consignment boutique business plan

Consignment Store Business Plan Template

Written by Dave Lavinsky

Consignment Store Business Plan

You’ve come to the right place to create your Consignment Store business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Consignment Store businesses.

Below is a template to help you create each section of your Consignment Store business plan.

Executive Summary

Business overview.

Casual Consignment is a startup consignment company located in Houston, Texas. The company is founded by Terri Cooper who has experience in both retail clothing sales and consignment sales Now, with the expertise of knowledge and business acumen, Terri has determined she can confidently start and effectively grow a successful consignment company. Terri believes her experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of consignment and retail sales practices will provide everything needed for long-term growth and profitability.

Casual Consignment will provide a comprehensive array of women’s clothing for a wide variety of clients. Casual Consignment will be the popular clothing store for all ages, providing services and products to each client while supporting the strategic goals of the company. Casual Consignment will be the ultimate choice in Houston for clients to ensure that every need of the customer is fully and completely met.

Product Offering

The following are the products and services that Casual Consignment will provide:

• Curated clothing for resale of excellent quality.
• Clothing that has been cleaned and ensured to be of high quality
• A diverse range of clothing, including outerwear, sportswear, women’s casual, young teen, and children’s garments
• Fair and transparent pricing, with original tags secured, if possible and markdowns clearly identified
• Customer values in handbags, jewelry and accessories
• Day to day excellent customer service
• Private rooms to try on clothing, if desired

Customer Focus

Casual Consignment will target the adult women of all ages, teens, and children within the greater Houston region. The consignment store will also target retailers who are seeking to refresh inventories or add to offerings in their establishments.

Management Team

Casual Consignment is owned and operated by Terri Cooper. She recruited a former administrative assistant, Cary Brown, to be her store manager and help oversee the store and take on operational duties. She also recruited Manny Jaurez to be the general maintenance man and assistant in stocking and inventory.

Terri Cooper graduated from Houston Lyons High School in 2007 and began to pursue her concept to open a consignment store. She studied consignment sales at Pine Valley Community College while obtaining her associate of arts degree in business. She also worked for ten years within the consignment retail industry, where she became very well known and respected for finding the most appropriate and suitable clothing for a wide variety of women who needed business clothing or clothing for special occasions. Customers often wait to be assisted by Terri for this reason.

Cary Brown worked alongside Terri Cooper for five years after graduating from Houston Lyons High School. She held the role of retail assistant in an administrative position and also helped customers with questions and suggestions for wardrobe items. She will hold the role of store manager in the new store.

Manny Juarez, the former general maintenance man at the consignment store, will now be the manager and assistant in stocking of consignment items and inventory.

Success Factors

Casual Consignment will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Casual Consignment
• Comprehensive and curated selection of clothing for all occasions, including formal and special occasions. Accessories, handbags and jewelry are also included.
• Women’s clothing, young adult fashions, teen clothing, and children’s clothing are all included in inventory.
• Inventory changes regularly on a one-month rotation to refresh customer choices and clothing availability.
• Rigorous cleaning and clothing preparation takes place prior to inventory placement
• Casual Consignment offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Casual Consignment is seeking $200,000 in debt financing to launch its Casual Consignment store. The funding will be dedicated toward securing the store space and purchasing store equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Store space build-out: $20,000
• Store equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Casual Consignment.

Company Overview

Who is casual consignment.

Casual Consignment is a newly established, full-service clothing consignment store in Houston, Texas. Casual Consignment will be the most stylish, on-trend and affordable choice for customers in Houston and the surrounding communities. Casual Consignment will provide a comprehensive selection of clothing for any customer to view and select for purchase. Their full-service approach includes a comprehensive array of curated clothing styles in excellent condition, reasonable pricing and convenient rooms for trying on clothing.

  Casual Consignment will be the favorite “go to” clothing store for all customers and will offer the best curated selection of clothing under the guidance of Terri Coopear. The team of professionals are highly qualified and experienced in Casual Consignment and are well-trained in assisting customers in every aspect of the buying process. Casual Consignment removes all headaches and issues of clothing shopping and ensures all expectations are well met while delivering the best customer service.

Casual Consignment History

Casual Consignment is owned and operated by Terri Cooper. Ms.Cooper graduated from Houston Lyons High School in 2007 and began to pursue her concept to open a consignment store. She studied consignment sales at Pine Valley Community College while obtaining her associate of arts degree in business. She also worked for ten years within the consignment retail industry, where she became very well known and respected for finding the most appropriate and suitable clothing for a wide variety of women who needed business clothing or clothing for special occasions. Customers often wait to be assisted by Terri for this reason.

Since incorporation, Casual Consignment has achieved the following milestones:

• Registered Casual Consignment, LLC to transact business in the state of Texas.
• Has a contract in place for a 10,000 square foot office at one of the largest retail buildings
• Reached out to numerous contacts to include Casual Consignment while shopping.
• Began recruiting a staff of three and three office personnel to work at Casual Consignment

Desert Sun Consignment Storeing Company Services

The following will be the services Casual Consignment will provide:

Industry Analysis

The clothing consignment industry is expected to grow over the next five years to over $70 billion. The growth will be driven by the desire by consumers to conserve clothing and wear clothing that has been sustained as a practice of reasonable use of the world’s environment. The shift in moving toward resale clothing items over new items will continue to grow as technology enables the advancement of cleaning, repairing and redesigning used clothing to produce wearable clothing that has been refashioned. In addition, software technology will move many of the routine processes to digital systems, relieving staff of the more time-consuming tasks in the retail store.

Costs will likely be reduced as technology becomes known and is used more and more freely. Costs will also be reduced by the recycling of clothing and accessories, to produce an overall savings or the purchase of new items. Costs will be reduced as more clothing stores adopt the recycle and reuse policies and fewer garments are thrown into landfills.

Customer Analysis

Demographic profile of target market.

Casual Consignment will target adult women in Houston, Texas of all ages, as well as teens, and children within the greater region. The consignment store will also target retailers who are seeking to refresh inventories or add to offerings in their establishments.

Customer Segmentation

Casual Consignment will primarily target the following customer profiles:

• Adult women of all ages
• Young adult women and teens
• Children of all age groups
• Clothing retailers looking to refresh or build inventory

Competitive Analysis

Direct and indirect competitors.

Casual Consignment will face competition from other companies with similar business profiles. A description of each competitor company is below.

Clothing On Trend

Established by Manny Buonao in 2001, Clothing On Trend is a clothing store focused on selling to young adult, teen, and pre-teen categories. The clothing sold is imported from Brazil and the pricing is comparable to consignment store pricing. While attractive and casually fun to wear, Clothing On Trend items are made of materials that are not long-lasting and many items much be dry cleaned with each use.

Manny Buonao worked in a retail clothing shop for twenty years and determined after that time to increase his inventory and build a company focused on the young women demographic. This has been profitable; however, the quality of the clothing remains and issue, as many items are returned for full value.

Everyday Consignment Shop

Everyday Consignment Shop was established in 1998 by Nancy and Tommy Gordon. The store inventory is made up of household items, decor, small furnishings, kitchen assortments, and reconditioned collectibles. Nancy and Tommy Gordon owned a retail store in Houston for over ten years before starting Everyday Consignment, where the inventory was directed to men’s clothing and children’s clothing, along with camping gear and outdoor sporting equipment.

After closing the Everyday Consignment shop, the Gordons opened the Everyday Consignment Shop, offering general household items and special holiday-themed retail items during major holidays. Some items are new and sold as overstocks; however, the bulk of the inventory are items that were preowned and lightly used. All inventory is sorted and inspected for usability and any breakage or signs of wear and tear before being placed into inventory.

24 Hour Stop n’ Shop

Although the 24 Hour Stop n’ Shop is primarily attached to a gas station in West Houston, the convenience store has expanded to include a wide variety of consignment items for sale and has proven to be very popular with customers who arrive to purchase gas and stay to peruse the racks of consignment items. Included in the store are household items, decor items, children’s toys, gardening and outdoor items, and kitchen utensils and linens. Some items are sold new as overstocks, while 95% of the items offered are lightly used. Mary and Harry Ragan own the 24 Hour Stop n’ Shop and have used the store as a means to offload many of their family collectibles and items no longer needed from their former ranch. The Ragans have build a sizable customer base and plan to expand the business to include prepared food items, including snacks and packaged meals, to complement the consignment shop and the convenience store items already in stock.

Competitive Advantage

Casual Consignment will be able to offer the following advantages over their competition:

• Inventory changes regularly on a one-month rotation to refresh customer choices and clothing availability

Marketing Plan

Brand & value proposition.

Casual Consignment will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who offer both excellent prices and assistance in service to customers.
• A comprehensive, curated selection of cleaned clothing for customers
• Affordable pricing on clothing that is sustainable and usable, saving the environment in the process

Promotions Strategy

The promotions strategy for Casual Consignment is as follows:

Word of Mouth/Referrals

Casual Consignment has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients. The contacts and clients will follow the employees to their new company and help spread the word of Casual Consignment.

Professional Associations and Networking

Retail associations will be joined and networking will be a priority during the first years of business in Houston. There are competitors, both direct and indirect, and the possibility exists for collaboration via associations.

Print Advertising

A direct mail piece will be sent to every Houston household offering a significant discount on clothing purchased during the first 90 days of business. This offer will be made to incentivize new customers to find and continue returning to the Casual Consignment Shop.

Website/SEO Marketing

Casual Consignment will fully utilize their website. The website will be well organized, informative, and list all the product types and services that Casual Consignment provides. The website will also list their contact information and list their holiday special inventory items, along with monthly discounts. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “consignment company” or “clothing resale near me,” Casual Consignment will be listed at the top of the search results.

The pricing of Casual Consignment will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Casual Consignment. Operation Functions:

• Terri Cooper will be the owner and president of the company. She will oversee all staff and manage client relations. Terri has spent the past year recruiting the following staff:
• Cary Brown will become the store manager and help oversee the store and take on operational duties.Cary Brown worked alongside Terri Cooper for five years after graduating from Houston Lyons High School.
• Manny Jaurez, also a former retail associate, will become the general maintenance man and assistant in stocking and inventory.

Milestones:

Casual Consignment will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease store space
• 5/15/202X – Finalize personnel and staff employment contracts for Casual Consignment
• 6/1/202X – Finalize contracts for Casual Consignment vendors
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Casual Consignment store
• 7/1/202X – Casual Consignment opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Casual Consignment are the clothing fees they will charge to customers for their inventory items.

The cost drivers will be the overhead costs required in order to staff Casual Consignment. The expenses will be the payroll cost, rent, utilities, shop supplies, and marketing materials.

Funding Requirements and Use of Funds

Casual Consignment is seeking $200,000 in debt financing to launch its consignment store. The funding will be dedicated toward securing the store space and purchasing equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 400
• Average Revenue per Month: $48,500
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, consignment store business plan faqs, what is a consignment store business plan.

A consignment store business plan is a plan to start and/or grow your consignment store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Consignment Store business plan using our Consignment Store Business Plan Template here .

What are the Main Types of Consignment Store Businesses?

There are a number of different kinds of consignment store businesses, some examples include: Clothing, Books, Music and Movies, and Furniture.

How Do You Get Funding for Your Consignment Store Business Plan?

Consignment Store businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Consignment Store Business?

Starting a consignment store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Consignment Store Business Plan - The first step in starting a business is to create a detailed consignment store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your consignment store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your consignment store business is in compliance with local laws. 3. Register Your Consignment Store Business - Once you have chosen a legal structure, the next step is to register your consignment store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your consignment store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Consignment Store Equipment & Supplies - In order to start your consignment store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your consignment store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Starting a Business | How To

How to Start a Consignment Shop in 9 Steps

Published January 12, 2022

Published Jan 12, 2022

WRITTEN BY: Meaghan Brophy

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This article is part of a larger series on Starting a Business .

Starting A Business?

• 1 Choose the Right Type of Consignment Shop
• 2 Create Your Budget
• 3 Create a Business Plan
• 4 Select a Storefront
• 5 Acquire Merchandise
• 6 Design & Outfit Your Store
• 7 Advertise
• 8 Hire & Train Employees
• 9 Plan & Launch Your Grand Opening
• 10 How to Start a Consignment Shop FAQs
• 11 Bottom Line

To start a consignment shop, as with any business , you’ll need a prime storefront and a strategy for acquiring customers and merchandise. It involves choosing a niche, establishing a budget and business plan, finding merchandise and laying out your store, advertising, staffing up, and, finally, opening to the public.

Starting a consignment store can cost up to $10,000, according to a commonly reported figure from Entrepreneur, with average salaries for consignment shop owners ranging from $40,000 to $60,000. Here’s how to start a consignment shop―as a brick-and-mortar store―in nine steps.

1. Choose the Right Type of Consignment Shop

If you’re wondering how to start a consignment shop, the first step is to narrow down exactly what kind of store you want to open . The most successful stores cater to a specific audience and have a specialty or focus area that helps them stand out from other online or offline retail competitors. To make the most money with your new business, choose a product area that is in high demand and/or hard to find, to lure shoppers into your store.

Designer & Luxury Goods

The secondhand luxury and designer goods market was worth an estimated 33 billion euros in 2020 (about $37 billion), a figure expected to continue to rise. These are popular items because shoppers can purchase products that may otherwise be outside their budgets. People looking to get rid of gently worn designer products often opt to sell them to a consignment store rather than donating to get a partial return on their investment.

Popular designer goods to sell include watches, jewelry, sneakers and other footwear, handbags, wallets, jewelry, and apparel.

The apparel resale market will hit $77 billion in the next five years , according to ThredUP.

LXR is an online consignment shop for luxury and designer handbags and accessories. The store focuses exclusively on authentic designer label goods. It also purchases used goods to sell on its site.

Apparel & Footwear

Clothing and shoes are popular secondhand items, even if they’re not expensive designer-label. More than three-quarters of people who’ve never done it would consider selling secondhand clothes. They’re relatively easy to source—more than 95% of the 36 billion tossed clothing items each year could be salvaged—and they’re items for which there will always be demand.

In fact, clothing is the most-purchased secondhand good . And as much as 7% of the average person’s wardrobe consisted of used items in 2019, a figure expected to hit 17% in 2029.

The largest target market for this type of consignment shop are Gen Z women, according to ThredUP. So keep those styles and trends in mind if you’re going after that audience.

Omnia is an excellent secondhand apparel and accessories shop to check out for inspiration. It sells a carefully curated selection of used vintage goods.

Secondhand books are another popular consignment category. In addition to regular paperbacks and hardcover books, some used bookstores deal in rare books, such as antiques and signed copies, or specialty books like cookbooks and textbooks.

Popular websites like ThriftBooks and Better World Books are examples of online retailers that have found success swelling used books. Puerto Rico-based El Coquí Bookstore sells used books in-store only—shoppers have to visit the shop and explore the wide array of books in a variety of languages.

Children’s Wear

Clothing for children and babies is a popular and profitable type of consignment store. Since parents have to purchase clothes for growing children very often, many turn to secondhand stores as an affordable option. Plus, you’ll have a steady supply of parents looking to sell their children’s gently used clothes.

Once Upon A Child is an example of a secondhand shop that sells both children’s clothing and toys. The brand operates several retail shops as well as a full online presence.

Online Consignment Shop

During the past several years, online consignment stores have become very popular, especially for apparel and accessories. Starting an online consignment shop gives you a wider customer base than a local store.

Check out these resources to help you learn how to start selling online:

• How to Start an Online Store
• Best Ecommerce Platforms
• How to Set up Click and Collect

One key thing to remember when starting an online consignment shop is that you’ll need to photograph each item individually. This can be time-consuming, so it’s important to weigh how much time it’ll take you against the opportunity for profit.

Pop-up Consignment Shop

If you’re not ready to commit to a full-time storefront, having a pop-up business is a great way to test products and locations before diving in. If you’re looking to start a consignment business as a part-time venture or side gig, having temporary stores is a good option as well.

Pop-up shops come with less commitment, so they’re a great way to get into retail without all the overhead of running a permanent storefront. This is exactly the approach that Grapevine Events takes with their secondhand goods pop-up shops. As a result, they’re also able to offer higher rates to consignors.

2. Create Your Consignment Shop’s Budget

Once you know what kind of store you want to open, the next step in how to start a consignment shop is setting a budget for your store . To set your budget, first consider your current income and savings. What can you save and set aside for your new business venture? How much outside funding will you be able to get from personal loans, business loans, business credit cards, and so on? Opening a consignment business requires a lot of upfront cash. Once you’re open, it will take time to build your sales volume.

