How to start a clothing business?

The clothing sales business has long proven its profitability. Things have always been bought, and will be bought, no matter what kind of business it is: a business selling women's, men's or children's clothing. Many beginning entrepreneurs often face the question: “Which business format is better?”, “Where is it more profitable to start?” The questions are indeed not easy, 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 does not turn out that the choice made is a big mistake.

Clothing business formats

There are three business options for selling children's clothing, men's and women's.

1. Wholesale trade.
2. Retail sales through a regular store.
3. Selling through an online store.

Wholesale of clothing- 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 purchases goods in large quantities, becomes a supplier and begins to look for options for selling products. These options are retail stores. Thus, a small chain is formed: manufacturers from whom the wholesale company purchases, - a wholesale company from which retail stores purchase, - retail stores that sell their goods to customers.

Retail 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:

1. sales area,
2. level of customer service,
3. number of product items,
4. product placement technology.

These characteristics are at the same time distinctive and, thanks to them, stores have their own individuality.

Selling through an online store- a popular method today. It involves organizing and running a business online. Buyers can make purchases without leaving home. To do this, they just need to select the appropriate item and pay for the goods either by card or using a payment system. The main condition when organizing an online store is to make the purchasing process as comfortable as possible for customers, so that they want to return to shopping.

The process of opening a wholesale company

Opening a wholesale company, regardless of the type of clothing and target customer (mono-brand or multi-brand store, stock, second-hand, boutique), has common components:

1. detailed business plan for a wholesale warehouse;
2. building;
3. storage equipment;
4. suppliers;
5. employees (usually from 5 to 10 people);
6. set of permits.

The first thing you need to do is get acquainted with your competitors, collect maximum information on sales in a given region, and identify its dynamics. It wouldn't hurt 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, a favorable or good location is not required at all, since retail stores will either come to pick up the goods themselves, or even provide all the work to the wholesale company. Therefore, the most important thing will be the optimal location. The building can be found ready-made or built for specific purposes (depending on the availability of available funds). Before renting or purchasing a ready-made premises, you must make sure that it is suitable for a warehouse.

After the building is rented or purchased (built), you need to start arranging the premises: it is worth dividing it into sections (loading, unloading, receiving, packaging, storing goods). The equipment will also be needed, depending on the range, weight and dimensions.

The supplier selection stage is different for each type of store. If the target audience is stock stores, then you need to purchase clothes either from manufacturers or from stores that have stock. Second-hand stores are the most economical option (purchasing clothes is cheap, unlike others). Suppliers are companies that collect things. Multi- and mono-brand items, as well as expensive and luxury items for the boutique, are purchased directly from manufacturers.

A wholesale store will need employees.

1. Boss.
2. Additional workers, 5-10 people.

To make things easier for retail stores, driveways need to be clear and convenient. A good option is a building on the outskirts of the city, where you can easily and without traffic jams.

Store opening process

Opening a store begins with drawing up a business plan for selling clothes. After this, registration begins (LLC or individual entrepreneur). Next is the most important stage – finding a location. It should be in a passable 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 being sold and its target audience.

The size of the room also varies depending on the type of clothing sold. For example, a second-hand store does not require a large premises. After the premises are rented, the search for suppliers, the purchase of equipment and the hiring of personnel begins.

Suppliers will mostly be wholesale companies. You can look for them either through friends or through advertisements on the Internet. Equipment also varies by store. If it’s a boutique, then everything should be expensive, but if it’s second-hand, then you won’t need much equipment and, in principle, they won’t pay attention to it.

Hiring staff is another crucial moment, since the profitability of a business (its profitability) depends on employees. And the last step is advertising. You can read more about opening a retail store (its stages, main advantages and disadvantages regarding each type of clothing) in previous articles.

Opening an online store

The business of selling clothes online is as follows. The first is searching for suppliers. For an online store, it is very important 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 his 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 monthly. You will also need to register a legal entity (LLC or individual entrepreneur) so as not to have problems with the tax office.

