Women's clothing is always in demand. All representatives of the fair half want to look stunning, so they update their wardrobe quite often. You can make good money from this natural desire of women to be seductive if you open a women's clothing store from scratch. But in theory, a simple idea in practice leads to a dead end with the question: “Where to start?”
You shouldn’t assume: “I’m the only one so smart, so the boutique will immediately begin to bring in good profits.” It must be remembered that if a women's clothing store is a profitable type of business, a newcomer here will have to face a high level of competition. But this is not an obstacle to starting your business from scratch and making it successful, ahead of your competitors. Why is it necessary:
Now we need to consider each of the stages in more detail.
To the question: “Where to start a business?” an adequate answer would be: “From market analysis.” This is especially true if the business area involves a high level of competition, which will be the main feature of the women's clothing sales segment. Opening a store quickly without preparation means dooming yourself to losses. Opening a business is a serious step that requires maximum concentration, composure, and rationality.
The analysis should begin with determining the number, at least approximately, of retail outlets that sell women's clothing. It is best to go through them yourself and familiarize yourself with the assortment and pricing policy. It is necessary to keep control and monitor the opening of new women's clothing stores. Adopt the creative techniques of future competitors. Please note that removing price tags and display cases must be done extremely carefully, otherwise problems with staff and security may arise.
In fact, a deep analysis of the assortment will help attract women and girls and make them regular customers. Everything here is extremely simple - clothes that are not available or are scarce in other stores will be in demand.
Attention! The deeper the analysis is carried out, the higher its effectiveness. This is painstaking work, which will subsequently give good results if taken seriously.
Many women's clothing stores, especially large ones, are trying to create a universal assortment for all age categories. The result is that the clothes presented are of little interest to customers. The reason is that despite the overall impressive selection, individual segments contain very few models. The emphasis should be on diversity within a relatively narrow specialization, for example, opening a plus size clothing boutique.
You might also want to think about opening a second-hand store. This type of business is no less profitable with the right approach.
Before opening a women's clothing store, you should decide on the assortment. But what to do if all the niches are already occupied by competitors and new clothing collections are only relevant for the first week or two? Don’t despair, panic or do absurd things:
Attention! To open a women's clothing store from scratch and promote it, you need to look for your own individual style in your work. Everything is important here: knowledge of the laws of the market, psychology, ingenuity, ingenuity.
Knowing the pitfalls will be equally important. One of these is clothing aimed at youth, mainly in the following styles: sport, street, underground. The problem is that the youth audience is not so numerous, there are much more middle-aged shoppers. In addition, it should be remembered that online commerce is actively developing and a certain part of the youth audience prefers purchasing clothes through the Internet, which reduces the purchasing potential of the audience. Therefore, the boutique loses customers even with a theoretical calculation. That is why opening a women's clothing store requires in-depth analysis.
A clothing store is a promising type of business with a high markup on goods, profitability is ~20% with a payback period of 1.5 years. According to the MarketMasters agency, the turnover rate of clothing retail trade in Russia is increasing by 3% annually. Moscow accounts for ~40% of all purchased clothing! In this article we will look at how to open a clothing store from scratch step by step with an example of a business plan with calculations.
The main target audience of the clothing store: women of any age, men aged 18 to 40 and children. Let's look at the key advantages and disadvantages of starting a clothing store.
More than 50% of stores in Moscow are opened as franchises! For the clothes sold it is necessary
| Types of store | Peculiarities |
| Second hand | Sale of used clothes from Europe. Attracts visitors with low prices. There is the possibility of a quick start, since large initial investments are not required. It is recommended to open in small cities with low purchasing power of the population. Markup on goods ~200% |
| Stock | The store specializes in selling clothes from last season. The main factor in attracting visitors is low prices. Markup on goods ~300% |
| Multi-brand | Selling clothing from many different brands. It is more difficult to organize sales and staff training than in the first two cases. Targeting the middle class population. Markup on goods ~400% |
| Mono-brand | Targeting one brand (often opened as a franchise) and a specific visitor. Markup on goods ~500%. |
| Boutique | Sale of expensive exclusive clothing for wealthy customers. Requires maximum costs to open. Markup on goods ~1000%. |
| Special shop | Sale of specialized clothing: clothing for workers, for medical workers, for the military, for firefighters, for schoolchildren, for children. (cm. " ") |
The sale of clothing refers to impulse goods, i.e. It is often purchased spontaneously, so to stimulate sales it is recommended to organize sales, promotions, savings cards with discounts, and bonuses for multiple purchases.