Next, estimate your expenses for opening your store. Include how much you can spend on a storefront, outfitting the inside of your store, signs, and marketing, and your initial product purchase.

Now, estimate your monthly expenses for once you open. Include set bills like rent, phones, internet, payment processing, and so on. Also factor in advertising budgets, employee salaries, merchandise purchase orders, and other store supplies.

The hardest part of setting a budget for a business that is not yet open is predicting your monthly sales volume. This is especially hard for apparel and retail businesses as sales can fluctuate drastically, depending on the season, holiday, weather, economy, and consumer confidence. According to the Retail Owners Institute , used merchandise retailers had an average inventory turnover rate of 4.1 in 2021. That means they sold through and replaced all of their inventory about four times throughout the year.

Keep that number and your total inventory value in mind when estimating your monthly sales. Err on the side of caution, and plan for lower sales when you open, so that you have enough cash flow to cover expenses. Subtract your estimated monthly expenses from your estimated monthly sales, and that will give you an approximate monthly cash flow for when you open.

Pro tip : Retail is an extremely seasonal business. Most retail businesses bring in a ton of money around Christmas and the winter holidays. There are also spikes in revenue around back to school shopping, and spring holidays such as Mother’s Day and Father’s Day. Your monthly sales can vary, so always have extra cash on hand to cover slower months.

3. Create a Business Plan for Your Consignment Shop

Once you figure out what kind of consignment business you’d like to open, you’ll need a solid business plan to piece together all your ideas and form a strategy for making your store profitable. If you’re seeking outside or startup funding such as a bank loan, your business plan will be evaluated during the approval process.

Here are the nine elements found in a typical business plan :

• Executive summary : An introductory paragraph outlining your consignment shop’s purpose, mission, and why it will be successful.
• Business description : Describe what need or market hole your consignment store is filling in the community, who your customers will be, and the talent on your team.
• Market analysis : Write an overall outlook on the consignment and resale industry including trends, what successful competitors are doing, and what your strengths will be.
• Organization and management : Outline who will be running your business and the experience your team members have in retail, consignment, or your store’s area of specialty.
• Product line : Outline what kinds of products you will sell, how you will sell them, and where your supply will come from. Include research on why you’re selecting those products, such as sales trend data.
• Marketing and sales : Describe your general marketing strategy and your plan for attracting and retaining customers.
• Funding requests : If you need outside funding, outline your needs and specify exactly how you will use the funds.
• Financial projections : Detail how your business will become stable and profitable, including a projected financial timeline of at least five years. If you are borrowing funds, include a plan on how you will be able to repay the loan.
• Appendix : Use this space for any supplemental documents, such as logo or branding designs, sketches of what your consignment shop will look like, credit histories, licenses, permits, etc.

When writing a business plan, use the format and software you’re most comfortable with. Many people use a traditional word processor like Microsoft Word or Google Docs. You can also create your business plan in a presentation format using PowerPoint or Google Slides. There are also business plan software programs that offer templates and guide you through the process.

Choose the Best Legal Structure

Choosing a legal structure for your consignment business is important because it dictates how you will collect and report taxes, your level of personal liability, and how you will get paid from your business. There are many types of legal structures, but the three most commonly found in retail are sole proprietorships, limited liability companies (LLCs), and corporations .

• Sole Proprietorship
• Limited Liability Company
• Corporation or C-corp

If you don’t set up a legal structure for your business, this is the default. Operating under a sole proprietorship essentially means you’re doing business as an individual and, therefore, are not separated from your business in any way. Sole proprietorships are popular options for freelancers, business consultants, and other individuals conducting low-risk and low-visibility work by themselves.

With sole proprietorships, your business revenue is considered personal income. This means you will pay sole proprietorship taxes based on your personal income bracket. While you are subject to self-employment taxes, you do not have to pay any corporate taxes, which is a plus.

However, sole proprietorships also come with greater risk because you and your business are one and the same. Your personal assets, such as your house and car, are at risk if there is any kind of lawsuit against your business or if you declare bankruptcy.

LLCs are legal structures for small businesses that protect your personal assets, such as your house and car, in the case of lawsuits or business bankruptcy. This is the most popular legal structure for small retail businesses and the one we recommend if you are planning on maintaining a single consignment storefront.

If you’re the single owner of the LLC , you’ll likely still pay taxes the same way you would as a sole proprietorship but with the benefit of personal assets protection from liability. However, many states have separate LLC taxes, which may make it more expensive than operating as a sole proprietor. It’s always best to check with your local regulations.

To form an LLC, you need to choose an official name and file paperwork to establish your company, whereas a sole proprietorship doesn’t require any paperwork. Luckily, the paperwork isn’t overly extensive and can be filed easily in a few steps using a tool like LegalZoom .

Corporations are the most structured legal form for your consignment business. They have strict tax guidelines. When you create a corporation, it’s a completely new and separate entity in the eyes of the government and the IRS.

Corporations are an ideal structure for consignment businesses that want to expand into multiple storefronts, become a public company, or want to secure a lot of outside funding. Corporations provide you the most personal liability protection out of the three legal structures. However, you will need to pay federal corporate tax on top of personal income tax. Corporations are also expensive to form and require you to keep detailed business records.

Organize Your Finances

No matter which legal structure you choose, getting your finances in order is a crucial step. This involves opening a business checking account to separate your personal and business finances right from the beginning. Having two separate accounts makes it easier to monitor your business’ cash flow and track expenses accurately and will make the process of filing taxes much easier.

Chase is a great banking solution for retailers because it offers small business checking, business credit cards, and merchant services―payment processing―so business owners can manage all their cash flow in one place. Plus, Chase offers competitive rates and great customer service. Contact Chase to learn more about its small business retail solutions.

Learn more about the best small business checking accounts .

4. Select a Storefront

Choosing a storefront is a critical step that needs to be considered carefully. The location you select can all but make or break your business. The decision can seem overwhelming. So, start by narrowing down a geographic location. You’ll be spending long hours at your consignment shop nearly every day when you first open. Think about how far you are realistically willing to commute and choose areas that are accessible from your home easily.

Spend time in each area to become familiar with specific neighborhood demographics and preferences and scope out other local businesses. There are many factors that go into choosing the right location for your business, but it all comes down to picking the location that will attract the most customers.

Choose a storefront that gets a lot of foot traffic for increased sales and visibility.

Determining foot traffic can help you figure out how many walk-in customers you can expect in each location. In addition to staking out your prospective storefront locations, ask other local business owners questions about the traffic, shopper demographics, and neighborhood.

Additionally, consider details such as parking and signage. A Main Street location is ideal, but only if your customers can park near your store easily. Likewise, you’ll want a location that allows for a big storefront sign. Some locations have strict rules about the sizes and types of signage they allow.

Used clothing store Buffalo Exchange has several locations across the US. Many of the stores have been strategically placed in college towns where they have a steady stream of supply and demand from students. (Source: Buffalo Exchange)

5. Acquire Merchandise

Finding merchandise to sell at your consignment shop is trickier than sourcing products for traditional retailers . You’ll want to have a buying strategy in place before you open to ensure a steady stream of products to sell. You’ll probably use a combination of tactics to keep your store stocked.

Popular secondhand product sourcing strategies include:

• Joining the Association of Resale Professionals (NARTS) : This professional organization connects resale buyers with suppliers through its directory.
• Advertising to potential consigners : Advertise in print and online (on social media too!) regularly that you’re purchasing gently used items. Many of your potential shoppers could also be suppliers.
• Purchasing from flea and thrift shops : You can find some great deals on products to sell in your store by searching through flea markets and other thrift stores.
• Finding an off-price supplier : Off-price products aren’t secondhand, but they’re deeply discounted products that are either overstock or slightly damaged. You can find them through trade shows.

6. Design & Outfit Your Consignment Store

After securing a storefront and finding product sources, it’s time to start strategically planning your store layout . Your store layout has a dramatic impact on in-store sales. A well-designed layout will welcome shoppers, make them feel comfortable, and direct them toward specific products.

The first thing you need to decide is what type of floor plan you want. Most retail stores fit into one of three basic layout categories:

• Loop or racetrack : Best for specialty stores, showrooms, and retailers that want to lead shoppers on a specific path throughout the store.
• Grid or straight : This floor plan is exactly what you would expect: straight, angular aisles that are typically found in grocery and box stores. A consignment bookstore may also follow this model.
• Free flow plan : This is a popular plan for boutiques and allows for lots of creativity in the design process. Most apparel or decor consignment shops will follow this model.

Finally, you will need to position your checkout counter. A well-positioned checkout will open up floor space for displaying products and encourage shoppers to move through more of your store. As a rule of thumb, try to position your checkout on the left-hand side of your store.

Shoppers naturally veer toward the right side of a store, so that’s where you want to display your best products. Some department stores and larger mall retailers place their checkout counters at the back of the store. However, for smaller retailers, placing your checkout toward the front makes it easier for staff to attend the register and keep an eye on the entrance.

Select a POS System

Point-of-sale (POS) systems are cloud-based software programs that replace traditional cash registers and offer additional tools such as inventory management, sales reports, and customer data and marketing. Your POS system is the central hub for your business where you process all transactions. Look for a system that has all the features you need, including payment processing, for an affordable rate.

Lightspeed Retail POS simplifies the process of running a retail store. (Source: Lightspeed Retail)

Some of the criteria we use to evaluate the best POS systems include:

• Price : Most POS software programs charge a monthly fee, and some also charge extra for certain features.
• Ease of use : Test out each POS with a free demo or trial to make sure the interface is easy to navigate, and also read user reviews.
• Customer management tools : Almost all POS systems have a customer directory feature but, otherwise, they vary greatly in what loyalty, marketing, and customer feedback features are included.
• Sales reports : Each type of POS solution will have some kind of reporting tools, but some offer more details and features to create custom reports.

For brick-and-mortar stores, we often recommend Lightspeed. It’s a small business POS with big-business functionality such as custom report builders, detailed inventory tracking, a loyalty program, and built-in payment processing. Plus, it has built-in capabilities to handle consignment products. Visit Lightspeed for a 14-day free trial.

Visit Lightspeed

7. Advertise Your Consignment Shop

Before opening your consignment shop, you’ll need to start advertising and marketing your retail shop . Because you’re on a budget, make sure your strategy is effective by choosing a combination of online and offline marketing efforts.

• Social Media
• Search Engine Optimization (SEO)

In order for customers to find your business, you’ll want to have a website. Creating your own website from scratch can be easy with the right tools. There are many easy ways to make a business website for little or no cost. You need a registered domain and a web hosting service.

Olive My Stuff, a consignment shop in Connecticut, has a professional website with information on shopping and consigning.

Create social media accounts on channels like Facebook, Instagram, and TikTok to promote your brand and consignment items. You can even sell your secondhand goods on Facebook as well as sell them on Instagram directly. Run paid social ads targeting people who fit your target market in your local area.

Focusing on your SEO strategy is an excellent way to put your consignment shop in front of people who may not have otherwise heard about you. Local SEO , in particular, can help you increase your visibility for local searches. This is an excellent marketing tactic because users searching for “consignment shop near me” are likely high intent.

• Store Signage
• Window Displays
• Customer Loyalty Program

The storefront signage is the first impression shoppers will get from the in-person experience with your consignment shop. Make sure the sign is easily visible and easy to read, while also being reflective of your brand. You want to stand out enough to make passersby curious about what’s inside, especially if you plan to rely heavily on foot traffic. Check out these business sign ideas for inspiration.

While your signage might make the first impression, your window displays have the potential to make the biggest impact. A well-designed storefront with captivating window displays can lure even the most hesitant shoppers into your consignment store. Here are some resources to help you get started:

• Create a Stunning Store Window Display
• Visual Merchandising Techniques

Once your consignment shop is up and running, loyalty programs are a great way to encourage repeat customers and higher transaction amounts. Simple punch cards can be effective. However, using a loyalty program that’s tied in with your POS system offers deeper insights like who is using the program and how effective it is. Lightspeed  offers a sophisticated loyalty program that you can add onto Lightspeed POS for a monthly fee.

8. Hire & Train Employees

Last but certainly not least, before opening your store to the public you need to bring on a stellar group of employees to serve as the front lines of your business. If you haven’t hired an employee before, navigating the process can be intimidating. Follow a new hire checklist that outlines all of the gritty steps you need to take such as obtaining an employer identification number (EIN), registering for state and local taxes, and so on.

As a consignment store owner, it’s likely you won’t have a dedicated human resources (HR) team member. Using an affordable solution like Homebase can save you plenty of time and stress by simplifying hiring, employee scheduling, time tracking, and payroll.

Visit Homebase

Training Your Employees

You’ll want your consignment store staff ready to provide top-notch customer service from the moment you open your business. Providing great customer service is a skill that requires practice. If you don’t start training your employees before you open, they’ll be practicing their service skills on your customers.

Instead, hold a weeklong training boot camp before you open. In addition to running through customer service scenarios and role-playing, teach employees about store policies and procedures, the items you’re selling, and any other pertinent information.

9. Plan & Launch Your Grand Opening

Hosting a grand opening celebration is a great way to kick off your new business venture while also gaining some press coverage. To have maximum attendance, recruit friends and family, draft a press release for local media and surrounding businesses, make a Facebook event, notify your local Chamber of Commerce, and take an advertisement out in the local paper.

“One mistake a lot of companies make is staying under the radar until launch. If no one knows what you’re doing and when you’re opening, then you have zero chance of making any sales. Start building some excitement at least six weeks before your launch. Get active on social channels. Interact with likely customers and get the conversation started. Build anticipation with enticing photos, and maybe even incentivize purchases in those early days.” ― Deanna Thompson, Blogger, Closet Full of Cash

Plan a grand opening to celebrate the launch of your new business.

How to Start a Consignment Shop Frequently Asked Questions (FAQs)

Opening and running a consignment shop can be a tricky business.

What is a consignment shop?

A consignment shop is a store that sells secondhand items, typically clothing and accessories. Consignment stores purchase gently used goods and resell them at a markup to make a profit.

How does a consignment shop work?

As the owner of the consignment shop, you will purchase secondhand goods from customers, professional suppliers, flea market vendors, and so on, and own those items until they are resold in your store for a higher price.

How much does it cost to open a consignment store?

The exact price can vary a lot depending on your location and local real estate prices. However, opening a consignment store will cost roughly $10,000.

Why do consignment stores fail?

Part of learning how to start a consignment shop is figuring out what not to do. There are many reasons a consignment shop could fail. Common reasons include choosing the wrong storefront location, not having in-demand products, too-small profit margins, and insufficient marketing.

Bottom Line

Consignment shops are a great business idea for making money in 2022. More than 20,000 US-based used merchandise stores have a combined annual revenue of $17.6 billion , according to First Research. And these numbers continue to grow, especially as the world becomes more aware of the environmental challenges consumerism brings.

Starting a consignment shop is an excellent way to promote sustainable consumerism while also making a profit. And with the market growing the way it is, there’s plenty of opportunity for consignment shops of all kinds. There’s never been a better time to start a consignment business of your own.

About the Author

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Meaghan Brophy

Meaghan Brophy is a Retail Expert at Fit Small Business focusing on small business retail and ecommerce content. Meaghan’s 10+ years of retail experience includes working at local book and dance supply stores, handcrafting gifts at an eco-friendly manufacturer, developing private label brands, and managing a team of more than 40 sales and service professionals at a local spa.

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How to Start a Consignment Store

A consignment store sells goods for consignors – people who pay a fee to a store owner to sell their goods. Consignment stores may have niche items or may contain everything from kitchenware to clothing. Though starting a consignment store may sound easy, it takes a great deal of knowledge and money to start such a business. Creating a business plan before diving into starting a consignment shop will help ensure that you stick to guidelines and budgets in order to minimize the riskiness of your new business venture. It is important to know where you will be getting your inventory from. Unlike a regular retail store, you will not be able to get your inventory from popular retail suppliers. Your inventory will be coming from individuals who are trying to sell your products. Before agreeing to stock a certain item, you must be sure that you are likely to be able to sell the item for a large enough profit. Being able to negotiate favorable terms with consignors is an essential skill to have.

Learn how to start your own Consignment Store and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a consignment store by following these 10 steps:

• Plan your Consignment Store
• Form your Consignment Store into a Legal Entity
• Register your Consignment Store for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Consignment Store
• Get the Necessary Permits & Licenses for your Consignment Store
• Get Consignment Store Insurance
• Define your Consignment Store Brand
• Create your Consignment Store Website
• Set up your Business Phone System

We have put together this simple guide to starting your consignment store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Consignment Store Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your consignment store?

