Five Steps To Start An Online Clothing Store In 2023

Cassie Bottorff

Reviewed By

Updated: Dec 4, 2022, 9:46pm

Five Steps To Start An Online Clothing Store In 2023

Table of Contents

Step 1. decide on a niche, step 2. choose a name and register your business, step 3. source your products, step 4. create your website, step 5. market your online clothing store, frequently asked questions.

Starting your own online clothing store can be a very lucrative business venture; online clothing store owners average $48,901 per year in the United States. While it can take a while to source suppliers, it’s still relatively easy to get started. We’ll detail the steps to get your store online in a matter of weeks, rather than months, with minimal investment.

A niche is a segment of the market that you can focus on and cater to. Niches are important because they help build authority in your segment. Do you want to sell streetwear, formal wear or something in between?

When deciding on a niche for your store, consider two factors:

For example, if you’re passionate about fashion and have an eye for unique clothing, you could open an online vintage store. Alternatively, if you have a background in design, you could start a store specializing in custom-made clothing.

Niche ideas to get you started include:

Your store’s name is important because it will be how customers identify your business. When choosing a name , make sure it’s unique and memorable, but also easy to spell and pronounce. Check to see if the domain name is available, as well as social media channels. Use a site such as GoDaddy to ensure you can secure the domain name.

Once you’ve chosen a name, register your business . Do this through your state’s Secretary of State office for a state filing fee, otherwise use a service such as BetterLegal or Inc Authority . The online filing service you use will typically charge a fee in addition to the state filing fee.

The most common types of businesses to file are limited liability companies (LLC) or sole proprietorships . If you plan on having partners in your business, an LLC is the best option. Sole proprietorships are businesses owned and operated by one person. This is the simplest business structure and can be a good option if you’re just starting out.

Start A Limited Liability Company Online Today with ZenBusiness

Click on the state below to get started.

The reason we recommend sourcing your products before creating your website is that finding suppliers can take a significant amount of time. There’s no use paying for a website without having products to sell.

There are a few ways to source products for your store:

If you’re planning to manufacture your own products, you’ll need to find a manufacturer and set up a production line. This can be expensive and time-consuming, but may be worth it to make something unique.

To set up a production line, you’ll need to:

If you’re not planning to manufacture your own products, you can either order products wholesale or dropship them. Dropshipping is when you sell products that are shipped directly from the supplier to the customer. This is a good option if you’re just starting out because it requires less upfront investment. You’ll need to find a supplier who offers dropshipping and set up an account with them.

When choosing a supplier, consider:

Popular sources for suppliers, wholesalers or manufacturers include DHgate, Alibaba, LA Showroom, Oberlo, Abound, Handshake and FashionGo.

FashionGo homepage

FashionGo is one example of a market for wholesale products.

After securing a supplier, you need an e-commerce platform . This is how customers will find and purchase your products. For ultimate customization, use WordPress and WooCommerce or Magento. If you’re not familiar with website design, there are plenty of platforms you can use to create a professional-looking website, such as Shopify or BigCommerce. These programs are easy to use and have a wide range of templates to choose from.

When creating your website, make sure to:

Platforms such as Shopify make it easy to get started with step-by-step instructions and follow the same basic outline for publishing your site:

Examples of apps available through the Shopify platform to help source and sell products.

Examples of apps available through the Shopify platform to help source and sell products.

Now that you have a website and products to sell, it’s time to market your store. There are many ways to market an online clothing store. Some common methods include:

Cision's HARO home page

As an online clothing store owner, select “I’m a Source” to sign up for email notifications about stories needing your expertise.

How do I dropship?

Dropshipping is the process of selling products without having to carry any inventory. When a customer places an order through your store, you simply contact the supplier, who will ship the products directly to the customer’s door. Popular dropshipping apps to help facilitate this include Oberlo and Spocket.

How much does it cost to start an online clothing store?

The cost of starting an online clothing store varies depending on a number of factors, such as whether you plan to manufacture or dropship products, how many products you plan to sell and how much marketing you plan to do. However, most businesses can be started for around $2,000 to $5,000. If dropshipping, your upfront investment is the cost of your site, marketing efforts and dropshipping service subscription.

Do I need a business license to start an online store?

While not always required, registering your business as a legal entity can not only provide tax incentives but can help protect your personal assets. In the United States, this process varies depending on your state.

How do I ship products to my customers?

You’ll need to decide on a shipping method and set up shipping rates. We recommend using a shipping service such as UPS, FedEx or USPS. This will allow you to get the best shipping rates and offer your customers a variety of shipping options. You can also use a shipping calculator to help customers estimate shipping costs.

How To Start A Business In Alabama (2023 Guide)

Zoho desk review 2023: features, pricing & more, what is churn rate & how do you calculate it, what is customer lifetime value (clv), gender pay gap statistics in 2023, u.s digital tipping culture in 2023.

Kathy Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online. When she’s not trying out the latest tech or travel blogging with her family, you can find her curling up with a good novel.

Cassie is a deputy editor, collaborating with teams around the world while living in the beautiful hills of Kentucky. She is passionate about economic development and is on the board of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a Content Operations Manager and Copywriting Manager at Fit Small Business.

how to start a clothing business

How to Start Your Own Clothing Business in 10 Steps

If you’ve been thinking (or dreaming) of owning your own line, now is the perfect time to learn how to start a clothing business online.

Research shows that the online clothing industry is booming, continuously growing year after year. According to Statista, the retail ecommerce industry was worth $102.5 billion – and will explode to $153.6 billion by 2024 . 

That’s 50 percent growth in just a few years. Dang.

Starting a business from scratch might seem intimidating. And I won’t lie: it’s a lot of work. But if you’re willing to stick with it and put in the time, resources, and effort, the reward can be incredible.

That’s why this article is loaded with helpful advice and resources on how to start a clothing line and market it successfully. We’ll outline 10 steps on how to run a clothing business, plus look at a few beautiful store examples.

Let’s get into it.

How to Start a Clothing Line or Brand in 2021: 10 Steps

1. identify a need in the market.

You might already have some ideas for what you’d like to sell. That’s great news, but don’t jump in just yet.

One of the biggest reasons that new business owners fail is that nobody actually wants what they’re trying to sell. And it would be a downright tragedy if you went through the whole process of learning how to start your own clothing line but never found the success you hoped for.

That’s why market research is your best friend at this stage.

There are plenty of free and paid resources where you can make sure that there’s a market need for your clothing.

There are two types of market research: primary market research, which is data you collect on your own, and secondary market research, which is data you get from other sources who already did the research, like Nielsen , NPD , and . 

