How to Become a Boutique Owner
- 1). Decide on the types of products you want to sell in your boutique. Research the market by reading trade publications and specialty Internet sites to find out about new consumer trends. Use your research to identify a target market for your products.
- 2). Apply for a taxpayer identification number for your boutique. Decide on whether you want to operate your business as a sole proprietorship, a partnership, or as a corporate entity. Consult with an attorney or a small business mentor to help you decide which business entity is right for your boutique.
- 3). Secure funding to start up your boutique. Check your personal credit reports to make sure they're accurate before you approach a bank for a loan. Prepare a list of your assets and their values if you need to use them as collateral with the bank. Show investors your business plan to obtain private funding. Have an attorney draw up agreements and make sure all parties understand the terms of private financing agreements..
- 4). Find affordable commercial space to start a boutique from scratch. Look for space in an area where your target customers already shop. Avoid locations where there's already a competitor boutique in the same area. Have the premises inspected to find out about structural or maintenance issues before you sign a lease.
- 5). Buy an existing boutique that sells products similar to the ones you want to sell as an alternative from starting a boutique from scratch. You can find out about boutiques for sale in your community by reading classified sections of local newspapers. Contact sellers, and visit boutiques to tour the premises. Examine the boutique's income statements to find out about earnings and trends. Make an offer to buy a boutique with an established customer base. Work with an attorney to close the deal.
- 6). Find wholesale suppliers and distributors to source stock for your store through trade publications, or by attending trade shows. Contact suppliers and distributors to find out about the ordering process and minimum purchase sizes. Order samples so you can test products for quality before you sell them. If you purchase a boutique, ask the former owner for information about her suppliers, and for recommendations.
- 7). Obtain licenses required to run your business. Use the Permit Me tool on the U.S. Small Business Administration website to learn about the licenses and permits needed to run a boutique in your jurisdiction, and the local agencies that administer them. To avoid shut-downs and delays, make sure you have all the permits you need before you open your boutique for business.
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