Q&A for How to Open a Clothing Store

The first cost will be inventory. Try to keep that to a minimum, as many people are tempted to fill up the store right away. The other costs will be square footage for whatever retail location you're looking at.

Like residential real estate, location is very important. Make sure that whatever you want to sell in a retail store matches the neighborhood you'll be serving. For example, if you want to sell high-end goods, you wouldn't open a store in a low-income area.

It depends on the clothing line, as there's a lot of money that goes into pre-production. To save money, start producing the garments you think will be most popular instead of making everything at once.

This is a legal question that depends a lot on local laws. Contact the chamber of commerce or a similar body in Toronto and ask your questions about the importation process. If you're still confused, you may want to speak with a business lawyer who is familiar with the industry. This way you can ensure you abide by all laws and avoid penalties.

If you're in the United States, look on the Federal Trade Commission Registered Identification Number Database and follow the listed steps to find the correct category for your business. If you have trouble finding this page, search Federal Trade Commission Registered Identification Number Database.

The licenses you'll need to acquire to open up your clothing store will vary from location to location and country to country. However, you generally will need a business license to set up your store and you'll likely need to have a health license and a building license in order to open your store. Before you get started, spend some time researching the licenses and requirements you need to satisfy to legally operate your clothing store in your area. You could also contact a local business lawyer to make sure you're following the law.

One of the great things about starting and owning your own store is there isn't any educational background required! However, you'll want to have some experience in clothing retail. It may also be helpful to have a business management degree, marketing, or fashion, but it isn't required. Having a degree may help you secure a loan from a bank if you're just starting out, but if you have a solid business plan, and you have the experience and know-how to run a clothing store, you can definitely do it!

You can secure a small business loan from your bank to start up a clothing store. However, banks won't give out loans to just anybody. You'll need to put together a solid business plan that you can present to a loan officer that will convince them that you're worth investing in. Include your startup costs, costs of merchandise, and your projected profits. If they think your business can make money, they'll likely invest in it.