Heads up: buying research reports can get pricey. If you’re bootstrapping your business from your own pocket, you might want to focus more on primary research.

Here are some primary market research ideas:

Here’s a quick search for “crop tops” on Google Trends. It’s had a pretty steady level of popularity the past year, and they’re projected to spike as the spring approaches.

clothing business market research

2. Identify Your Target Audience

Identifying a need and identifying a target audience go hand-in-hand, because it’s a specific group or groups of people who will need or want your products.

And those groups are your target audience. These are the people who you’ll spend every day trying to engage and connect with. The better you understand those people, the stronger your chances of securing and keeping them as customers.

If you want to learn how to start an online clothing store that’s truly successful, you’ll have a deep understanding of your target audience.

Do your research until you understand both the demographics and psychographics of your target audience:

3. Write Your Clothing Line Business Plan

A good fashion business plan outlines:

Ideally, your clothing business plan covers the first three to five years of your business. Of course, things won’t always go exactly as planned, but you need to have something to work toward.

More importantly, you need to have something to compare your progress to so that you can better understand if you’re on track to meeting your goals, or if you need to make changes to your original plan.

Plus, your clothing line business plan is what you’ll show to potential investors and partners (step 10 in this article). If your plan is thoughtful, strategic, specific, and promising, you’re much more likely to get people on board to support your business and help it grow.

The U.S. Small Business Association (SBA) has great resources for writing a business plan, including how to lay it out section-by-section.

4. Start Designing Your Own Clothing Line

how to start a clothing business online

Now for the fun part. Get your creative juices flowing and create your masterpieces.

Here are some things to keep in mind when designing your clothing line:

Keep a sketchpad on you at all times. You never know when creativity will strike – so be sure you’re always ready to jot down new ideas and inspiration.

Don’t compromise on materials and overall product quality. Especially if you’re building a luxury line or boutique , your customers will know if you’re cutting corners to save money.

It’s a great idea to create your own samples. An intimate understanding of the process will help you run your clothing business more smoothly, especially while negotiating costs with your manufacturer. But don’t get so caught up in the technical side that you’re sacrificing your creativity and ability to design new pieces.

Start building your “tech pack” early. This is the basic info you’ll hand off to your manufacturer when it’s time for them to produce your clothing line. Your tech pack should include technical specifications and product details like measurements, materials, and accessories.

5. Find a Clothing Manufacturer

On your journey to learn how to start a clothing company, finding the right manufacturer is a big deal. That’s why you should take the time to do your research and properly vet your options before you make a decision.

Here are some tips for finding a clothing manufacturer.

Consider whether you want a domestic or overseas manufacturer

You might save money with an overseas manufacturer, but find that it’s not ultimately worth the potential drawbacks, like longer delivery times  or lower product quality.

If you're from the US, you can find local clothing vendors on Handshake , a hand-picked wholesale marketplace that connects small businesses with US-based manufacturers and wholesale distributors. 

handshake clothing manufacturers

Get creative with your search

Do a good old-fashioned search on Google, and look through social media sites like Facebook groups. You might also find industry meetups, directories, or networking opportunities.

Once you have a list of manufacturers, vet them thoroughly by asking plenty of questions and taking note of their response times. Check online to see if they have any good or bad reviews from other clothing companies.

We have a whole guide on how to find a clothing manufacturer . Check it out. 

6. Build Your Clothing Brand

It’s time to develop the creative materials that represent your clothing line: things like your brand name , logo , graphics and illustrations, product photography , and color palette .

Doing all the branding and design work can seem intimidating. If you don’t have any design skills or the budget to hire a professional developer, there are plenty of free, beginner-friendly resources to help you keep things affordable.

Check out Shopify’s tools page to see what’s on offer, like their:

Just to name a few!

Check out this logo I made in 30 seconds for a made-up company called RedThreads.

design logo for clothing business

You can also find an affordable graphic design freelancer on marketplaces like Fiverr , 99designs , DesignCrowd , or Upwork .

7. Choose a Price Point for Your Items

To choose an appropriate price , you’ll need to have a good understanding of how much it costs you to manufacture the items, also called the cost of goods sold (COGS). COGS includes things like the cost of materials, labor, and production.

You’ll also want to consider the overhead for running your clothing line,  like how much you pay in rent for your warehouse , shipping costs , and payroll for your employees.

Once you know how much it costs to run the business, you can choose a price that covers those costs as well as makes you some profit after all the bills are paid.

One common pricing method is called the keystone markup, where you simply double the price. So if it costs you $10 to manufacture a blouse, you might sell it in your store for $20. Or, you can sell to wholesalers for $20 and sell in your online store for $40.

However you decide to price, make sure you’re also considering how much your target audience will be willing to pay. It might take some experimentation to find the perfect price point.

Check out this article on pricing strategy for more tips.

8. Begin the Marketing Process

Marketing is a critical part of learning how to run a clothing business online. After all, nobody will buy from your store if they don’t know it exists, right?

Ideally, you should start setting up your marketing before your clothing store even launches. That way, you’re ready to hit the ground running.

You start setting up Facebook Ads , which is a popular advertising method for clothing companies to build their customer base. Facebook has incredible targeting capabilities that help you reach the right people.

If you’re tight on ad budget, you can start with organic social media marketing strategies, which focus on creating excellent content that engages and entices people to follow and shop with you. 

Influencer marketing is a great idea for a low budget: offer free items in exchange for shoutouts from social media users with a strong follower base within your target audience. Here’s Instagram influencer @gonolivier posting to promote a new denim line from clothing company boohooMAN .

marketing a clothing business

You can also host a giveaway to build your email list before your store goes live, then use email marketing to build stronger relationships with them after the launch.

Check out our marketing hub to learn all about building awareness for your brand and getting customers.

9. Set Realistic Sales and Distribution Goals

You know that old saying, “Rome wasn’t built in a day.” Same goes for anyone mastering the art of how to start a clothing business.

In the early stages of your company, you’ll have a lot to learn. A lot of trial and error. A lot of testing and tweaking and testing again.

Make sure you’re going easy on yourself by setting realistic goals. It’s not realistic to say you’ll make a million dollars your first year (though it is possible!).

A more realistic goal might be to grow your revenue by 20% every quarter for the first year you’re in business. This kind of growth-oriented goal helps to make sure you’re not choosing arbitrary financial figures that just aren’t attainable.

The same goes for distribution if you’re figuring out how to start a fashion line that’s sold in other stores. Start with the goal of finding a few strong distribution partners your first year, then incremental growth from there.

