Starting a children's clothing boutique

[dollydaydream82]

I've never had my own business though I am self employed. I'm looking to open a children's boutique selling high end luxury brands and spanish clothes. I notice a lot of these shops open and close within in 6 months admittedly not in my area but certainly in others. What so I need to do to avoid this happening to me.

Ive been saying I want to do this for a few years now I am terrified of failure so I've put it off but with my family's support I've decided to just go for it. Now my head hurts from trying to take everything in there's so much to learn and do.

What tips would you give someone starting out and scared?

 

[Amit Shah]

If you think about business failures, you can't be able to start any business cause every business has risks. I would like to say you that step up of scaring and go ahead and start it. Pay attention on your business start up, completely focus on the business success. The positivity in your mind will help you to get success.

 

[Mark T Jones]

Research!

Research the market

Research the business - detail start up costs in great depth. Assume that your researched costs are optimistic by 20% and your sales are optimistic by 50%.

If your stress tests don't reach a point where the business fails, you haven't done them thoroughly - discovering the point where the business fails is a strength, not a weakness

In reality, the vast majority of retailers in this sphere are hobbyist whe believe thet if they put stuff that they like in the window, the customers will come. Won't happen - back to market research!

 

[MOIC]

As above.

It's important that you have an online store to target a wider audience.

Allow 2 years to build your business.

 

[deniser]

I've never had my own business though I am self employed. I'm looking to open a children's boutique selling high end luxury brands and spanish clothes. I notice a lot of these shops open and close within in 6 months admittedly not in my area but certainly in others. What so I need to do to avoid this happening to me.

What tips would you give someone starting out and scared?

The most important piece of advice I can give you is not to do it now.

Prices of everything are increasing because of the fall in the value of the pound following the referendum and that includes all the clothes you want to import. They will cost at least 10% more than they do now.

The industry is struggling now and the 10% price increase is likely to send many shops over the edge. And those people who are only just staying within their means now, won't be once the cost of everything in the shops increases so won't have spare cash for luxuries or won't be willing to pay 10% more.

I would spend your time doing research now and wait for the value of the pound to improve before striking out.

 

[TotalWebSolutions]

Have you considered starting online only to gauge the market before spending on premises rent etc?

 

[The Byre]

What so I need to do to avoid this happening to me?

You need to wise-up and not do it!

They all fail for the same reason - lack of trade!

Almost all sales are going on-line. Even those branches where the market leading brands are doing their level best to fight tooth and nail to prevent on-line-only shops from opening have gone almost completely on-line (e.g. toys, musical instruments, cars, tools).

Also, the middle market is hollowing out rapidly as social inequality increases. The middle classes in the UK are now entering a period of poverty. Most professionals have not seen a meaningful wage increase in over a decade and as @deniser states,

And those people who are only just staying within their means now, won't be once the cost of everything in the shops increases so won't have spare cash for luxuries or won't be willing to pay 10% more.

Not only is the UK the most socially unequal society in the whole of Europe, but it is also the poorest (measured in GDP per capita) in North-West Europe. Add to that the coming increase in import costs and you begin to see that most luxury goods aimed at the middle classes are on a road to nowhere.

There are loads and loads of business opportunities out there - but high-end luxury clothing for children ain't one of them!

 

[dollydaydream82]

Thank you everyone you have certainly given me food for thought.

I can not do online only unfortunately as the brands we would like to use will only sell to me if I have a store. I also feel online only has more potential to fail. I also would be the only store in my area selling these brands and styles so a store to get the local trade seems the right thing to do.

I am not looking to open for almost a year to give me time to do adequate market research and planning, and after looking at children's wear shopping trends this time of year after the kids go back to school seems to be the best time. I live in a pretty much forgotten city we dont have all the big brands here but people want them and do travel up country for them. Im originally from a vibrant cosmopolitan city and this is where I'm taking my inspiration from I want to introduce the big city brands and trends.

After taking on board what people have said, I may just stay middle of the road at the beginning focusing on the brands that retail outfits or quality pieces for around the £30-£50 mark. And introduce the higher priced clothes in small batches. As bad as it sounds the middle class are not necessarily my main market as they don't tend to spend ( I find this in my current career) the working class on the other hand seem to buy from these type of stores and will in my experience spend more on their children's clothes. To help me entice them I'd be introducing affordable payment plans.

I am in the process of trying to think of questions for a market research survey to send to the mummy groups etc, are there any questions I should without a doubt be asking?

 

[Chris Ashdown]

The hardship I would see is to sell this price range you need your shop to be in a quite expensive are of the city to get your clientele, Niche sales can be sold anywhere but need massive marketing to overcome the lack of footfall.