It is important to provide payment and delivery methods; there must be a choice so that the buyer finds something suitable for himself.

When suppliers have been found, the website has been 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 those who see this advertisement and follow the link to the store. There is another option - advertising in boxes. You can create your own affiliate program so that buyers refer their friends and acquaintances and receive interest on their purchases.

Promotion is a means to form a base of regular customers. It is aimed at sales (20% of regular customers = 80% of sales). In order to retain customers, you need to hold constant promotions and discounts, give coupons and send messages with lucrative offers.

An online store has its pros and cons. Among the advantages, it is worth highlighting the simplicity and minimal costs, and the disadvantages are that it is unlikely that you will be able to achieve high incomes (of the three options, this one has the minimum profitability), unlike retail or wholesale stores. There is also a limitation on target audiences.

Any business selling clothing can make a profit. All this will happen only over different periods of time. The fastest payback period for a retail store.

And the simplest method of organization is an online store. A wholesale company, like an online store, is characterized by not such high costs. But profits in retail trade are also higher. Each business option has its positive and negative sides. Therefore, each entrepreneur must make his own choice based on his experience, capabilities (financial, including) and desires.

Business plan for an online clothing store: 8 stages of project implementation + 5 advantages of doing business in an online store + 6 tips from successful entrepreneurs.

Capital investments: from 255,000 rubles.
Payback period: from 6 months.

Even a beginner can try himself as a store owner online.

At the same time, the first sales can actually be made from scratch, not figuratively, but in the literal sense.

This type of online business is better suited for people who have an education in the field of computer technology.

And at the same time those who want to engage in trading business.

But this does not mean that the work is beyond the capabilities of the average user.

You just need to approach the implementation of the idea thoroughly and wisely.

First of all, compose.

It includes several practical steps:

• Permits.
• Marketing analysis (for whom we are opening a store, the clothing segment we plan to sell, assortment, opening location).
• Selection of suppliers.
• Creation and promotion of a website (sales platform).
• Office opening location, warehouse, equipment repair, etc.
• Delivery organization.
• Staff.
• Capital investments, payback period.

Target audience for an online clothing store

This is the marketing stage.

It is better to opt for women's and children's clothing.

Statistics show that the bulk of purchases are made by women.

Even male positions are often acquired by the fair sex for their husbands, sons, etc.

Well, buying baby products, of course, is the prerogative of mothers.

The secret lies in psychology: men are more conservative, less inclined to take care of their appearance and often perceive such grooming as a sign of “femininity.”

But now there are a lot of men who take care of themselves.

This means that they are also your potential buyers.

If you have chosen to sell clothes, it is important to decide on the direction and style of the goods.

From the experience of successful online clothing stores, we can recommend trading:

• children's clothing with related products (toys, dishes for babies);
• uniforms, specialized clothing, school uniforms (usually custom-made);
• evening and wedding dresses (usually rented out);
• women's or men's clothing;
• sportswear;
• with related products (robes, nightgowns, pajamas);
• stylish youth clothing (you need to navigate modern youth trends and subculture);
• rent carnival costumes.

Since the online store is not limited by the spatial factor, this simplifies the matter.

You can target a buyer who is not directly in your city.

People with low and middle incomes prefer traditional stores.

Experience shows that selling cheap products is also unprofitable.

But no one will buy a fur coat from you.

Such things require multiple fittings.

In a business plan for an online clothing store, you should specify the product category:

• commission();
• a regular store designed for a mass buyer and an average price policy;
• branded (a certain type of brand is offered, often as a franchise, or several);
• stock (European models from previous seasons are positioned, which are no longer fashionable there).

Suppliers for online clothing store

Your task is to get as close to the manufacturer as possible.

This will reduce the purchase price of the goods, accordingly increasing your chances of a competitive price and profit.

You can search for information about suppliers in an online clothing store:

• in the Internet;
• in newspapers;
• at specialized exhibitions;
• in wholesale warehouses.