10. Start a Soft Launch, Then Look for More Investment and Partnerships

Now that you’ve set up a presence and built up some anticipation, you can launch your masterpiece into the world.

This is when you can pull the trigger on all the marketing campaigns you’ve been working on. Keep working and building on them – just like everything else on the journey of how to start a clothing company online, you’ll need to keep experimenting and building as you go.

And this is when you can turn your sights to growing on the business side by seeking out more investment dollars and partnerships with other companies.

Try pitching your clothing line to retailers who are already selling products to your target audience. Depending on the size of the company, you may need to reach out to multiple people before you can secure a meeting. Keep at it!

The same goes for finding investment partners. Polish up your business plan to present to them – be sure you’ve nailed down specifics, like how much money you’re asking for and where those dollars will be spent within your business. 

And of course, make sure you’re offering a juicy incentive for them to choose you. Will they get partial ownership of your company, or a certain percentage of your revenue once you successfully grow?

Clothing Business Store Examples

Let’s look at a few great Shopify clothing stores for inspiration.

Khara Kapas means “pure cotton” in Hindi. The company boasts handcrafted clothing made from pure and homegrown Indian fabrics. It does an excellent job of showcasing this in their product photography, creating a natural, down-to-Earth feeling that instantly appeals to their audience.

khara kapas

Pour Moi is a UK online clothing store for lingerie, swimwear, nightwear, and more. They’ve created a sleek and sexy brand that appeals to stylish women who want to look and feel good.

business proposal for online clothing store

The Candi Factory is owned and operated by Candice Levine, who makes all products from start to finish in Toronto, Canada. The brand has a lot of personality and it’s showcased beautifully on the company’s website. Candice is a perfect example of an entrepreneur who learned how to start selling clothes online and absolutely nailed it.

business proposal for online clothing store

Should You Start a Clothing Business? Yep.

By now, you should have a solid idea of what it takes to learn how to start a clothing business online.

The most important thing to keep in mind is that you won’t be a millionaire overnight. You’ll need to constantly try new things, keep track of your progress, and tweak what isn’t working.

Like I mentioned: it’s not a walk in the park, but when you have the passion and dedication to do it right, you’ll find that the rewards can be amazing.

You’ll never know if you don’t try, right?

Summary: How to Start a Clothing Business in 2021

Are you excited to start your own clothing line? What niche are you going to target? Let us know in the comments section below. 

business proposal for online clothing store

Start selling online now with Shopify

business proposal for online clothing store

Want to Learn More?

how to use instagram

How to Use Instagram to Promote Your Business in 2023

Getting started with marketing can be intimidating. That’s why we wrote this post on how to use Instagram for your busi…

Best Free Video Editing Software for Mobile

30 Best Free Video Editing Software Programs in 2023

Looking for the best free video editing software? Check out our list of the top 30 video editors for desktop, mobile, a…

business proposal for online clothing store

10 Business Skills All Entrepreneurs Need to Develop in 2023

There are a lot of business skills new entrepreneurs require to succeed in business. In the startup stage, entrepreneur…

Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy.

business proposal for online clothing store

Type above and press Enter to search. Press Esc to cancel.

Clothing Boutique Business Plan Template [Updated for 2022]

minute read

Clothing Boutique Business Plan Template [Updated for 2022]

A business plan is a document that outlines its intended purpose and goals and helps serve as a reference to keep you on track after you open your doors. If you plan to raise capital, you can send your boutique business plan to friends, family and other potential investors so they have a clearer idea of what they’re investing in. 

In this article, we outline what to include in your clothing store business plan, as well as a blank business plan template for you to use however you see fit. You can be as detailed as you like when writing your plan. 

Here’s what you need to know and include to get started: 

How to start a clothing store business in 2022

Executive summary, business description and mission statement.

Competitor and market analysis 

Clothing marketing strategies, business structure, clothing boutique startup costs and funding , growth forecast, clothing store boutique business plan template, global state of the retail industry report: omnichannel is do or die.

Get to know the state of the industry today as you open your clothing store boutique.

How much does it cost to open a clothing store? 

The cost of opening a clothing store varies depending on the size and location of your store. Leasing a retail space costs more in certain geographic areas than others. The average initial cost of opening a store can be anywhere from $48,000 USD to $150,000 USD, and this figure doesn’t include an upfront payment of first month’s rent or utilities. 

Having an accurate idea of your initial cost—and, as such, how much funding you need—is one of the key benefits of a thorough boutique business plan.

The costs and logistics involved in starting a clothing store business in 2022 are different than they were even 10 years ago. 

You need a rock-solid niche for your business, so you can make a splash in a crowded market. You need a brand identity that stands out, too. Those pieces aren’t new, though creativity is more important than ever—you want your new boutique clothing store to stand out online, after all. 

It’s the online aspect that really matters in 2022. Instead of picking between a brick-and-mortar or eCommerce store, your boutique business plan should take both into account. In an era of high-tech stores (even Amazon is getting in on the industry with its new Amazon Style ), customers have come to expect more from retailers. 

Keep in mind the technology you need to start a clothing store today: that includes a POS system with an integrated eCom platform, inventory management software that syncs your online and offline stock in real time and loyalty programs to reward them for shopping. These costs, and the time required to manage multiple sales channels, should be built into your business plan. 

How to write a clothing boutique business plan

Your business plan can be as long or as short as you’d like, but it needs to be clear to others, not just yourself. Remember, other people might read your plan in order to determine whether or not to invest, so each part needs to be understandable. 

Here is an example of a business plan for a boutique clothing store that gets funders on board (and what you should be putting in each section). 

The executive summary should be a summary of your entire business plan. It typically appears at the beginning of a business plan, but you should write this last so you can draw from the rest of the sections for a more accurate blurb. 

Think of this as the elevator pitch for your boutique business plan. If this summary was all someone read, they’d come away with an idea of what you want to open and why; detailed enough that they get the big picture, but not so detailed that they get lost on the page.

An executive summary should be at most 10% of the entire document. For example, if your clothing store’s business plan is 15 pages long, the summary should be a page and a half at most; if your plan is five pages long, try for a half-page executive summary. 

The next section should be a description of what your clothing business is and does. For example, are you a children’s clothing boutique? Are you selling in store, online or both? What kinds of styles are you going to cater to? For instance, do you sell basics like plain tee shirts or pieces with a more bohemian aesthetic?

This is also where you should define your mission and company values. Your mission should answer the questions: why are you starting your business and what will your new store bring to the table? Your company values are the characteristics your business aligns itself with and uses to make informed decisions. What values are most important to you and which qualities will you make a priority? 