Fashion trends across Europe are often highly popular in their own country but dead in the next country and the rule of buying stock is to by what your customer wants and not what you necessary like.

Buy a few things you think would sell; and sell them on EBay to see how fast they go. it would be a good check on your buying skills

If you talk to friends about your plan never believe when they say "Fantastic idea we would by them", friends never tell you the truth when a negative answer will upset you

 

[Rebecca S]

Oh goodness, this is such a tough one as I agree with so many of the previous posters but I'm also one to say that any business can work with the right planning, research and motivation.

Look, as others have said its not going to be easy. The exchange rate is dismal meaning shipping clothes from Europe is going to be expensive. To top this off you have said yourself you have seen businesses like this fail several times.

However, that doesn't mean yours is going to. It just means you might have to smudge the lines of your original idea somewhat. Build yourself up as an expert in your industry, in the trends and so on. GET A WEBSITE or a blog, even if you can't sell from it - use it to build your presence as an expert. Snap awesome outfit ideas on instagram. Test buying and selling other brands that have less stringent rules so you can see what really does sell (is it the high fashion stuff or not)?
Put together a group of impartial parents from the local schools and show them outfits and price ranges. What are they leaning towards?

Keep researching and building yourself up as an expert before you even launch your shop. Become a brand in yourself. Consider smudging those set in stone ideas somewhat if it's what the customer wants; give it a few years as an expert in your industry and you'll be selling exactly what you want in little London boutiques. Just start slow.

Good luck

 

[dollydaydream82]

There are loads and loads of business opportunities out there - but high-end luxury clothing for children ain't one of them!

Can I ask what you would recommend starting up?

 

[dollydaydream82]

If you talk to friends about your plan never believe when they say "Fantastic idea we would by them", friends never tell you the truth when a negative answer will upset you

For this exact reason I haven't told a soul except my husband and my mother what my plan is. There is a similar store in a smaller town than mine selling similar clothes and brands who has managed to make it work so this gives me some hope and there was a business selling a few of the brands for 20 yeaes who did well but apparently she retired.

Obviously this is just the research stage I am realistically 12 months away from opening. And all the advice given is fantastic and I will take it on board, thanks.

 

[The Byre]

Can I ask what you would recommend starting up?

Assuming that you are set on opening a B&M (bricks and mortar business) EVERYTHING depends on where you are - and therefore, what the people that live around your area want to buy.

Opening a business selling agricultural machinery in London or Birmingham is probably not a good idea, but then selling luxury watches in Llanarmon Dyffryn Ceiriog is also not a good idea.

Just ask yourself, when I go on-line to get stuff, what is it that I find difficult or expensive? Are there products that are 'Collection Only' but are nearly always miles away at the other end of the country? Are there ranges that seem to be all sub-standard? Is there a gizmo you would like to buy, but nobody makes one? Is there there a service that aught to be there, but just is not?

That is where travel helps. One sees things being done another way in other countries and returns and wonders why the Brits don't have German plumbers' wrenches and kitchen boilers. That's why it is so important to visit the big international trade fairs. You may see an application for one industry, like robotic crane control systems and you think of all the other applications that have nothing to do with cranes, but for movie cameras and stage lights.

The ideas are just lying on the floor, some covered in dust, others trampled underfoot, waiting to be picked up!

One 16-year-old boy realised that peeling boiled eggs was a right PITA and he saw his mother peeling the eggs under a cold water tap - so he invented a machine that cracked the shell everywhere and then shot the sell off with jets of cold water. Dyson saw an industrial dust extraction machine that used centrifugal power to get sawdust out of air.

One recognises needs that are not being fulfilled - and lat's face it, most needs are either only partially met, or even not met at all!

One young boy started as an apprentice in his father's stove shop and realised that Agas and Rayburns are just too expensive for most folk and are no better at heating than a cheapo from Eastern Europe. So he bought a palette of stoves from Roumania and sold them easily on ebay. Now he buys at least a truck load every week! (I have one of his stoves, which is a large Aga-like box with all the trimmings, including water heating and oven. With flue and transport, it cost £700 inc. VAT.)

If you are looking for a field of activity that is hopelessly under-serviced, look no further than education.

 

[Mark T Jones]

You need to wise-up and not do it!

They all fail for the same reason - lack of trade!

Almost all sales are going on-line. Even those branches where the market leading brands are doing their level best to fight tooth and nail to prevent on-line-only shops from opening have gone almost completely on-line (e.g. toys, musical instruments, cars, tools).

Also, the middle market is hollowing out rapidly as social inequality increases. !

