How to Start a Vintage Clothing Business
Can you start a vintage clothing business? If your idea of fun is probably spending most of the day at a shop going through their clothes hoping to find something unique or hitting up sales and getting the best deals on vintage clothes, then you’ve probably wondered within ‘why am I not in this line of business?’. You know what they say about making your passion your profession; if you have the passion for vintage clothes, you can probably run a successful vintage clothing business.
It sometimes doesn’t look profitable to run a vintage clothing business but you would find it surprising just how many people are into this type of clothing nowadays. Research has shown that the value of vintage clothes seem to be on the increase as the demand for clothes from the 80s seem to be forever in style and not going away anytime soon. It would be a great idea to sell vintage clothing and it is a profitable business in itself.
Starting a vintage clothing business, although it isn’t rocket science, can be very difficult and overwhelming for someone who has never gone into retail before. As a matter of fact, having experience in the retail world still doesn’t prepare you for the many challenges that come with running a vintage clothes business. A person needs to be prepared with enough information to be able to start a vintage clothing business and run it successfully.
It doesn’t require a professional certificate to start a vintage clothing business; no business does at first and it’s easy to learn as you go on. You however have some questions that need to be answered before you start a vintage clothing venture and without taking the right steps, you can be easily discouraged before you even begin.
However, we have done the research for you on how to start a vintage clothing business and will be sharing some of the details with you. The tips that would be listed below make it far easier than expected and prepares you for a successful future in the vintage clothing line. Below are tips that will help you join the list of those with a thriving vintage clothing line.
Ten Tips on How to Start a Vintage Clothing Business
The styles of vintage clothing cover from the 1920s all the way to the 1980s. Vintage clothing is thriving in big cities where studios may require these styles to act in a particular movie or series. Halloween period is also a great time to sell vintage clothes and so are costume parties. The possibilities in the vintage clothing business are endless and that is why it is always a great idea to start a vintage clothing business.
The competition in the vintage clothing world can be stiff but if you go into the business prepared, you would have a fighting chance against other business owners. A lot of vintage clothing business owners started out with little or no business experience but have learned how to thrive in the business world. A lot of factors go into starting a vintage clothing business from supplies to fees to location but other successful business owners learned how to handle it accordingly. Here’s how they did it:
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Carve Out a Niche
This seems pretty simple until you actually start to consider it more seriously. You’re probably wondering what a niche is? This is a part of a much bigger market that you intend to focus on in your business. Why is this important? The vintage clothing business is a large market and it is better to pick a segment and focus on it to cut down on advertising fees.
Having a niche is great to build a customer base. People know to come to you when they need that particular type of vintage clothing as you have a diversified range of outfits in that niche. Your choice could be based on a period e.g. the 80s or it could be based on a particular piece of clothing. You could choose to focus on and sell vintage gowns or vintage shirts. Having a niche helps you focus your attention on a particular area and perform exceptionally well in that section.
It is important to bear in mind when choosing a niche that you want to stand out, choosing a common niche just presents you with more competition that you should take on. Choose a niche that makes you different from the rest of the pack, something not common would be great. That way, you have less competition and more customers to yourself.
What’s the Name?
This is another step to take when starting a vintage clothing business; you need a name as people can’t refer to you as that vintage clothing shop. Choose a name that is unique and not someone else’s business name to avoid legal issues in the future. It would also help you when you decide to open an e-commerce site in the future.
It is advised that you keep it short, a long name gets boring after a while and quite tiring. In your bid to spice it up, do not go for something too complicated that your prospective clients cannot quite get right. A name is beginning to sound complicated, right? The best recipe for a vintage clothing business is to get something short, simple and different; this will make your business name stick in customer’s memory quite easily.
You can search online to confirm that someone doesn’t already have the same idea as you did. Picking a name similar to another just makes you one of the crowd but carving out a name that expresses what you do and yet stands out in the crowd is important. A name might seem simple but plays a great part in starting a vintage clothing business.
Register Your Business
You should register your business in order to give it a legal status. You need to determine the legal structure of your business. It can be a sole proprietorship, partnership or a limited liability company. Each of these has its pros and cons. For instance, if you register the business as a sole proprietorship, you will have the full control of the business. It is the easiest and cheapest way of structuring a business. However, at the same time, you will bear the whole risk of the business. If you don’t want to do it alone, you might consider partnership. Partners in a partnership are collectively responsible for all business debts and profits, and also have full control of the business. For a limited liability company, the company is seen as an artificial body that is separated from the owners; it can sue and can be sued. Unlike sole proprietorship and partnership, owners are not personally responsible for business debts and liabilities of the limited liability company.
Register With Tax Authority
It is important that you register your business with relevant tax authorities both at state and federal levels. As an entity, there are certain taxes your business should pay. Also, if you hire staff working for you, you need to deduct tax from their salary which you are expected to remit to the state tax authority. Doing otherwise will be seen as tax evasion. Of course, this has its own legal implications.