This is your opportunity to really sell potential funders on why your clothing store will succeed. What’s more compelling: describing yourself as a new apparel retailer, or as a new clothing boutique with a focus on personal styling for young professionals that carries local designers in a high-foot-traffic area in your city’s financial district? 

Products, services and pricing

With your executive summary and business description having introduced potential funders to your vision, your boutique business plan should next move into the concrete details. Your products and services section should outline: 

If you plan to offer more or different products later down the line, outline that in this section as well. 

It’s important to look at what your competitors are doing to get a sense of which needs are being met and where the biggest gaps in the market lie. Make sure you explain how you’re positioning yourself and why you offer something different or better than what already exists. Include the following information: 

As a new business, you’ll need to promote yourself to bring customers in the door. Use this section of your boutique business plan to explain to investors and your team how you intend to do that.

The structure of your business will have a big impact on how it’s taxed and managed. Define your plans for incorporating as well as your org chart: 

There are many upfront purchases to be made as well as recurring expenses that come with starting a clothing store. This is where you’ll list what you need to buy and the funding you’ll need in order to make sure you get everything you need. Here are some examples of costs you might include: 

One-time costs

Recurring expenses  

In addition to listing expected expenses and funding needs, also add a projected profit and loss statement, cash flow and balance sheet, if you’re able to. This will help paint a more complete financial picture.  

Growth forecast 

In this section, list how much inventory you’ll have on to start and your initial assets. Plan how much cash you’ll have on hand for your grand opening. 

Here is where you can predict how quickly you will grow and in what ways you intend to expand. How much revenue do you intend to generate after one year in operation? Do you plan to offer more products in the future? Are you envisioning outgrowing your first retail space? Do you intend to open more locations? Describe these plans to the best of your ability. 

Now that you know what goes into a business plan, you’re ready to make one. Fill in this free template to set your future clothing store up for success. 

Executive summary 

Business name:

Founders and executive team:

Products and services:

Target demographic:

Marketing strategies:

Future plans and goals:

Company description

What does your business do?

What gap does it fill in the market?

Mission statement:

Core values:

Description of each product and service: 

How you plan to price each item:

Supply chain details:

Competitor and market analysis

Competitor analysis:

Industry trends: 

Market size:

SWOT analysis:

Target customer: 

Marketing strategies

Which marketing channels you’ll be using:

Plans for paid vs. organic marketing: 

Loyalty program outline: 

Marketing goals:

Legal structure:

Business leaders:

Organizational chart: 

Hiring plans: 

Startup costs and funding

What you need to buy: 

How much funding you need: 

Profit and loss statement: 

Balance sheet: 


Cash on hand: 

Revenue (projected or actual):

Other growth plans or predictions: 

Create your clothing business the way you envision it

A clothing store business plan can help you solidify your thoughts and ideas so that you can start your business the way you intend to. Taking time to ask yourself important questions like how and why you’re starting will serve you well in the long run. 

Clothing retailers use Lightspeed’s commerce platform to take sales, manage inventory, create a website and so much more. If you’d like to learn about how Lightspeed can help you accomplish your business goals, watch a demo .

business proposal for online clothing store

News you care about. Tips you can use.

Everything your business needs to grow, delivered straight to your inbox.

Sorry, there was an error with your submission.

Success! You are now signed up to our blog content updates.

Emily Polner

Emily is a Content Specialist at Lightspeed, where she brings her passion, knowledge, and expertise to give you helpful tips on how to take your retail business to the next level. When she’s not behind the keyboard, Emily can be found thrifting, getting iced lattes at local cafes or endlessly scrolling through TikTok.

Related articles

How to Use a Touchscreen Cash Register (Six-Minute Guide)

How to Use a Touchscreen Cash Register (Six-Minute Guide)

Your Guide to Google Ads: How to Get Started

Your Guide to Google Ads: How to Get Started

How Businesses can Prepare for Tax Season 2023

How Businesses can Prepare for Tax Season 2023

Browse more topics logo

Clothing Store Business Plan

Written by Dave Lavinsky Clothing Store Business Plan Template

Over the past 20+ years, we have helped over 15,000 entrepreneurs and business owners create business plans to start and grow their clothing stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a clothing store business plan template step-by-step so you can create your plan today. It can be used to create a women’s clothing boutique business plan, or business plans for a men’s clothing store, family clothing store, children’s clothing store and more.

Download our Clothing Store Business Plan Template here

What Is a Business Plan?

clothing store business plan clothing

Why You Need a Business Plan

If you’re looking to start a clothing store business or grow your existing clothing store you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your clothing store in order to improve your chances of success. Your clothing store business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Clothing Store Businesses

With regards to funding, the main sources of funding for a clothing store are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a clothing store is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. 

Venture capitalists will not fund a clothing store business. They might consider funding a chain, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could rarely achieve such results.

Clothing Store Business Plan Template

Your business plan should include 10 sections as follows:

Executive Summary

clothing store business outside

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of clothing store you are operating and the status; for example, are you a startup, do you have a clothing store business that you would like to grow, or are you operating a chain of clothing stores.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the clothing store industry. Discuss the type of clothing store store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of clothing store business you are operating.

For example, you might operate a clothing store focused on:

In addition to explaining the type of clothing store business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

Industry Analysis

clothing store business apparel

While this may seem unnecessary, it serves multiple purposes.

First, researching the clothing store industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards local clothing store businesses with online counterparts, it would be helpful to ensure your plan calls for a significant online presence.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your clothing store business plan:

Customer Analysis

The customer analysis section of your clothing store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of clothing store business you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most clothing store businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Competitive Analysis

clothing store business plan clothing rack

Direct competitors are other clothing store businesses. They are most likely local businesses who sell similar items to you.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. You most likely will have online competitors; companies that sell the same or similar items to you, but which operate online.

For each direct competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

With regards to the last two questions, think about your answers from the customers’ perspective. Look at review websites to gain this information.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

fashion clothing store business plan

Product : in the product section you should reiterate the type of clothing store you documented in your Company Analysis. Then, detail the specific products you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.

Place : Place refers to the location of your clothing store business. Document your location and mention how the location will impact your success. For example, is your clothing store business located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate kiosks, detail the locations where the kiosks will be placed.

Promotions : the final part of your clothing store business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your clothing store business such as serving customers, procuring inventory, keeping the clothing store clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

footwear clothing store business

Ideally you and/or your team members have direct experience in the clothing store business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in clothing store businesses and/or successfully running clothing store and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $200,000 on building out your clothing store business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

clothing store cashier

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a clothing store business:

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your clothing store’s design blueprint or location lease.

Clothing Store Business Plan Summary

Putting together a business plan for your clothing store business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the clothing store business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful clothing store store.