Business name generator, what are the costs involved in opening a consignment store.

Some of the costs involved in opening consignment stores are yearly, some may be monthly, and some may be weekly or even daily. Costs may include:

• Permits and licenses for local, county and state, including certificate of occupancy and a sales tax certificate. If you sell soda and water at your store, even via a soda machine, you may have to have a permit for that.
• The cost of the building, whether you purchase it or rent it.
• The cost of revamping the interior and/or exterior of the building, if applicable.
• Counters, shelving and other display units.
• Marketing to buyers and consignors.
• Office supplies.
• Point of sale system.
• Security system.

What are the ongoing expenses for a consignment store?

Ongoing expenses may include utilities, rent or mortgage, permits and licenses, payroll if you have employees, office supplies, and taxes. Taxes may include state, local, federal and sales tax. Of course, you need to pay the consignor his or her share of the item that sold.

Who is the target market?

A consignment store has two types of clients: consignors and buyers. Consignors are usually those who want to sell items they no longer need. Buyers are those looking for a deal on an item that might be out of their reach if they were to buy it new.

How does a consignment store make money?

A consignment store makes money by selling consignor's goods. The store may charge an upfront fee to show items, take a fixed percentage of each sale, or it may do both.

How much you charge depends on your product. In most cases, the items you have are used, so you will only be able to get so much for those items. Don't forget the amount you have to pay the consignor. That price needs to be agreed upon prior to you accepting the item. Consignment shops take between 25 percent to 60 percent of what the item sells for. Thus, if a person consigns a cocktail dress for $500, the consignment shop owner would get up to 60 percent of that cost, depending on what your agreement with the consignor is.

How much profit can a consignment store make?

Consignment stores generally charge from 25 percent to 60 percent of the sales price of a sold item.

How can you make your business more profitable?

Make your business more profitable by:

• Helping your consignors properly price their items. For example, you wouldn't take in a bicycle that is worth $20 and try to sell it for $50, or it will just sit in the store.
• Choose a fee that most people in your neighborhood will pay. Those in higher scale neighborhoods might be willing to pay up to 60 percent for a consignment fee, while other neighborhoods may pass by your store if the consignment fee is over 30 percent.
• Don't skimp on advertising. Advertise to consignors and buyers alike.

By keeping prices within reason and advertising to obtain new inventory and new buyers, you should be able to make a highly profitable consignment store.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your consignment store is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a consignment store. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A consignment store is usually run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease office space :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a consignment store.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build office space :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your consignment store will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Consignment Store needs and how much it will cost you by reading our guide Business Insurance for Consignment Store.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a consignment store

Promoting your consignment store business is second only to customer service. Use social media, send out fliers, and advertise on television if possible. When you do open, hold a grand opening to entice customers and consignors to come in and see your store. Word of mouth travels fast, whether it's good or bad, so keep that in mind while you are working with customers and consignors.

How to keep customers coming back

As part of your business plan, you should have researched the type of product that would do well, and whether you would set up as a niche boutique or start out with something less difficult to market. A niche boutique for a consignment shop can specialize things like selling sports equipment, dance equipment, hardware, etc. Attract customers by designing window scenes, offering discounts, or even holding a contest to win a product. Retain customers by treating them right. Regardless of what you chose and the caliber of customer, treat all of them like they are the richest and nicest person in the world.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

A consignment store owner needs to know his or her limitations and must also do well with dealing with people. It is essential that you are able to negotiate business terms, as you will be working with consignors in addition to your customers. If you are not able to negotiate terms with consignors that will allow you to make a large profit off of selling their items, then you will not be able to cover your operating costs or make a profit.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a consignment store?

The owner of a consignment store has several duties to do, some every day and some a few times a week, including:

• Cleaning the store
• Straightening out inventory
• Marketing the store via mail, e-mail, social media and other outlets
• Locating new consignors
• Customer service
• Paying bills
• Ordering office supplies, bags and other inventory needed to conduct business
• Closing out sales
• Notifying current consignors of sales and the need for new product
• Paying consignors

What are some skills and experiences that will help you build a successful consignment store?

You'll need a myriad of skills to build a successful business, or you'll need to have the means to hire and pay people who have those skills. Consignment store business skills include:

• Sales and marketing
• Inventory management
• Money management
• Employee management

What is the growth potential for a consignment store?

In the ideal location, a consignment store could show extensive growth as long as the city has many people who want to put their items on consignment and you have buyers that are willing to purchase those items. In certain areas, clothing may sell better than furniture, while in other areas, you may do well with non-clothing items, such as furniture and other home and garden items.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a consignment store?

The most important part of starting any business is to create a business plan and to research the neighborhood. To jump start a consignment store business, you should also:

• Make sure you can fill your shelves before you open the doors.
• Ensure that you have enough inventory to rotate through as you sell more, and that you have consignors lined up to sell their products.
• Make sure your inventory is what those in your neighborhood are looking for.
• Create an attractive store.
• Keep smaller items near the cash register to encourage impulse purchases.
• Partner with local businesses to drive sales to them while they drive sales to you.

How and when to build a team

When customer service starts pulling you away from completing administrative tasks, such as paying consignors, taking inventory, pricing goods, and accounting; or when customers are consistently waiting for you to finish with another customer, it's time to get some help in the store. If a customer has to wait, he or she may not come back to your store.

Read our consignment store hiring guide to learn about the different roles a consignment store typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Useful Links

Truic resources.

• TRUiC's Consignment Store Hiring Guide

Industry Opportunities

• Just Between Friends Franchise Opportunity
• Kid to Kid Franchise Opportunity
• Association of Resale Professionals

Real World Examples

• Ann Arbor Business
• NYC Business
• San Diego Business

Further Reading

• Tips for Starting a Consignment Business

Have a Question? Leave a Comment!

We earn commissions if you shop through the links below.  Read more

Consignment Shop

Back to All Business Ideas

How to Start a Consignment Shop

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 31, 2022 Updated on May 7, 2024

Investment range

$2,550 - $13,100

Revenue potential

$156,000 - $468,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $187,000 p.a.

Industry trend

It may be hard to believe, but second-hand clothing is one of the world’s fastest-growing industries. The market is expanding a stunning 25% each year, which means right now is a great time to start your own consignment shop and ride this train to success. 

But before you hang your “OPEN” sign, you’ll need to learn how to launch and run a business. Luckily, this step-by-step guide has you covered with all the information you’ll need to open your new consignment shop. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

In a nutshell, consignment shops get paid for selling other people’s stuff. People bring in unwanted shoes and clothing, antiques and household goods, and the shop sells them for an agreed-upon price and takes a commission, usually about 50%.

Still, starting a consignment shop has pros and cons to consider before deciding if it’s right for you.

• Business Model Options – Choose a physical or online consignment shop
• Good Margins – Pay nothing for inventory until it sells; get half the sale price
• Hot Market – Demand for vintage and second-hand clothing is rising
• Delayed Opening – Build up inventory before the store opens
• Crowded Market – A hot market means lots of competition

Consignment industry trends

Industry size and growth.

• Industry size and past growth – The global second-hand clothing industry is worth $119 billion, up 24% from 2021.(( https://www.thredup.com/resale/#size-and-impact ))
• Growth forecast – The global second-hand clothing industry is projected to nearly double by 2026 to reach $218 billion. 

Trends and challenges

Trends in the consignment shop industry include:

• Online clothing resale is the fastest-growing market segment, expected to quadruple by 2026.
• In 2021, 244 million US consumers said they were open to buying second-hand clothing.

Challenges in the consignment shop industry include:

• A growing number of players in the online consignment store market are creating greater competition.
• Generally only brand name clothing is sold in consignment shops, which means shop owners have to watch out for knock-offs. 

How much does it cost to start a consignment shop business?

Starting an online consignment shop will cost about $2,500. Your costs will be for a website and marketing costs. Starting a brick-and-mortar consignment shop will cost about $13,000.

How much can you earn from a consignment shop business?

Prices for consignment items will vary. Since you’ll be looking for high-end items to sell, these calculations will assume an average item price of $300, of which you’ll get 50%. If you’re running an online consignment store, your profit margin after marketing costs and paying the consignor will be about 40%. 

In your first year or two, you could sell 10 items a week, bringing in $156,000 in annual revenue. This would mean $62,000 in profit, assuming that 40% margin. As your website gets more traffic, sales could climb to 30 items a week. With annual revenue of $468,000, you’d make an outstanding profit of $187,000.

What barriers to entry are there?

The only barrier to entry for a consignment shop is the competition you’ll face.

Related Business Ideas

How to Start a Skate Shop

How to Start a Sock Business

How to Start a T-Shirt Business

Step 2: hone your idea.

Now that you know what’s involved in starting a consignment shop, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research consignment shops in your area and online to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the market is missing a consignment store that sells furniture and household items.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as luxury brands or high-end accessories.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine the types of clothing and other products you’ll offer

You’ll need to determine if you want to specialize in clothing or some other type of merchandise. In addition to consignment items, you could also operate in part as a thrift store or online thrift store and sell donated items or items you find at garage sales. You could also have a retail store in your shop where you sell items that you’ve purchased wholesale. 

How much should you charge for consignment items?

Prices will vary based on the item and its retail price. For an online store, after the cost of paying consignors and marketing, you should aim for a profit margin of about 40%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook. 

Where? Choose your consignment shop location

Choosing the right location for your consignment shop is crucial for attracting customers and ensuring its success. Look for a spot in a high-traffic area with good visibility, such as a popular shopping district or a busy downtown area.

Consider accessibility and convenience, ensuring that the location is easily reachable by public transportation and has ample parking. Additionally, assess the local demographics and aim to select a location that caters to a wide range of customers. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Consignment Shop Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “consignment shop”, boosts SEO
• Name should allow for expansion, for ex: “Renewed Treasures” over “Sports Gear Consignment Shop”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 260 unique consignment shop name ideas here . If you want your business name to include specific keywords, you can also use our consignment shop business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Consignment Shop Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief overview of your consignment shop business, highlighting key points such as the business concept, goals, and potential for success.
• Business Overview: Detailed information about your consignment shop, including its mission, vision, location, legal structure, and any notable achievements or milestones.
• Product and Services: Description of the items your consignment shop will accept and sell, emphasizing the quality, uniqueness, and appeal of the products.
• Market Analysis: Examination of the target market for your consignment shop, including demographics, trends, and potential growth opportunities.
• Competitive Analysis: Evaluation of other consignment shops or similar businesses in the area, identifying strengths and weaknesses to position your shop effectively.
• Sales and Marketing: Strategies for promoting your consignment shop, attracting customers, and driving sales, encompassing both online and offline channels.
• Management Team: Introduction of key individuals involved in running the consignment shop, highlighting their expertise and roles.
• Operations Plan: Details on the day-to-day operations of your consignment shop, covering aspects such as inventory management, staffing, and customer service.
• Financial Plan: Projections and analyses of the financial aspects of your consignment shop, including startup costs, revenue forecasts, and break-even analysis.
• Appendix: Additional supporting documents, such as resumes of key team members, detailed market research data, and any other supplementary information relevant to the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to consignment shops. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your consignment shop will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a consignment shop business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Consignment Shop Business Licenses and Permits

Starting a consignment shop business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your consignment shop business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as ConsignPro , resaleworld , or SimpleConsign , to manage your inventory, billing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Website : Create a compelling website that showcases your latest finds, store events, and customer testimonials.
• Local SEO : Optimize your website to target local search terms related to consignment, thrift shopping, and sustainable fashion to increase online visibility. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional Branding : Ensure your branding captures the eclectic and unique nature of your shop, reflecting a sense of discovery and sustainability.
• Social Media Engagement : Leverage Instagram, Facebook, and Pinterest to share new arrivals, fashion inspirations, and sustainable shopping tips.
• Fashion and Sustainability Blog : Publish content about fashion trends, upcycling tips, and the benefits of consignment shopping.
• In-Store Events : Host events like styling workshops and local artist pop-ups to create engaging shopping experiences.
• Partnerships with Local Designers : Collaborate with local designers or artisans to offer unique products and support local talent.
• Loyalty Rewards Program : Implement a program that provides discounts or special privileges to frequent shoppers.
• Targeted Local Advertising : Advertise in local media and online platforms to reach potential customers in your community.
• Email Marketing : Engage your customer base with newsletters that highlight new inventory, fashion tips, and store events.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your consignment shop meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your consignment shop business could be:

• Luxury brands at non-luxury prices 
• Top quality consignment and thrift items shipped fast!
• Sell your unwanted collectibles and make good money

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a consignment shop business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in consignment shops for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in consignment shops. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a consignment shop business include:

• Shop Clerks – make sales, customer service
• General Manager – inventory management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Consignment Shop – Start Making Money!

The consignment market is heating up, with resale clothing and accessories experiencing boom times. Now is the perfect time to open your own consignment shop. If you have a great eye for fashion and a desire to provide customers with great products, you could build a lucrative consignment operation.

You’re done your business homework now, so it’s time to get the word out and launch your successful consignment shop. 

• Consignment Shop Business FAQs

Yes, consignment can be a very profitable business. The market for resale clothing is growing rapidly, so demand for the items you sell should be high.

Consignment shops get a percentage of the sale price of the consigned items. The fee ranges from 40% to 60% for clothing and accessory sales. Fees can be higher for items like furniture.

The main risks are the items being damaged or stolen. Then you could be liable to the owners of the items.

You’ll need to train them on how to value consignment items. Then you’ll need to monitor the transactions they make to ensure that the prices are accurate.

You’ll need to create a strategic plan for how to market your shop, and how you’ll handle the business as your sales increase. 

The bottom line is most important. You need to be able to make enough profit to make a living.

I have recently given a small art gallery several of my handmade quilts for sale. I am curious as to what practices, documentation if any that the gallery should have provided to me to show I submitted these items and what happens if my items are stolen from the store. I feel concerned without anything “in hand” to prove that these things were given to them. Thank you for your advice.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Consignment Shop Name
• Create a Consignment Shop Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Consignment Shop Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Consignment Shop - Start Making Money!

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8 Tips for Launching Your Consignment Business

By SimpleConsign

Table of contents, wondering how to start a consignment shop follow these steps.

Opening a consignment shop can be a great way to turn your passion for vintage or unique items into a profitable business. And now is the perfect time to do so. According to thredUP and GlobalData:

The U.S. secondhand market  is expected to reach $70 billion by 2027.

Online resale  is expected to grow 21% annually over the next five years, reaching $38 billion by 2027. It's the fastest-growing resale segment.

Smart business owners start with a strong business plan

If you've ever asked yourself, "How do the best consignment stores work?" know that a successful consignment business begins with a solid business plan. The time you invest in creating this document saves you money and keeps you on track for the long haul. 

Entrepreneur.com suggests that starting a consignment clothing store requires an initial investment of $3,000 to $10,000. However, it takes at least two years to work out all the details and get the business running smoothly.

To start your own consignment store successfully, consider your business structure, target market, consignment policies, projected sales, and cash flow. You should align your goals with your projected sales to determine what steps you need to take to achieve them.

You will also need to make a list of start-up expenses, including the cost of shelving, tags, bags, a cash register, signage, and inventory. It is important to estimate how long your business can operate without additional funding so that you can give your store a fair chance of turning a profit.

The Small Business Administration has helpful resources that you may find useful for starting a consignment business.

1. Research the neighborhood

To choose a neighborhood, visit city hall and gather information on income, age, marital status, etc. It's important to be familiar with the area. You can make sure there's a market for your type of store in the area. 

Look for gaps in the market, current trends, and successful vendors. 

Does children's clothing resale dominate the industry?  Is there room for a furniture provider? What about luxury handbags?  

This will give you an idea of what items to sell, how to price them, and what to expect from the competition.

Remember, it truly is all about location. If your market has a lot of secondhand shops or a large, well-known shop will be in direct competition, think about ways to make your store unique. Look for a location with high foot traffic surrounding your target market. Implementing a comprehensive marketing strategy is important, but this approach can help you attract new customers faster.

Consider talking to the competition and contacting similar businesses in other cities or states. If you aren't comfortable talking to a competitor, at least browse their store and marketing materials. 

2. Choose a business model

There are two primary business models in the resale market: buy outright and consignment.

In the buy outright model, the seller receives payment first for their item. Then, the reseller takes over and sells it.

In the consignment model , the seller retains ownership of the item. However, the item is placed in the reseller's store or website for sale. The reseller takes a percentage of the final sale price as their commission.

The key difference between these two models is who assumes the risk and responsibility of selling the item. With buy outright, the reseller takes on the risk and responsibility, while with consignment, the seller retains it. Both models have their advantages and disadvantages, and it's up to the seller to decide which one is best for them.

