How to calculate a business plan for showroom clothes from scratch: instructions and recommendations for starting a business, how to find suppliers and what are the features of the business
The first showrooms appeared in the west and served as a meeting place and negotiations between clothing designers and sales managers. The main distinguishing feature of showrooms is the place for concluding contracts. In Russia, recently, this phenomenon has also received a place for development. First of all, branded clothing is displayed here, and trade, as a rule, is in the duty-free format, that is, the purchase is not subject to additional tax. It is not so easy to get to the showroom, as a rule, either by acquaintance or by special invitation.
According to our estimates, in order to open your own clothing showroom, you will need at least 300-400 thousand rubles, while taking into account the high competition in this market segment. If you plan to sell designer clothes, then this amount may even increase. In addition to clothing, showrooms can display other types of products, from electronics to cars, but this article will focus primarily on clothing showrooms.
Where to start - you ask. First of all, you need to choose the format of the institution. This can be a wholesale warehouse for displaying clothes, a boutique that offers branded clothing at relatively low prices, or an atelier shop.
There is also a home showroom option. At the same time, the business is usually not officially registered, which, however, does not greatly affect sales. The reason is the uniqueness of the things sold and the prices are much lower than the market ones.
When drawing up a business plan for a showroom, it must be borne in mind that this business can be run at home, as long as the flow of customers does not become too large. From that moment on, you will have to register an LLC or an individual entrepreneur. We advise you to open an IP, which will be more profitable.
The total time for creating a showroom from the moment of an idea to its implementation can take from one to two years. It will take up to six months to register and register a business, it may take several months to find and attract borrowed funds, and it may take up to a year to conduct an advertising campaign.
How to register a business
If you are planning not only a demonstration, but also the sale of the exhibited samples, you will definitely have to register a legal entity. First of all, it will depend on the scale of the activity: if the trade is retail, then there will be enough individual entrepreneurs, if you are planning wholesale trade, then a limited liability company. Also, the type of enterprise accounting and invoices will depend on this. five, however, opening an individual entrepreneur is easier in terms of bookkeeping and cheaper.
In addition, if you plan to sell samples, you will need to make product quality certificates confirmed by state standards. It is also important to remember that if the supplied products are purchased abroad, it is necessary to obtain customs declarations for them.
Where to buy items for display
There are many places to shop for trendy showroom items. We list them below.
- Outlets, an analogue of shopping centers selling branded clothing at prices below market prices. Here you can buy clothes wholesale and retail.
- Factories that make ready-made clothes. Here you can order a whole batch of designer clothes in advance. As a rule, they sell only in large volumes.
- Online stores. Here you can also find clothes of fashion brands and in large quantities, however, it can often be of low quality.
The inexhaustible desire of almost all girls is to buy new things, visit beauty salons and hairdressers. And on this "storehouse of desires" you can do a good business. For example, many open sewing shops, a clothing showroom, a hairdresser, a beauty salon and even a flower shop. However, to open your own successful business, and even scratch, you need an action plan.
Current Business Trends
Standard clothing stores are boring to many, so today showrooms have become fashionable. These shops are the place to shop for designer clothes. Moreover, its cost in the showroom will be much lower than in boutiques.
Little-known designers present their products in the clothing showroom. Therefore, even hand-made styles can be sold in them. In this context, it will be useful to know how to start a sewing business. For example, next to a clothing showroom, you can open a beauty salon or a hairdresser, where girls can take a break from shopping. Indeed, in a business, especially one that is open from scratch, not only location, but also neighbors is of great importance. By the way, a flower shop can boast of an excellent neighborhood with a clothing show.
Many people who want to start a business from scratch prefer to work with clothes or provide services (for example, opening a hairdresser, beauty salon, dry cleaning, sushi delivery). In this case, opening a clothing showroom will be the best solution. After all, in fact, this is a "boutique at home", which can be visited by everyone.
Externally, the show room resembles a clothing store - the room displays models created by domestic or little-known designers who are just starting to make their careers. Therefore, the sale of clothes and goes at low prices. Indeed, for young designers and fashion designers, this is essentially an advertisement that helps arouse the interest of potential clients.
Since branded clothing stores do not always have an affordable pricing policy, a showroom, with the right approach, can become popular and, over time, transform into a whole network. In addition to a clothing showroom, great ideas to start your own business would be to plan to open a hairdresser, dry cleaning, sushi delivery, flower shop or beauty salon.
It's worth noting that sushi and other Japanese dishes have become very popular lately. Therefore, many restaurants organize sushi delivery. But such a business can be organized at home, preparing sushi to order. With a sufficient number of regular customers, sushi delivery in the future can grow into a small Asian restaurant.