Personally I disagree - albeit with the hefty caveat that it will be hard work and require skills well beyond buying stuff

I am 100% certain that there is scope for a skilled operator to operate B & M business in this area. What the OP needs to be doing, should they wish to proceed, is extensive and comprehensive market research and talking in depth to successful b & m operators ( not necessarily in the same field)

Truth is, unfortunately fashion retail attracts inexperienced amateurs who are only too happy to blame the Internet, or 'the market' for their mistakes

 

[dollydaydream82]

Thanks Mark T Jones, I have noticed a massive gap where I live and i think there is a demand but no supply. There is no one in my area with the same concept. I am well aware it will be hard and I know my shortfalls which is why I'm giving myself a year to plan it and research as much as possible.

How do I approach other B and M businesses for advice as most people aren't happy to share their knowledge I've found, well at least in my current job theyre not. I currently offer services and everyone is scared everyone else is trying to steal their clients.

Market research is my next step. How do you do it without someone stealing your idea? I'm going to wrote a survey to send to the mummy groups but I'm not sure where to go from there.

 

[deniser]

T

Market research is my next step..

The easiest way to find out which brands are popular is to look on Ebay to see what people are bidding for in second hand clothing. Trends change very quickly though and with the industry working on a 6 months forward order basis, you can get caught out. But Ebay will give you some idea of which brands are sought after at the moment.

Don't believe what your friends tell you because they won't be truthful although you can of course look to see what their children are wearing.

The next thing you need to do is to get in touch with the National Childrenswear Association (ncwa.co.uk). They have lots of useful information on their website and can offer advice. You then need to go to the trade shows such as Bubble (January and July) and get an ideas of what's what and in particular attend all the seminars they run on starting and running a childrenswear business.

Bear in mind that this is not really a business for parents of young children because you will be required to work when your own children are off school. It quickly gets very demoralising when you are stuck in an empty shop devoid of customers on a sunny August day while you would prefer to be spending time with your own children. It is unlikely that you will be able to afford staff so unless you have willing family to help you out, you need to bear this in mind. This is probably one of the biggest reasons why these shops close down. Consider whether you really can be there day in day out six days a week from 9 until 5/6. Holidays will become impossible to take. You can't shut when the children are ill or you want to go and watch the school play or take them to the dentist because customers will expect you to be there and if you are stocking expensive brands, you will have to rely on people travelling some distance and they will be furious if they arrive and the shop is not open.

 

[dollydaydream82]

One 16-year-old boy realised that peeling boiled eggs was a right PITA and he saw his mother peeling the eggs under a cold water tap - so he invented a machine that cracked the shell everywhere and then shot the sell off with jets of cold water. Dyson saw an industrial dust extraction machine that used centrifugal power to get sawdust out of air.

Whilst this is fantastic I'm not wanting to invent a new product or start an empire at the moment I will settle for a small store that ticks over.

If you are looking for a field of activity that is hopelessly under-serviced, look no further than education.

I have no knowledge or interest in this area so I wouldn't know where to start here, therefore I think I'm better sticking to what I'm comfortable with. But thank you for your input.

I think I've found a gap in the market in my area but obviously more research is required to be certain. I will be attending trade shows, I've spoken to suppliers, I now need to speak to the consumers.

 

[dollydaydream82]

Bear in mind that this is not really a business for parents of young children because you will be required to work when your own children are off school. It quickly gets very demoralising when you are stuck in an empty shop devoid of customers on a sunny August day while you would prefer to be spending time with your own children. It is unlikely that you will be able to afford staff so unless you have willing family to help you out, you need to bear this in mind. This is probably one of the biggest reasons why these shops close down. Consider whether you really can be there day in day out six days a week from 9 until 5/6. Holidays will become impossible to take. You can't shut when the children are ill or you want to go and watch the school play or take them to the dentist

This is possibly my biggest obstacle I have 2 young children not yet of school age and no family and a husband who works 70hrs+ a week. I am looking into childcare at moment but obviously that won't help for sickness etc.

Bubble is already on my list and I will definitely look at the ncwa thanks deniser.

 

[Chris Ashdown]

High street or local mall gets the footfall you need as your a unknown shop but expensive rents and 7 day opening in most cases definitely in malls

Non popular place low footfall cheap rent no fixed opening hours

Basically you cannot run a modern shop on your own you need cover probably part time with full time when you are unavailable

Few people apart from the rich buy expensive childrens wear that only last 6 months of growing

Probably a very good reason why no competition in your area

Get out the spreadsheet and work out some profit and loss and cashflow projections it's the only way to understand what you are taking on and how much the costs add up each month

Few small shop owners get anywhere near the minimum wage yet alone the living wage

 

[deniser]

This is possibly my biggest obstacle I have 2 young children not yet of school age and no family and a husband who works 70hrs+ a week. I am looking into childcare at moment but obviously that won't help for sickness etc.

