Starting Your Own Shop?

[mr fluffernutter]

I was hoping that some of the people who run/own boutiques or shops could answer a couple of questions of mine, and maybe help others with any questions they may have.

Here are some things I've been wondering about:

How much money do you need to start out? Did you get a grant/loan? Do you have any financial advice for people looking to start their own shop?

How did you get brands to stock in your shop? Advice etc?

I also would love it if someone would write a little step-by-step account of how they started their own business.

Thanks

[chromesquared]

I know he's probably busy what with all the Levis litigation, but I would be particularly interested in hearing Kiya speak on this.

[GoodHustle]

There was a thread like this on SF a couple of months ago...I'm sure if you searched a little bit, you could find it.

To summarize that thread, and my personal experience (running a small business w/ my fam for the past 10 years) - it is VERY difficult to start and stay afloat...

A conservative estimate on how much money you need to get started would be $75 - $100k. You need to account for (1) prime retail space (I would say that 2 or 3 year leases are the minimum), (2) inventory (high end goods, if that is what you would like to sell, costs a lot of money and you need to pay for that up front), (3) equipment (computers, accounting software, display cases and racks, lighting / furniture / interior design), (4) utility charges, (5) employee salaries, (6) state and local taxes, (7) publicity (websites, ads, flyers), (8) miscellanous (shipping to customers, theft, business licenses, etc).

Most of the start up money will need to come out of your own pocket because attaining small business loans is very difficult to do. If you do have collateral (your own house, paid off car, etc.), a clear and thorough business plan, and some track record in the retail sector, then some banks will be willing to work with you, but even then, you need to have a lot of cash on your own.

My advice to you would be to start out by researching your home town (if that is where you want to open up shop). What is the local demographic? What kind of people would be interested in what you want to sell? Are there enough of them in your area? More importantly, is the store unique to the area? Or are there already similar stores in place? And how have they been doing? I think you could also learn a whole lot if you worked in a retail store or boutique...you could really see how things are day to day and get some great insight on what works and what doesn't.

Okay, that's all that I've got right now. Sorry I wish I could express my thoughts in a more clear manner. I'm sure some people with greater experience (like Kiya) could chime in and give you better info. when they have the time..

[Guest Goose25]

word of advice: go easy on the loans and financial help when starting out!

the first few years of a business are tough and you are crippled by loans you lose all sense of creativity and adventure a new business can bring.

1. Start small

2. Think creative and look at what others around you are not doing and fill the gap

3. There is nothing wrong with introducing yourself via email to prospective buyers and suppliers: just make sure your name and physical address is included

4. Plan ahead and try and be aware of what changes in the market/fashion will take place

5. Tell everyone you are starting out!

Good luck