Of course, there are other factors to consider. Will you charge extra for large items? What about credit card fees? Will you pass those on? It’s common to pass these on to consignors when appropriate. Before meeting with your vendors and consignors, you will need answers to questions like this. This is one area where choosing a consignment store point of sale , like SimpleConsign, really matters. The ability to add and configure custom fees adds to your bottom line. For a list of fees to consider, check out 10 Ways to Manage Your Bottom Line.

3. Decide whether you want to sell online in addition to your physical location

Keep in mind that the needs of a brick-and-mortar store are different from those of an online only consignment shop. If you choose to start an online consignment store, be sure to account for extra expenses like packing and shipping costs. You'll also want a dedicated space for packaging and sending out items.

You can take a hybrid approach to find what works for your business. SimpleConsign's Shopify integration makes this easy.

4. Choose a consignment store software

Choosing the right consignment POS provider is a critical decision for your business. The consignment software is the backbone of your operations and has a direct impact on your bottom line. It enables efficient transactions, accurate inventory management , and seamless customer experiences.

A reliable and user-friendly resale POS provider can streamline your business processes, improve customer service, and increase your consignment sales. On the other hand, a subpar consignment POS system can lead to costly errors, frustrated customers, and missed opportunities. Therefore, selecting the right consignment store software is crucial to the success and growth of your business.

5. Design an attractive store

Often, shoppers form lasting impressions of your consignment shop based on the layout of your store. No matter how well-stocked the store is, customers will find another place to shop if it isn't clean, bright, organized, and attractive. 

To enhance your sales, visit your preferred retailers and observe how they display their merchandise. To attract customers, place the seasonal must-have items at the front of the store.

You can keep the sale products and everyday items at the back. For smaller items that cost less than $10, it’s better to display them next to the register to increase impulse buying. These small purchases can add up to significant sales every month.

It’s also crucial to change the way you display your merchandise to make it feel fresh and new. You can check out " Retail Store Layout Designs that Increase Your Sales " for ideas on store layout designs.

6. Acquire inventory with a clear consignment agreement

To be successful in selling consignment products, you must attract consignors with quality merchandise. Don't open the doors before the shelves are full. Shoppers will hesitate to come back. However, if you fill your shelves with inventory shoppers aren't interested in, they won't return either. 

Knowing your neighborhood and its demographics means you'll know what merchandise to offer. Scour yard sales, auctions, estate sales, business liquidations, and thrift shops for good deals. Learn to bargain and negotiate. These skills will be needed when interacting with consignors. 

7. Seek community support

Consider reaching out to your community for support by teaming up with other businesses in your neighborhood. You could offer cross-promotional services and discounts to customers.

For instance, a clothing store could collaborate with a dry cleaner or tailor, while a formal wear shop could sell original accessories created by an aspiring jeweler.

Similarly, a children's consignment store should consider partnering with a local photographer for a customer appreciation sale, while a furniture shop could benefit from a strong relationship with a moving company.

8. Think outside the resale box

To become a successful consignment business, look for every opportunity to build your vision. Join organizations such as the  National Association of Resale Professionals (NARTS) .

Get involved with your local Chamber of Commerce. Find ways like Shop Small Saturday to encourage your community to shop locally. Do your homework, and you  will  be successful.

Ready to open your business?  Try SimpleConsign free  for 15 days.

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How to Write a Business Plan for a Consignment Shop

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• How to Write a Business Plan for a Convenience Store
• How to Start a Consignment Resale Shop Business

Starting your own business is one of the best ways to grow your wealth and achieve your dreams. Opening a consignment store can be an excellent business move for the right individual, but before you open your doors you need to know how to write a business plan for a consignment shop. The business plan defines the scope of your business, lays out how you are prepared to succeed and details the relevant experience you bring to the new venture.

Business Plan Template

Microsoft Office has some excellent templates available for free downloads. Other popular office suites also include templates that can be customized to create business plans. If you wish to complete your business plan the old-fashioned way, you can obtain business plan templates from your local Chamber of Commerce or from the Small Business Administration office in your area. Financial books at the library and bookstore are also good sources of business plan information and examples.

List Your Business Experience

Make a list of your experience in the retail business. You can make this list mentally, but it is often helpful to get it down on paper. Include all experience you have with buying and selling the type of items you plan to offer at your consignment store, including time spent as a sales clerk or buyer.

In order to be successful, the owner of a consignment clothing store, for example, needs to have a discerning eye and the ability to pick up on new trends in the fashion industry. Likewise, the owner of a consignment furniture or accessories store needs to be able to spot the trends and buy the furniture that is most likely to sell quickly.

Executive Summary and How to Differentiate the Business

This section should state the purpose of the business, including the proposed name of the operation. The section that follows should state how the store will differentiate itself from the competition, that is, what makes your consignment store different from the thrift store down the street. Offering types of products not normally found in the second-hand market can be a big help.

Marketing and Promotion Strategy

How will you advertise your consignment store? What techniques do you plan to use? It is important for lenders and others who review your business plan to see how you intend to market your business and introduce it to the community.

Organization and Management

Provide information about the ownership of the new business, including the names and titles of all business partners and officers. Also provide a brief but thorough overview of the start-up company. The overview should include details about the products the store will sell, where it will get its merchandise and where it will be located.

List your management experience, focusing on experience that is relevant to the consignment business world. List the number of years of management and relevant retail experience you bring to the new enterprise.

Service or Product Line

List the types of products the consignment store will offer. Many consignment retailers limit their product lines to high-end designer clothing and accessories, for example, in an effort to attract a wealthier and more discriminating clientele. Provide a brief overview of the products you already have in stock, as well as your plans for obtaining quality merchandise on consignment.

Market and Competitive Analysis

Include information on any market analysis you have completed, including details about any existing consignment stores. Compare your new business model to the stores that already exist in the community, and explain how your operation will improve on that model.

Financial Projections and Related Information

Provide relevant financial information for your start-up company, including any partnership arrangements you have entered into and any loans you have obtained. Attach statements from your CPA or accountant if applicable.

Things You Will Need

Computer (optional)

Business plan template

• Bplans.com: Women's Clothing Boutique Sample Business Plan
• SBA.gov: Write Your Business Plan
• Microsoft Office: Business Plan for Startup Business

Based in Pennsylvania, Bonnie Conrad has been working as a professional freelance writer since 2003. Her work can be seen on Credit Factor, Constant Content and a number of other websites. Conrad also works full-time as a computer technician and loves to write about a number of technician topics. She studied computer technology and business administration at Harrisburg Area Community College.

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Home › Blog › How to start a consignment shop: step-by-step guide for 2023

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July 31, 2022 | BY Matt Kenyon

How to start a consignment shop: step-by-step guide for 2023

Get more digital commerce tips.

Tactics to help you streamline and grow your business.

A consignment shop is a great way to earn extra income or make a living. But how do you start one? Can it even compete with the behemoth shops that dominate the consignment space?

In this guide, we’ll go over:

• How to start a consignment shop
• Which type of store to open
• How to find the perfect location
• How to create a business plan
• How to acquire merchandise
• And how to hire and train employees

With a little planning and some focused effort (and some funding), you can have your very own consignment shop up and running in no time!

What is a consignment shop?

A consignment shop is a store that sells used or secondhand goods on behalf of its owners. The merchandise owner receives a portion of the sales price when the item is sold, and the consignment shop keeps the rest.

There are many consignment shops, including those specializing in clothing, furniture, art, and more. Some consignment shops only accept high-end merchandise, while others will take just about anything.

Some consignment shops are completely online, while others have brick-and-mortar locations. And some consignment shops are managed by individuals, while others are part of larger chain stores.

The following are some examples of consignment shops you’ve likely encountered before:

Clothing consignment shops:  These stores sell used clothing and accessories. The most popular items sold in clothing consignment shops are designer labels and vintage pieces. Examples include Buffalo Exchange and Beacon’s Closet.

Furniture consignment shops:  These stores sell used furniture and home decor. The most popular items sold in furniture consignment shops are mid-century modern pieces and antique furniture. Examples include Crate & Barrel and Ikea.

Art consignment shops : These stores sell used or secondhand art. The most popular items sold in art consignment shops are paintings and sculptures. Examples include Sotheby’s and Christie’s.

The benefits of starting a consignment shop

There are many reasons why you might want to start a consignment shop. Perhaps you’re looking for a way to earn some extra income. Or maybe you’re passionate about a particular type of merchandise and want to share that passion with others.

Whatever your motivation, there are many benefits to starting a consignment shop, including:

You can be your own boss : You’re in charge when you start a consignment shop. You can decide how to run your business, what merchandise to sell, and how to market your store.

You can make a difference:  Consignment shops are a great way to recycle and reuse goods that would otherwise end up in landfills. By selling secondhand items, you’re helping to reduce waste and preserve resources.

You can be creative:  A consignment shop is a blank canvas. You get to decide how to decorate your store, what type of merchandise to sell, and how to market your business.

You can earn a profit:  If you run your consignment shop well, you can make a decent profit. The key is to find the right mix of merchandise and customers.

You can start an online consignment shop inexpensively:  If you’re looking to start a consignment shop on a shoestring budget, an online store may be the way to go. You can list your items for sale on platforms like eBay and Craigslist or create your own website.

The different types of consignment shops

The example shops listed above are big-name brands with brick-and-mortar and online shops. However, there are many different types of consignment shops, from small mom-and-pop stores to online marketplaces.

Here are some of the most common types of consignment shops:

Brick-and-mortar store:  This is the most traditional type of consignment shop. A brick-and-mortar store has a physical location where customers can come to browse and purchase merchandise.

Online marketplace:  An online marketplace is a consignment shop that exists solely online. Customers browse and purchase merchandise through an online marketplace, such as eBay or Etsy, or a website powered by an ecommerce platform like Shopify or WooCommerce.

Pop-up shop:  A pop-up shop is a temporary brick-and-mortar store. Pop-up shops are typically open for a few days or weeks. They’re popular among online retailers who want to test the brick-and-mortar waters without making a long-term commitment.

Mobile shop:  A mobile shop is a consignment shop on wheels. Mobile shops typically sell clothing, jewelry, and other small items. They’re often found at farmers’ markets, fairs, and festivals.

What you’ll need to start a consignment shop

Now that you know the different types of consignment shops, it’s time to start planning your own. The first step is to decide what type of store you want to open.

Once you’ve decided on the type of store you want to open, you’ll need a few key things to get started. Let’s go through them in detail.

A business plan

A business plan is a document that outlines your business goals, strategies, and how you plan to achieve them. If you’re seeking funding from investors or lenders, you’ll need to include a business plan with your loan application.

How to create a business plan for a consignment shop

There’s no one-size-fits-all template for creating a business plan, but there are some key components you’ll want to include, such as:

An executive summary:  This is a brief overview of your business, including your goals and how you plan to achieve them.

A description of your business:  Include an overview of your consignment shop, including what type of merchandise you’ll sell and your target market.

Your marketing strategy:  Describe how you plan to market your consignment shop, including online and offline marketing tactics.

Your financial projections:  Include a 12-month profit and loss statement, as well as a balance sheet. If you’re seeking funding, you’ll also need to include your loan amount and how you plan to repay it.

Your management team:  Introduce the members of your management team, including their experience and qualifications.

A business plan is a living document that should be updated as your business grows and changes. Review your business plan regularly, and make changes as needed.

Here’s an  example business plan template  for consignment shops.

The next thing you’ll need to get started is funding. If you’re not using your savings to finance your consignment shop, you’ll need to apply for a business loan or seek investment from angel investors or venture capitalists.

How to find capital to start a consignment shop

There are a few different ways to finance your consignment shop, including:

Business loans:  Business loans can be used to finance the start-up costs of your consignment shop, such as leasehold improvements, inventory, and marketing expenses. You can find business loans through banks, credit unions, and online lenders.

Angel investors : Angel investors are high-net-worth individuals who invest their money in businesses they believe in. They typically invest smaller sums of money than venture capitalists, but they don’t always require a stake in the company.

Venture capitalists:  Venture capitalists are firms that invest money in businesses with high growth potential. They typically invest larger sums of money than angel investors, but they also require a company stake.

Once you’ve secured the funding you need to get started, you can start looking for a storefront.

Picking a storefront for your consignment shop

The next step in starting your consignment shop is to find the perfect storefront. Here are a few things to keep in mind when you’re searching for a retail space:

Location:  The location of your store is important for two reasons. First, you want to ensure your store is in a high-traffic area so you can get as much foot traffic as possible. Second, you want to make sure your store is in a safe neighborhood so you can avoid any security issues.

Size:  The size of your storefront will be determined by the type of merchandise you plan to sell. You’ll need a larger space if you’re planning on selling larger items, such as furniture. However, if you’re planning on selling smaller items, such as clothing, you can get away with a smaller space.

Layout:  The layout of your store is important for two reasons. First, you want to ensure your store is easy to navigate so customers can find what they’re looking for. Second, you want to make sure your store is aesthetically pleasing so customers will enjoy shopping there.

How to find a storefront for your consignment shop

Here are a few tips for finding the perfect storefront for your consignment shop:

• Start by searching online listings
• Drive around town and look for vacant storefronts
• Ask family and friends if they know of any available retail spaces
• Contact a commercial real estate broker to help you find a space
• Once you’ve found a few potential storefronts, schedule tours so you can see the space in person

How to acquire merchandise for your consignment shop

Now that you have a storefront, it’s time to start thinking about inventory. The first step is deciding what type of merchandise you want. Once you’ve decided on the type of merchandise, you need to figure out how you’re going to acquire it.

There are a few different ways to do this:

Buy from wholesalers:  Wholesalers are companies selling bulk products at a discounted price. You can find wholesalers online or through trade magazines.

Some examples of online wholesalers are:

• Alibaba.com
• WorldwideBrands.com
• The Wholesaler UK

Join the Association of Resale Professionals:  The Association of Resale Professionals is a trade association for the resale industry. They offer a directory of manufacturers that sell to resellers.

Attend trade shows : Trade shows are events where manufacturers showcase their products to potential buyers. You can find a list of trade shows in your industry by searching online.

Create your own products:  Creating your own products is a great way to differentiate your consignment shop from the competition. 

Buy from liquidators : Liquidators are companies that sell products that have been returned or damaged. You can find liquidators online or through trade magazines.

Some examples of online liquidators are:

• B-Stock Solutions
• Liquidation.com
• Direct Liquidation

Consign from individuals:  Consigning is when people bring their unwanted items to your store and sell them on consignment. This is a great way to start because you don’t have to put any money down upfront.

Once you’ve decided how to acquire your merchandise, it’s time to start thinking about how you will price it.

Search online directories:  A few online directories list companies that sell products to resellers. Some examples of these directories are:

• ResaleWorld.com

Once you’ve found a few potential suppliers, reach out to them and see if they’re interested in working with you.

If they are, ask for samples of their products to decide if you want to carry them in your store.

You should also ask about their minimum order requirements, shipping costs, and payment terms.

Once you’ve decided on a few suppliers, place your first order and start stocking your shelves!

How to price merchandise for your consignment shop

There are a few different ways to price merchandise for your consignment shop:

Price by item:  This is the most common way to price merchandise for a consignment shop. To do this, you’ll need to research how much similar items are selling for and price your items accordingly.

Price by category:  Another way to price merchandise is by category. For example, you could price all clothing items at 50% off the retail price, all furniture items at 20% off the retail price, etc. This is a great way to simplify the pricing process.

Discounts and promotions:  You can also offer discounts and promotions to attract customers to your store. For example, you could offer a 20% discount on all items for the first week of business or a 10% discount for customers who consign items.

Now that you have a price strategy, it’s time to start thinking about how you will promote your store.

How to promote your consignment shop

There are a few different ways to promote your consignment shop:

Create a website:  A website is a great way to promote your store and reach a wider audience. You can use a platform like WordPress or Squarespace to create a professional-looking website without any coding knowledge.

Be sure to include information about your store, such as the address, hours, and type of merchandise you sell.

Use social media:  Social media is a great way to connect with potential customers and promote your store. Create accounts on all the major platforms, such as Facebook, Twitter, and Instagram. Then, start posting interesting content encouraging people to visit your store.

Run ads:  You can also run ads on social media or Google to promote your store. This is a great way to reach a larger audience, but it can be expensive.

Participate in local events:  Another great, low-cost way to promote your store is by participating in local events. For example, you could set up a booth at a community garage sale or a table at a local farmer’s market. This is a great way to get your store’s name out there and attract potential customers.