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Open a Bank Account
It is important that you have a bank account for your business. Even though you have a personal bank account, you still need to open a separate account for your business where you can lodge all your income. Also, you should make all the expenses relating to the business from the account. This makes you more accountable. At the same time, it will be easier for you to source loans from the bank when needed. Furthermore, having a bank account makes it easy for your accountant to prepare the financial statements of the clothing outfit.
Pick an Audience
This is also an important part of starting a vintage business, you need to pick your target audience before you begin making orders and opening that vintage clothing shop. What is the target audience? This is the group of people you are targeting as your prospective customers. You need to decide if you intend to cater for high-end clients or you’re aiming for the common people.
You can also pick your target audience based on age-grade; are you looking to get teenagers as customers? Then you can’t buy vintage clothes that are not chic, can you? When you pick your target audience, then you are one step closer to starting a vintage clothing business as you will revolve your inventory around your target audience.
Your target audience will also help you create your price level. If you’re looking to start a vintage clothing business that will cater for the common people, your prices cannot be on the high side. It will discourage many people from coming into the shop. You can also choose your audience to be families and plan your inventory around that.
What’s the Plan?
Making a plan is the first step when starting a vintage clothing business. Map out your plan and it becomes far easier to navigate with time. Without a plan, you will begin to feel a bit lost as time goes on. A business plan always helps to navigate the course, it gives you an idea of what you’re going into. If you want a successful business, then the importance of a business plan cannot be overemphasized.
You need to clarify what kind of clothes you would like to sell, the capital you would need to go into the business including all the expenses you are bound to meet along the way. These expenses span across, legal fees, marketing fees, rentals, insurance, staff and so many areas. Make an estimate on how much you would need for inventory also and add it all up.
A prediction of your cash flow is a great place to start. You also need to decide your niche; what kind of vintage clothes would you like to sell. How would you like your vintage shop to look? These details are to be included in your business plan. Create a document with all these information including the structure of the business, are you running it alone or is it a partnership? Answer these questions in your business plan.
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Raise Initial Capital
Starting a vintage boutique store can be profitable, especially if you choose to start on a small scale, operating at home or in the shared office. If you choose to start the business on a large scale, you will need to look for a fund to finance the business, because it is expensive to start a standard large-scale vintage boutique store.
Without a doubt, when it comes to financing a business, one of the first things you should consider is having a good business plan. If you have a good and workable business plan document, you may not have to work hard before convincing your bank, investors and friends to invest in your business. Here are some of the options that you can explore
- Raising money with personal savings and selling personal stocks
- Raising money from business partners
- Proposing your business idea and requesting business subsidies and initial funding from donor organizations and angel investors
- Gentle source of loans from family and friends
Get Suppliers
This is where it starts to get a bit tricky in the process of starting your vintage clothing business and trust me, there is no easy way around it. Going to flea markets is great when you’re buying for yourself but when it comes to starting a vintage clothing business, it is just not enough. You will need to find yourself a supplier before you start a vintage clothing business as the clothes are the main reason the business is starting in the first place.
Many vintage clothes business owners are very secretive when it comes to their suppliers and it is easy to understand why. You can probably get vintage clothes wholesalers on the internet with a search on Google but that is never a good idea as there are many fakes and fraudsters on the internet. It is important that you find a supplier that is trustworthy and who you can do business with in person.
When choosing a supplier, apply caution to everything you do and make sure you check out the quality of their supplies before ordering in bulk and then having issues later with no one to turn to. If you are also a creative person, you can buy a few damaged vintage clothes at giveaway prices. After purchase, repair it to fit the right audience and then resell at a much higher price. This is referred to as upcycling and is practised by many vintage clothing business owners.
Where Are You Selling?
This is an important part of starting a vintage clothing business as it puts you at a crossroads. You have to decide if you’re going to be running an online vintage clothing business or a physical business. A lot of vintage clothing business owners choose to go for an online business to cut down on cost. This can also turn out profitable with the right kind of advertisement.
A person looking to start an online vintage clothing business can start out on eBay to get a feel of the market. If you’re looking to sell vintage clothes in bulk then trying out FoxVintage is not a bad idea at all. It is always a great place to start. A person can also choose to start online and then build up to a physical shop after getting an online customer base.
Online vintage clothing business is very profitable as people spent most of their time online and tend to shop online more for convenience. With the right advertising strategy, prospective clients will come across your clothes and order their preferences. Choose where you would like to sell as this will play a huge role in your business structure. You can even choose to sell through a third party to cut down costs once more.
Location
This is where it might get a bit tricky, getting a location is where all your plans become very real. It therefore requires much consideration and cannot be taken lackadaisically. A lot of factors go into picking a location including your target audience and your price level. You also need to consider the rent of the area you are looking into and if it fits into your budget.
