Opening & Operating a Retail Store / Boutique (Brick & Mortar or On-Line)

[BetteT]

It is scary ... most fail ... only a few make it.

It would be a good idea to take some "entrepraneurial studies" courses if they have those in your local schools. I know of one young woman ... who I have worked for for several years ... who actually made it and is still in business after about 8 or 9 years. She majored in that in college ... and I thought that this was a brilliant move on her part. It's all about how to open your own small business and build it properly, without making all the normal mistakes.

Allmost all the other start up boutiques (online and brick and mortar) that I've worked for ... seem to be crashing and burning ... and her business keeps growing at a slow and steady pace.

She's doing something right. I do know that she uses techniques she learned in school. I see her test her market constantly and adjusting to meet what the clients buy the most. She is constantly controlling costs. Plus she has a strong, ongoing marketing program. And she hires good people who are as dedicated to the company's success as she is ... so she probably compensates them on an incentive basis ... my guess.

 

[Anjo]

Hm, fortunately my university is known for promoting entrepreneurship, though mostly in the tech sector. I should get on that...

My plan is to try to work for a few years in buying/sales to see how it's done, then test the waters... hopefully the economy will be better by then. It's so frustrating though, I spend all day thinking about designers I want to stock. I wish I could do it now!!

Haha. Patience...
Tell me more about your work as a stylist, it sounds interesting!

 

[kimberwyn]

Menace, your situation sounds like mine. I started my shop online a few months ago and in my head, I'd like to go brick and mortar in a year and a half or so, but my town isnt fashionable at all. And in our mall most people dress urban or just plain. But there are high end boutiques here that work, but of course someone had to go on a limb and break the ice. So taking a bit of a risk might pay off if you're selling something different to your town.

It is scary ... most fail ... only a few make it.

It would be a good idea to take some "entrepraneurial studies" courses if they have those in your local schools. I know of one young woman ... who I have worked for for several years ... who actually made it and is still in business after about 8 or 9 years. She majored in that in college ... and I thought that this was a brilliant move on her part. It's all about how to open your own small business and build it properly, without making all the normal mistakes.

Allmost all the other start up boutiques (online and brick and mortar) that I've worked for ... seem to be crashing and burning ... and her business keeps growing at a slow and steady pace.

She's doing something right. I do know that she uses techniques she learned in school. I see her test her market constantly and adjusting to meet what the clients buy the most. She is constantly controlling costs. Plus she has a strong, ongoing marketing program. And she hires good people who are as dedicated to the company's success as she is ... so she probably compensates them on an incentive basis ... my guess.

Hey BetteT, can you elaborate on this a bit more? And what do you mean by controlling cost...I mean, does she bring in different brands? Because that's the only way I can think of to change the costs (unless you change how much you mark things up I guess).

 

[Menace]

BetteT, anjo, kimberwyn thanks so much for responding... (& if anyone else has any more advice, please post!)

BetteT, I took your advice and I went to my nearest library and picked up an entrepreneurial book and it's quite a good read! Thanks for the advice..

kimberwyn, there aren't ANY high end boutiques in my city AT ALL



Just an fyi... the plaza that I plan on opening my store in is a new one (it's still under construction) and a few of the confirmed stores are: Best Buy, Bed Bath and Beyond, a 12-screen movie theater, Cold Stone creamery, and a few restaurants.

I'm just wondering if that location is good... I'm thinking a lot of juniors, young adults, and adults would gather here..
(But my mom tells me that it's best for a small clothing store if there is a big clothing store in the same vicinity)

So many factors to take into consideration

 

[kimberwyn]

^See in my city none of the high end boutiques are in the mall. They're usually in shopping centers near areas where people with money live or they're located downtown. Maybe you would be better off locating your store in a high economic neighborhood, maybe next to a hip salon or something?

 

[BetteT]

Tell me more about your work as a stylist, it sounds interesting!

