I want to open up a small retail store with imported jeans.... how do i go about that? .... [i am not rushing into it, at this point i want to get as much information as i can]
books, web sites, advice will be great!
thank you
2007-09-02 12:21:46 · 5 answers · asked by Anonymous in Business & Finance ➔ Small Business
First, if you want to own your own business, save up enough money to live off of for one year. All new businesses need at least two years before you really start to see consistant profit and establish your market. You will need every extra dime of profit to put back into your business (marketing, upgrades, inventory, ect...) - don't take a paycheck the first year!
While you are saving your one-year living money, take time to really research every aspect of the business. Here are a few questions you'll need to answer before you get started:
1. Where will my store be located? How much will it cost to rent/lease/purchase the building? What are the utility costs at that location?
2. How many hours a week can I committ to this business? Will I need to hire employees? How much will each employee cost me in terms of state taxes, federal taxes, unemployment insurance, will I offer health care or benifits?
3. How much insurance will I need to buy to protetct my assests (inventory), my employees, and customers that may get hurt while in my store?
4. You will need a resale license from your state. Find out how to apply for one and how much they cost.
5. Most states will only give a resale licenses to organized businesses. Decide if you want to set up your business as a C-corp., S-corp, LLP, or sole-proprietor. If you need help setting up your legal structure of your business, you will need to contact a good corperate tax accountant. And this will cost you, too.
6. Research your suppliers. Find out exatly how much it is going to cost you to simply get your product to your store (cost of product + shipping). Shipping from overseas is expensive especially in small quantities.
7. It is NEVER a good idea to take out a loan to purchase inventory. The longer inventory sets on your shelves, the more interest you will have to pay the bank and the less profit you make. So save up money to purchase inventory.
8. How much inventory will it take to fill up your store for its opening day? Go to a similar store and scope it out. Count the number of display shelves and the number of individual items they have out on display. You'll be suprised how much inventory it takes to fill up even the smallest little botique.
9. Are you good with numbers? If not you may want to see how much it is going to cost to hire an accountant. You will have quarterly reports to submit to the govenerment as well as calculating and submitting the correct taxes to local and state governments.
10. Do market research! Are there really enough people in your area that want to buy imported jeans? How much are they willing to pay for them? You may find ten people that would buy a pair for $90, once a year. That won't keep you in business. Or you may find 500 people that would buy them but can only afford $40 for a pair of jeans, and your lowest priced jeans are $70 so that won't keep you in business either. You have to make sure that there is a market for what you are wanting to sell.
11. Are imported jeans the ONLY thing you will be selling? That is a pretty narrow market. Might there be other things that you could sell in your store?
Hopefully that will give you some more things to think about.
Best wishes!
2007-09-02 13:47:14 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You would need space maybe in a mall or strip mall so start with checking rental prices on that and deciding how much space you need. You need to find suppliers and what you would pay for inventory then research the price you might get for them to even start to see what your gross profit might be. Then market research to how many pair you might sell a month. Are you planning to sell to teens or SAHMs or men and women with jobs or retired people? How many of that kind of people are going to come into your shop a month and how many will buy jeans?
Take a job at a store like the Gap for a few months and watch the customers to get an idea of how much they are buying or how many are just looking. Try to work up to manager or bookkeeper to get an idea of the workings of the store that clerks and customers don't see.
Also jeans brands all fit different so make sure what you buy fits your target customer and are the style those kind of people wear.
Then research what kind of racks and shelving you would need and the prices and find out what advertising will cost. Find out what taking credit cards might cost you since most people don't use money anymore.
You should then be able to start to make a business plan and see what you will need to open the door. You will also need to get a cash registers and check out counter and dressing rooms with mirrors. Computers and software, file cabinets, stationary.
If you need to travel to buy the merchandise you will need that in the budget too. Knowing what will sell months later means going to some trade shows to see what is coming you don't want to be behind the other stores fashion changes often.
2007-09-02 12:42:05 · answer #2 · answered by shipwreck 7 · 0⤊ 1⤋
I owned a small retail store for 1 year and averaged $300 profits (pay) per week working 6 days a week. Also most of the $$ was received in November & Dec., so some weeks I worked for nothing,
Is that what you want?
2007-09-02 12:33:00 · answer #3 · answered by john p 3 · 0⤊ 1⤋
why do you want to do this? What is your competion? have you priced real estate? taken a market survey to see what consumers want?
2007-09-02 12:27:24 · answer #4 · answered by Anonymous · 0⤊ 1⤋
you should work for someone first that does this or become an intern
2007-09-02 14:16:29 · answer #5 · answered by just hanging around 5 · 0⤊ 1⤋