In that case don't do it. You can't do it if you have no back up.

You will also need a lot of cash behind you - much more than you think you do.

 

[The Byre]

In kiddies' clothing in a small provincial shop, you will need a start capital of £100,000 and a turnover of at least £15,000 per calendar month to break even and pay yourself a reasonable wage.

 

[deniser]

Few people apart from the rich buy expensive childrens wear that only last 6 months of growing

Actually, your customers are most likely to be the less affluent. There is a phenomenon in this country where those with the least - who have nothing to show off about in terms of houses, education and cars - tend to spend their disposable income on clothes. Travellers also spend a lot on baby and children's clothes.

 

[Mark T Jones]

Thanks Mark T Jones, I have noticed a massive gap where I live and i think there is a demand but no supply. There is no one in my area with the same concept. I am well aware it will be hard and I know my shortfalls which is why I'm giving myself a year to plan it and research as much as possible.

How do I approach other B and M businesses for advice as most people aren't happy to share their knowledge I've found, well at least in my current job theyre not. I currently offer services and everyone is scared everyone else is trying to steal their clients.

Market research is my next step. How do you do it without someone stealing your idea? I'm going to wrote a survey to send to the mummy groups but I'm not sure where to go from there.

My experience has been that successful, confident business owners are often very forthcoming with information - sometimes alarmingly so

Most will b/s a bit and a few will block you but all you need is some ongoing conversation with, say 3 successful retailers ( preferably not in direct competition) in your area

You could also look for a mentor with retail experience

Market research and good quality marketing advice is really worth paying for. Personally I wouldn't worry about idea theft - it really is a tiny problem in business

 

[deniser]

My experience has been that successful, confident business owners are often very forthcoming with information - sometimes alarmingly so

It depends on what you ask and how you ask it. I am always amazed by the number of calls that I get from start ups in my sector blatantly asking me for my suppliers' details. I tell them where to go....

 

[Mark T Jones]

It depends on what you ask and how you ask it. I am always amazed by the number of calls that I get from start ups in my sector blatantly asking me for my suppliers' details. I tell them where to go....

Couldn't agree more. You are asking about their business nouse not their contact list - though if you get the first bit right you might end up with some contacts.

 

[billmccallum1957]

As with any B&M outlet, location is the key issue, what are the prices for premises where you want to be google "estates gazette" to get an idea of what your major outlay will be (rent & rates).

 

[suitontherun]

Pop-up stands are huge in London. An ex colleague/ friend of mine set up a fashion brand around ladies office wear. (I wont mention for fear of being declared a spammer) but she used pop up stands in combination with strong online offering and it did the trick. Most were free/some were low cost. Gave her experience of real person-to-person retailing which benefited her enormously and generated a lot of online buzz through her social media. Some pop-ups aren't great..scruffy markets etc but some are actually in fancy offices (she was in barclays HQ in London one day and if I recall correctly, Selfridges another).

Also, may I ask have you considered working with a retail partner rather than opening up your own store? Do the branding/distribution work yourself but link in with a chain of stores. Another entrepreneur I know in fashion worked initially with a chain of charity shops to launch his clothing brand and is now in some regular stores. Feel free to PM or message me on twitter for details.

 

[dollydaydream82]

Also, may I ask have you considered working with a retail partner rather than opening up your own store? Do the branding/distribution work yourself but link in with a chain of stores. Another entrepreneur I know in fashion worked initially with a chain of charity shops to launch his clothing brand and is now in some regular stores.

That sounds great but I will be selling established brands so probably wouldn't work for me, plus where I am is very far removed from London. So I will not be basing my idea around a high end London boutique. I've been visiting similar stores in a few different areas of the country and think I'm on the right track with location and store decoration.

As with any B&M outlet, location is the key issue, what are the prices for premises where you want to be google "estates gazette" to get an idea of what your major outlay will be (rent & rates).

This is done we have an ideal location and a fall back. Shops in the ideal location are under £12,000pa lower in the 2nd choice so realistically I can have most of this set aside.

I have 2 stockists with minimum orders so will fill with them first and some key prices from other brands and uk brands that I can add to as and when.

What I am thinking is maybe doing parties where I can take the clothes to the mum's so they can see them feel them and try them and hopefully buy them in the months leading to opening.

Can anyone please tell me some pros and cons of being Ltd as my head is hurting with all the info?