Talking about being a stylist is off topic for this thread .... but if you'd like to learn more about that, there is a multi page thread about how to becom a fashion stylist ... and it's got all sorts of information in there from starting up, building a portfolio, sourcing wardrobe for shoots, finding clients, what steamer to buy ... just about everything. Ive commented in there probably dozens of times ... and there are other stylists there, too. And there is this Day in the Life of a Stylist thread, too.

 

[BetteT]

Hey BetteT, can you elaborate on this a bit more? And what do you mean by controlling cost...I mean, does she bring in different brands? Because that's the only way I can think of to change the costs (unless you change how much you mark things up I guess).

I can't go into detail ... and she's not a boutique, she actually designs and sells dresses, tops, jeans, etc. ... sells them on line and to retail boutiques. So what she would do to contain costs would be different. However here's some of the things she's mentioned:

Sourcing of materials, finder cheaper sources for fabric etc. ... so for you it would be finding cheaper sources for maybe the basics you sell.

Labor costs: For her, paying to have things made ... she's always looking for cheaper sources/facortories. For both of you, your hired help. For example, it's actually cheaper to hire 2 part time hourly employees instead of one full time for a couple of reasons. Overtime is paid at time and a half ... but that means more than 8 hours in a day or 40 hours in a week. If you need extra hours (for inventory, special sales, etc.) you can work both the part timers extra hours and you don't have to pay OT. And if they work less than a certain number of hours a week, on a regular basis, you probably don't have to provide paid vacation or benefits which you might have to pay to any full timers ... depending on you local laws.

Advertising Costs ... just researching packages to get the most bang for your buck.

Leases: that can sometimes be negotated, before you sign a lease ... but it's difficult if you don't have strong financials ... they will often charge more, if you are financially weak.

Utilities: must conserve here, too.

Mark up is not a cost ... but that certainly will factor into your bottom line. You have to know your market, before you can decide what your price point will be.

That's all I can think of now.

 

[kimberwyn]

^Thanks for that info!

 

[high maintenance]

I really need you guys help. Iam starting a boutique online in a few months and I know exactly how I want it, I want it to be a high end site sort of like netaporter, I still have a ways to go, but no jeans to t-shirts, and certain designers, gucci, azzaro, balmain, yes Iam shooting for the stars but nothing is impossible, but my question is how do i really differentiate myself from netaporter other than the more grown-up type clothing? I already know that what Iam trying to do is a long shot, especially with the type of designers I want, but please if anyone can be of help, I really will appreciate it (no discouragement please)

 

[Fashiongirl1]

What about companies like H&M, Gap and Zara? They are retailers but they sell their own clothing. I know its probably a slightly different approach because its your clothing. So what can someone do with that? Do you have to major in Fashion Design, or must you know both designing and business at the same time?

If this question like this was asked already. I do apologize.

Thanks

 

[labonita]

New Boutique Owner Merch

So, I am opening a new boutique that will focus on 13-21 latino girls. This will be my first venture in the boutique business but have had friends that have operated some, so I have seen how alot of the backend works. A few questions:

1. For my type of clientel is the LA fashion district the best place for merch? (does my boutique have to be in CA to buy their?)
2. Where do you guy go for desiging ideas? (my boutique will be very small about 600sf)
3. Shelving and display cases, should I build myself, or look for closing stores?
4. I have named it La Bonita Boutique, thoughts on the name??

thanks for all help.

By the way, 1st post so HELLO!!

 

[Ladyee Boutique]

I'm so excited to find this thread. I also own my own boutique and it's certainly a learning experience. I wish everyone all the best as you embark on your new ventures.

 

[kimberwyn]

Guys, sorry that your questions havent been answered yet. I miss the days when this thread was really active. Im trying to help the best I can but keep in mind that IM new at this too.

high maintenance- That's an ambitious goal, but good for you for going for it! It's ALWAYS worth a try. Your design will always be a good way to distinguish yourself. Come up w/ a unique way for customers to view your merchandise, perhaps. Like how Blaec.com has that "window shopping" thing on the main page. Their entire layout makes them unique. You should work w/ a programmer to come up with something special.

