Need advice, want to open my own business

[Maine-ah]

So, here it is. I want to open a small business. Petite clothing. I live in an area where there is no clothing for the short people. I find this to be a problem considering I'm only 4'11" with a 28" inseam. I also know many people around here who are short, with no place to go. So, any advice would help. Oh, I also have absolutely no money of my own, but someone who is willing to help with that, just not as much as I think I'll need. How does one get started? Name suggestions are welcome too.

[tjdee]

1. You need to get a bit more specific.

Are you considering a store that stocks petite clothing (made by existing designers)? Or making petite clothing?

The money you will need depends on which you mean.

[Maine-ah]

5. existing designers

clothing, accessories, ect. I have worked retail for over fifteen years now.

[tjdee]

8. I think notadmblnd has good advice...also...

I'd actually suggest starting out online...maybe with secondhand petite clothing (i.e, your stuff!) so you don't have to deal with the annoyance of leasing a building, finding a building in a good location, etc. Also, online you'd get a wider audience (not just in your town).

That would also give you a chance to learn about suppliers, etc. That is tough stuff. There are probably some websites on that.
If things go well, you could THEN get the physical location. Just my 2 cents...

Good luck! It sounds like a good idea, actually--on the fashion site I visit they ALWAYS talk about how they're too small (if only I had that problem!) for clothes.

[Merlot]

2. First thing I'd suggest is to get a job in a retail boutique

about the same size as the one you want to open. Learn the business.

There is a lot you can do before the money comes in to start the business. Find suppliers of petit clothes. Look into locations. Create the name, logo, advertising. Start a website. Find out exactly how much money you'll need to start the business and keep it running for the first year.

Get busy and good luck!

[notadmblnd]

3. I wish I knew the answer

because it's what I want to do too. there's this empty building that I drive by every day that just screams coffee shop to me. I checked on the building and it is going to be forclosed on in march by the county for non-payment of taxes. If it is still on the list in June, it will go to auction and I can bid on it (possibly obtain for taxes owed). I've tried locating the owner to possibly lease or buy the building but so far no luck.

I talked to the guy who takes care of my money for me and he thinks it's a good idea (he loves my coconut cream pie). But now I'm at a standstill in my plan til June the earliest.

[Maine-ah]

7. good luck

I hope it works out for you!

[sportndandy]

4. Figure your needs, then multiply by three.

Estimate and then overestimate every single cost that you can imagine you might have to pay for. Then multiply that number by three to figure how much money you will need. If you come up with 20K, then you really need 60K. This is because you cannot come up with every possible expense, some of the expenses will be incomplete, and there will always be immidiate expenses which have to be paid immidiately or you cannot continue doing business. Paperclips is a good example. You have figured every expense, but it turns out you have to close up shop, drive over to staples and buy some paperclips NOW or you won't be able to get anything done. Examples like this seem to pop up daily.

[Lone_Star_Dem]

6. It's usually a good idea if you run some demographics on your area

See if there's going to be enough of a market to support your business and produce a profit. You can pay to see demographics from other towns similar in population to yours with such stores and see how they do.

Research is the key to opening a thriving retail business.

[tjdee]

9. Yup, and being prepared for someone to take your idea.

This is one good thing I got out of grad school LOL.

If you have a good idea that works, inevitably someone will come along with a souped up version, and you have to be prepared for that.

[Lone_Star_Dem]

20. So true!

Or worse yet, your local Wal-Mart will start carrying a line just like you offer at a fraction of the price! Oh, and a fraction of the quality. :eyes:

[The empressof all]

10. More money than you think you need

The person above who suggested that you plan on three times the money than you think you need is absolutely correct. We own two retail locations and start up just sucks the life out of you. Our second location is just now making a profit after a year. It took 6 months for it to just support itself. (I think we did well with this) In addition to a location you obviously need fixtures and stock. You also will need at least one part timer to back you up. You will need to do things like go to the bank. You need to be prepared to work harder than you ever have in your life.

Make sure you get a good accountant/book-keeper. In the long run they can save you lots of money.

1st Step though is you need to research and write a business plan.
You need this to secure loans and to help you focus on what you are doing.

[amazona]

11. Ho boy

I've been self-employed for over two decades. My best advice is not to do it. The chances are very low that you will ever be able to make as much as you would earn in a job -- and I mean a crummy job. Most new business goes bankrupt in five years.

Now, if you are truly broke and have no house or other assets that will be lost in bankruptcy, you have nothing to lose. If you do have a house, at the very least get yourself structured as a LLC or some other entity that can protect you from financial disaster in the event the business fails or gets sued.

You need a business plan.

You need experience in your industry. I don't consider wearing petite clothing to be experience in that area, but what do I know? I'd say get a job in retail clothing, preferably a small store where you can get to know the owner and how she operates, and hold that job for at least two years while you are making up your business plan, etc.