But here you should know that a business tied to cooking (pizza, sushi, etc.) requires not only excellent culinary skills, but also mandatory compliance with sanitary standards, as well as the purchase of fresh and high-quality ingredients ( especially for sushi).
How to get started
Today almost all Russians already know what a showroom is. This is the place where you can buy clothes for aspiring designers. As a rule, things are of very high quality, unique and inexpensive. Buyers are attracted by the optimal combination of price and quality, as well as the exclusivity of models. Designers, selling clothes through showrooms, gain popularity, become in demand and open expensive boutiques.
Business idea: showroom opening
Such a business is within the power of not only media people who can promote the store through social networks. Anyone who wants to trade exclusive items can open a home showroom. But the first thing a novice businessman should do is to decide what kind of clothes his store will offer to customers.
Most often, the showroom is called:
- exhibition studios, where buyers can get acquainted with samples of clothes of a certain manufacturer or factories;
- ateliers of novice designers offering tailoring of unique models to order;
- a room where you can buy retail clothing from several designers.
In Russia, the latter option is more common. Therefore, it makes sense, using the example of such a store, to consider how to open a showroom from scratch.
Stages of Business Organization
Anyone with taste and sense of style can try their hand at this field. To successfully trade designer items, you need to follow fashion trends, understand brands, and the quality of things.
The first thing to do is to study the offers of online stores and find sites that offer quality, original and inexpensive things. After reading the reviews, you can try to order several exclusive products for yourself.
Opening a clothing showroom from China is a profitable enterprise, because the cost of high-quality and original items in Russia grows several times. It is important to find a site that offers unique models at a low cost. Or find similar clothes at well-known venues.
You can start trading through free message boards on the Internet, using word of mouth, when one person who has bought an interesting little thing tells his friends about a successful purchase, and so on. You can create your own online store.
Showrooms in Russia are also used to sell equipment, furniture, construction and finishing materials. As a rule, both large brands and novice manufacturers have such showrooms. In the first case, they work mainly for dealers and wholesalers. In the second case, they are an alternative to renting retail space for novice designers and fashion designers who produce items by the piece.
What documents will be required
If you plan to sell things displayed on the windows, the registration is carried out according to the same principle as the registration of a small retail trade enterprise. The organizer must select the reporting format and the type of enterprise - LLC or IE:
- A limited liability company is suitable if you plan to trade in small and large wholesale.
- An enterprise in the IP format is more profitable for those who rely only on working with retail customers.
Depending on the choice of the type of enterprise, a document circulation policy will be built in relations with suppliers. An accountant or lawyer will be able to advise on what forms of invoices are required in each case.
Copies of certificates of conformity to state standards will be required for the products sold. If the store displays products from foreign manufacturers, you will also have to obtain customs declarations for each group of goods. Many bureaucratic problems can be avoided if the product is only displayed but not sold.
What can be traded?
Many online stores organize their own showrooms or enter into partnership agreements with existing ones, where part of their products can be exhibited.
On whether it is profitable to do this and what difficulties may arise, see the following video:
Select a location
In our country, a showroom is a specialized, small store that has a small corner with mirrors. Also, the organization of this business assumes that the client can come under the appointment and choose an outfit of a designer format. At the same time, the cost of this type of clothing will be affordable, which creates a significant demand for purchase. Such a store will appeal to those citizens who dream of making affordable purchases, while they are afraid to buy online due to the lack of the opportunity to try on and study the offered things in more detail. In fact, we are talking either about a small store where you can find the right product at an affordable price, try on, touch and choose. Or about the opportunity to purchase such goods at home.
Of course, you need to remember that in standard chic boutiques, designer items simply cannot have an affordable price. The thing is that the seller has to spend a significant amount of money on renting premises of a rather substantial size, repairing, purchasing equipment, and on remunerating a specialist seller. It is these factors that form a fairly significant amount of additional costs that the entrepreneur includes in the cost of the finished product. Accordingly, in such a boutique, in any case, the price of a designer item will be very high, and many will simply not be able to afford such an acquisition. As for the showroom, the entrepreneur in this case significantly reduces his costs, since he does not rent premises and does not spend a significant amount of funds on the arrangement of business activities, which helps to reduce the level of costs that are included in the margin.
For potential clients, this type of cooperation will actually be extremely beneficial. The thing is that a significant number of positive moments are being formed, which should certainly be said. Firstly, the sale of goods can be carried out directly at the seller's home, and the seller with a certain number of items previously selected by you can visit you. A home environment in any case provokes the formation of more comfortable priorities for careful fitting. You will not be in a hurry, which means that you will be able to pick up those product options that really suit you completely. Secondly, it should be noted that there are no queues. In fact, the client significantly saves his time, since the seller directs all his attention to him, which forms a profitable relationship. It should also be noted that this type of cooperation allows the client to make a profitable purchase of truly high-quality, stylish things that are not in ordinary stores. Accordingly, we can confidently say that there will be demand for supply.