Now that you know how to start a consignment shop, it’s time to start implementing your plan. Good luck!

Starting a consignment shop can be a great way to make money and declutter your home simultaneously. However, it’s important to do your research and create a solid business plan before getting started. Use the tips in this article to help you get started on the right foot.

For more advice on building and scaling your ecommerce or brick-and-mortar business, subscribe to our blog or check out these related posts:

• 30 Big ecommerce Trends to Watch Out For in 2023
• 13 Best Free Online Stores to Start Your ecommerce Business
• 33 Top Ways To Drive Traffic To Your ecommerce Website For Explosive Growth
• How is Email Useful for ecommerce? Keeping Customers Engaged

Matt Kenyon

Matt has been helping businesses succeed with exceptional content, lead gen, and B2B copywriting for the last decade. When he’s not typing words for humans (that Google loves), Matt can be found producing music, peeking at a horror flick between his fingers, or spending quality time with his wife and kids.

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Boutique Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their boutiques. On this page, we will first give you some background information regarding the importance of business planning. We will then go through a boutique business plan template step-by-step so that you can create your plan today.

Download our Ultimate Business Plan Template here

What is a Boutique Business Plan?

A business plan provides a snapshot of your boutique as it stands today and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Boutique

If you’re looking to start a boutique business or grow your existing boutique, you need a business plan. A business plan will help you raise funding, if required, and plan out the growth of your boutique to improve your chances of success. Your boutique business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Boutique Businesses

Regarding funding, the primary sources of funding for a boutique business are bank loans and angel investors. Regarding bank loans, banks will want to review your business plan and gain confidence that you will repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a boutique is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.

Venture capitalists will not fund a boutique business. They might consider funding a chain, but never an individual location. This is because most venture capitalists look for millions of dollars in return when they invest, and an individual location could rarely achieve such results.

Finish Your Business Plan Today!

Below is a boutique business plan example outline. It should include the following 10 sections:

Executive Summary

Your executive summary provides an introduction to your business plan. Still, it is usually the last section you write because it allows for an overview of each critical section of your plan.

The goal of your Executive Summary is to engage the reader quickly. Explain to them the type of boutique you are operating and the status; for example, are you a startup, do you have a boutique business that you would like to grow, or are you operating a chain of boutiques.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the boutique industry. Discuss the type of boutique store you are operating. Detail your direct competitors. Give a summary of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of boutique business you are operating.

For example, you might operate a boutique focused on:

• High-End Fashion
• Sports/Athletic Clothing
• Kids Clothing
• Wedding Dresses
• Hip Hop Clothing

In addition to explaining the type of boutique business you operate, the Company Analysis section of your boutique business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the boutique business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the boutique industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends. For example, if there were a trend towards local boutique businesses with online counterparts, it would be helpful to ensure your plan calls for a significant online presence.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your boutique business plan:

• How big is the boutique business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in your local market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your boutique. You can extrapolate such a figure by assessing the size of your niche’s market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your clothing boutique business plan must detail the customers you serve and/or expect to benefit.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will greatly impact the type of boutique business you operate. Clearly, baby boomers would want a different atmosphere, pricing, and product options and would respond to other marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. Regarding demographics, include a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most boutique businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will attract and retain your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other boutique businesses. They are most likely local businesses that sell similar items to you.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. You most likely will have online competitors; companies that sell the same or similar items to you, but which operate online.

For each direct competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. Look at review websites to gain this information.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products or services?
• Will you provide products that your competitors don’t?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a clothing boutique business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of boutique you documented in your Company Analysis. Then, detail the specific products you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.

Place : Place refers to the location of your boutique business. Document your location and mention how the location will impact your success. For example, is your boutique business located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate kiosks, detail the locations where the kiosks will be placed.

Promotions : the final part of your boutique business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your storefront extra appealing to attract passing customers
• Social media marketing
• Search engine optimization
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your boutique business such as serving customers, procuring inventory, keeping the boutique clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your boutique business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in the boutique business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in boutique businesses and/or successfully running a boutique and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $200,000 on building out your boutique business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, you may need to purchase inventories now that you can’t sell (and get paid for) for several months. During those months, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a boutique business:

• Location build-out including design fees, construction, etc.
• Cost of fixtures
• Cost of initial inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your boutique’s design blueprint or location lease.   Boutique Business Plan Summary Putting together a business plan for your boutique business (or an online boutique business plan) is a worthwhile endeavor. If you follow the boutique business plan example template above, by the time you are done, you will truly be an expert. You will really understand the boutique business, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful boutique store.  

Boutique Business Plan FAQs

What is the easiest way to complete my boutique business plan.

Growthink's Ultimate Retail Business Plan Template allows you to quickly and easily complete your Clothing Store Business Plan.

What is the Goal of a Business Plan's Executive Summary?

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan advisors can give you a winning business plan. Other Helpful Business Plan Articles & Templates

Sample Consignment Store Business Plan

Consignment shop business plan sample.

Are you looking for a cheap and easy business to start?

When you want to start a new and exciting business, you may want to think about starting a consignment shop. There is a lot that you can do with this type of business and still have a lot of fun doing it at the same time.

A consignment shop is a store where people bring things that they want to sell.

Oftentimes this is clothing, but it can be any number of items. You then sell the items for the person and take a percentage of the profit, giving them the rest.

Consignment shops are great not only for the owner but for the customers as well. People who can’t afford to shop retail can find nice items in consignment at a lower price.

Consignment shops have started popping up in nearly every town across the United States and the world at large.

Whether they are selling clothes or furniture, sporting goods, or household appliances, consignment offers a great way for people to buy and sell used goods, whether it is online or in a brick-and-mortar store.

I have here 5 steps to take for you to be able to start a consignment shop in your community or city and here they are.

• Research your Competitors

It takes a lot of research and groundwork to kick-start any kind of business and starting a consignment shop is no different.

Before you begin this business, you have to research your competitors. Jot down what you believe are their strengths and weaknesses. You should fine-tune your business plan and your advertising to play up your uniqueness. Decide what area of town your consignment shop would do best in.

• A Business Plan for your Consignment Shop

For a business to be successful, the one thing it needs initially above anything else is a solid consignment shop business plan. Even if you are not planning on getting a loan, you still need a business plan to help you plan things out and know the direction you want to move in. Without a business plan, the success of your consignment shop is uncertain.

Even a ten-page business plan will double your chances of success. Your business plan should spell out what your market is like, what kind of competition you have, and what niche you will fill. It should specify your business structure, how many employees you’ll need, and what your startup costs will be, as well as what your monthly overhead costs will be and how many months it will take for you to break even.

You also need to write a basic marketing plan and write a detailed resume for yourself and why you have what it takes to run a great consignment shop. There are plenty of resources online for how to write a business plan, but that gives you the thumbnail sketch.

• Selecting a Location

The location is a primary consideration and one of huge significance. Several aspects need to be considered.

Obviously, the first consideration is rent. Most prime locations charge a steep rent. But if you can afford it, you should not compromise on a location that has all the elements necessary to start a consignment shop.

Some of these are ample parking space, high traffic from pedestrians and vehicles, and proximity to similar or complementary businesses.

Have it in the back of your mind to get a good location that fits your budget so you don’t end up in a tight situation.

This will be easier than you think. Almost any consignment store owner will tell you that getting inventory is not a problem. Place a few ads or let friends know you’re taking inventory, and your store will fill up faster than you can believe.

The real problem is picking stuff that will actually sell. That’s a fine art, and most of your long-term success as a consignment store owner will hinge on it. Just keep practicing.

If you are taking things in on consignment, remember to only accept items that really grab your attention. You have no obligation to take things off of people’s hands that are too used or don’t fit with your style. The pickier you are, the more unique your store will become.

• Advertising your Consignment Shop

If you decide to start up a consignment shop, your biggest expense is going to be advertising. Be patient and continue to spread the word. Be fair with your prices and people will come in and give you repeat business.

As you make a profit, grow your business with it. Eventually, you could move your home-based business to something even larger!

You can advertise in the local newspapers. This is a great way to let others know who you are and what you want to do. Another good idea is to send out flyers to the local neighbors in your area to let them know that you are new and that you are in business.

CONSIGNMENT SHOP BUSINESS PLAN EXAMPLE

Here is a sample business plan for starting a consignment store.

A consignment store business is a business that can be started with very little capital. This is simply because it involves the sale of fairly used items that do not really cost a lot. The goods that you intend to sell in your consignment store can be sourced from individuals that do not need them and sold to those that need them at very affordable prices.

The ease with which a kids consignment store can be set up makes it a perfect business for individuals that do not really have a lot in terms of capital.

Apart from doing your feasibility study and raising the capital for starting a consignment store business, you will also need to come up with a business plan. Well, this article contains a consignment store business plan sample. This will help you write the perfect business plan for your consignment store business.

Business Name:  Mr. Woods Consignment Store

Executive Summary

Our Products and Services

Vision Statement

Mission Statement

Business Structure

• Market Analysis

Sales and Marketing Strategy

• Financial Plan

Competitive Advantage

Mr. Woods is a consignment store that will be located in Detroit, Michigan. Mr. Woods consignment store was established by Jesse John, a renowned furniture maker with over 30 years of experience. This business will be set up at $50,000 and will make very cheap but quality furniture available to the residents of Detroit, Michigan.

To get things started, we have already gotten an ideal facility where our consignment store will be located. This facility is in a very busy environment and also very easy to access. We are not just in this industry to make money, we are also very interested in becoming one of the biggest consignment stores in Detroit, Michigan, the entire United States, and major cities in neighboring Canada.

The level of competition in the consignment industry is quite high. The reason for this is the very little amount that is needed to start this business, the very little requirement for technical skill, and the huge gains that can be made in this industry.

To survive in this highly competitive industry, we have decided to create our own niche. We will not just sell products to members of the public, we will stick to the sale of furniture only.

Some of the goods that we will be selling are

• Fairly used office furniture
• Fairly used kitchen cabinets

At Mr. Woods consignment store, our vision is to establish a top-notch consignment store in Detroit, Michigan. We aim to use this means to meet the basic furniture needs of the people of Detroit, Michigan.

At Mr. Woods consignment store, our mission is straightforward. Our mission of establishing a consignment store is to make all manners of quality furniture available to the residents of Detroit, Michigan at very cheap prices. We are also looking to become a force to reckon with in this industry.

Several things keep us driven at Mr. Woods’s consignment store. However, a few of them are; to help people get the best of furniture at giveaway prices and to dominate the consignment store industry in the United States.

We are a new consignment store and we know that we will have to be intentional if we want to make it to the top.

To ensure that we become a force to be reckoned with in a very short while of operation, we will hire only hardworking and experienced individuals to work with us.

We will also ensure that our workers put in their best by giving them the best treatment possible.

Market Analysis Market Trends

The consignment industry has been running for quite a while. Since it was established, all it has done is flourish even when other industries haven’t. This is so because of the very high demand for cheap and quality fairly used goods.

The truth remains that the demand for consignment goods skyrockets when the economy is bad.

Now, look at it from this perspective; when the economy is bad, lots of individuals can’t afford to get quality new goods. This, therefore, makes most people focus their attention on fairly used goods.

There is a high level of competition in this industry, as a result of this, we have come up with strategies to help us make more sales than our competitors. Some of them are;

• We will ensure that we have a strong internet presence
• We will ensure that our handbills are made available at public places so that people can get aware of our existence

Target Market

• There are lots of consignment stores scattered across the United States. This implies that there is a high level of competition in this industry. We have carried out our research and have decided to deal in furniture only. Those we are looking to offer our services to are;
• Family People

Financial Plan Source of Startup Capital

Not much is need to start up this business. Despite this, we do not have all the money that we require to startup. We have 50% of the amount we need. This amounts to $25,000, the remaining amount will be sourced from the bank.

Mr. Woods consignment store is a consignment store that focuses on furniture only. Now, the fact that this consignment store is owned by a furniture maker automatically puts us ahead of other consignment stores in our niche. We have decided to capitalize very strongly on this factor.

This is a business plan sample for a consignment store business . This business is owned by Jesse John and will be located in Detroit, Michigan.

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Start a successful Boutique Business | Step-by-Step Guide

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• December 15, 2023

The next step for your fashion and design inclinations with clothing is plunging into a boutique business of your own. Before the era of ready-made clothes, boutique businesses were, in fact, quite the norm for any kind of clothes shopping.

While different brand outlets and ready-to-wear clothing manufacturing have made boutiques less popular for regular wear, boutiques have a newfound significance for clothing of a specific fit!

Thus, boutique shopping has become synonymous with style and fit now rather than just plain old clothing. Some boutique businesses also present a combination of both pre-made and to-be-tailored clothing. This helps customers get an idea of the styling options available, as well as get the fit they desire.

A boutique business is no longer one with all the age-old standard elements. In fact, there are many reasons why the boutique model is revolutionizing to fit modern-day requirements.

Things to Consider Before Starting a Boutique Business

If you’re thinking about how to start a boutique business of your own, there are many things you need to consider and get in the works before your official launch. Here are some things to think about before getting started:

Your Unique Boutique Offerings

The first thing to think about when it comes to your boutique business is how it is going to stand out amidst the rest. For modern-day boutiques or clothing line businesses , the sky is the limit.

You can find your USP or what you want to be known for by revisiting why you want to start your business in the first place.

Your boutique can be the go-to for fitted creations from popular references or perhaps known for its own unique design and style offerings. You can also cater to specific styles and occasion-based dressing.

Formals for events, casual and new styles, wedding dresses and suits – there are many niches for which a wide clientele can be built. As a first step, figure out your unique offerings!

Boutique Type and Buyer Persona

With a focal idea in mind, you will then have to understand the type of boutique business you want. While many clothing lines and businesses cater to different buyers, a niche boutique business can do really well with a well-defined buyer persona.

A business tailored for women’s dresses or men’s suits can have a niche buyer group on its own.

Especially with growing competition in the market, sticking to a niche might do more good than you’d think.

You can either choose to operate a regular buyer boutique or operate a sell retail-based business.

A consignment-based venture can also be fruitful if you’re sourcing from an inventory-centered store. With a healthy budget and an adept team, you can also run a franchise boutique that can have a wider reach right off the bat!

A Boutique Business Plan

Once your vision is clear, you now proceed to draft a structured business plan. Why a business plan? There are many specifics within the planning of your business that are much more than “this or that” questions.

From employees to material sourcing, all aspects need to be decided way before you get to take your first order.

A good business plan includes a blueprint of each aspect from initial funding, material selection and sourcing, profit goals, employee management, design aspects, retail store aspects, prompt marketing, and much more.

You can refer to this – Boutique Business Plan Template to start out with proper business planning!

Store Location and Sectioned Layout

This is something you can plan in detail within your Boutique business plan. Especially if you’re planning to operate as an all-in-one design and retail store. Therefore, the location and layout of your store are of supreme importance.

The location of the store must be more easily accessible than a workshop. Your boutique store, in all probability, would be a hub for client entertaining, portfolio presentation, design, and everything else.

The layout of the store should be appropriately sectioned to ensure a proper workflow from entertaining the client, showing design samples, and selecting fabric, to trying on ready-to-wear pieces.

A waiting area for the next customers and a soothing ambiance will make your customers’ shopping experience a great one!

Funding, Pricing, and Legal Aspects

Before anything, how you are planning to fund your business and what profits you expect in the first quarter are to be considered. A business can stay afloat in the long term only if it is profitable.

Funding options can include personal investment, partnerships, loans, or getting investors on board. You also need to decide on pricing aspects for your products and services while drafting your business plan.

If you have a rough sketch of your product catalog ready, you can gauge the same on the basis of competitor data. Alongside these aspects, you need to take care of the basic legalities of your business.

This includes registering the business under the right business category and ensuring all locality permits and legal operative permissions as a fully functioning business.

Design, Operations, and Marketing Teams

With all the groundwork laid out for your venture, you will need to demarcate duties and operations depending on the scale of your business. Many boutique business owners operate as stand-alone designers and sellers.

To scale the business, designated teams each for the design, production, and client management operations are needed. These can be scaled up or down as per the changing requirements of your business.

Before your launch week or even weeks prior, your marketing professional or team must ensure your brand identity is conveyed through adept social media pages.

Your online presence will not only ascertain your genuineness and popularity in the growing months but also bring in your first customers at a great rate!

Your boutique business can be as simple or fancy as you’d like it to be. Focus on just one genre, or extend your services across all kinds of designs and clothing. With a growing clientele and improved performance in certain niches of boutiques, you can easily narrow down some profitable niches or buyer types after a few months of operation.