In some areas, you may find that the women who own small boutique type stores are operating under a form of spousal welfare in that they are not really making any money. Their doctor hubbies are supporting their attempt at business. (I guess you can tell I'm thinking of some specific store owners in my area.) You can't really compete with people who don't have to turn a profit. This is a bigger problem in the area of the arts and home decoration though, but I can think of at least one local clothing store (now closed) that fell in the spousal welfare category.

I guess I'm saying start reading the local business press and learn about the gossip. Especially the gossip in retail sales.

Then after two years or so of study, you will be better qualified to actually operate the shop.

Well, I know this is a waste of typing, since most people I know go ahead and open their stores anyway -- and usually end up closing them not too long afterwards -- but as a final reminder, ask yourself this:

Am I well-organized enough to file and PAY quarterly income taxes?
Can I work with my town or county government to make sure I'm in compliance with local insurance laws, sign law, etc? (In my area, the town generates serious income by fining people for not complying with their arcane signage regulations)
Am I aware that I will now pay double Social Security tax and that I will not have any paid overtime or vacation time? Do I accept that I will now have to open and manage my own retirement plan? Do I understand that after age 40 I may find it difficult or impossible to get private health insurance (this depends on your state)? Can I accept that when an employee doesn't show up, I will have to be behind the cash register? Can I accept dealing with the paperwork and personality hassles that come with managing my sales staff?

Forgive me for the negative tone of this post. But plenty of people will be happy to B.S. you with positive thinking and "follow your dream" crap. You know that saying -- "Follow your dream and the money will follow?"

It is a lie.

Everyone of my friends who used to chant that saying in the 1980s and early 1990s has now gone through a bankruptcy.

Every one.

So please don't rush into anything unless you truly have nothing to lose.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[fleabert]

15. very frank and very true.

retail is one of the worst/hardest to start up. restaurant is right there too. Another thing, don't do it if you don't have additional operating capital, extra beyond the purchase, the taxes, payroll, inventory, incidentals, living expenses, insurance, permits, fees, SS, and emergency funds. EXTRA... a lot of extra.

[serryjw]

16. Bravo!

The possibility of a small boutigue to survive is nil. I spent 20 years in the apparel business both wholesale and retail. Ask me anything. You couldn't open the store for under $250,000, and that is being very generous.You mentioned you have an 'angel' whom will put up the money. Is s/he prepared to lose it? You have no money so I assume you have no home. No bank will lend you the money for a retail establishment unless you pledge your home for security for at least 2 years. Go to any mall. There are NO independent retail fashion stores any more. They are way to difficult to run and make a profit with.


I do have ONE idea if you are serious too complicated to write here. send me an email

Serry

[mongo]

12. Try your local chamber of commerce

they usually have a kit of materials for small business startups to help you through the permit process, etc.

Another good resource is the small business administration www.sba.gov.

The first thing you need is a business plan. There are software packages to help you write one, but loan officers can spot these, and a business plan that you write yourself can be more impressive to a loan officer. There are also free guides on the internet, to give you an idea of what a business plan entails.

Good luck - just be ready to give it your all. Starting a small business is like indentured servatude. My wife and I have been working 80 - 50 hours a week for 2 years now for less than minimum wage. But nothing beats working for yourself, and seing your dreams come to fruition.

[fleabert]

13. Research like others have said,

learn how to write a business plan- no one (not a bank or individual) will lend you $ without one.

It is much much cheaper and less time intensive to purchase an existing, operating business than to open one from scratch. You can always change the inventory after you get your feet wet.

Have someone with a business degree and some business management (meaning people, budgets, and financials) experience look over any financials you might get from a prospective business you want to purchase. You need to look at cost of sales, inventory lists, lease terms, real estate issues, credit card machine leases, etc...

Talk to someone who has owned their own small business that you respect.

and however hard or expensive you think it is, it is harder and costs three times that much.

just my .02 cents, We owned a coffee shop for a bit, it is hard but rewarding.

[BiggJawn]

14. Find a seminar on starting a Small Business.

You have a Concept. That's good. Now you need to do some research. Things like "Business Plan" financing, labour laws, etc. need to become a new language for you.

As for a name, how about "(your Name) Fashions for the Petite Woman"

Hey, if something simple like "Manny's Menswear" (Because Manny's Make the Man like no other menswear can...) can get huge....

[Maine-ah]

19. thanks

everybody, this has given me a great starting point. I want everyone to know, I have been working in small business for over 15 years now, and I have seen how many struggle through for the first couple of years. I feel this is a major need in my area though, not because of the problems I face myself, but what I see many short women facing as well. Oh, by the way, BiggJawn, I'm a woman. But I was thinking something like "28 inches" that should draw the women in, eh? I'll keep taking suggestions though.