Download Our Clothing Store Business Plan PDF

You can download our clothing store business plan PDF here . This is a business plan template you can use in PDF format.

How to Finish Your Clothing Store Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Clothing Store Business Plan Template you can finish your plan in just 8 hours or less!

OR, Let Us Develop Your Clothing Store Business Plan For You

Since 1999, Growthink’s business plan consulting team has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan writers can create your business plan for you.  

Clothing Store Business Plan FAQs

What is the easiest way to complete my clothing store business plan.

Growthink's Ultimate Clothing Store Business Plan Template allows you to quickly and easily complete your Clothing Store Business Plan.

Where Can I Download a Free Clothing Store Business Plan PDF?

You can download our clothing store business plan PDF template here . This is a business plan template you can use in PDF format.

Other Helpful Business Plan Articles & Templates

Use This Simple Business Plan Template

The best way to sell on multiple platforms

Connect with all your customers in just one system

Strong warehouse management system solution in the digital era

Publish and edit products with only one click

business proposal for online clothing store

The Best Sample of Business Plans for Online Clothing Stores

Having a great idea for a business? Having a solid business plan is essential if you want to transform your idea into a profitable venture. A well-crafted business strategy, on the other hand, takes time and effort to put it. For starters, you’ll need to develop your concept, make educated assumptions, and have a thorough knowledge of the various parts of running a business before you start one.

It’s difficult enough to figure out how to do things correctly, but there are a number of tools available to ease the burden on aspiring entrepreneurs. We’ve put together a list of resources to help you get your firm off the ground with a solid business plan instead of beginning from scratch.

Related: The Advantages and Disadvantages of Online Businesses

Your Selling Stock is Messing Up? You Need Help!

Ginee Omnichannel allow you to automatically sync every stock from all of your online stores. It’s faster way to helps you profit!

What is a Business Plan?

business proposal for online clothing store

A business plan is a written document that discusses in detail how a firm—typically a startup—defines its objectives and how it intends to go about attaining those objectives. A business plan is typically written in the third person. Business plans outline the marketing, financial, and operational strategies that will guide a company’s future growth and development.

The development of a business plan is critical in attracting funding before a company has established a track record of success and profitability. They are also an effective tool for businesses to stay on track in the future.

Despite the fact that business plans are particularly important for start-up companies, every company should have one. Ideally, the plan is reviewed and updated on a regular basis to determine whether or not goals have been fulfilled, or if they have changed and evolved. Occasionally, a new business plan is developed for an existing company that has decided to take a different course.

Why Do You Need a Business Plan?

business proposal for online clothing store

Small company owners are inundated with information on how to get their venture off the ground, including how to register a business name, obtain a Tax ID, choose a business structure, and apply for various licenses and permissions. A business plan, however, is critical to the success of your startup, growth, and development.

See also: Business Model Canvas Explained with Online Business Examples

It Helps You Grow

A business plan serves as a road map to help you get your venture off the ground. When beginning and running a firm, a solid business plan may help you through the many stages. Your business plan will serve as a road map for structuring, operating, and growing your new venture. As a result, you’ll be more prepared to execute your company plan.

It’s Really Easy

A business plan is a document that defines your company’s goals for the next three to five years, as well as how you aim to make money and increase your revenue along the way. Consider it an ongoing business initiative rather than a one-time paper. Partition the plan — one part is for sales and marketing; the other is pricing; the last part is operations.

Business Milestones

A well-thought-out business plan aids you in taking a step back and considering your company’s most important aspects objectively, which helps you make better decisions going forward. In order to get a business loan, this is a must-have. Don’t forget that your strategy doesn’t have to be comprehensive like a dictionary or contain all of the answers.

Helps with Financial Support

You can seek money or new business partners with the help of business plans. The presence of such a plan gives investors peace of mind that their money will be well spent. With your business strategy, you can persuade others that working with you (or investing in your company) is a wise move.

You Can Write it the Way You Want

When it comes to writing a business strategy, there are no right or wrong ways. You have the option of selecting the plan format that best suits your needs. Ensure that your business plan addresses your specific requirements. Traditional business plans and lean startup plans are the most prevalent types of business plans.

Tools to Help You Make a Business Plan

business proposal for online clothing store

Here are 3 tools that help when writing your business plan.

Related: How to do SWOT Analysis for Online Business?

Business Plan Templates

Business plan templates demonstrate exactly how a business plan should be laid out and what information should be included in each part. You can find them as downloaded example business plans that you can copy and edit to match your company’s needs, as fill-in-the-blank or question-and-answer forms, or as fill-in-the-blank or question-and-answer forms on the internet. 

Moreover, there are other sorts of business plans, including simple business plans that cover the essentials, comprehensive business plans that cover every area of a company, and business plans that are tailored to a specific objective, such as raising money or locating potential partners. Here are some sample business plan templates that you might find useful.

Business Plan Apps

Apps for creating business plans: It is not necessary to be glued to your workstation in order to develop a company plan. There are various business plan mobile apps that will allow you to construct a business plan on your smartphone or tablet at any time and from any location. Here are two that are well worth your time.

Business Plan Services

You don’t want to use any of the options listed above? Consider using an online business plan service that will take you through the entire process of drafting a business plan. 

Unlike business plan software, these services provide tools that are similar to business plan software, such as document collections and chart generators, with the difference being that they typically provide business and legal specialists who can assist you in better understanding complex aspects of your business and business plan.

Do You Want to Manage Multiple Marketplace Just by Single Person?

Of course you can! You can handle multiple stores from all marketplace just by single dashboard. Cut your Business’s cost, and Boost your Efficiency at the same time.

Samples of Things You Need for Business Plan

business proposal for online clothing store

Here are 6 samples you will need for your business plan writing process.

Financial Proposal

Impress bankers and investors with a financial model that has been tested and proven to work time and time again.

Graphs for Finance

To support your Online Clothing Store business plan, you will be provided with the following financial tables in the form of graphs for two and five years: revenue breakdown, cash balance, operating cash flow, EBITDA, and EBIT.

Amortization Schedule for a Loan

This information may be found under the “Capital” page, where you can view the internal calculations of the loans, interest, and equity that have been performed.

Accounts Payable and Receivable

It clearly demonstrates to the owner and investors where the funds have been invested, what property the firm has, what responsibilities the business has, and the overall value of the business.

Financial Statements 

It reveals how much money a company makes, how much money it makes and spends, and how much money it has the potential to make.