In any case, whatever you do, happy customers are likely to fuel the business to great heights. Great craftsmanship and good planning are two things that will help in this aspect. Upmetrics can help you explore some targeted sample business plans to make sure you have everything for the boutique launch.

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How to Start a Boutique Business: A Step-by-Step Guide

January 10, 2024

Embarking on the journey to start a boutique is an exciting business venture that intertwines passion with entrepreneurship. Each decision paves the path toward your boutique’s success, from selecting the perfect business structure to choosing whether to sell online or in-store. Will you secure a seller’s permit, and how will you identify your target market? Stay tuned as we unveil the crucial steps to making your boutique dream a reality, including securing that all-important certificate of occupancy.

Dressing for Success: A Tailored SWOT Analysis for Your Boutique Business Dream

Starting a boutique business is an exciting venture for any entrepreneur passionate about fashion. To help you make an informed decision, here’s a comprehensive SWOT analysis to consider, which will give you a 360-degree view of the potential challenges and opportunities in the retail fashion industry.

• Personalized Customer Experience:  Small boutiques can offer a level of personal service and customer care that larger retailers often cannot match.
• Unique Product Offerings:  Boutiques often carry exclusive or niche products that differentiate them from mass-market competitors.
• Agility and Flexibility:  Being smaller means you can quickly adapt to fashion trends and consumer preferences.
• Local Market Knowledge:  As a boutique owner, you can leverage your knowledge of the local community and customer base to tailor your offerings.

Weaknesses:

• Limited Budget: Smaller boutiques may have less capital for inventory, marketing, and expansion than larger stores.
• Inventory Management:  Balancing stock levels to match consumer demand without overinvesting in inventory can be challenging.
• Brand Recognition:  Building a brand that resonates with consumers can take time, which may slow initial growth.
• Economies of Scale: As a small business, you may incur higher unit costs for products and materials than larger retailers.

Opportunities:

• E-Commerce Expansion: An online presence can significantly broaden your customer base beyond your physical location.
• Emerging Designers:  Collaborating with up-and-coming designers can provide exclusive products that attract fashion-forward customers.
• Sustainability Focus:  There is a growing consumer interest in sustainable and ethically made clothing, which can be a niche market for boutiques.
• Pop-Up Events:  Hosting or participating in pop-up events can increase brand visibility and allow for market testing without the commitment of a permanent space.
• Competitive Market:  The fashion retail sector is highly competitive, with many players ranging from big-box retailers to other boutiques.
• Economic Fluctuations: Economic downturns can reduce consumer spending on non-essential items like fashion.
• Supply Chain Disruptions: Suppliers or international trade issues can impact inventory and lead times.
• Changing Consumer Trends:  Keeping up with rapidly changing fashion trends requires constant vigilance and adaptability.

To plan your boutique business strategically, it is important to understand your strengths, weaknesses, opportunities, and threats. You need to use your strengths, work on your weaknesses, grab opportunities, and mitigate the threats to create a successful boutique that stands out in the fashion industry. A comprehensive SWOT analysis can help entrepreneurs enter the fashion world with confidence and a well-planned strategy.

Unveiling the Tapestry: What to Expect When Launching Your Boutique Business

Starting a boutique business is as much about understanding the market as curating a fashion collection. Here’s a detailed look at what entrepreneurs should expect, complete with engaging headings that will help you navigate the intricacies of the boutique business landscape.

Current Market Analysis: The Fashion Frontier The boutique retail market is a vibrant space characterized by its responsiveness to customer desires for unique and personalized shopping experiences. Despite challenges from e-commerce giants, there’s a steady demand for boutiques that offer curated collections and a more intimate shopping environment. However, the market is competitive, and success often hinges on a boutique’s ability to stand out through branding, niche product offerings, and superior customer service.

Technological Trends: The Digital Dressing Room  Technology is reshaping the retail landscape, and boutiques are no exception. From point-of-sale systems that streamline transactions to sophisticated e-commerce platforms, technology enables boutiques to enhance their operational efficiency and reach a wider audience. Social media also plays a pivotal role in marketing, allowing boutiques to showcase their style, engage with customers, and build a community around their brand.

Consumer Preferences: Tailoring to Tastes Today’s consumers seek more than just products; they seek experiences and personal connections with brands. They value boutiques that offer exclusive items, personalized styling advice, and a strong brand story. There’s also an increasing demand for sustainable and ethically produced fashion, which allows boutiques to align with these values and attract a conscientious clientele.

Industry Growth: Measuring the Market’s Hemline The boutique industry is experiencing shifts as consumer behavior evolves. While the market for boutique fashion remains robust in certain segments, there’s a push towards omnichannel retailing, where integrating online and offline experiences is key to capturing sales. Boutiques that can successfully navigate this blended approach will likely grow as they offer convenience and a unique brand experience that online-only retailers can’t replicate.

By understanding these key areas, entrepreneurs can better prepare for the realities of starting and running a boutique business. It’s a venture that requires a blend of fashion sense, business acumen, and adaptability to changing market conditions. But for those with a clear vision and a strategic approach, the boutique business offers a world of opportunity to make a mark in the fashion industry.

Laying the Groundwork for Your Boutique Business

To lay a solid foundation for your boutique, begin with a sole proprietorship or another fitting business structure. A detailed boutique business plan is your roadmap, guiding you to secure financing and pinpoint your marketing strategy. It’s about understanding wholesale costs and industry outlook to keep customers coming. But how do you identify those target customers who will walk through your doors? The groundwork is just the beginning.

Stitching Your Niche: Selecting Your Boutique’s Specialty

The boutique business thrives on specialization. Choosing a niche is crucial in setting your store apart and attracting a dedicated customer base. Here are several compelling niches for a boutique business, each offering unique opportunities to carve out your space in the fashion industry.

1. Sustainable and Eco-Friendly Fashion: With consumers increasingly prioritizing sustainability, a boutique that offers environmentally friendly and ethically sourced clothing can appeal to this growing demographic. This niche includes organic cotton, recycled materials, and fair-trade certification.

2. Vintage and Thrift:  A boutique specializing in curated vintage and thrift finds caters to customers who love unique, retro styles and are conscious about reusing and recycling clothing. This niche can also appeal to those looking for high-quality fashion with a sense of history.

3. Local and Artisanal Designers:  Featuring local artists and designers can create a community-centric boutique that supports the local economy. This niche can include handcrafted items, limited-run pieces, and collaborations with local talent.

4. Luxury and Designer Consignment:  Offering high-end designer labels at a fraction of the original price, luxury consignment boutiques can attract fashionistas looking for deals on premium brands. This niche requires a keen eye for authenticity and current trends.

5. Specialty Sizes:  Catering to specific size ranges, such as plus-size, petite, or tall, can address gaps in the market where mainstream retailers fall short. This niche requires understanding the fit and style needs of your target demographic.

6. Activewear and Athleisure:  As fitness and comfort continue to influence fashion trends, a boutique focusing on stylish activewear and athleisure wear can attract customers who want to look good both in and out of the gym.

7. Cultural and Traditional Wear:  Specializing in cultural or traditional apparel can meet the needs of ethnic communities and those interested in world fashion. This niche could include traditional garments, modern interpretations, and accessories.

8. Children’s and Maternity Wear:  A boutique dedicated to children’s clothing or maternity wear can fill a niche for high-quality, stylish options for kids and expectant mothers, markets that often seek specialized products.

9. Gender-Neutral and Inclusive Fashion:  Offering gender-neutral clothing and accessories can appeal to customers seeking inclusive, non-binary fashion options that defy traditional gender norms.

10. Occasion Wear: Focusing on formal wear, wedding attire, or unique occasion clothing can make your boutique the go-to destination for events such as proms, weddings, galas, and more.

Selecting a niche for your boutique business is about identifying where your passion meets consumer needs. By focusing on a specific area of fashion, you can create a unique shopping destination that stands out for its expertise, selection, and understanding of your customers’ desires.

Crafting Your Brand Identity

Your brand identity is the magnetic pull that attracts potential customers. It embodies your boutique’s ethos, style, and uniqueness. This identity goes beyond visuals; the narrative connects with your audience, the values you stand for, and the experience you promise. It makes your boutique a store and a destination in shoppers’ minds.

Composing a Thorough Business Plan for Your Boutique

Creating a boutique business plan is more than a formality; it’s a strategic blueprint encompassing everything from a marketing strategy to detailed financial projections. How will you secure financing and calculate wholesale costs as a sole proprietorship or another business model? Your plan must address target customers, public relations, and the industry outlook to ensure customers enter your doors.

Selecting the Ideal Structure for Your Business

Choosing the proper business structure is crucial for boutique owners. A clothing business must weigh options between a sole proprietorship, a legal structure like a limited liability company , or another business entity. Legal structure decisions affect everything from liability protection to tax implications. Considering the risks, a legal entity that separates personal assets from the business can offer peace of mind, especially if the business is sued.

Naming Your Boutique: The First Impression

The name of your retail boutique is the cornerstone of brand awareness. It’s the first touchpoint for customers and the lasting memory that brings them back. The perfect name should capture the essence of your brand and resonate with your target audience, creating an indelible mark in the competitive world of fashion retail.

Business Registration Essentials

Once you’ve crafted your marketing strategy , the next step is to formalize your boutique by navigating the business registration process. This legitimizes your enterprise and sets the stage for all future operations, including marketing and expansion. Ensuring your business is registered correctly is the bridge between a brilliant idea and a thriving boutique.

Understanding Federal and State Tax ID Requirements

Deciphering tax ID requirements is essential for separating business and personal finances . State and federal tax filings are simplified when you clearly understand your obligations. A tax ID is a unique identifier for your boutique, ensuring compliance and streamlining financial processes—a critical step for any responsible entrepreneur.

Opening a Dedicated Business Banking Account

Establishing business accounts dedicated to your boutique’s financial transactions is fundamental in safeguarding personal assets and protecting liability. This division not only simplifies accounting when business expenses are delineated, but it’s also essential protection if your business is sued. A dedicated account is the financial bedrock of your boutique’s operations.

Ready, Set, Launch!

With the groundwork laid, it’s time to launch your boutique into the marketplace. Whether focusing on exemplary customer service, optimizing your business structure for growth, or preparing to sell online, the era of online shopping awaits. But first, ensure you have the seller’s permit for your online clothing boutique. The stage is set; are you ready to shine?

Curating Your Product Selection and Sourcing Vendors

For business owners, selecting the right products for your boutique involves more than just aesthetics; it’s about finding the perfect balance between demand and supply, quality and cost. Sourcing vendors is a nuanced art, requiring a keen eye for trends and a strong network of reliable suppliers to keep your shelves stocked with desirable items.

Pricing Strategy: Balancing Profit and Appeal

Developing a pricing strategy that maximizes profit while maintaining customer appeal is a delicate balance. Your prices should reflect the quality and exclusivity of your products yet remain within reach of your boutique’s target demographic.

Designing an Inviting Store Layout and Purchasing Essentials

An inviting store layout welcomes customers and encourages them to explore. The right ambiance, fixtures, and merchandise arrangement can transform shopping from a mundane to an enjoyable experience.

Crafting Operational Procedures for Daily Boutique Management

Efficient operational procedures are the backbone of any successful retail business. Every process should be designed to enhance the customer experience and streamline daily tasks, from managing inventory to optimizing cash flow.

Building Your Boutique’s Presence

To elevate brand awareness, a retail boutique must employ a multifaceted approach. This includes engaging with the community, creating memorable shopping experiences, and leveraging social media to showcase unique offerings. By cultivating a strong online and offline presence, boutiques can build a loyal customer base and stand out in a competitive market.

Effective Marketing Strategies for Your Boutique

Maximizing the impact of marketing activities requires a blend of traditional and digital marketing tools. To market your business effectively, consider hosting events, collaborating with influencers, and utilizing targeted online advertising. These strategies can help attract customers to your boutique and encourage repeat business.

Hiring the Right Team to Grow Your Brand

Assembling a dedicated team is crucial for boutique success. Employees should embody the brand’s ethos and provide excellent customer service. Even the details, such as a distinctive logo on shopping bags, contribute to a cohesive brand image and can turn a simple purchase into a memorable experience.

Establishing an Online Boutique Presence

An online presence is essential to tap into your niche market effectively. Creating an engaging e-commerce platform allows customers from all over to explore and purchase your fashion selections. It also provides valuable insights into shopping trends and customer preferences.

Preparing for Success and Overcoming Challenges

Preparing a boutique business for success involves realistic financial planning. Anticipating startup costs, such as inventory, equipment, and leasing expenses, is essential for setting a solid foundation. Accurate financial projections help secure funding and manage cash flow effectively.

Anticipating Startup Costs and Financial Projections

Understanding the full range of startup costs is critical in launching a boutique. Every detail must be accounted for in the financial plan, from initial inventory investments to decor. Accurate projections help in setting achievable sales targets and budgeting for future growth.

Recognizing Potential Challenges and Preparing Solutions

Every boutique owner should be prepared to face and overcome various challenges. From inventory management to customer acquisition, having contingency plans in place can help navigate the unpredictable nature of the retail industry.

Legal Considerations and Compliance for Boutique Owners

Boutique owners must navigate many legal considerations, including zoning laws, employment regulations, and consumer protection statutes. Ensuring compliance is paramount for a business to operate smoothly and legally.

Inspiration from Successful Boutiques

Successful boutiques are often characterized by outstanding customer service and adept use of online shopping tools. Examining how top online clothing boutiques leverage their strengths can provide valuable insights. Naming your clothing with creativity and flair can also play a significant role in establishing an iconic brand.

Analyzing Best-in-Class Boutique Examples

Aspiring owners can glean insights into what drives success by studying exemplary boutiques. Factors such as unique brand identity, customer engagement, and strategic use of social media often distinguish top performers from their competitors.

Nurturing Your Boutique Business

Long-term success in the boutique business demands constant innovation and responsiveness to market trends. This could involve adopting new paid ads strategies or refining the product line. Staying engaged with customers and actively seeking feedback can also guide the evolution of the business.

Continuous Improvement and Adapting to Market Trends

Boutiques must stay agile and willing to adapt to changing market trends. Embracing new technologies and marketing approaches can help maintain relevance. Paid ads, for example, can effectively target new customers and re-engage existing ones.

Fostering Customer Loyalty and Community Engagement

Building customer loyalty goes beyond the initial sale. Hosting events , offering loyalty programs, and engaging with the local community can create a sense of belonging among customers, encouraging repeat business and word-of-mouth referrals.

Sealing the Deal: Launching Your Dream Boutique

Before launching a boutique, conducting thorough market research is essential. This helps choose the right physical location and legal structure for the business. Implementing impactful content marketing strategies can attract attention while carefully planned paid ads boost visibility.

A well-curated boutique storefront can entice passersby, and establishing optimal profit margins ensures the business’s financial health. As you start a clothing boutique, hiring employees who share your vision will contribute to a dynamic team. Navigating retail stores’ regulations, understanding state government requirements for business and personal finances, securing necessary licenses and permits, and finding the perfect commercial space are all crucial steps. Lastly, offering a curated selection of retail clothing will set your boutique apart from the competition.

Final Checklist Before Opening Your Boutique’s Doors

Before the ribbon-cutting, online boutique owners must verify that every detail aligns with their vision and business requirements. This includes confirming inventory levels, ensuring the website’s functionality, finalizing payment systems, and double-checking security measures. Preparing all marketing materials, from social media announcements to in-store signage, is vital, creating a cohesive and inviting atmosphere for future customers.

Celebrating Your Boutique’s Grand Opening

The grand opening is a momentous event; it’s time to furnish and decorate your boutique, create an experience that resonates with your brand, and welcome your first customers. A well-executed celebration can set the tone for your boutique’s future success and customer relationships.

Setting Long-term Goals for Your Boutique Business

For a startup business, setting achievable long-term goals is crucial. These should include obtaining necessary business licenses, exploring e-commerce capabilities, and building a presence both online and locally. Financial aspirations, like reaching a specific gross profit, and legal responsibilities, such as securing workers’ compensation insurance, are foundational objectives that support sustainable growth and stability.

Unveiling the Boutique of Your Dreams: A Conclusion With Style

Embarking on the journey to open your boutique is an adventure that culminates in unveiling a space reflecting your vision and passion for fashion. As the doors swing open, the boutique is not just a store but a testament to the meticulous planning and dedication that has gone into every detail, from curated collections to the ambiance that welcomes every visitor. Celebrating the grand opening marks a significant milestone, yet it is just the beginning of a quest to build customer loyalty and a legacy in the boutique fashion world.