It’s worth starting with regional representatives or official dealers.

Cooperation is possible with both domestic and foreign manufacturers.

You can go buy things yourself, find reliable people who will bring you goods, order deliveries via the Internet.

When contacting official representatives of foreign companies, you do not have problems with customs and transport delivery.

Today, wholesale supplies from abroad are more profitable (cheaper) than domestically.

But there are restrictions on the amount (up to 1,000 euros).

Advice! Order trial items of the product to ensure its quality.

Manufacturers offer favorable trading conditions.

But there are many negative reviews about the delivered products.

This doesn't mean you shouldn't consider this possibility.

You just need to study the list of manufacturers more carefully and take into account reviews of their products.

There are also trustworthy companies among Chinese manufacturers.

Dropshipping: details of such a supply scheme

Moreover, when expanding your business, you will have to think about a warehouse.

But there is a way to reduce this part of the investment.

The essence is simple - these are direct deliveries, directly from the manufacturer.

That is, you are an intermediary between the manufacturer and the buyer.

Having concluded an agreement with the supplier and fixed the price, you set your own by placing the product in the online store.

At the same time, the risks of losing invested funds are excluded, in contrast to the classic purchasing method.

And the number of positions you can place is much greater.

Your task is to find a buyer.

To do this, you attract customers to your sales platform.

You post items with clear descriptions and good photographs.

You supply the resource with selling texts.

The goal of such “opuses” is to promote your website to the first 10 positions, called “top”, in Internet search engines.

Advice! Hire an SEO copywriter to create descriptions and articles for your online store.

Once the customer has ordered the product, you submit the order to the supplier.

He is the one who delivers and packages the goods.

But you will receive claims for goods delivered late or for their quality.

Often the supplier in such a system works with many online stores and “on stream”.

He doesn't care about his reputation.

Therefore, if there are bad reviews about such manufacturers, exclude them from your list of suppliers.

Maintain a customer database with individual order numbers that you must communicate to them.

Take into account their reviews of suppliers and wishes.

Such an analysis will help create a list of reliable manufacturers and optimize the assortment.

To do this, you need to establish feedback with customers.

Your task is to make them regular customers.

Advice! As your business expands, set up a help desk.

Website for an online clothing store

Another costly item in the business plan.

Without a sales platform, there is no trade.

You can buy the finished product.

On promotion days it will cost 7,000 – 8,000 rubles.

There are resources where you can create a free online store.

For example, https://www.insales.com.ua/page/offer-open.

But such online stores have weak software, which you will have to improve by investing money.

Therefore, the option of an online platform created for you by specialists is preferable.

To develop a website for an online store, you can use the services of web studios.

Analysis of average prices in a sample of 6 web studios

Such a product will take into account your wishes for design and will be optimized for the assortment and type of store.

Professional and convenient navigation methods, a clear interface - this is an incomplete list of the advantages of a website developed for you.

What to do if there are not enough funds?

It is better to rent an Internet site with the right to purchase.

Among the disadvantages of renting: there is a limitation on the number of positions, you cannot change anything in the online store.

Promotion and advertising for your store

To optimize the website and promote the online store, you will need the services of SEO optimizers.

In addition to writing competent texts, you need to create contextual advertising so that links from other sites reach you.

Advice! Hire a model to represent clothes from your online store.

A good online clothing store should offer:

• newsletter, reminders about yourself by email;
• organization of actions;
• interactive support;
• convenient and understandable movement around the site;
• informative and high-quality content with photos;
• providing guarantees, demonstrating quality certificates;
• delivery service;
• demonstrations of models in different combinations.

Business calculations for creating and promoting a good website for an online clothing store:

It should be added that the steps to design an online store can be done in stages.

Important details to open an online clothing store

Many initially work informally.

But, as a rule, such stores exist for no more than a year.

Registration of entrepreneur status takes place in the executive committee and tax service at the place of registration.

This is necessary to work with suppliers.