Cash Flow Statement

Cash Flow Statement is a financial statement that shows how much money is coming in and going out. Because the primary purpose of every organization is to generate cash flow, it is one of the most critical reports to produce. It demonstrates how much money you have consolidated and how much money you have left over should you need to raise extra finance.

Plan Your Business with Ginee

The best businesses require the best tools to succeed. Ginee Philippines makes it possible for you to take the initial step toward establishing a low-cost internet business. It makes it possible for you to handle multiple internet store businesses at the same time in one location. There are several business opportunity examples available on the internet.

All you need to do is search for small business ideas in the Philippines or take a more significant step forward with business investment in the Philippines. It is all up to you. Ginee can help you take the initial step in your business by registering for a free trial . Without trying it, you’ll have no idea what you’ve been missing out on.

Upload Products to Shopee and Lazada Automatically ! How?

Ginee product management allow you upload products to all of your online stores from all marketplace just once! Save time, save cost, save energy, join Ginee Now!


Ginee Listing

Marketplace News

Marketplace Research

Selling Tips

Ginee Portal

business proposal for online clothing store

Clothing Store Business Plan Template

Business Plan Outline

Start Your Clothing Store Plan Here

Clothing Store Business Plan

You’ve come to the right place to create your own business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their clothing stores.

Essential Components of a Business Plan

Below are links to each section of your business plan:

Next Section: Executive Summary >

Clothing Retail Business Plan FAQs

What is a clothing store business plan.

A business plan is a plan to start and/or grow your clothing store. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your plan using our Clothing Store Business Plan Template here .

What Are the Main Types of Clothing Stores?

Clothing stores are categorized by the kind of clothing that they sell. Those that sell expensive brands are considered high end or designer clothing stores. Stores that offer trendy or popular styles, that are similar to premium brands, but lower in quality are called fast fashion brands. The most common type of clothing stores are those that specialize in a specific kind of clothing like athletic apparel, lingerie, children’s clothing and plus size clothing.

What Are the Main Sources of Revenues and Expenses for a Clothing Store?

The primary source of revenue for a clothing retail business comes from clothing sales. 

The key expenses for clothing stores are rent, salaries and wages, cost of goods sold, and marketing expenses.

How Do You Get Funding for Your Clothing Store?

Clothing stores are typically funded through small business loans, personal savings, credit card financing and/or angel investors.

What are the Steps To Start a Clothing Store Business?

Starting a clothing store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Clothing Store Business Plan - The first step in starting a business is to create a detailed clothing store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your clothing store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your clothing store business is in compliance with local laws.

3. Register Your Clothing Store Business - Once you have chosen a legal structure, the next step is to register your clothing store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your clothing store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Clothing Store Equipment & Supplies - In order to start your clothing store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your clothing store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful clothing store business:

Other Business Plan Templates

Clothing Line Business Plan Template

© 2023

Clothing Retail Business Plan Sample

FEB.01, 2021

clothing store business plans

Do you want to start a clothing retail business?

Do you want to start a clothing retail business? Clothing retail is a business in which you buy clothes directly from manufacturers and resell them to your customers. The business is getting popular as there is a demand for diverse types of clothing in different areas.

The business is profitable as well as easy to run because you don’t have to perform the manufacturing process yourself. You just have to purchase stitched or unstitched fabric to sell it in your own store.

For starting a clothing retail, the first thing you need to do is making a business plan for retail clothing. If you don’t know how to do a business plan for a retail clothing store , you can take help from here.

In this blog, we are providing all the business details of a clothing retail startup, Amy’s Closet.

Executive Summary

2.1 the business.

Amy’s Closet will be registered and licensed clothing retail operating in Los Angeles. The clothing store business plans will procure and resell stitched and unstitched fabric from American, Hispanic, Latin American, and Mexican brands and fashion designers.

In the initial phase, the company will purchase the clothes from the following manufacturers: Richemont, Armani, Chanel, Hermes, and Gucci. As well as from Hispanic, Mexican and Latino cultural brands such as Arezzo, La Martina, Carla Fernández, and Pineda Covalin.

2.2 Management of Clothing Retail Store

The clothing store business plans is all about management and negotiations. Before exploring how to set up a retail clothing store you should ensure that you will be able to manage it appropriately. You will need to establish contact with clothing manufactures to buy their products regularly and selling them in your own store.

In this sample of apparel startup clothing store business plans  for startup business, we’ll be providing all details of Amy’s Closet. If you need help regarding how to start an online clothing retail business or in-store clothing retail business, you can have it from here.

2.3 Customers of Clothing Retail Store

The customers of Amy’s Closet will be the local Hispanic and Latin community, local Anglo Americans, and others.

2.4 Business Target

We aim to become the number one choice for Los Angeles people whenever they would have to buy some apparel. Our profitability goals for the three years of our launch are demonstrated in this table.

Clothing Retail Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Amy will be the owner of Amy’s Closet. Amy has done an MBA from the University of Southern California. She has remained a bright student and an excellent collaborator throughout her academic years. Moreover, she also holds a one-year working experience as a Managing Director at a local restaurant.

3.2 Why the Clothing Retail is being started

Amy always wished to become an entrepreneur due to the exclusive benefits one gets on entering the business world. She procured her degree in the relevant field to have proper knowledge of administering a business solely.

Due to the COVID situation, Amy was previously thinking of starting a clothing store business plans online. However, eventually, as the situation improved she decided to open up a physical store whether that required her to delay the launch.

3.3 How the Clothing Retail will be started

Step1: Make retail clothing store business plan

To ensure smooth and successful execution of your business’ operation, you will be required to first create a apparel startup business plan . From this example of clothing retail business plan you can learn how an effective sample business plan for a retail clothing store can be written.

Step2: Define the brand

The next step is to define your identity. You have to set and promote your business values, services, and exclusive features so that your customers can learn who you are.

Step3: Recruit staff/ procure equipment

After acquiring the license and permissions, Amy will start procuring the required equipment for her store. Meanwhile, she’ll also hire the staff to manage her business operations.

Step4: Promote/ market/ establish web presence

To reach out to a wider audience, Amy will promote her services and competitive advantages through local magazines. Moreover, she’ll also establish a strong online presence to strengthen her association with the public.

Clothing Retail Business Plan - Startup Cost

Owning a retail clothing store business plans allows you the privilege to take on any type of services you like. In this retail clothing business plan template we are listing the services Amy decided to offer to different communities living in Los Angeles.

Marketing Analysis of Clothing Retail Store

Marketing analysis is a necessity before opening a retail clothing store. There is no purpose of starting a retail clothing business if you don’t know

Amy did great research on the population, ethnic groups, and clothing preferences of the people of Los Angeles. She studied market trends of various clothing-related products. Moreover, she also divided the population into distinct groups to study their interests.