According to Gomkomstat, the leader in clothing turnover is the Central Federal District (~50%) and, in particular, Moscow (~40%). Retail turnover of clothing in St. Petersburg amounted to ~3%.
The main production facilities are located in the Central region of the country (~40%), the North-Western district accounts for ~19% and the Volga region ~18%. If clothing production is being considered, it is recommended to organize it in districts with maximum capacity.
There are two ways to open a clothing store: purchase a franchise (ready-made solution), or open it yourself. Both methods are characterized by their disadvantages and advantages. If you decide to open a store yourself, then in order to quickly understand the basic business processes of the store, It is recommended to get a job as an administrator in one of the existing.
To register a clothing store with the tax authorities, an individual entrepreneur or LLC is created. The table below analyzes the main advantages, as well as the necessary list of documents for each form of business. When registering under OKVED, select the main activity: 52.42 “Retail trade in clothing”, 52.42.1 – “Retail trade in men’s, women’s and children’s clothing”, 52.42.8 – “Retail trade in clothing accessories (gloves, ties, scarves, belts, suspenders and etc.)”.
| Form of business organization | Benefits of use | Documents for registration |
| IP ( individual entrepreneur) | Used to open a small clothing store (50-80m²). Number of personnel 3-5 people |
|
| OOO ( limited liability company) | Used for opening a large clothing store (>80 m²), attracting additional financing, scaling, capital construction |
According to the law, the authorized capital of an LLC cannot be less than 10,000 rubles! |
The optimal choice of taxation system for a clothing store will be UTII(single tax on imputed income), to switch to this system there must be a municipal law on the possibility of using UTII (up to 100 personnel and the cost of fixed assets up to 100 million rubles). The interest rate is 15%. The advantage of this tax is that it is tied to the physical data of the store: area, number of employees, etc. This is beneficial when opening a large store.
If, when organizing a company, the simplified tax system is chosen, then It is recommended to choose tax accrual on income with an interest rate of 6%.
Main clothing suppliers: Türkiye, China, Europe, Russia. Goods from China and Turkey are attractive due to their low prices, which allows for a markup of 200-300%. For example, a women’s skirt on taobao costs ~$8 (500 rubles), but on the domestic market it can be sold for 1500 rubles.
To search for suppliers in China via the Internet, use Aliexpress.com, Taobao.com
When creating a store, the key point is to find a location and premises. Location is a key success factor in offline business. It is necessary to locate the store in close proximity to customer traffic.
For a children's clothing department and a lingerie store, a room with an area of 12-20 m² is sufficient. This is enough to accommodate a warehouse, retail displays, a fitting room and a cash register. A fur shop or wedding dress salon will require ~25-70 m². The specificity of the goods here is such that it will be necessary to increase the sales area and warehouse space.
In megacities (Moscow, St. Petersburg) rent of 1 m² starts from 1,500 rubles. Renting a small women's clothing department (about 20 m²) will cost 30,000 rubles. In the periphery, rent starts from 1,000 rubles/m²; a similar store will require about 10,000 rubles.
The most expensive rental space is in shopping centers (shopping centers), since they are the places where the maximum traffic of people accumulates. The rental price in a shopping center for 1 m² reaches 20,000 rubles.
We will evaluate the type of equipment needed and financial costs. When purchasing display cases and shelving, the concept of the store, the type of clothing (fur clothing and underwear require different equipment), and traffic are taken into account.
Let's consider a set of equipment for the store:
The cost of purchasing equipment will be ~100,000-500,000 rubles.
In some types of retail stores, the following are additionally required: a cashier counter, banquettes in fitting rooms, etiquette pistols. In wedding salons, a sewing machine is needed to fit a dress.
The most famous equipment suppliers: Tritix, Play, Uno, Style, Market, Joker, Primo. Most of them, in addition to selling ready-made solutions, offer the creation of individual trading systems to order.
For an average store, the total number of staff will be 4-6 people. The team will have 2-3 sales consultants working in shifts. Hall employees simultaneously perform the duties of an administrator and/or cashier and room cleaner. To reduce the cost of wages to an accountant, accounting is transferred to outsourcing companies. This allows you to reduce costs by ~25,000 rubles. per month!