Some manufacturers require the seller to have official entrepreneur status.

You will also need to open an office over time.

It is advisable to have a fitting room and ironing board.

It is better to connect the office with a warehouse.

Delivery organization (logistics) is the next stage of business development.

If you do not work according to the dropshipping scheme, then initially you can use the services of mail or ready-made courier services.

When the office opens, pickup will be available.

Staff for an online store

When opening an online clothing store, you may be the only employee.

As the business expands, it will be impossible to do without employees.

If you take on administrative and accounting functions, you will need:

Financial part of an online store business plan

In our business plan, we will rely on the scheme of a classic store, in which there is a warehouse, which you fill with goods from your own funds, and you have bought a ready-made online store for selling clothes.

You will need the following tools.

Capital investments in business

That is, you must have an amount of $4,000 or more.

Although it is better to have reserve funds: for tax deductions, payment for courier services, additional advertising, working capital for replenishing clothing items, and website optimization.

You will need this money already in the first month of work, as it will constitute operating expenses.

Regular investments in business

According to statistics, a good online clothing store has a monthly revenue of $2,100 (~126,000 rubles).

With monthly expenses of 88,000 rubles, net revenue will be 38,000 rubles.

Therefore, you will be able to recoup your investment no earlier than in 6-7 months.

You can reduce investments and achieve payback faster by using a dropshipping scheme.

The video shows the step-by-step process of creating an online store using the dropshipping system:

Advantages of doing business in an online store

In conclusion, a few arguments in favor of selling in an online clothing store:

Saving money on renting retail space.

Buying a website is cheaper than building or renting and renovating a store.

Availability.

At any time of the day and for everyone.

This is especially important for people with mobility restrictions or simply busy young mothers.

Saving time for visiting.

Delivery makes this item even more attractive.

Access to customers anywhere in the world.

Clients themselves can choose what is not available in their city.

1. Lower prices due to working directly with the manufacturer, and lower costs compared to running classic stores.

We can only wish you success in creating your own business plan for an online clothing store and go towards the goal without giving up.

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The main idea of ​​a wholesale business is purchasing goods in large quantities at one price and selling them in small wholesale with a markup. Alternatively, you can open your own retail store, selling the goods at an even higher price. You can open a wholesale business from scratch, even without having huge capital to purchase the first batch of goods. It can be taken for sale. The scheme for building any business can easily be copied from any existing enterprise.

Main business advantages

The first advantage that entrepreneurs take into account when trying to open a wholesale business from scratch is big money. This advantage is perfectly complemented by a simple and understandable starting scheme, even for beginners. They usually start with small volumes, gradually increasing the scale of the business.

A wholesale business requires specializing in one specific product or niche. This allows you to delve completely into one area, studying it thoroughly and increasing your expertise in it. And the better, the more detailed you understand your business, the easier it is for you to conduct your business more efficiently.

The simplicity of the scheme of any wholesale business allows you to copy any convenient and effective scheme of competitors. You can start a business with minimal investment. Moreover, it does not require significant time investment. Therefore, you can easily start a business while working at your main job.

Deciding on the type of business

Before you start a wholesale business from scratch, you need to decide what type of wholesale enterprise you will have. There are several opportunities to make money from wholesale sales.

1. Become a large wholesaler. Your task is to purchase large quantities of goods from production and sell them in smaller quantities. Often such entrepreneurs work with several manufacturers, offering a wide range of products.

1. Become a mid-level wholesaler. These people prefer to open a store selling goods from one specific industry, but specialize in it very well. They may offer one type of product and various accessories for it from different manufacturers.

1. Highly specialized wholesaler. Usually offers one type of product, for example, only shoes, or only bags. Often works with different manufacturers.

1. Mediator. It is not necessary to open a store for this activity. It is enough to find a buyer with a specific request, and find a seller for him. Then monitor the progress of the purchase and sale, receiving a percentage of the transaction. The process can also go in the opposite direction: first, a seller is found with the product for which a buyer is being sought.