 

[dollydaydream82]

In kiddies' clothing in a small provincial shop, you will need a start capital of £100,000 and a turnover of at least £15,000 per calendar month to break even and pay yourself a reasonable wage.

This is significantly different from my calculations, can I ask how you came to this amount please? I would be hard pushed to make that even as an established store in my location.

Wage isn't so much an issue I'm not trying to start an empire and my mortgage won't rely on my income. I have reasons other than money for needing to work for myself and as long as the store breaks even and pays for childcare then I will be happy. I'm not trying to conquer the world I'm just trying to corner a small market in my area and later online sales.

 

[Scalloway]

I can't answer for the Byre's figures but in a start up you invariably find money goes out a lot faster for a lot longer than you expect.

 

[The Byre]

This is significantly different from my calculations, can I ask how you came to this amount please?

Any B&M (bricks and mortar - i.e. physical) business is in the real-estate business. The question is, what side of the desk do you want to be?

Spanish kiddies' clothing is just the reason that you are in the real-estate business. I could be anything from sex toys to books, from pets, to pies, from beer to beef, what you sell is the least most important part of what you are doing!

As a B&M shop, you have two main costs - staff and premises. The rest is a calculation. Buy for £X, sell for £Y. But staff and the building just refuse to go away. Even if the staff is just you and yourself - you are still there!

I'll put this simply - I knew a guy who started a recording studio that went bust. It was in North London. After 35 years of giving it his best shot, he was forced to give up. He bought the building for £50k and put equipment in it for another £100k and had 35 years of a fantastic life, but in the end, it all fell to bits. The big shots all had their own studios and the bit-players were all using PCs and Macs at home. He may have rubbed shoulders with the good, goofy and great, but he walked away from the table with nothing.

After all those years, all he had to fall back on was a state pension. And then he sold the building for £4.6m. That was when he realised that all those years, he had just been enjoying the good life, covering his day-to-day costs, whilst he had been in the real estate business!

Staff and building are the skin you have in the game. Selling stock is the game you play to to cover that 'skin'. The problem is, today, the B&M gig is more or less over for many types of goods. That's the cool thing about business - you are always on shifting sands. Nothing ever remains the same! Just when you think you have got a safe number, someone comes along and changes the rules. B&M gives way to on-line, on-line gives way to mobile, mobile gives way to VR - and so on!

Just when you think you've got it cracked, it cracks!

£100k and £15k pcm TO is what it will take for you to crack the online market in such a way that you will be able to pay for the dreadful sinkhole that is a rented shop and the cost of putting at least one person in there.

You could, of course start in on-line shop geared to the 'yummy-mummy' mobile phone market and avoid all that heartache and pain!

 

[GeekTee]

I started my own T shirt company in Hong Kong last year. Things are going well, but it is hard work! When I was starting out I contacted a company called 'Fashion Services HK'. You can find them with a google search.
I spoke to a lady called, Vicky. They work with startup design companies from around the world to help them get their businesses of the ground. They also do courses to give new startups an insight into the fashion industry and what to expect. I'd thoroughly recommend them as a starting point as I found them happy to share knowledge of the industry. I think they have a uTube channel too?

 

[Chris Ashdown]

You really need to attend as many trade shows as possible, ask the reps about there 10-20 best selling items, gently ask about who they see as there main competitors, drill them for as much knowledge about your planned industry, you will be surprised about how much info each will give, ask about how they rate the European makes suggest a few names including your favourites.

One thing you said was maybe start at a lower range and then bring in more expensive as you grow. very hard to do, not impossible but a easy way to send the more expensive clients out of the door if they think there is the wrong ambience about the shop, you cannot be all things to everyone

What amount of mark up will you be able to manage from these Spanish companies, no use playing around at 30-40% when selling expensive items

You must have staff even if only part timers who are reliable, A shop that closes at different times soon becomes a place that's not worth going to as they may or not be closed

 

[ChristineJoy33]

Do some feasibility study first if your eager enough to sustain your boutique. Also, search for trendy dresses and know your market or your group of people's interest in order to meet their demands.

On the other hand, there are really some shortcomings when your in a business like this specially when you have young children with you and no one to support you physically. I manage an online shop because I think it will be more convenient selling online than having a store where my presence is needed. I also have 2 children and a hands on mom as well.For almost 7 months, my online shop was doing well and I had a great profit out from the products that I sell particularly watches, mini fans and bags for women. But then, its started to lie low when my eldest child got sick and i need to take care of him full time. i have my 2nd child with me and i cannot focus well with my business at all. That was the time also when the competition with the same products as mine arises where many people are engaged with the kind of business as mine. It was then I decided to stop doing it. My husband as well told me to focus first on our children.