How to Set Up a Men’s Clothing Store
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Do you know what it takes to set up a men’s clothing store? Suppliers, structure, location and employees are just one part of planning a new business.
Find out below everything you’ll need to start your shop, even if you don’t have any previous experience. And more: get to know an exclusive tool that can help you draw up the entire financial plan.
Let’s go now to the step by step of opening a men’s clothing store from scratch.
Selling men’s clothing is a validated business with a high profit margin. Even better: with less competition compared to selling women’s clothing.
Are you thinking of setting up a men’s clothing store?
In this post, we’ll cover the main issues for you to start your business and achieve success:
- How much does it cost to open a men’s clothing store?
- How much does a men’s clothing store earn? Billing and net profit margin
- Clothing store suppliers
- What structure is needed to open a clothing store
- How many employees does it take to get started?
- Commercial point: how to choose the ideal?
- Marketing tips to sell more for little
In our simulation, we considered a small clothing store, with gross sales of approximately 35 thousand reais. With a structure of 60 to 70 m², it would have 2 employees, in addition to the owner.
How much does it cost to open a men’s clothing store?
O initial investment to open a men’s clothing store you must take into account factors such as:
- renovation of the commercial point;
- furniture;
- initial stock (considering supplier payment terms, stock duration and replenishment time);
- minimum cash (considering the deadline for receiving payments made by customers);
- start-up costs (rental expenses, inaugural marketing, among others).
It’s impossible to say exactly how much you’re going to spend, whether 20 or 100 thousand reais, because there are many variables. For that, we would have to know all the details of your business idea.
However, we know that you need an idea of value to find out whether or not you are within your budget. We then created an ESTIMATE based on data from other men’s clothing stores.
Remember, however, that this calculation does not replace your financial plan, it only serves as a support.
According to our simulation, the investment value was between 30 and 38 thousand reais. Next, you can see how the amount was divided.
Renovation of the commercial point
It is likely that the site will need adjustments, such as painting, decorating, electrical and plumbing repairs, as well as occasional repairs.
The value is around 2 thousand reais.
simple furniture
The purchase of simple furniture is between 4 and 6 thousand reais.
Working capital
Meanwhile, working capital is divided as follows:
- initial inventory: 16 to 22 thousand reais;
- minimum cash: 1.5 to 2 thousand reais.
Inaugural marketing and website
Even if your store is physical, you must have an online presence. The approximate cost is 2 thousand reais.
Other expenses
Computer, business legalization, accountant, office paper, among other extra expenses, add up to 4 to 6 thousand reais.
Men’s clothing store sales and net profit margin
After all, how much does a men’s clothing store earn? A store’s earnings in the apparel market can vary greatly.
This is because there are aspects that directly impact the values, such as:
- purchase value of the merchandise;
- trademarks worked;
- expenditure;
- percentage of gross profit margin.
According to our simulation, gross revenue was around 39 thousand reais and the net profit margin was 22%.
Thus, the net gain, that is, the amount left over in cash after bearing all the business expenses, was between 8 and 10 thousand reais.
Clothing store suppliers
Searching and choosing suppliers is often listed as one of the main difficulties for those starting a clothing store.
In order for you to make the right decision, it is important to observe:
- price;
- deadline;
- forms and terms of payment;
- variety of products and brands;
- attendance.
It is common to buy clothes for resale in large shopping centers, such as Brás and 25 de Março, for example, both in São Paulo.
Structure needed to open a clothing store
A small to medium-sized men’s clothing store can be set up in a space of 50 to 70 m².
It is usually divided into:
- shop window or walk (place where the clothes are on display);
- tasters;
- bathroom;
- cashier/service environment;
- inventory.
Pay special attention to the stock, as it must be well ventilated, clean and easy to organize.
As for the furniture needed to open a men’s clothing store, you will mainly need counters, mannequins, racks and displays.
Finally, the equipment is: computer, printer, invoice printer and cashier.
How many employees does it take to get started?
A small store, like the one we simulated in our example, can start with 3 employees:
- salesman;
- box;
- manager (usually the owner).
Eventually, if sales volume increases, hiring one more salesperson may be necessary.
Commercial point: how to choose the ideal?
The location of the men’s clothing store makes all the difference to the success of the business, without a doubt.
Overall, there are 4 possible good locations. In any case, assess the competition, rental cost and feasibility in your region.
Are they:
- malls and galleries;
- commercial center – the famous city center, with a high flow of people;
- neighborhood store;
- access streets to other places with a large flow of pedestrians, such as business areas.
In the latter case, the goal is for people and people to pass by the store on their way to and from work. That is, on the path of daily routine. That way, their interest can naturally arouse.
Marketing tips to sell more for little
Before you read our marketing tips, an alert!
Selling more will certainly increase business revenue. On the other hand, keeping expenses under control, or even reducing them, will also allow for a greater net gain in your cash.
Then combine sales growth with business and financial management.
The forms of marketing with the best results for the sale of men’s clothing are:
- dissemination on social networks, mainly in local groups;
- live on social media showing news and selling online;
- sending clothes in the conditional modality for regular customers;
- promotions and sweepstakes.
Leafleting and a good window display also tend to bring good results for men’s clothing stores.
You can use these strategies in conjunction with other forms of marketing, in order to promote sales.
Is opening a men’s clothing store a good deal?
Men’s clothing stores can be a great deal for sure.
However, it is very important that you pay attention to all the factors that can influence your sales.
As with other types of ventures, making a detailed business plan is critical. It should contain all information regarding the company, such as store numbers, for example.
Once you make the financial plan, you will know if the business idea is within your means. Furthermore, you will be able to assess whether the earnings are in accordance with your expectations.
Therefore, do a lot of research and, above all, do all the necessary calculations to increase your chances of success.
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Need help setting up a men’s clothing store? So leave your comment or get in touch.
A big hug and see you next time!
Check more articles in our categories Fashion & Looks & Luxe ou encore 90s Outfits.
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