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How to Start a Clothing Store Business in the U.S

Vincent Nyoike
Vincent Nyoike American SMEs

The apparel industry is a lucrative area to invest in. The United States has a large population with a taste in fashion, creating a large market for clothing store business. Clothing storefront business is profitable with profit margins ranging between 50 and 75 percent of the wholesale price. You can start a physical clothing store or operate one online. Whichever opinion you take, I will take you through the process.

Carryout a Feasibility Study about the Apparel Market

First, you need to research the market before venturing into the clothing business. For instance, you need to find your target customers and their age group. Also, check the competition around your preferred business location. If the area you want to start the business has a high number of young people, then you should consider selling clothes for the youths. A feasibility study will also help you identify business risks before venturing into the clothing store business. 

Read also: How to start a bookstore in the U.S. 

Write a Clothing Store Business Plan

With a good business plan, it is easy to start a profitable business. A business plan is a blueprint of any business. It should highlight startup costs, business owners, business location, risks and opportunities. Carrying out a feasibility study prior to writing a business plan will help you to have facts. Look for ways to manage your business risks and how to create opportunities. You also need to include Mission and Vision statements of your business.

Acquire Business Licenses and Legal Structure

You can start a clothing store in the US as a sole proprietor, partnership, or limited liability company. Identify your business legal structure before you can register it. First, you will need to register your business name. If you are a sole proprietorship, then you should use your full name and if it is a partnership, then the name should be stated in the partnership deed.

If your clothing store business is a sole proprietorship, you don't need to register it at the State level. You need to check with your local governing authorities about business permits you need for your clothing store.

At the minimum, you need to get an Employer Identification Number (EIN) to ensure that you report your earnings and pay taxes. You will also need to insure your clothing boutique against accidents like fires and theft.

Read more: How to register a business in the U.S. 

Secure a Business Location for Your Apparel Business

You need to find a business location that is easily accessible by your customers. It should also be visible from a distance. Make sure that your business location is secure and has a high population. Densely populated areas create a market for a product. 

Find Reliable Clothes Suppliers in the U.S

The State in which you wish to set up your clothing business will dictate your clothes suppliers. Look for wholesale suppliers with quality clothes at low prices. You can attend trade fairs to learn about new designs and clothe manufacturers and wholesalers who can supply you with clothes.

Market Your Apparel Store

There are many ways to market a clothing apparel store in the U.S. One of the ways that has proved effective is the use of social media. For instance, you can have a Facebook page and Instagram account. Make sure to upload pictures of your new stock and trending fashions in the market. You will create awareness about the existence of your business and you can easily move your business online. This way, you can increase your sales compared to when you rely only on sales from your physical store.

Clothes on display in clothes storefront 

Cost of Starting a Clothing Store in the United States

The cost of starting a clothing store in the U.S depends on business location, size of the business and the type of clothes you are selling in your business. The cost of starting a clothing store in the US is between $150,000 and $200,000. The figure includes the cost of furnishing your store, storefront rent, insuring your business, taking business licenses and also acquiring stock.

You need to furnish your storefront so that it is appealing to your customers. You will also need to acquire items like hangers and tags.

Read also: How to start a gym business in the U.S.

Is Clothing Boutique Profitable in the United States?

Yes. The clothing industry has grown significantly over the years and profit margins are above 50 percent. You should set your profit margin to be between 50 and 60 percent to ensure you generate enough revenues to meet your expenses and make good profits. There is a high demand for clothes, making it a profitable venture. You can run your clothes boutique online and avoid some costs like storefront rent. You can open a clothes boutique store on Shopify

Use this link to create a Shopify store, get 14 days trial and start earning.