This includes work suits for construction workers, plumbers, doctors, and other specialties, where a specific dress code is provided. This can also include school uniforms.
- Designer clothes. These can be small collections of products, from several designers, which are sold through your marketplace.
In each of the above categories, you can select a specific type of product and start sales exclusively from it. Pick a few niche products, and when you look for a supplier, you can determine the most profitable option in terms of margins and competition.
Step Target Audience
The next stage is working out a portrait of a potential buyer of your clothes. Why is it important? It's simple, you use this data in the future to set up advertising filters when promoting using contextual advertising or social networks. In addition, you will be able to assess what price segment you need to look for clothes so that the target audience is ready to pay the price you set for it.
First, the target audience will largely depend on the style of clothing sold. For example, if this is streetwear, then your target audience will be young people aged 15-23. If we are talking about classic clothes, then we need to focus on men and women aged 30 - 45 years.
Secondly, it is segmentation into women's, men's and children's clothing. It is very profitable to start a business on the Internet selling women's clothing. As you know, men are less likely to buy things for themselves through online platforms, but women do it all the time. The female audience eagerly buys things on social networks such as Instagram. The second most profitable niche is children's clothing. There is very high competition here, but the demand for this type of product is stable. If you are a beginner and want to sell clothes for men, then look towards casual clothes.