Writing A Clothing Store Business Plan, A Case Study
Year 1 of My Clothing Business
I didn't start out with a plan for anything. I only knew I wanted a clothing store. So I found a store, a cheap one since I didn't have much money, and I located a supplier (again a cheap one).
I opened my doors on Day 1, and I closed them on Day 90.
I went back to school, but my heart wasn't really in it. What I really wanted was my own boutique, with classy outfits that I could put together myself. I left college and got a job as a salesperson, then as a merchandiser, and finally as a store manager for a chain store. This wasn't what I wanted to do forever, but at least I was learning. I kept squirreling my money away so I could open again. And in Year 3 I did!
Year 3 of My Clothing Business
My clothing store business plan this time was considerably more specific. I was looking for a small shop in an upper middle class area, one with lots of ladies in their 20s and 30s. I needed good parking, and room for dressing rooms.
It took me a long time to find what I wanted. Then I found a small store that was going out of business. By this time I had worked through the whole startup book for retail clothing stores, so I knew what to expect. I knew the questions to ask, and I knew what was negotiable. I found out what the current lessee was paying, so I knew the base numbers. And I took my time to negotiate a good, solid lease.
Fortunately, I also had a solid clothing store business plan in hand that I could show the landlord. I think that impressed him a lot. He was also impressed with the amount of background work I had done. He was even impressed with the fact that I had failed once, and that I knew now what I needed to do.
Year 3 1/2 of My Clothing Business Plan
It was a real push, but I opened in November, in time for the Christmas rush. I had to get word out in a hurry about the store, without spending a fortune like the chain stores do, so I put out some press releases. One of the stories was about a handicapped lady I had hired. She may have been in a wheelchair, but she knew fashion! The local TV station picked it up as a human interest story for the holidays -- wow! what a boost!
Year 4 of My Retail Store
Great, great year! Sales are solid, and growing. I am one happy camper.
Years 5-6 of My Store Saga
With the growth in sales, I wanted to expand, so I started looking for a bigger location. Also, the water pipe broke, causing major damage. It was time to move. I re-did my business plan to show how we had grown, and I decided to go for an SBA loan. It got caught up in paperwork, and I wouldn't have been able to move until springtime, so I decided to hold off a couple of months, until after the holiday season.
Ohmygoodness, I think there was an angel in my shoulder holding back that paperwork. The bottom fell out of the economy, and Christmas was a disaster. Predictions were that the next several years were going to be tough. So I got tougher.
I kept a tight rein on inventory, getting credit from suppliers where ever I could.
I started creating a small line of boutique items myself, with help from the local Girl's Club. Together we made some really snazzy scarves and ponchos. These were designed with little sewing, but lots of creativity. With every item purchased, I gave a donation to the Girls' Club. The profit margin in these items was really great, and the publicity I got just couldn't be bought at any price.
We aren't out of the woods yet, but I have a clothing store business plan that I would put up against anyone's. We survived the most treacherous economy possible, and we are coming out of it smelling like roses.
My clothing store business plan for next year includes setting up a website to that we can sell those scarves and ponchos internationally. I think we will even add some beach bags to the line. And, yes, I am starting to think again about relocating the store.
I am not sure "success" has reached my doorstep yet. I've worked more 18 hours days than I care to think about. But would I do it all again? In a New York minute.
And if you are in New York, do stop by Alisha's Fashions!
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