The best criterion for employee salaries is the average wage level in the industry. The average salary level for workers can be viewed on the website rabota.yandex.ru. Typically, staff earnings are piecework-bonus (fixed salary + percentage of sales). The average salary of a salesperson/consultant is 14,000-25,000 rubles. It is necessary to instruct sellers in communicating with buyers. A smile and an attentive attitude increases sales.
The entrepreneur creates a wage fund (payroll), which takes into account the amount issued to the staff.
Approximate payroll calculation for the year:
4 sellers x 12,000 rub. = 48,000 rub./month.
48,000 rub. x 12 months = 576,000 rub. (payroll per year).
Additional expenses of the entrepreneur: payments to the Pension Fund (PFR), Social Insurance Fund (FSS) and the Compulsory Health Insurance Fund (MHIF). The interest rate of the Pension Fund is 22%, the Social Insurance Fund is 2.9%, the Compulsory Medical Insurance Fund is 5.1%. As a result, social security costs amount to 30%.
To calculate revenue for the year, the average revenue from 1 client (average bill) is calculated. The average bill of 800 rubles is a good indicator. It is planned that 10 customers will visit the store; the daily revenue will be ~8,000 rubles.
Annual revenue will be ~2,700,000 rubles. If the opening costs were about 1,400,000 rubles, then payback is achieved within 1.5 years. It may take 1-2 years to achieve stable profits, which is a good indicator.
| Business profitability |    (3.5 out of 5) |
Business attractiveness
|
| Project payback | (3.0 out of 5) |
|
| Ease of starting a business | (3.5 out of 5)
|
|
| A clothing store is a promising business in large cities: Moscow, St. Petersburg, Kazan, Yekaterinburg. The payback period for initial costs is ~1.5-2 years. The business has seasonal sales (August-October, April-June), which will require additional staff and inventory. The key factors for business success are: location close to visitor traffic, and the possibility of mark-ups on goods of more than 300%. | ||
♦ Capital investments – 1,500,000 rubles
♦ Payback – 1.5−2 years
Conventional wisdom holds that people will always buy clothes, shoes and food.
That is why entrepreneurs register an individual entrepreneur or LLC and begin to look for detailed information about how to open a clothing store or – grocery.
Oddly enough, it is ready-to-wear stores that top two completely opposite ratings: the easiest startups to launch from scratch and those that most often go bankrupt.
And this is no coincidence.
It’s not enough to just say to yourself, “I want to own a clothing boutique.” It is necessary to think through all the nuances, supporting the idea with sufficient capital investments.
These are the kind of businessmen who expect success, not financial ruin.
If you are tired of sitting at home or suffering in a low-paying job and decide to start a business, then probably the first thought that comes to your mind is: why not open a store.
According to statistics, women most often open clothing stores (consignment or boutique), men - grocery or specialized (construction, household, auto, etc.).
If you belong to the first category, then you should start by thinking through the concept of your future store.
This is very important and necessary in order to quickly develop a customer base and stand out among competitors.
And only then it is worth starting to implement all the other stages, including the purchase of equipment.
The most promising options for business today are:
First of all, you need to figure out what to name your clothing store.
The name should be short and bright, look good on advertising products and be easy to remember.
Foreign names make a good impression on buyers, as if they hint that luxury clothes are sold here.
Spend no money on the sign: it should be large, easy to read and visible from afar.
Free, but quite effective methods of advertising include social networks and city forums.
Interesting fact:
In the Middle Ages, a fine could be imposed only for the fact that a person was dressed better than a person of higher ranks. Clothes considered “illegal” at the time were simply confiscated.
Experienced businessmen have no doubt where to start launching any business: by writing a financial plan with specific calculations to understand how profitable the startup is.
And this is correct, but in addition to the financial plan, you also need to draw up a calendar plan that will help you understand how much time it will take to implement the idea.
To open a clothing store from scratch (including commission) it will take from 3 months to six months.
| Stage | Jan | Feb | Mar | Apr | May |
|---|---|---|---|---|---|
| Registration | |||||
| Working with the room | |||||
| Equipment purchase | |||||
| Team Search | |||||
| First purchase | |||||
| Advertising | |||||
| Opening |
Not sure where to start?
Of course, from the registration procedure and selection of suitable premises.