Looking for a location that puts you on the map and not at the corner of an abandoned road. It is also important to pick a location that is convenient to avoid problems in the long run. A store with plenty of windows is also important as you would need it to display your wares to the world. Also, choose a location that is close to other businesses that would bring many customers to your doorstep.
For example, opening close to a shoe store will make your store appealing to fashionistas who probably came to get a new pair of shoes. Opening next to a coffee shop will also place your business in a hotspot as most people take coffee. Choosing a location close to a beauty salon would also be a great idea as customers from the beauty salon might choose to check out your inventory once in a while.
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Check Out The Competition
You are bound to have competitions as you are not the only one with the idea to start a vintage clothing business; online or physically. Make a list of your competitors to know what you’re dealing with and then check them out. There are areas that have stores that mix up selling vintage clothing with other products.
Check out how many competitors you have in your chosen location and how many competitors you have in your chosen niche. Once you have a comprehensive list of your competitors, visit the stores and check out the products they offer. Try to take note of the quality of the products they offer and the designs they focused on. Also, note their staff and their attitudes when communicating with customers.
Compare their sales and their various policies, check out their type and gather the information you have. This will give you a better idea of what you want and how you can make your own business stand out amongst the others. Check out their sales and see if you can offer better, do they have a return policy? Can you offer a return policy? These are the questions that you can answer when you check out the competition.
Pricing is Important
You need to get your price right if you want to attract customers to your business. Even though vintage clothing is usually unique and not found anywhere else; there is no reason to blow the roof with your prices. Pick a price that customers can afford or you’ll find yourself stock a piece of clothing for an awfully long time.
A lot of vintage clothing business owners draw customers to their stores with their relatable price and you want to do the same or customers would avoid your pricey store for another vintage clothing store they find affordable. If you already buy vintage clothes long before you started selling, then you have an idea of price and can carve yours out from the information you have.
It would be hard to find many customers willing to buy really expensive vintage outfits, so make your price relatable and try to start out on the low side to draw customers to your store before increasing the prices slowly once you have your customer base.
Create Marketing Strategies
Now that you have a location, a supplier and you have a good idea of what your competitors are all about; you need to create marketing strategies that work. Do you need to carry out sales? Everyone loves a good deal and offering people a particular percentage off will pick their interest and have them check out your stores in no time.
A lot of people are taking their marketing online these days; especially Instagram. Social media platforms are great for promoting your brand, people will see your products and check them out. You can make use of Facebook Ad and Instagram Ad to boost your posts to get more engagement than you would simply posting on your page.
Taking great photographs is also key to promoting your brand. When you take poor pictures of your clothing, prospective customers will not be encouraged to check it out. But great photographs with perfect lighting and just the right setting will get customers taking a second look at your vintage clothes. A lot of vintage clothing business owners are utilizing these platforms and making sales daily from these platforms.
You can also participate in flea markets to get new customers redirected to your store. Large gatherings give you a chance to meet new people who might be interested in becoming a faithful customer. Take out the time during the weekends to sell at markets and that way, you get to learn new marketing tricks from other customers while also making sales
Promotions
This is another part of marketing and can be a marketing strategy; use of influencers. A lot of business owners are making use of this and for all the right reasons; it works. Getting a top influencer to promote your brand on their pages would go a long way to helping you get sales. A lot of people love to wear what their artiste wear and shop where their artists shop.
You can offer a well-known artiste some vintage clothes to give you a shout-out on their page, if they accept then you win. When an influencer promotes your business on their platform, you will begin to get traffic on your site, more followers and more prospective customers who are fans and followers of the influencer.
You have to look for an influencer that would be interested in your brand or the whole process is futile. Make research about influencers that wear vintage clothes and message them. That way, you get an influencer as a customer and a boatload of new customers when they promote you on their page.
Get Efficient Staff
Getting an efficient staff is another step that is important in starting a successful vintage clothing business. Your staff needs to be made up of the right set of people who have a fashion sense and are especially savvy when it comes to vintage clothes. You can find most of these staff in the college and they usually have a fashion sense many people would find to be unconventional.
You do not want a staff that cannot assist a customer when they come into the store looking for a particular type of vintage cloth. If your staff is clueless about vintage clothing, then you might lose a lot of customers. Your staff should be able to suggest clothes to customers that would suit them. It is also advised that you get your staff to wear a vintage piece of clothing in order to represent the store.
Your staff outfit might be all you need to attract a new customer to your store, so look out for staff that would promote your business and not drag it back.
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Final Thoughts
It may seem difficult at first and quite comfortable but once you follow our tips, you would find it very easy to start your very own vintage clothing business and it will be very successful. You can also speak to others who have businesses and take advice from family and business. If you have anyone in this line of business, ask them to mentor you. Most importantly, go with your gut feeling and you’ll do just fine.
Nevertheless, it is important to mention that this article is just a general tips to guide on how to start a vintage clothing business, it should not be taken as a profession advice. You may need to contact a business advisor to get specific information as relate to your situation.