Success in the boutique business is an ongoing process that involves more than just the clothes on the racks; it requires a commitment to market your clothing creatively and respond to the ever-changing tastes of your clientele. Your boutique will attract and retain a devoted customer base by consistently delivering exceptional service and quality. As you take pride in this moment, remember that each day presents a new opportunity to grow, innovate, and style your customers’ dreams into reality.

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15 steps to starting a BOUTIQUE – A simple Business plan

Opening a boutique is a dream for many women who want to stand on their own feet and feel the freedom and joy of owning a business, in a field they have a great passion for. This post is a detailed guidance that teaches you how to start a boutique.

A boutique is a small retail shop selling clothes/ fabric/accessories and other goods to a specific segment of the market. It is easy to start, easily manageable by even one person, requires a comparatively small amount of capital to start, engages the creativity and passion of the owner to a great extend. And all of these more often than not leads to a successful and enriching life for all involved.

1. Decide on the type of boutique you want to start

There are basically  3 types of boutiques  in terms of the way they stock goods – consignment boutique, regular buy and sell retail boutique and the franchisee boutique 

A consignment boutique will stock goods manufactured by other designers or manufacturers and will take a percentage as their share when the item is sold.

The consignment model means that you do not have to need initial money for the inventory but the profit share will be much lower than buying and selling. The consignment stores operate at a volume model which means you will have to sell a lot of goods for a decent profit. This type of store is a good option if you do not have the initial investment money to buy merchandise. You will have to seek designers or factories ready to keep goods in your shop to sell.

The buy and sell boutiques will buy goods at a  wholesale price from manufacturers or distributors and sell them at a higher mark up to customers. This model of boutiques will make a much higher profit at the end of the day but you need a large initial investment to buy merchandise. You will have to develop a relationship with wholesalers and get the best price so that you can make more profit. You may have to buy bundles / large quantities of the same style to get this discount ( Minimum order quantity). You will be making more money with this model than the consignment boutique.

The franchisee boutique will be operating under a large  brand name and will exclusively sell that brand. A franchise fee (one time as well as annual) will have to be paid to the parent company to use the brand name and logo etc and be allowed to sell their merchandise.

This model needs a lot of initial investment as you will have to give a franchise fee to the company as well as keep up the quality standards as specified by the company in terms of decor etc. You have the advantage of already developed brand awareness, company advertisements etc and may not have to convince customers to buy the products as much as if you were starting a new line.

The fourth type of boutique can be the retail outlet of a production house. This will involve a lot more initial investment than the other three. You will be procuring fabric and making clothes and then selling – so labor cost, material cost, and production cost on top of the cost of setting up the shop. The reward will be all the more if you are successful.

2. Decide on the USP of the store – the purpose of your business

Decide on why you want to open the boutique and what you will be offering. You will also have to know what is in trend  and the colors which appeal to the market at the moment

Develop a business mentality from the word goes. You are in this to make a profit and a better life for yourself. Without profit nothing is possible – so always be thinking about profit and cutting costs.

So think about “ the reason why you want to start a boutique? “.

Some girls think that a boutique will help them pass time. 

Some want an escape from home.  Some think ‘I can be around lots of clothes and can wear what does not sell’

Some feel compelled by their relatives to prove themselves.

All sufficient enough reasons to start a business but not enough for a business to be successful. A burning desire is needed to make any business a success – not to say anything about the cutthroat fashion business

Make sure that you have enough education for carrying on a business. 

I do not mean a degree in fashion or a degree in marketing. A general education on how to run a business is an essential part and you can get this from reading relevant books.

With education, you do not have to rely on others. If you have the knowledge none can fool you. Even if you employ qualified employees who will take care of everything for you, they are employees. The knowledge you have will stand you in good stead and you will be able to make good and informed decisions. Conducting business is challenging and needs expertise and nurturing. 

3. Decide on the clothes you will carry and who you will sell it to

Make a customer profile or profiles of your ideal customer and find products for them.

Think about the purpose of your business and whether it tries to solve a real problem.You can conduct a small market research to know what is currently lacking in the market that you can provide.

You should not go all out to please everyone – finding a niche market is the best way for boutiques; you cannot serve all the people – unless you have the budget of an Amazon.

Decide on the target market – the customers you are going to sell to. Identify a problem in that market that you can solve. Check your customers purchasing preferences. The styles, color, and fit should meet the preference of your target market.

If you are going to start in a residential colony with a mostly retired population you are not likely to be successful with a boutique selling cool funky clothes.

Think about what your customer wants rather than what you like.

If something sells, it is in demand and you can start selling that. Do what the successful one does – one trick that most business experts vouch for is to begin selling what already sells.

If there is a demand it means that they will buy from you too – you should increase the value proposition of the product – give them better quality than what is in the market.

I love this quote “Do not reinvent the wheel” – this is contrary to what I have always heard but it makes solid business sense. We are not all Steve Jobs to start a trend  – following the herd is better in business for most people especially if you do not have money to spend (splurge) in marketing.

Visit the stores that seem similar to your idea and compile a list of the brands they carry which you wish to carry. Most likely they will be your best sellers too.

4. Decide on the source of funding for the business

Ideally, you should start with enough money to carry on for the next 6 months in the business. I would say 1 year or 2 years. Most businesses do not turn a profit within the first few years so having enough cash to carry on the business and also bear your personal expenses is necessary if you do not want the business to fold before it has a chance to prove itself.

You will need money to give as a security deposit for renting space; money to pay employees, money for inventory, for doing up the store interiors, to name a few expenses.

Will you need a business loan ?

This can depend a lot on the location of your store, will you be renting or buying, type of clothing you mean to carry, the size of the shop, hiring employees, store decor, other costs, etc; Also on whether you have the capital to start the boutique on your own or whether any of your friends/relatives are willing to lend the money to you.

Risk is a double-edged sword. It can be your savior in business or it can kill you forever. So take only calculated risks especially when other investor money is involved. How the money is utilized should be planned carefully.

5. Look for the  location where you can have your store

Location is one of the most important factors in deciding the success of your store.

But choosing the best location depends on your budget. A boutique located in a very busy mall will have heavy traffic but comes with heavy rent. A boutique located in a quieter residential area will not have customers thronging the halls but the rent will be less. So the choice is dependent on you and what you can afford. 

Being where your customer shops/ goes is the only criteria in choosing the location for a boutique.

6. Decide on where you will source the clothes/fabric from

You need a source which will supply good quality products for your boutique.

Look out for manufacturers that specialize in products you have in mind. Ask for samples; the pictures in websites/catalogs never tell the full story. After you have seen them firsthand, You can negotiate with them and they can work out the budget according to your quantity.

You may want to carry a particular designer’s clothes in your shop, in which case you should contact them directly; if you have a contact person who can vouch for you, reputed designers would be interested.

Finding the suppliers

• If you have wholesale trade shows near your place attend them.  
• Visit wholesalers/ distributors of whole sale clothing in your area. 
• Talk to other boutique owners. The boutique owners in your area may not be willing to part with the information of their suppliers. You should visit boutique owners in a place not close to where you are meaning to start; they may share the information more readily about where they source their inventory from, as you are not their competition.
• You can also source clothes from online wholesalers like Alibaba from countries outside yours. You will have to get samples of their merchandise; get recommendations from others and look for good ratings and reviews and be very vigilant in all transactions.
• Some boutiques consider in-house production – but mostly after establishing themselves by selling other’s products.They will have a separate unit with employees producing goods to their specifications. Quality is assured in this case and you are not dependent on others.

Once you identify the supplier you may have to decide on the style you want from their collection; You may have to buy in multiples (wholesale) for getting discounts.

Decide that you will not deal with counterfeit goods – this is a matter of ethics as well as good for your safety in the long run. Selling fake goods can land you in trouble. Read about the tips to not buy fake goods here.

7. Decide on the pricing

Pricing rightly will make or break your store. Remember that you will have to take into account a whole lot of factors when deciding on the price.

Decide on a price which your customer (refer the customer profile) can afford and which can give you a nice profit.  If you want to make a profit you will have to have adequate mark up pricing on the wholesale price. Some markets will take a higher mark up than others.

Study the customer profile to know what you should charge. When you are making things for small babies and kids, the new parents may be willing to pay more than they would for their own clothes (just my way of thinking)

Most boutiques have a 100% mark up on whole sale pricing ie twice the price of wholesale. Add sales tax if applicable.

8. Decide on the store layout

The store decor is an important element in making people feel whether they should buy from your store or not. Colors you use inside the store, shelf and storage layout all are contributing factors to buying decision. 

The customer has to feel that the product you offer is worth the money they pay. They should be made to open their wallet; for that, they have to trust – Trust can be induced by the layout of the store and the look of the storefront.

The atmosphere of the store should make the customer comfortable.

Collect appealing pictures of other stores from the internet; visit some stores you admire so that you will have an idea of the ideal store layout. Make a picture board. 

Some boutique owners want the customers to walk free inside the store touching the clothing and wanting them by the feel. Some do not want the customers to touch the clothes. They would rather present the materials to the customers one by one. The layout of the store should complement this policy.

Dress forms or mannequins can display your clothes attractively in the store front and attract buyers/ passersby.

Racks / cupboards for display and adequate storage and changing room are all essential for a boutique. 

If you have a bridal boutique you will need the space to model the collection to the prospective buyer. A runway with a big mirror is a good touch in cases like this.

A fitting room with surrounding mirrors is common in all retails stores. People need to know how they look in the clothes they are buying

Effective use of space is a necessity when space is a premium. Consult a space designer (yes, there is a portfolio like that) if you are insisting on a professional touch. 

Your employees will need a break room in the store for resting and for having food.

Display units / storage

You can splurge on decor or be creative and create your own specific display units that meet your requirements

A customer should have enough space to walk through the store between display units and racks. Cluttered storage shelves will put off buyers. Make sure that you have a policy in your store to keep the clothes in order after every purchase or display.

All big retail shops have bright lights inside the fitting rooms that make the customers look good. This is necessary if you want them to buy the clothes you offer. So spend money on bright lights – it is not a luxury but a necessity.

A sales counter for wrapping / the clothes is also needed near the cash area.

9. Decide on the operational procedures of your store

This is the policy you want to set up about how you mean to run the business. 

Record keeping  should be assigned properly- what all books should be kept like the cash receipt book. Consult someone about handling your taxes as well.

Hiring an accountant who has experience in the retail business to handle the accounts is a good idea. Get an accounting software on your computer in which you can keep the necessary information.

You need to be having a system to store the contact information of all your customers. You need the customers to be informed of future sales etc.

The customer you have now is more valuable than the customer you may eventually have.

You need a   system to manage your inventory ; You should also have a policy regarding how to use the cash register; how to maintain the cash flow, how to deal with customers, refund policy for goods purchased.

10. Finish the legalities of the business

Decide on a name for your business. Make sure that your name is not a trademarked name of some other company.

Register the name of the business.

Start a business current account with a bank ; a merchant account with ability to process credit/debit card transactions is a necessity especially if you will be allowing transactions other than cash. 

You will have to have documentation on company ownership and other details like business license, tax, seller’s permit, business insurance.

If you want to source clothes from very reputed suppliers they will require that you be an established business, rather than a nonentity. This will ensure that you will get goods at a very discounted rate.

Book all the social media profiles in the name of your store – do not wait for this. Do it as soon as you decide on a name.

Contact the business developments officer at your locality for more details and permissions in opening up a business in your area. Follow it to the T.

Read up on the legalities of selling goods in your area. For eg. in US you cannot sell cotton nightwear garments for kids, but there is no problem with it in some other countries. So local laws have to be heeded properly and followed diligently. 

You can start the boutique as sole proprietorship, in partnership, or as a private limited company.

Add your name to google.com’s List my business – you can learn about “Add or claim your business on Google My Business” here . 

If you have a partner even if it is a sibling, draw up documents. I have heard stories of close relationships souring on account of the partners being slack in documentation. A partnership agreement drawn by a lawyer is a must in such cases.

12. Hire  good employees 

It is ok if you do not have employees. Many business owners start on their own, doing everything themselves till they start making a profit. 

But everyone needs a backup. You will have to hire someone at some point of time at least temporarily. You need staff to clean the space, manage the cash, as sales persons. Managing everything yourself may burn you out before soon. 

Ensure that the employees you hire follow all the operational policies in your store. Do not compromise in this; if the owner is slack about rules, expect the employees to throw the rules down the drain.

12. Make a Marketing plan

Run different promotions throughout the year (25% off this Valentine’s day for buying couple scarves) and communicate this to your customer database. Customers love discounts and they will come and buy non-discounted items too.

Small sales every month or so for selected items can clear up space in your shop.

Every season a major sale (end of season sale) can also clear your inventory and infuse freshness to your store. 

Social media marketing is a very important element in your marketing plan; Radio and TV ads, print ads, blogging are all marketing tactics you could try to promote your store.

You need to invest in your customers; promote to them ; they will come again and again and promote your store to their acquaintances. So make sure that you note down all the contact info of your customers and sell to them again and again.

A customer is gained for life; make them your best marketing tool.

A website with a blog can be used as  a marketing tool that will attract more customers.

13. Buy everything you need

You will need the following supplies when you start a boutique

• Scanner for bar code
• Cash drawer,
• Credit card processing machine
• Machine for printing barcode labels for the goods;
• Office furniture and supplies,
• Printed stationery like bills, receipts 
• Dress forms/ mannequins, 
• Clothing labels

You need CCTV cameras – this is necessary to ensure that you do not get shoplifted.

The receipts/ bills should have the business name, address, phone number printed on it; the back side should have the return / refund policy of your store.

Shopping bags

The shopping bag you give to the customer is a type of advertisement so it needs to be a good quality one. When the customer carries it, they proclaim to the world that they have been to your shop. If it is a good quality cover they will keep it and use it afterwards as well – free advertisement for your boutique again.

14. Write down your business plan

Develop and elaborate on the business plan for your clothing store and then write it down; if you are thinking of getting a loan from a bank it is a necessity – if you can convince the officers at the bank you can be assured that you have a chance for making it a success.

Business Plan – Boutique (Outline)

The business plan for the botique of your dreams should have the following points:

Executive Summary

This section should outline the name of your boutique, the purpose of your business, your mission statement, your business goals, and a summary of your financial projections.

Company Description

In this section, give an in-depth description of your boutique business, including its legal structure, ownership, and location.

Market Analysis

In this section, write about yout your target market, customer demographics, and an overview of your main competitors. You can go in-depth and write about market segmentation analysis.

Products and Services

Here, describe the products and services that your boutique business will offer. This section should include information on your product line, suppliers, and pricing strategy.

Marketing and Sales

This section should outline your marketing and sales strategies. You can elaborate on advertising, social media, public relations, events, and promotions. You should also include your sales projections and customer acquisition strategies.

Provide an overview of your day-to-day operations, including information on staffing, inventory management, and store layout.

This section should include detailed financial projections, including startup costs, revenue projections, and profit and loss statements. You should also have cash flow projections and a break-even analysis.

Management and Personnel

This section should describe your hiring plans and who will be the key persons on your team. Elaborate on the roles and responsibilities of your management team.

Legal and Regulatory

This section should provide an overview of your business’s legal and regulatory requirements, including licensing, permits, and zoning.

Future Plans

Outline your long-term goals for your boutique business, including expansion plans, new product lines, and any other strategic initiatives.

15. Plan a grand opening

Get the word out that your boutique is opening. Try to get local media coverage – give press releases to all major media outlets – even the radio stations.

Future plans for your boutique

Ok, your boutique is open and people are buying. But do not rest on your laurels. Think about expansion as soon as you open. 

No, that does not mean you open 4-5 stores at once. But think long term as soon as you have started. This will expand the possibilities of your business. 

If not more stores, you can expand the fashion lines you carry, open an online store or even sell through Facebook, start a stitching unit, embroidery unit, or designing unit, sell jewelry and other accessories, tie up with designers for fashion shows and other events so that word goes out.

Starting a boutique is only a fraction of the work. Maintaining the store and making the boutique a success takes a whole lot of determination, hard work and a little bit of luck. Best wishes.

Related posts : How to start a tailoring shop

Online shopping tips : 15 Buyer Beware FAQ you should ask yourself

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This article was written on May 8, 2023

& updated on May 10, 2024

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Author: Sarina Tariq

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118 thoughts on “15 steps to starting a BOUTIQUE – A simple Business plan”

Thank u so .much

Thank you for this article.. so clear and knowledgeable.. it will definitely help me think better when planning a boutique in future

No one can compite with u! Ur da best mummy…. Keep it up!!!