You should begin the registration procedure by choosing the form of your future business: individual entrepreneur or LLC.
Remember that the area of your store must be up to 150 square meters, otherwise you will need to open an LLC.
Yes, you don’t need a market larger than 150 square meters to open a clothing store from scratch - it’s too risky a startup.
By registering as an individual entrepreneur, you can choose a simplified form of taxation, for example, UTII. After this, you register with the Pension Fund, presenting all registration documents.
And you definitely need to take care of legalizing your outlet.
It is advisable to complete the documents before purchasing equipment and delivering goods.
To legalize a point, you will have to:
It’s even more difficult, because you will also have to enter into a contract for each accepted unit of goods, so it makes sense to open a new clothing store, rather than a consignment store.
With such success, you can start opening a clothing store at home in the hope that suddenly customers will find you.
When moving far to the outskirts, you must understand that you will have to spend a lot of money on an advertising campaign and create such attractive competitive advantages, for example, low prices, so that customers are not too lazy to travel so far to you.
Choosing a location with high traffic plays a really important role in opening a clothing store (it doesn’t even matter whether you are launching a commission market or not).
The ideal place is:
You also need to worry about:
The size of the premises depends on how large a clothing store you decide to open, but it is better not to rent a premises with an area of less than 50 square meters, as you will create inconvenience for both yourself and your clients.
The interior of the room depends on the concept of your business:
The cost of purchasing equipment directly depends on the size of your future store.
If your market area is large and you are targeting wealthy clients, then you will have to shell out a large sum to purchase all the necessary equipment and fully stock your clothing store.
But even a small boutique (area - 50 square meters) requires the purchase of the following retail equipment:
| Expense item | Amount (in rub.) |
|---|---|
| Total: | 250,000 rub. |
| Racks and shelves | 30 000 |
| Showcase for accessories (jewelry, etc.) | 20 000 |
| Racks and hangers | 20 000 |
| Equipment for two fitting rooms | 20 000 |
| Mannequins | 10 000 |
Cash machine  | 10 000 |
Laptop+printer  | 25 000 |
Bathroom equipment  | 15 000 |
| Service room equipment | 40 000 |
| Other | 60 000 |
Today, it’s rare that clothing stores are open and closed on weekends, so create two shifts of salespeople at once.
The number of consultants on one shift directly depends on the size of your store and the range of goods in it.
If we are talking about a modest corner in a shopping center, then one employee is enough.
If the sales floor area is more than 25 square meters, then it is better to hire 4 salespeople at once (2 per shift).
To encourage your consultants to sell the product better, don’t force them to bid. This scheme of work is more effective: a small bet (for example, 5,000 rubles) +% of sales.
In addition to salespeople, you need to hire 1-2 cleaners (if you want your clothing store to always be clean, it is better to hire two cleaners so that they also work in shifts) and an accountant (an alternative is an agreement with an outsourcing company).
If you decide to open a large clothing store from scratch and are not too limited in funds, then you can hire a manager who will help you understand all the nuances of the new business.
Or you can lead on your own if you feel you can handle it.
You will expect the following monthly expenses for staff salaries:
As you can see, salary costs will not be the same every month due to the fact that salespeople do not have a fixed rate, their earnings depend on the amount of sales made.
You will receive an exact answer to this question only when specific amounts are indicated for equipment, rent, repairs to the premises depending on its condition, etc.
Before making such a plan, study the pricing policy in your region so that you can use exact, rather than approximate, figures.
If we talk about opening a store of 50 square meters on the ground floor of a multi-story building in the central part of a city with a population of 300-400 thousand people, then the costs will be approximately the following:
This amount will increase due to the fact that you will have to include the costs of running a clothing store in your financial plan until your monthly profit covers these expenses.
To maintain the normal operation of the boutique, you need at least 150,000 rubles per month.
That is, in order to open a clothing store from scratch, it is advisable to have 1.5 million rubles.
The average return on investment for this business is 1.5-2 years.
Let's try to explain how numbers work using a specific example.
Let’s say you sell 4 items a day for a total of 8,000 rubles.
Let's immediately subtract the percentage of sellers who persuaded customers to make a purchase, let's say it's 10%, that is, we are left with 7,200 rubles. For a month, the profit of a clothing store (with the deduction of the consultant’s percentage) will be over 200,000 rubles.