These are just the most common forms of business organization with which you can start your own wholesale business. If you search, you can find other interesting business schemes on the market.

We are looking for our industry

Before you start your own business, it is advisable to understand what industry you plan to work in and what basic laws work in it. Therefore, it is easiest to open a business in an industry in which you already have some experience. Although, if you wish, you can master other areas of interest.

To decide in which industry to open your wholesale store or base, think about what industry you most often encounter in life, what do you understand the most? This can be either your main job or a hobby. Of course, it is advisable that you like this industry and are sincerely interested in it.

In addition, it is important to understand the following nuances that influence the choice of industry for wholesale activities:

1. What production does your region specialize in? After all, these are the goods that can be purchased here at the lowest possible price. At the same time, you will not have problems with delivery and all issues can be resolved as quickly as possible - the manufacturers are, as they say, close by.

1. Having chosen a product, try to determine the market capacity: what is the demand for it, what is the turnover of the product, average prices for it and other details.

1. Assess the seasonality of the product. Of course, it is easiest to work with goods that are not subject to seasonal fluctuations. But in other cases, you can find ways to smooth out these differences. It is always better to focus on those goods that are in demand in any economic conditions.

1. How easy is it to store the product? This question is especially relevant when you are thinking about how to open a wholesale warehouse. If perishable products become the object of your business activity, you need to pay special attention to the warehouse space to ensure the necessary conditions. And these are additional expenses.

1. How easy is it to transport the goods? This applies not only to the size of the product, but also to its fragility. For example, it is very difficult to deliver glass and porcelain products, as there can be a high percentage of broken goods. This must also be taken into account when calculating the profitability of your business.

How to choose the right product

Before opening a store, you should not only decide on the product, but also test the demand for it. To do this, it is recommended to conduct such a campaign. Choose about three to five products that you are interested in working with and that can really be in demand in your region. Then post advertisements for their sale on free boards on the Internet.

It is important to adhere to the following rules:

• post advertisements on the same boards;
• post them in a unified form, one for everyone, so that you can compare the results later.

After posting your ads, carefully collect and analyze feedback. Consider the number of calls and what the callers are interested in: volumes, prices, willingness to place an order, etc. In this way, you can estimate the demand for the product that your store plans to sell. You can answer potential customers that the product is not yet in stock, or call back a little later and report that it is out of stock.

Determining viability

Only after you have decided on a niche, a product, an approximate market need, its capacity, and you know the needs of buyers and sellers, can you assess how viable your endeavor really is and whether it is worth opening a store of this kind.

Calculate how long it will take you to deliver the goods and how much it will cost you. Monitor the road transport market that operates in your region and choose the right carrier for yourself. Then calculate how much you can receive in the saddest and most optimistic scenarios. Based on the data received, he can decide whether you should open a wholesale store, base, warehouse or not.

Let's get down to business

Having resolved all the preliminary issues, decide on what scheme you will follow to conduct your business. There are two main directions of running such a business:

• You look for a buyer, find a seller, organize and control the purchase and sale process, receiving a percentage of the transaction. For this type of activity, you must first conclude an agency agreement with the manufacturer.
• You buy goods at your own expense at a wholesale price and sell them at a premium, making a profit from the difference.

As a rule, the latter model is used by large market players who have large finances to carry out transactions. In addition, this form of doing business presupposes the presence of a warehouse, personnel to service it, and the costs of their maintenance.

A novice entrepreneur can limit himself to the first option, which eliminates these expenses, as well as the costs of purchasing goods. In addition, he does not have to register an LLC or individual entrepreneur; he can work as an individual by drawing up an agreement. And if you start such work via the Internet, organizing a wholesale business will be even easier.

Two words about competition

When planning to open your own wholesale store, take into account the competition in the region and in the industry as a whole. A small player in the market can go bankrupt if large distribution networks that have established great teamwork are already operating in this area. Therefore, if you want to compete with such giants, study their features, think about what you can win in front of your clients.