Thank you so much ❤️…

Thank you so much!

Thank you so much this was very helpful

Thank you for such an informative article…very soon I’ll be starting my own little girls clothing line…n I make sure that I do give credit to u for all the information you share here.

Beautiful piece this!

Thank you so much am soon setting mine soon

Thanks so much I have learnt more about a boutique

Very informative

thanks a lot. It is a very wonderful explanation with nice content!

Thanks a lot. I managed to understand how to run boutique

Thanks it helped a lot will be starting soon but want to start from my apartment as I cannot afford rent to look for space now

Greetings I really learned more about how to open boutique shop it help me a lot I am on the plan to start it and this tips make boutique to be easy to me to start from now , thank so much .

Best wishes

I need suport

Extremely helpful post. Never in the dark from the very first word, the layout is superb. As you read, each sentence makes more sense than the previous one. Thank you 🙂

I have liked the content!!!, I have read through, it’s really important, guiding and inspirational. I’ll try to rely on it when setting up as the plans in my mind.

Wow !!! That’s a good tips on how to open a boutique and I think with these tips, I’m gonna end more money

I. Wana Start one. To self-employ

Can a botique succeed in a remote area

Hi, Depends on whether you have enough customers in the particular place, what your customers are willing to spend, and what are your overheads etc. Only you can tell this, after you have studied the market. Best wishes

Thanks so much I have gain energy and courage to start this business, you have really show me the way God I need your help

Thank you so much , you actually gave me what I have been looking for….. So right now let me look out on how to get the finance for the business… Help me lord

God bless you

Thank you this has been helpful given me ore energy to start my boutique alrdy. God with me iam definely goin to start.thnx once again.

Thank you very much, God bless you and bless your business a hundred fold

This really wonderful, well articulated, thanks

Thanks for the information

Thank you very much ❤️

AM GRATEFUL, THANKS ALOT PLEASE HOW ABOUT SUPPLIERS

No thanks, I’m not interested!

How to Start a Successful Online Boutique

Briana Morgaine

12 min. read

Updated November 13, 2023

Free Download:  Sample Online Clothing Boutique Business Plan Template

Searching for the perfect products, finding a color scheme that speaks to you, building a brand that embodies the style and look you, love—if starting an online boutique sounds like heaven to you, I’m not surprised. But you may be wondering, “what does it take to start a digital boutique?”.

Before you jump headfirst into hand-picking items and deciding on website fonts, let’s start at the beginning, and look at how to open a boutique online. 

In this guide, we’ll cover everything from business plan resources to using brand ambassadors to help you build a social media following.

While starting an online business can take a lot of time and investment, it can be condensed down to the following ten steps.

• Step 1. Planning your online boutique

If you’re researching how to start a boutique, you should know upfront: You’ll need a business plan. 

But, don’t let the idea of a lengthy business plan scare you off; the type of business plan you’ll need will vary, depending on whether or not you’re using it as a guide to keep you on track, or as a means to an end—to pitch for funding or a loan.

If you’ve got enough funding to start your business without seeking a loan from an angel investor or a bank , you’ll be fine with a lean plan geared toward helping you solidify the planning process for yourself.

If, however, you need to present your plan to outsiders to get funding, no sweat. A lean plan can easily be converted into a full-length, formal business plan.

We’ve covered business planning extensively in other articles on our site, so I’ll keep this section short and sweet.

To dive deeper into business planning, be sure to check out:

• How to Write a Business Plan
• The Different Types of Business Plans
• Lean Planning: Write your Business Plan in Under an Hour
• Estimating Realistic Startup Costs
• Women’s Clothing Boutique Business Plan
• How to Write a Business Plan for a Retail Clothing Boutique

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• Step 2. Decide on the platform for your boutique

Once you’ve gotten your plan in place, you’ll need to decide where you want to start an online boutique.

Do you want your boutique to take advantage of the great organic traffic on Etsy? Or, do you imagine having a little more control over your website, layout, and the general shopping experience?

There are pros and cons to both; ultimately, it comes down to what products you sell, and how much control you want, in terms of customizing your online storefront.

Need more info before you pick your eCommerce platform? I don’t blame you. Luckily, we’ve written extensively about all your options:

• 5 Steps to Starting an Online Business
• How to Start an Etsy Shop
• Should You Sell on Etsy, or Build Your Own eCommerce Site?
• How to Improve eCommerce Conversions
• Where to Sell Digital Products and Niche Products

Step 3. Pick a brand name you love—and can live with

Make sure you pick a name you’re totally in love with—that part of starting an online boutique should be a no-brainer. More importantly, however, make sure it’s a name you’ll be able to say, without feeling embarrassed.

Some businesses have names that are, frankly, a little cringe-inducing. Imagine telling all your friends about your new online boutique; does the idea of repeating the name “Sally’s Super Funky Vintage Duds” to everyone you meet make you want to crawl under a rock? Probably.

You’ll want to be able to say your business name proudly and make sure that others are comfortable telling their friends about it. You want it to be, in a word, cool.

Now, cool means different things to different people, and that’s okay! Just make sure when you pick it, you can own it. 

And speaking of owning it, you’ll also want to be sure your business name is available. Do a quick Google search to determine if any business with the name currently exists and if all of the trademark licensing and registry information is up to date.

The process of picking a name will probably take a while. Relax. It’s all part of the planning process. If you need some help, check out the resources below.

If you need some more business name advice and inspiration:

• Resources and Tools to Help You Name Your Business
• How to Name Your Company
• The Complete Guide to Registering Your Business Name
• Step 4. Create a cohesive aesthetic style

Now comes the really fun part: It’s time to dive into image curation.

Slightly different from branding (which we’ll get to in a minute), curating your image is all about developing your online boutique’s own personal style.

Who is your ideal customer? What do they love, like, and absolutely hate?

What colors, fabrics, articles of clothing, kinds of jewelry, and types of foods appeal to them?

Some of these questions may seem a little out of left field. After all, if you’re opening an online boutique focused on, say, beautiful handcrafted greeting cards, what does it matter what your ideal customer’s favorite food is?

Well, it matters for one big reason: Aesthetic cohesion.

You want all of your items to fit, and tell a story.

Their aesthetic is Southern-inspired, with touches of leather, metals, woods, and—you guessed it—bourbon. It’s warm, welcoming, and cohesive.

Your products should look unified on a screen together, so from the beginning, start thinking about the “story” your products will tell. Who are they for? What are the colors, textures, and styles of your ideal products?

Step 5: Develop your boutique’s unique brand

In the same vein as building your own cohesive personal style, you’ll want to focus on building your brand.

Your brand will be a combination of your cohesive product selection, your chosen name, the ideal customer you are targeting, and the overall look and feel of your website and social media platforms.

It’s easy to spot the differences right off the bat: Here are two boutiques with vastly different branding.

Is your brand fun, bubbly, and girly, with bright feminine colors and fonts? Adorable stationery, decor, and accessory boutique Declaration & Co. is a great example of this type of branding.

Or, maybe you’re going for sleek, clean lines and minimalism? Check out Thread Theory, a sewing, and menswear boutique.

Your brand goes further than just picking a cohesive style of products to sell. Your brand is everything you do, from the colors and fonts you use on your website, to the types of content you post on social media.

Branding is involved—but also a lot of fun! We’ve covered branding extensively, so we’ve got a lot of articles you should check out. You’ll find everything from a branding checklist to detailed how-to’s to help you build your brand.

To read more about branding, check out these articles:

• Business Branding Guide (our hub for everything branding related)
• The Definitive Guide to Building a Brand
• Branding Checklist: 10 Essentials Before Launch [Free Download]
• 4 Reasons to Brand Your Business
• The Importance of Brand Storytelling
• Step 6: Make your products stand out

You can have the best branding, and the most cohesive, well-curated online boutique in the world—but if your products aren’t given their chance to shine, you’ll end up short.

What do these images have in common?

The products are the star of the show.

They are well photographed, without a lot of busy visual background noise, and they speak for themselves.

While making your site itself visually pleasing is one thing, don’t forget the importance of showcasing your products beautifully. This means high-quality photography, good lighting and backdrops, and potentially someone (or many someones) to model your products.

You’ve got several options, depending on your budget (and how DIY you feel comfortable getting):

Do it yourself:

If you plan on regularly adding new inventory, and would rather cut down on costs in the long term, consider the full DIY route. Though your entry costs may be higher, you’ll ultimately have total flexibility over your product photography. And need models? Look no further than a couple of friends.

Shopify’s article on The Ultimate DIY Guide to Beautiful Product Photography covers everything you could possibly need, from the camera to room choice, and everything in between.

Hire a professional:

If photography isn’t really your thing, you might feel more comfortable leaving it up to the pros. When looking for a photographer to shoot your product images, make sure you’ve evaluated their portfolio, and hire someone who is accustomed to product photography.

For more info on product photos (either DIY or done by a professional), check out these articles:

• The Ultimate DIY Guide to Beautiful Product Photography
• How to Take Gorgeous Product Photos
• How to Hire a Professional Photographer to Shoot Your Etsy Products
• Hiring a Professional Photographer to Photograph Your Products
• Step 7: Decide where you plan to source your products

Now that you have a clear idea of what kinds of products you want to sell, and the cohesive brand story that your online boutique will tell, it’s time to actually start finding the perfect products to sell in your online boutique.

There are tons of ways to go about sourcing products, so don’t think of this as a complete list. However, I’ll go over a few of your options here:

Reach out to your favorite Etsy sellers

Is there an Etsy shop that makes the most gorgeous handcrafted soaps that you think would be perfect for your boutique? Send them a message and see if you can work something out.

Also worth looking into is Etsy Wholesale —developed precisely for connecting makers with sellers.

Connect with local artists and crafters

If you see products that you love at your local Saturday market, ask the makers if they would be interested in selling their products wholesale to you, to sell in your storefront.

Scour local consignment, vintage, and antique shops

The beauty of finding items for your store on consignment or via an antique store? You’ll be able to create a truly unique, handpicked shopping experience. If this suits your boutique’s style, it can be a great way to get started.

Search eBay

Overseas manufacturers often use eBay to sell goods at nearly wholesale prices, so it can be a good place to look.

Go directly to the manufacturer

Searching for your product at wholesale prices will often turn up plenty of results, and allow you to get your items from just about anywhere.

For more information about sourcing your products, check out these resources:

• How to Get Products for Your Boutique
• Maker’s Row (if you just can’t find exactly what you’re looking for, consider having it manufactured for you!)
• Step 8: Determine how you plan to ship your products

Having a plan for shipping your products is crucial; if your shipping costs are too high, or your shipping time too slow, you’re likely to lose customers.

You’ll need to choose a shipping solution; in my research, I’ve seen ShipStation highly recommended.

More resources on how to ship products from your online boutique:

• How to Estimate eCommerce Shipping Costs
• How to Choose a Shipping Strategy for Your Online Store
• How to Set Shipping Rates for Your Online Store
• Step 9: Use social media

When it comes to social media, you’ll want to take full advantage.

Since you’re starting an online boutique, visual sites are likely to be in your best interest; this means Pinterest and Instagram at a minimum.

On Instagram, you’ll be able to share new arrivals to your store, share visuals that you feel encapsulate your brand aesthetic (so, don’t just advertise), and ultimately reach new customers.

Pinterest is another great place to do this; not only can you include products from your store, but by creating an engaging and inspiring Pinterest page, you’ll snag followers who might not have come via advertising alone.

Starting a blog on your site can also be a great way to position yourself as a thought leader in your industry.

Not only will this potentially get your boutique more exposure, as people will find your online boutique via links to your articles, but it will solidify your brand as a tastemaker within your niche.

To learn more about using social media to market your online boutique, check out these articles:

• Pinterest 101: Making the Most of Social Media’s New Kid on the Block
• The Ultimate Instagram Guide for Hair Salons (though the advice is geared at stylists, boutiques can follow many of the same guidelines)
• Step 10: Use brand ambassadors to your advantage

Lastly, when it comes to marketing your new online boutique via social channels, it’s a good idea to consider leveraging other bloggers and thought-leaders to your advantage.

Contact a blogger or vlogger (video blogger) that you admire, who you believe embodies the look, ideals, and interests of your customer base.

You can either send them a sample of your product, offer them a discount code to share with their followers, invite them to write a guest article for your blog—the possibilities are endless.

Here are more helpful resources on the ins and outs of using brand ambassadors:

• How to Collaborate with Influencers
• How to Build a $120K per Month Ecommerce Brand in Less Than a Year
• Does Your Business Need a Brand Ambassador?

So, there you have it—virtually everything you need to start an online boutique.

It might seem like a lot—and really, it is— but the key is to take it in stride. With the right plan of action, you’ll have your dream online storefront open in no time.

Clarify your ideas and understand how to start your business with LivePlan

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

Table of Contents

• Step 3. Pick a brand name you love—and can live with
• Step 5: Develop your boutique’s unique brand

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• Moscow Oblast

Elektrostal

Elektrostal Localisation : Country Russia , Oblast Moscow Oblast . Available Information : Geographical coordinates , Population, Area, Altitude, Weather and Hotel . Nearby cities and villages : Noginsk , Pavlovsky Posad and Staraya Kupavna .

Information

Find all the information of Elektrostal or click on the section of your choice in the left menu.

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Elektrostal Demography

Information on the people and the population of Elektrostal.

Elektrostal Geography

Geographic Information regarding City of Elektrostal .

Elektrostal Distance

Distance (in kilometers) between Elektrostal and the biggest cities of Russia.

Elektrostal Map

Locate simply the city of Elektrostal through the card, map and satellite image of the city.

Elektrostal Nearby cities and villages

Elektrostal weather.

Weather forecast for the next coming days and current time of Elektrostal.

Elektrostal Sunrise and sunset

Find below the times of sunrise and sunset calculated 7 days to Elektrostal.

Elektrostal Hotel

Our team has selected for you a list of hotel in Elektrostal classified by value for money. Book your hotel room at the best price.

Elektrostal Nearby

Below is a list of activities and point of interest in Elektrostal and its surroundings.

Elektrostal Page

• Information /Russian-Federation--Moscow-Oblast--Elektrostal#info
• Demography /Russian-Federation--Moscow-Oblast--Elektrostal#demo
• Geography /Russian-Federation--Moscow-Oblast--Elektrostal#geo
• Distance /Russian-Federation--Moscow-Oblast--Elektrostal#dist1
• Map /Russian-Federation--Moscow-Oblast--Elektrostal#map
• Nearby cities and villages /Russian-Federation--Moscow-Oblast--Elektrostal#dist2
• Weather /Russian-Federation--Moscow-Oblast--Elektrostal#weather
• Sunrise and sunset /Russian-Federation--Moscow-Oblast--Elektrostal#sun
• Hotel /Russian-Federation--Moscow-Oblast--Elektrostal#hotel
• Nearby /Russian-Federation--Moscow-Oblast--Elektrostal#around
• Page /Russian-Federation--Moscow-Oblast--Elektrostal#page
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Geographic coordinates of Elektrostal, Moscow Oblast, Russia

City coordinates

Coordinates of Elektrostal in decimal degrees

Coordinates of elektrostal in degrees and decimal minutes, utm coordinates of elektrostal, geographic coordinate systems.

WGS 84 coordinate reference system is the latest revision of the World Geodetic System, which is used in mapping and navigation, including GPS satellite navigation system (the Global Positioning System).

Geographic coordinates (latitude and longitude) define a position on the Earth’s surface. Coordinates are angular units. The canonical form of latitude and longitude representation uses degrees (°), minutes (′), and seconds (″). GPS systems widely use coordinates in degrees and decimal minutes, or in decimal degrees.

Latitude varies from −90° to 90°. The latitude of the Equator is 0°; the latitude of the South Pole is −90°; the latitude of the North Pole is 90°. Positive latitude values correspond to the geographic locations north of the Equator (abbrev. N). Negative latitude values correspond to the geographic locations south of the Equator (abbrev. S).

Longitude is counted from the prime meridian ( IERS Reference Meridian for WGS 84) and varies from −180° to 180°. Positive longitude values correspond to the geographic locations east of the prime meridian (abbrev. E). Negative longitude values correspond to the geographic locations west of the prime meridian (abbrev. W).

UTM or Universal Transverse Mercator coordinate system divides the Earth’s surface into 60 longitudinal zones. The coordinates of a location within each zone are defined as a planar coordinate pair related to the intersection of the equator and the zone’s central meridian, and measured in meters.

Elevation above sea level is a measure of a geographic location’s height. We are using the global digital elevation model GTOPO30 .

Elektrostal , Moscow Oblast, Russia