We remember that the amount of mandatory monthly expenses is 140,000 rubles (we take the minimum amount because we have already allocated % to the consultant), that is, you are left with 76,000 rubles of profit.
At least 20% of this amount should be set aside for the next purchase.
Is there little left?
Then you must attract more clients so that your personal income as a boutique owner will be even higher.
Now you know almost everything about how to open a clothing store.
All that remains is to collect the amount of starting capital and think through all the nuances of launching a startup in order to avoid disappointments.
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The clothing sales business has long proven its profitability. Things have always been bought, and will be bought, no matter what kind of business it is: a business selling women's, men's or children's clothing. Many beginning entrepreneurs often face the question: “Which business format is better?”, “Where is it more profitable to start?” The questions are indeed not easy, because you can open a wholesale organization and become a supplier, you can open a standard retail store, or you can start with a simple online store. The choice is sufficient, so you need to analyze this issue “from and to” so that later it does not turn out that the choice made is a big mistake.
There are three business options for selling children's clothing, men's and women's.
Wholesale of clothing- This is a kind of store, the purpose of which is still the same: the sale of goods. Only the target audience is not buyers, but retail stores. That is, the process is as follows: a wholesale store purchases goods in large quantities, becomes a supplier and begins to look for options for selling products. These options are retail stores. Thus, a small chain is formed: manufacturers from whom the wholesale company purchases, - a wholesale company from which retail stores purchase, - retail stores that sell their goods to customers.
Retail is a regular store, in this case specializing in clothing. The target audience is consumers. The main characteristics that are common to all retail stores are:
These characteristics are at the same time distinctive and, thanks to them, stores have their own individuality.
Selling through an online store- a popular method today. It involves organizing and running a business online. Buyers can make purchases without leaving home. To do this, they just need to select the appropriate item and pay for the goods either by card or using a payment system. The main condition when organizing an online store is to make the purchasing process as comfortable as possible for customers, so that they want to return to shopping.
Opening a wholesale company, regardless of the type of clothing and target customer (mono-brand or multi-brand store, stock, second-hand, boutique), has common components:
The first thing you need to do is get acquainted with your competitors, collect maximum information on sales in a given region, and identify its dynamics. It wouldn't hurt to talk to dealers. Before opening a wholesale store, it is necessary to draw up the most detailed business plan that will reflect all financial information.
Finding a location is not the most critical stage. When opening a wholesale company, a favorable or good location is not required at all, since retail stores will either come to pick up the goods themselves, or even provide all the work to the wholesale company. Therefore, the most important thing will be the optimal location. The building can be found ready-made or built for specific purposes (depending on the availability of available funds). Before renting or purchasing a ready-made premises, you must make sure that it is suitable for a warehouse.
After the building is rented or purchased (built), you need to start arranging the premises: it is worth dividing it into sections (loading, unloading, receiving, packaging, storing goods). The equipment will also be needed, depending on the range, weight and dimensions.
The supplier selection stage is different for each type of store. If the target audience is stock stores, then you need to purchase clothes either from manufacturers or from stores that have stock. Second-hand stores are the most economical option (purchasing clothes is cheap, unlike others). Suppliers are companies that collect things. Multi- and mono-brand items, as well as expensive and luxury items for the boutique, are purchased directly from manufacturers.
To make things easier for retail stores, driveways need to be clear and convenient. A good option is a building on the outskirts of the city, where you can easily and without traffic jams.
Opening a store begins with drawing up a business plan for selling clothes. After this, registration begins (LLC or individual entrepreneur). Next is the most important stage – finding a location. It should be in a passable place where there is a large flow of people every day. This could be a shopping center or a free-standing store in the city center on a busy street. It all depends on the type of clothing being sold and its target audience.
The size of the room also varies depending on the type of clothing sold. For example, a second-hand store does not require a large premises. After the premises are rented, the search for suppliers, the purchase of equipment and the hiring of personnel begins.
Suppliers will mostly be wholesale companies. You can look for them either through friends or through advertisements on the Internet. Equipment also varies by store. If it’s a boutique, then everything should be expensive, but if it’s second-hand, then you won’t need much equipment and, in principle, they won’t pay attention to it.
Hiring staff is another crucial moment, since the profitability of a business (its profitability) depends on employees. And the last step is advertising. You can read more about opening a retail store (its stages, main advantages and disadvantages regarding each type of clothing) in previous articles.