Fashiongirl1 - So basically you want to design your own clothing and sell it in your own retail stores, right? If you want to start a fashion line, no one can stop you just because you havent gone to school for it. But it always helps to get an education in design, construction AND manufacturing (like I went through the product dev course at FIDM and I learned all of this) or at least have work experience to learn it. If you're looking to start a clothing line you'll need to have the designs and specs and then find a factory to produce them. Usually you can email a spec out to a factory overseas and they'll get back to you fairly quickly about how much it will cost to produce it. Or you can go through a company like sewingamerica.com and they go through all stages of development (patternmaking, production, etc). I don't know which is better or anything else about it. This is just what I learned, I dont have personal experience with it. I hope that helps though!

So, I am opening a new boutique that will focus on 13-21 latino girls. This will be my first venture in the boutique business but have had friends that have operated some, so I have seen how alot of the backend works. A few questions:

1. For my type of clientel is the LA fashion district the best place for merch? (does my boutique have to be in CA to buy their?)
2. Where do you guy go for desiging ideas? (my boutique will be very small about 600sf)
3. Shelving and display cases, should I build myself, or look for closing stores?
4. I have named it La Bonita Boutique, thoughts on the name??

thanks for all help.

By the way, 1st post so HELLO!!

1. Sounds spot on to me. There are wholesale only showrooms back there, and merchandise is pretty fun and sporty but very affordable.

2. The best way is probably to travel around and look at other boutiques. You could probably get some design magazines for ideas too. Top Design on Bravo has nice ideas too.

3. Well, when I start my physical store I'll probably look into Closet World, lol. Its worth a try.

4. It'll work.


Ladyee Boutique - You should tell us more about your boutique! What kind of stuff do you sell? Is it online? I'd love to look at it!

 

[Ladyee Boutique]

Guys, sorry that your questions havent been answered yet. I miss the days when this thread was really active. Im trying to help the best I can but keep in mind that IM new at this too.

high maintenance- That's an ambitious goal, but good for you for going for it! It's ALWAYS worth a try. Your design will always be a good way to distinguish yourself. Come up w/ a unique way for customers to view your merchandise, perhaps. Like how Blaec.com has that "window shopping" thing on the main page. Their entire layout makes them unique. You should work w/ a programmer to come up with something special.

Fashiongirl1 - So basically you want to design your own clothing and sell it in your own retail stores, right? If you want to start a fashion line, no one can stop you just because you havent gone to school for it. But it always helps to get an education in design, construction AND manufacturing (like I went through the product dev course at FIDM and I learned all of this) or at least have work experience to learn it. If you're looking to start a clothing line you'll need to have the designs and specs and then find a factory to produce them. Usually you can email a spec out to a factory overseas and they'll get back to you fairly quickly about how much it will cost to produce it. Or you can go through a company like sewingamerica.com and they go through all stages of development (patternmaking, production, etc). I don't know which is better or anything else about it. This is just what I learned, I dont have personal experience with it. I hope that helps though!




1. Sounds spot on to me. There are wholesale only showrooms back there, and merchandise is pretty fun and sporty but very affordable.

2. The best way is probably to travel around and look at other boutiques. You could probably get some design magazines for ideas too. Top Design on Bravo has nice ideas too.

3. Well, when I start my physical store I'll probably look into Closet World, lol. Its worth a try.

4. It'll work.


Ladyee Boutique - You should tell us more about your boutique! What kind of stuff do you sell? Is it online? I'd love to look at it!

Yay! I'm excited about this thread becoming more active. I actually discovered your boutique and blog sometime late last year. Awesome blog. My store is very new we've only been open for five months. Yes, it's an online boutique.