In this clothing retail sample clothing store business plans you can see the accurate market analysis done by her. If you are looking for how to write a business plan for a clothing store you can have help from here.

5.1 Market Trends

Uk start-up visa business plan.

According to IBISWorld, there are more than 50k women’s clothing stores operating throughout the United States. Combined, they hold a market size of $37 billion. It’s not that women are crazy about clothes, men’s clothing stores are also earning a great deal in the U.S. The same source states that more than 10k businesses based on selling just men’s clothes are running successfully – accounting for a market size of $7 billion.

Well, it may not be wrong that you’ll have to face severe competition if you open clothing retail. But that can be handled if you come up with exclusive services that no one else is offering.

5.2 Marketing Segmentation

Considering the huge demand for Mexican, Hispanic, and Latin dresses in her locality, Amy divided her customers into the following three groups.

The detailed marketing segmentation of our target audience is as follows:

Clothing Retail Business Plan - Marketing Segmentation

5.2.1 Local Hispanic & Latin Community

In Los Angeles, 47.5% population comprises Hispanic and Latin ethnic groups. However, there is hardly a store that provides them their favorite apparel.

As Amy’s Closet, we see this group as our primary customers because we’ll be providing a large collection of products and clothes that would interest them. Our offering for them will include stitched casual and formal dresses according to their culture.

5.2.2 Local White & Anglo Americans

Our second group of target customers will comprise White and European Americans. For them, we will offer causal dresses as their daily wear and formal dresses as their office wears. Moreover, we’ll also offer a collection of party dresses.

5.2.3 Others

The last group of our target customers consists of all ethnic groups other than those catered for already. They will able to find every type of clothes and fashion at us including Mexican wears. Moreover, they are expected to be a significant buyer of our accessories.

5.3 Business Target

The business targets of Amy’s Closet are as follows:

5.4 Product Pricing

Though we are operating in an almost monopolistic environment, still we have kept our prices reasonable.

Great service

Great service. Good turnaround time and quality work. Thanks!

Marketing Strategy

Sales strategy is the plan developed to promote and market your clothing store business plans . The marketing plan for retail clothing company should be made with great consideration and research. As it is actually the factor that brings your customers to you for the first time. In this sample business proposal for an online clothing retail store , you can see the sales strategy developed for Amy’s Closet.

6.1 Competitive Analysis

Our biggest competitive advantage lies in our products. Only we in the entire city are offering clothes exclusively from Hispanic, Latin, and Mexican culture. Secondly, we obtain our products from top-class fashion designers. So, the rich community around us would be able to find the best clothes for them. And lastly, we have spent a lot on our interior and exterior décor. Through our impressive display, we expect to get more customers and visitors.

6.2 Sales Strategy

6.3 Sales Monthly

Clothing Retail Business Plan - Sales Monthly

6.4 Sales Yearly

Clothing Retail Business Plan - Sales Yearly

6.5 Sales Forecast

Clothing Retail Business Plan - Unit Sales

Personnel plan

To run clothing retail, you need employees who will cooperate and collaborate with your customers. A good practice is to first create a list of required employees while writing a business plan for a clothing retail store. After that, you can set criteria for selection to weigh the competency and skill of your applicants.

7.1 Company Staff

Amy will manage the clothing store business plans herself. However, she’ll hire the following people:

7.2 Average Salary of Employees

Financial plan.

The financial plan is the most important part of a clothing store business plans . As it enables the business owner to avoid losses. A financial plan provides clear data showing financial ups and downs according to the sales and economic conditions. Moreover, it also gives an idea of how much profit to expect in how much time.

Through cash flow diagrams, balance sheets, and break-even analysis, you can also get an idea of variables, changing which can result in profits and losses.

Creating an accurate financial plan needs proper knowledge and expertise. Amy possessed the required skillset, therefore she opted for making her financial plan herself. If you think that you do not have the relevant experience you must hire a professional to create a clothing retail business plan for you.

8.1 Important Assumptions

8.2 break-even analysis.

Clothing Retail Business Plan - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Clothing Retail Business Plan - Profit Monthly

8.3.2 Profit Yearly

Clothing Retail Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Clothing Retail Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Clothing Retail Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Clothing Retail Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Clothing Retail Business Plan Sample in pdf Professional OGS capital writers specialized also in themes such as baby clothes business plan , bridal shop business plan , shoe line business plan , embroidery business plan , lingerie shop business plan .

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

business proposal for online clothing store

Add comment

E-mail is already registered on the site. Please use the Login form or enter another .

You entered an incorrect username or password

Comments (2)

' src=

Where is your marketing costs

business proposal for online clothing store

Thanks for your feedback. Our templates are informative in nature, if you wish, you can contact our business consultants and they will help you in drawing up a professional business plan.

mentioned in the press:

Search the site:

business proposal for online clothing store

OGScapital website is not supported for your current browser. Please use:

business proposal for online clothing store

Home » Business ideas » Fashion Industry » Boutique (Clothing Store)

How to Write a Clothing Store/Boutique Business Plan [Sample Template]

Are you about starting a clothing store ? If YES, here is a complete sample online clothing store business plan template & feasibility study you can use for FREE. There is hardly any human who doesn’t wear clothes. This is because of the need to cover up nakedness.

This can also be the reason why so many clothes manufacturers have sprung up in the last centuries; this is so that they are able to meet the teeming population of people who wear clothes. Various clothing designs have evolved over the years too.

Therefore, the clothes move from the manufacturers to the consumers. In between there are [people who are mainly the ones who go between the manufacturers and the consumers. This is one of the reasons why a business such as a clothing store or a boutique as some folks would want to call it, are in existence.

A Sample Clothing Store Business Plan Template

1. industry overview.

One of the reasons why clothing store (boutique) business will continue to thrive is the fact that people can’t do without putting on clothes. People that patronize clothing stores cut across the rich and the poor, the highly place in the society and the lowly placed; everybody need clothes to cover their nakedness.

The clothing store (boutique) industry comprises of small retail stores that sells a limited range of clothing and accessories. The industry is defined as single-establishment stores only. Clothing stores (boutiques) can be strictly designer based (i.e. only one designer’s collection is sold there), or they may sell a mix of designers’ labels (brands) that are specifically catered to the local market.

Players in the Clothing store (Boutiques) industry are defined as having only one location and typically focus on providing high-end or niche products to consumers. Changing fashion trends and of course consumer well-being is essential to industry growth because products are generally more expensive and rely on consumer discretionary incomes.