The business of selling clothes online is as follows. The first is searching for suppliers. For an online store, it is very important to have a quality product. You can create your own warehouse where clothes will be stored, or you can agree with the supplier that clothes will be picked up from his warehouse for each order. The second option is cheaper, regardless of the clothing, its quality and brand.
To open an online store, you need a website. For the site - hosting and domain, for which you can find low prices. Hosting is paid monthly. You will also need to register a legal entity (LLC or individual entrepreneur) so as not to have problems with the tax office.
It is important to provide payment and delivery methods; there must be a choice so that the buyer finds something suitable for himself.
When suppliers have been found, the website has been created, you need to attract buyers. To do this, you need to start active promotion: contextual advertising ordered from Google or Yandex. It will attract those who see this advertisement and follow the link to the store. There is another option - advertising in boxes. You can create your own affiliate program so that buyers refer their friends and acquaintances and receive interest on their purchases.
Promotion is a means to form a base of regular customers. It is aimed at sales (20% of regular customers = 80% of sales). In order to retain customers, you need to hold constant promotions and discounts, give coupons and send messages with lucrative offers.
An online store has its pros and cons. Among the advantages, it is worth highlighting the simplicity and minimal costs, and the disadvantages are that it is unlikely that you will be able to achieve high incomes (of the three options, this one has the minimum profitability), unlike retail or wholesale stores. There is also a limitation on target audiences.
Any business selling clothing can make a profit. All this will happen only over different periods of time. The fastest payback period for a retail store.
And the simplest method of organization is an online store. A wholesale company, like an online store, is characterized by not such high costs. But profits in retail trade are also higher. Each business option has its positive and negative sides. Therefore, each entrepreneur must make his own choice based on his experience, capabilities (financial, including) and desires.
Where to start if you want to open your own store? Which store is better to open and how to choose a product to sell? How much does it cost to open your own small store and how to do it from scratch?
Hello, dear readers of the business magazine HeatherBober.ru. This is the entrepreneur and website author Alexander Berezhnov.
When beginning entrepreneurs have a question about what kind of business to start, many choose the simplest and most obvious thing - retail trade, namely opening their own outlet or store, which is essentially the same thing.
The article will be especially interesting for a beginner who has decided to open a store without sufficient experience. After studying it, you will learn about all the secrets and nuances of this business.
The information in the article is universal for opening any type of store.
For example, if you decide to open a clothing store, auto parts store, children's store or grocery store, then you will have to go through the same steps. Here you will also find guidelines for opening the most common types of stores. This will be especially relevant for you if you have not yet decided which store is profitable to open.
Now I will tell you everything in order!
Dear friend, the most important thing is that you must understand that the vast majority of people come up with the idea of opening a store as a seemingly simple commercial project.
For clarity, I propose to consider the objective pros and cons of your store as a business. This will make it easier for you to decide which store to open and what to pay attention to.
1. Clear for the average person
This is why most budding entrepreneurs consider their own store as their first project. Since childhood, we have become accustomed to seeing markets, stalls and even supermarkets, where today you can buy almost everything.
The truth is that a person is reluctant to take on a task that he does not understand. In the case of a store, it seems to us that we will have the least amount of problems. But this is only partly true.
2. Ease of implementation of the idea
In general, in trade, 99% of all business processes have long been worked out.
It is not for nothing that, having opened one store, its owner often does not stop and, with the right approach to business, retail outlets multiply like mushrooms after rain.
Indeed, all you need is not to reinvent the wheel and follow the beaten path, which should lead to success in your business, unless, of course, you “punch up some mistakes” at the very beginning.
3. Ease of calculations (forecasting income and expenses)
Trade is the most understandable business also from the point of view of calculations. You have the cost of the goods, the trade margin and the expenses that you incur.
4. Stability of the business when it is promoted
A well-established retail outlet is a paradise for its owner. For example, a “brisk” grocery store in a residential area of the city can provide you with a comfortable life, even despite nearby competitors.
5. Opportunity to sell your store as a ready-made business
Having built the entire store management system correctly, you can only occasionally coordinate the main processes; all things will proceed by inertia. This way you will become the owner of a completely autonomous system that generates profit.
Naturally, many people who have capital but do not want to open their own store from scratch will want to become the owner of such a “tidbit.”