 

[kimberwyn]

^I found the link through your facebook, lol, the boutique looks great! Those Black Halo dresses are tdf.

Btw I think we're the only two boutiques online who carry Egoist. What a coincidence?!

Thanks for the compliments on my blog!

 

[FASHIONLOVA]

am planning on opening my own store.
i ve already been scouting locations for the past couple of months but haven t found anything in my budget yet since i don t wanna take a loan.
i already have a list of designers who are interested in the US but am not there and I think that maybe I should try to get clothes from Italy or France rather; since it s much closer.

anyway everybody tells me it takes time before finding the right store, especially that i have a very specific area in mind but it s mostly around 1M and more so am waiting and looking...

 

[Ladyee Boutique]

^I found the link through your facebook, lol, the boutique looks great! Those Black Halo dresses are tdf.

Btw I think we're the only two boutiques online who carry Egoist. What a coincidence?!

Thanks for the compliments on my blog!

Thanks for the compliment dear! LOL! so glad you were able to find me. I love Black Halo dresses, I actually started a "who loves black halo dresses" thread on TFS. I get a new batch of BH dresses in next week.

Yea, such a coincidence (re:Egoist) but a good one.

We should totally keep in touch and encourage one another.

Much success!!

 

[kimberwyn]

^We totally should!

Did you hear that Egoist no longer exists though? The sales rep at Agent Icon (Im not sure if that's the same showroom for you...depends on where you live) said they merged with Plastic Island. I love both lines though.

I was actually considering carrying Black Halo in the future, not sure though. I can't wait to see your fall stuff from them!

Thanks for the encouragement!

 

[Ladyee Boutique]

^We totally should!

Did you hear that Egoist no longer exists though? The sales rep at Agent Icon (Im not sure if that's the same showroom for you...depends on where you live) said they merged with Plastic Island. I love both lines though.

I was actually considering carrying Black Halo in the future, not sure though. I can't wait to see your fall stuff from them!

Thanks for the encouragement!

Yes, I did hear Egoist no longer exists. I love the price point, I waiting on my Plastic Island stuff to ship. Yea, I get my fall BH stuff next week.

 

[annabel_lee]

I guess I am very late to the party but I've opened a store about year and a half ago so I may be able to answer of the questions.

- LOCATION is the key as well as knowing your target customers. Unfortunately, as everything in life, you can't insist on your own style all the time if you want to succeed. You may think something may be tacky but that could the bestseller in your store. (It happens way more than I would like to acknowledge.)

- Try not to compete. Try to take yourself out of the competition by exceling in customer service and indivuality. What worked for me the most was our ability to make the customers feel at home. No matter who walks in we treat them like our friends and family. We offer honest opinions and once that trust is built, the rest is easy. Also, from the get-go I tried to offer things that others didn't have. When people were still head over heels over jeans and tshirts, I didnt offer any. I offered polished and well made clothes that could be added to the trend (the trend I despised...IMHO, jeans and tshirts are not real fashion.) Try not to compete with prices. You will never win as a small boutique. Try to offer indivuality and uniqueness.

- It's a bit obvious but I notice it all the time. Please keep the store CLEAN and well organized. It makes a huge difference as someone walks in.

- Finally it takes much more cash flow than even I thought it would. Make sure you have enough cash to pay for your inventory for about a year or so.

- Biggest challenge for me was and still is employees. It's very difficult to find a good one so when you find someone you like, compensate her fairly and treat her well. You never know when the next one will come along.

- Finally, try working at a boutique and learn the ropes. I did that for about a year and that experience was priceless.

Staying focus on what you want is the key IMO. Also, expect to make mistakes until you figure out exactly what works. Tell the salespeople you are new so you want to start with a smaller order and ask for their help. They want to sell but always want you to succeed as well so you could keep coming back. Some of the mistakes I've made were very costly but I learned.

Hope it all makes sense.