[serryjw]

22. Be honest with yourself

What are your strengths? Sales? What are your advertsing skills? Administration, hiring and managing people? Are you good at numbers and detail work? Do you have a 'ballsy personality" Getting merchandise shipped on time is a challenge...can you be aggressive when needed ? Are you very organized? How do you feel about working long hours and,weekends and holidays? How does your family feel about this? May I ask how old you are?

[Maine-ah]

24. strenths

I have been in small business retail sales for 15 years, the last ten or so in management. I deal with advertising for the business, and some accounting as well. I have been told I'm "ballsy" but not quite in those terms. I have to be agressive with our suppliers now, so I don't think thats an issue. I know how people want to be treated, and I know how to handle the worst of customers. I'm not the most organized person but I can if I have to. During summer here I'm putting in 60 hours a week as it is, with weekends and holidays, except for christmas and new years. My family says go for it, my mother wants to be involved (she's short too) I'm thrity years old. I have friends who say the same thing. I have the support, it's the money thats an issue. I do own my own home.

[ayeshahaqqiqa]

17. Keep your records straight and clear

I am an office manager for a small business. I took over the position from a series of people who were less than competant, and have a boss who is clueless when it comes to keeping records. Here are a few suggestions for you:

Cheap way to do it:

1. Get a loose leaf notebook. Put in manilla envelopes. Label them with your various expenses: Advertising, Rent, Utilities, Materials, Office Supplies, Taxes.

2. As you get bills, note the date/vendor name/type of payment on the front of the appropriate envelope. Put the invoice in that envelope.

3. Make sure you have a business checking account, and, if you wish it, a business credit card. Use these exclusively for the business. If you find that you have to 'borrow' money from your personal account, mark the funds transfer as a loan, and pay yourself back. That way, you keep track of profit/loss clearly.

4. Make sure you have checked out and gotten any permits/licenses you need for your business. Since you are going into retail, for example, you'll need to apply for a sales tax license. These can take several weeks to obtain, so apply for this early on. If you have any questions on sales tax collection/payment, be sure to call the state office in charge and get the information you need. In my state (AR) you get to keep 2% of sales taxes collected if you submit the report early-in our case, it means an extra $20-$30 a month, which can be important to a business.

In our state, we have to pay property tax on business equipment. So make a list of all equipment you purchase (cash registers, display cases, etc). List purchase price. KEEP THIS LIST, and be sure to depreciate each item at the beginning of the new year (You figure depreciation this way: determine the number of years the item will be good for-for example, 5 years-divide the original cost by that number to get the depreciation amount for that year). I keep our company's list on the computer so that I can update it as we get new equipment, retire equipment, etc.

5. Consider getting a software program to help you take care of your books. QuickBooks is the standard, and costs a little above $300 initially. You can keep track of inventory, all accounts, employee expenses, etc, and most government agencies will accept QuickBook reports if you have a problem with taxes, etc.

Hope all this information doesn't scare you away from starting your business. It's really a matter of starting organized and keeping organized.

Where are you located? I come from a family of short people, and I'll send them your way if your shop is near Carbondale IL.

[Maine-ah]

21. thanks!

no, you're not scaring me yet, it's great info!, but I think Maine is a little far for your family to buy clothing, maybe if I get a website, but that would probably be down the road a ways. thanks again!

[serryjw]

23. Why retail?

There are better ways to do what you want

[Maine-ah]

25. better ways?

I want to provide a service to the people in my community that need it. I hadn't thought of any other ways other than a web based business, but I personally hate buying clothes on-line. Each brand runs their sizes differently, I prefer to be able to try things on, most people I have talked to feel the same way about buying on line. So what do you feel are the "better ways" to do what I want?

[Lydia Leftcoast]

18. I'm a free-lance translator, and my opinion about being self-employed

(going on 11 years) may be summarized as "When it's good, it's very, very good, and when it's bad, it's horrid."

Good: freedom to set my own hours, not having to worry about getting fired, not having to deal with all the office politics, being able to set my own path, being able to deduct things from my taxes that other people can't, doing work that I mostly like

Bad: irregular income--feast or famine, having to work when other people don't, including working way overtime at no extra compensation when customers demand it; having to hustle for new work, having to do my own bookkeeping and more complicated taxes, including Estimated Tax; having to pay my own health insurance.

On the whole, I'm glad I made the switch from academia to translation. Everyone I know who is still in academia is depressed and angry with increased bureaucracy, reduced budgets, less job security, and less-prepared students.

[bettyellen]

26. if you're selling a percentage of made in USA product, you can get

a govt loan easier.... i believe the Small Business Administration has more info.

[NAO]

27. Find local "micro-business" network groups

They are where people who start extremely small businesses meet and discuss things.

You will be able to get massive amounts of advice from people who have done it, and done it small at those meetings.