Nowadays, selling a ready-made business is as easy as selling a car or an apartment; you just need to notify potential clients that you are selling your profitable store.
1. High competition
The downside to the simplicity and clarity of opening a store is the high level of competition. After all, there are a lot of people who want to become the owner of their own retail outlet. Every second entrepreneur wants to open his own store in one field or another. This makes it very difficult to start in this business and its further development.
2. Relatively high barrier to entry into business
If you deal with a product and sell it through a regular store, in this case you will need several hundred thousand rubles or an average of $10,000 to start your business.
3. Remnants of unsold goods appear
Another weakness of the store as a business is the remaining stock of goods.
They form especially often in grocery stores and in stores selling seasonal goods. For example, New Year's toys and other holiday supplies.
The cost of remaining goods has to be included in the current cost, which leads to a drop in demand, since the final price of the goods increases, and the buyer does not want to overpay.
4. A large number of periodic routine operations
Suppliers and working with them, tracking product balances, updating the assortment, rent, working with personnel (if any), taxes, inspections, inventory - this is not a complete list of what you will have to face in the process of working on your own store.
5. Seasonality of business depending on the chosen niche
Each trading niche has its own seasonality. It can be expressed more or less clearly. For example, in summer construction and finishing materials sell well, but in winter sales drop significantly.
Other stores make super profits in the winter around the New Year, and in the summer they “suck their paws” in anticipation of a new profitable season. Pay attention to this factor when choosing a niche for your future store.
6. If the business fails, the risk of losing 80% of money
If suddenly your business does not take off, then the purchased commercial equipment will have to be sold for next to nothing, and the remaining goods will also be sold in bulk or simply given to friends for the holidays (if the goods are not food products).
Hopefully, you now have a more complete picture about opening your store and know what challenges you will face in the process.
You can reduce the risk of financial losses if you approach opening your store, or rather trading activity, a little differently, for example, by starting trading along the lines of “Business with China.”
This is a very trendy and interesting topic for today. My friends are doing it successfully. By purchasing goods in China, you can sell them with a markup of up to 500% without even opening a physical retail outlet. This type of business can also be done via the Internet.
He teaches this business very well - he is an expert on the “Chinese topic.” Our team knows Zhenya personally and recommends him as a professional in this area.
Watch the video in which student Evgeniy shares his impressions of the training and financial results:
We continue the theme of opening our own store.
If by “zero” we mean a lack of knowledge and experience, then of course such a zero will not be an obstacle to the implementation of the project.
But if someone thinks that you can open your own store without having anything, then you must be disappointed - this is truly a myth!
Let's look at those mandatory elements without which it is simply impossible to open a store in principle.
I will list this minimum, and then you yourself can calculate in numbers how much, according to conservative estimates, it will cost to open and maintain a store.
For example, one of my friends, having opened a premium women's clothing store, invested in it more than 1,200,000 rubles . This amount included the rental of premises, renovations, purchase of goods, purchase of commercial equipment, hiring of personnel, and company registration.
1. Premises (retail area)
Own or rented.
Naturally, having your own premises (not rented) gives you enormous advantages, but unfortunately, a minority of people have such a bonus at the start.
Get ready for the fact that rent will “eat up” most of the profit, and during seasonal downturns you can work “to zero”, without earning a penny, or even go into the red, shelling out money from your pocket.
2. Trade equipment
In rare cases, you will not need counters or other equipment: stands, refrigerators (if you are opening a grocery store). Depending on the specifics and size of your retail outlet, the cost of commercial equipment will vary.
3. Product
You can take some of the goods from suppliers for sale on deferred payment terms. That is, you will pay money for it after the sale. But the other half of the goods will most likely have to be purchased.
It is especially difficult for beginners in this market. So, if you are a newbie, then not every supplier will agree to give you the goods for sale due to a lack of trust.
4. Seller
At first, you yourself can act as a seller, and this will even be useful, because it is the owner who is primarily interested in the success of his business.
This way, you will study the most popular products, work with customer objections, and be able to pass on your findings to future hired employees.
5. Legal and accounting nuances
In any case, you will need to officially register your commercial activity, as well as periodically submit reports to the tax office and the Pension Fund.
In addition, you will deal with delivery notes, invoices and contracts. You have to deal with all these points sequentially.
