Ever dreamed of opening your
own retail clothing store? Well, I just opened one
in Southern California not too long ago. It is
actually a LOT harder than you might think to get
your doors open and a few sales under your belt. To
get started you’ll need vision, a reseller’s permit
and a business license. While the unique vision
might take months or years, the latter two
requirements will only entail filling out a couple
basic forms and waiting a couple of weeks for the
paperwork to show up in the mail. That doesn't sound
too difficult you say. Well, wait a second as the
following to do items take just a bit more effort.
You will be:
1. Setting up a sole proprietorship, LLC, S or C
Corp in order to protect your and your partner(s)
personal assets should your retail store get sued.
2. Finding the right space that is an area with a
fair amount of foot traffic and ample parking.
3. Negotiating your commercial lease so that you're
not stuck into a 5 year commitment. (Make sure to
try and negotiate the ability to sub-lease your
space. It’s a long shot, but it doesn’t hurt to
ask.)
4. Raising at least $50,000 in capital so you can
remodel and stock your store.
5. Getting the proper building and electrical
permits signed off so you can actually have the
power turned on. That's right you can't have power
until everything is signed off by the city. By the
way, make sure at least one of your dressing rooms
and one of your registers is handicap friendly.
Otherwise you will not be able to open your doors
until one is. I learned this lesson the hard way.
6. Finding the right employees to help you fill in
the hours you can't be there. No matter how
dedicated you are, you will need to get away from
your store at least two days a week.
7. Making sure you have the blessing of your
suppliers before embarking on this retail journey. I
had no idea that the most popular jean companies
will not sell wholesale to your store unless you
already have some brand name jeans suppliers on
board. This catch 22 absolutely baffles me, but I
digress.
8. Budgeting is very difficulty. You will not
believe the cost of your electricity (especially if
you’re running the AC all day) or how quickly your
payroll adds up.
9. Developing and implementing an effective; on
going marketing campaign. “Build it and they will
come” does not apply to no-name clothing stores. You
are going to have to slowly build a brand in your
community. Taking out a one page ad in the local
newspaper will be a huge waste of money unless you
advertise giving away your product. You need to be
VERY creative (think event marketing) and extremely
patient. Unless you're opening your store in a mall,
foot traffic will be limited and you'll have to rely
on word of mouth.
10. Lastly, you'll be treating every customer like
they were your one and only. You are going to have
to differentiate yourself through outstanding
service and by providing a unique shopping
experience, Otherwise you will never survive.
All that being said, do not be discourage. I must
say that it is tremendously rewarding and rather
cool to own your own clothing store. If you are
fashionable, passionate, sharp and excel at
networking, then I have no doubt that you will
succeed. Good Luck !