In fact, this business option actually provides phenomenal development prospects. Nevertheless, in order to be successful and get everything that you really dreamed of, you need to competently approach the search for a supplier, evaluate all the benefits of this or that cooperation, and without fail carry out the process of drawing up a business format plan. Some entrepreneurs try not to carry out such actions, especially if they do not need to attract investors, partners or take out a loan. It seems that everything can be calculated at the right time, and there is simply no need to waste time on unnecessary calculations and analysis. In fact, the process of drawing up a plan allows you to objectively assess your future advantages and capabilities, as well as competently approach the calculation of the initial investment.
In this business, the most important thing is to carefully consider the issue of finding suppliers. The point is that such things cannot be purchased wholesale. You will need to find channels for the supply of goods, and this is the only way you can open a showroom. If you open something similar to a showroom, but cannot provide unique designer items, then such a business will be unprofitable in advance.
Where should you start?
You must be fully aware of all the responsibility that arises from the moment you open a business. You must understand that such sales will require maximum attention to the client, you will need to choose stylish things wisely, describe their advantages, know all their features and nuances. Accordingly, it becomes clear that in order to form success, all implementation actions are best carried out independently. Since it will be truly difficult to find a seller who will competently carry out all the necessary actions that relate to the provision of goods to the client. Among other things, we recommend a standard plan for starting and further developing a business:
- Drawing up a business plan. The main and initial stage of any business is precisely the drawing up of a plan, on the basis of which you will be able to correctly and competently approach the implementation of the goal in the future. It is very important to evaluate all the advantages of the business, immediately choose the likely options for cooperation, try to analyze all the initial and monthly expenses, and also carry out a preliminary calculation of the income that can be generated. If you are going to get a loan or attract investors in order to get more significant initial investments, you will certainly need to draw up this plan in accordance with all the established rules;
- Line of business. In the planning process, a direction of business is chosen. You need to clearly define what kind of items you will sell - clothes, accessories or shoes. The point is that you must clearly understand that these acquisitions will require certain investments from you. It is for this reason that you need to clearly distinguish which options for directions will be available to you;
- Be sure to work out the structure of ordering goods and finding reliable suppliers. That is, you must understand that you need to give preference only to those suppliers who will provide you with affordable prices, a quality guarantee and a refund if necessary. At the same time, it is very important that the delivery speed is also significant. Most often, such things are ordered in China or Korea. At the same time, it should be borne in mind that the delivery speed in this case will be up to one month. You can also purchase specialized bases of intermediary suppliers from which you can purchase such goods on the basis of very favorable conditions;
- Create an assortment. Experienced experts recommend not to rush to open such a showroom with only 10-15 items on hand. The point is that it is very important to provide a wide range of products. But, if you gave preference to elite options, for example, fur things, then in this case, you can limit yourself to 10 options at the initial stage. This will be enough for the client to have the opportunity to make a competent choice;
- The correct choice of product groups. In the process of choosing goods, be sure to evaluate the opportunity to make the maximum mark-up. That is, choose those products that are not created for mass consumption. Remember that they must certainly look very expensive and respectable. That is, you need to choose just such a product for which customers will not mind giving a significant amount of funds;
- Organization of sales. Remember that it is best to carry out the process of equipping a try-on and viewing room at home, and the process of attracting customers through social networks. In fact, you significantly save your money. At the same time, you can, through social networks, provide an assortment of your goods and visit with the client's things. Both options eliminate significant rental costs and allow clients to gain the prospect of substantial comfort;
- Tips and tricks. It should also be said that in order to achieve your goals, namely, to attract the maximum number of potential customers, you will certainly need to competently approach the issue of organizing interaction with customers. You must have the most modern knowledge of fashion trends, you must be able to competently and correctly give advice on the choice of fabrics, accessories, etc.;
- We draw your attention to the fact that at the initial stages of doing business, you may not register a company , especially if you will carry out all the implementation actions at home. If things go well, then you will certainly need to rent a small commercial space and organize a certain fitting room there; you will also have to carry out the state registration process.
Immediately, let's say that today there are many different forms of business, and there are also a lot of taxation options. In fact, you need to study all the data provided in order to competently approach the issue of choosing the form of business and the system that will require minimum payments from you.
Drawing up a business plan
As you already understood, it is certainly worthwhile to carry out the procedure for drawing up a plan, if only for the reason that at the moment this is how you can correctly calculate all possible negative aspects. You can also assess the level of competition and calculate the amount that you will need to invest in the purchase of goods.