Opening a Lingerie Store: A Step-by-Step Business Plan
A business plan is one of the components of the successful launch of any business project. A clearly defined plan containing information about the estimate, the steps that need to be taken, the calculation of the payback, and possible profit are the key to the success of an entrepreneur.
It includes information on the financial strategy, which must be calculated in advance, production, and organizational plans, as well as information on creating a marketing plan, analysis of the target audience, and related documents. If you are interested in the idea of a lingerie store, read the detailed business plan.
How to open a lingerie store: start writing a business plan
At the very beginning of the plan, you need to specify information about the service itself. If you plan to open a lingerie store, complete information about this should be painted at the beginning of the business plan. You can focus on the feature of the store – for example, how it will differ from competitors or will be located.
The description of the service should contain approximate prices for products, and information about related products, which will also be presented in the store. Do not forget the block about the target audience.
How to determine the target audience of a lingerie store
The target audience of a lingerie store by default will be considered girls over the age of 16 years. If the store is focused on the sale of high-end goods, the target audience needs to be moved to the side of wealthy businesswomen aged 25 to 50 years. More inexpensive products can be sold to almost any target audience.
The choice of the target audience is determined not only by age but also by the solvency of your future clients. You can open a budget store, or you can open Victoria’s Secret boutique.
In the first case, you can earn on the number of goods sold, in the second – you are unlikely to have massive sales, but with each unit of lingerie you can get significant profit.
Market Analysis for Lingerie Salon
The market for home goods and clothing with accessories has sunk a bit recently. If we consider the situation prevailing in the year 2018, we can note that the cost of one unit of goods was planned to decrease by at least 15%. The winners were only large stores that have already managed to build up a certain clientele.
If you open a lingerie store from scratch, it makes sense to pay special attention to sensing the nearest competitors. The main competitors are considered wide chains and stores that sell only branded products. An advantage may be the sale of brands from a lower league at reduced prices.
Another vector of attention of a novice entrepreneur is a store that operates on a franchise. Franchise work often turns out to be profitable, since the remaining models in stock can be redistributed to other stores of the same brand.
Lowering the cost of production for a while also cannot hit the franchise with the force with which it hits the single store.
Maybe you should think about an online store. Shops that operate only on the Internet and, for example, have pick-up points in large cities, do not spend money on renting premises and staff wages. Therefore, ordering things in such stores can be much more profitable than choosing your favorite model in an ordinary store near your home or in a shopping center.
The pricing policy of the lingerie store is based on the expectations of the amount of profit. Therefore, if you want to get on the payback as soon as possible and start making a profit, it makes sense to determine the average cost of a set of clothes not higher than the market.
Special promotions, timed to the opening of the boutique, will allow you to gain the first customer base. Prices for goods can be raised a week after opening.
Choosing a room for a lingerie store
Due to the fact that the volume of goods allows you to sell several sets at once on one rack and significantly save space, you can count on concessions in choosing a room. An area of not more than thirty square meters will be sufficient.
The minimum for such stores is considered to be ten squares. The volume of investments due to the small area of the room will be small, although it all depends on the location of the point.
Where to buy goods (underwear) in bulk
Small wholesale bases are great for starting a store. This is the place where you can buy goods in bulk cheaply and provide a supply of underwear for opening a store. Database contacts can be found on the Internet or on social networks.
Also there you can get a significant discount on the products offered. Pay attention to the choice of the first base with which you will cooperate – the first experience, according to entrepreneurs, is leading.
The list of bases for future cooperation should include foreign suppliers as well. From abroad, branded goods, exclusive collections, and other models of underwear can be delivered to your store to improve the economic situation in the salon.
Equipment for the lingerie store
You will need to purchase equipment for a lingerie store. Choose high-quality models that do not have to be changed after several seasons of work. They can be sold at discounts – stocks on equipment for stores are often satisfied with even the largest suppliers.
Full list of equipment that will need to be purchased:
- Tables, racks, and hangers
- Fitting rooms, curtains
- Shop windows
- Shelves, display trays
- Sofas or ottomans, chairs for employees
- Computers, official software
- Any equipment required
You will not need to put video surveillance if there is such a system inside the shopping center.
Lingerie store staff
First, you need at least two employees — one salesperson and one accountant. It is not recommended to act as an accountant, as it takes a lot of time, and also requires certain knowledge and skills.
You can not take an accountant to the staff, but hire a person who will keep records and receive payment on the job. Salaries are also included in the budget, which is indicated in the description of the business plan.
Investments in the lingerie store
An important issue for any novice entrepreneur is the amount of capital that will be required to open a store. At the initial stage, you need to pay the rent of the selected premises, which is also indicated in the business plan, purchase, and solve the problem with the staff.
The business plan will need to include an article on creating a stock of goods in a warehouse (purchase of various types of women’s underwear). A certain amount will be required for staff training and remuneration and for any type of advertising (primarily native and targeted, Internet-oriented).
A beginner entrepreneur will need to spend on furniture, equipment, and software.
Registration of a company or individual entrepreneur
To get started, you will need some documents that must be indicated in the business plan.
The main package of securities includes:
- Certificate of entry of the company in the trade register (if the store opens in the territory of the shopping center),
- Trade authorization,
- Conclusions on the possibility of the trade from fire
- Rental agreement
- Official agreement on garbage collection (together with a shopping center),
- Permission to advertise any type.
It may be necessary to obtain licenses for the sale of products – in this case, the time for processing the document needs to be laid down in the business plan.
What a lingerie seller should know
When preparing a business plan, you will need to indicate all the possibilities of expanding the store or changing the terms of sales, as well as the risks associated with starting a business.
Threats to business
1. Competition
Competition exists in any business. A project related to the sale of underwear does not bypass this phenomenon. Write down exactly how your store will differ from competitors, and what will attract customers.
2. The situation with the laws
The introduction of new taxes, laws, and amendments may change your business plan. Include the possibility of fluctuations in the event of a change in economic and legal situations.
3. Economy
The driving force of new business projects in the Nigerian Federation is not in the best condition. The economy is unstable, it does not develop according to a clear plan with the passage of certain stages. This means that a threat to change the economic situation and the project as a whole should be included in the business plan.
4. Credit situation
Due to economic fluctuations, at some point, the opportunity to take a loan from a bank on terms favorable to the business may be lost. If your business plan includes credit histories in various development options, indicate this threat in the applications.
The nuance of opening a lingerie store
Pay attention to the purchase of the entire line of sizes of underwear. Customers with various requests can come to the store, and each of the main sizes should be presented on your shelves. Actually, it is precisely the acquisition of full-sized rulers that will take most of your starting capital.
Do not forget to write down information on readiness for cooperation. The store may require new partners – you must anticipate this situation and describe the possible ways out of it. This type of store expansion is called horizontal. Vertical expansion is achieved by selling goods from related sections.
Write down how much should always be kept in the case.
Read Also: Where To Work As a Makeup Artist? Job Opportunities
Do not clog the first business plan with information about expanding the staff. For functioning in the first few months of work, two people are quite suitable, whose positions have already been described above. Then you can hire another sales assistant, as well as loaders on an ongoing basis. You need to raise the qualifications of personnel all the time – this will distinguish your store from similar business projects.