As a result, the start of the recession and its lasting effects on the US economy hurt industry performance. Per capita disposable income fell as many individuals lost their jobs; accordingly, consumer confidence plummeted and consumers cut spending, causing the industry to contract in 2009.

The clothing store (boutique) Industry revenue has since recovered; however, the industry is facing more stringent competition than ever before because of a rising number of imports and consumers’ shift to online shopping et al. The clothing store (boutique) industry is indeed a very large industry and pretty much thriving in all the parts of the world.

Statistics has it that in the united states of America alone, there are about 31,615 legally registered clothing stores (boutiques) responsible for employing about 65,810 employees and the industry rakes in a whooping sum of $28bn annually. It is important to state that, there is no company with a dominant market share in this industry.

The industry is projected to grow at 3.1 percent annual growth rate. Over the years, clothing stores (boutiques) have experienced tremendous growth in all cities in the United States of America and in most parts of the world. In response to the ever growing demand for clothes and other fashion accessories, clothing store owners have opened additional stores thereby creating chains of stores across different cities.

They are always ready to expanded into new markets and of course adapt to the ever changing trend in fashion and increase sales.

Over and above, the clothing store (boutique) industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets (chains of stores) in key cities.

2. Executive Summary

Mary & Mack Clothing Store™ is a neighborhood clothing store that will be located in a centralized area between a residential neighborhood and a busy business district in downtown Inglewood – Los Angeles, California. We conducted our feasibility studies and market survey and we came to the conclusion that Inglewood – Los Angeles is the right location for us to launch our clothing store (boutique).

We are in the clothing store (boutique) business to make profits at the same to give our customers value for their money and time whenever they patronize us. We want to give people who patronize our clothing store (boutique) the opportunity to choose from a wide range of both locally and foreign clothing designer labels (brands) at highly affordable prices.

We are aware that there are several small clothing stores and chains of clothing stores all around Los Angeles, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and our outlet is well secured and equipped with the various payment options available in the U.S. Beyond retailing quality and affordable clothes and fashion accessories in our clothing store, will ensure that our customer care is second to none in the whole of Los Angeles – California.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied and get what they are looking for whenever they visit our clothing store and also to become our loyal customers and ambassadors in and around our neighborhood.

Mary & Mack Clothing Store™ will ensure that all our customers are given first class treatment whenever they visit our store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions that will directly or indirectly affect them.

Mary & Mack Clothing Store™ is owned by Mrs. Marry Hennessey – Crowder and family. She has successfully managed several retailing business both in Los Angeles and New York prior to opening her own clothing store. She will run the business alongside her immediate family members. Mrs. Mary Hennessey – Crowder has a Degree in Business Administration from University of California.

3. Our Products and Services

Mary & Mack Clothing Store™ is going to operate a standard and registered neighborhood clothing store that will retail a wide range of clothes and fashion accessories from both local manufacturers and international manufacturers just like any other registered and standard clothing stores in the United States and in any part of the world.

These are some of the products that we will retail in our clothing store (boutique);

4. Our Mission and Vision Statement

Our Business Structure

Mary & Mack Clothing Store™ do not intend to start a clothing store business like the usual street corner clothing store (boutique) business; our intention of starting a clothing store business is to build a standard clothing store (boutique) that will be a one – stop shop for both old and young people, rich and poor people and male and female et al which is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more especially when we start selling our franchise or running chains of clothing stores.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

Merchandize Manager

Sales and Marketing Manager

Information Technologist

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

Store Manager:


Client Service Executive

6. SWOT Analysis

Our intention of starting just one outlet of our clothing store in Inglewood, Los Angeles – California is to test run the business for a period of 2 to 4 years to know if we will invest more money, expand the business and then open other chains of clothing stores all over California and perhaps also sell franchise through the United States of America and Canada.

We are quite aware that there are several clothing stores all over Los Angeles and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Mary & Mack Clothing Store™ employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Mary & Mack Clothing Store™;

Our location, the business model we will be operating on ( one stop physical store and online store ), varieties of payment options, wide range of clothes and other fashion accessories from local and international manufacturing brand, opening 24 hours a day and 7 days a week and our excellent customer service culture will definitely count as a strong strength for Mary & Mack Clothing Store™.

One major weakness that may count against us is the fact that we are a new clothing store in Inglewood – Los Angeles and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

The fact that we are going to operate our clothing store in one of the busiest district in Los Angeles – California provides us with unlimited opportunities to sell our items to a large number of people.

We have been able to conduct a thorough feasibility studies and market survey and we know what our potential customers/residence within the location where our clothing store will be located will be looking for when they visit our clothing store. We are well positioned to take on the opportunities that will come our way.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing and spending power. Another threat that may likely confront us is the arrival of a new clothing store in same location where ours is located.


One major trend over the years in the clothing store (boutique) industry is that, clothing stores (boutiques) have experienced tremendous growth in all cities in the United States of America and in most parts of the world. In response to the ever growing demand for clothes and other fashion accessories, clothing store owners have opened additional stores thereby creating chains of stores across different cities.

As a matter of fact, it is common to find clothing stores located alongside a busy road, in a busy community, in an urban area, or near a railway or railroad station or other transport hub. In some countries like the United States, united kingdom and France et al, clothing stores are known to be opened 24 hours a day and 7 days a week.

If you keep tabs on the clothing store business and retailing business generally, you would have noticed that It is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies.

No doubt data collected from customers goes a long way to help retail stores serve them better. Another common trend in the retailing industry of which clothing store falls under is the pricing system.

Aside from having varieties and quality of the items in a convenience store, one of the easiest ways for players in this line of business to sell the items on their racks as fast as they can and keep re – stocking is to ensure that the prices of their items are a bit lower than what is obtainable in elsewhere. For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4.00, $100 and $200.

8. Our Target Market

When it comes to selling items that are found in clothing stores, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in the locations where we intend opening our clothing store.

One thing is certain; we will ensure that we only retail quality and affordable clothes and other fashion accessories in our clothing store. In view of that, we have positioned our clothing store to service the residence of Los Angeles – California and every other location where our clothing stores will be located all over the United States of America and Canada.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our clothes and fashion accessories to the following groups of people;

Our Competitive Advantage

Mary & Mack Clothing Store™ is launching a standard and registered clothing store that will indeed become the preferred choice of residence of Inglewood, Los Angeles – California and in every other locations where our chains of clothing stores will be opened.

Our clothing store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Los Angeles and few meters away from a busy business district. We have enough parking space that can accommodate well over 25 cars per time.

One thing is certain; we will ensure that we have a wide range of quality and affordable clothes and fashion accessories from top fashion labels available in our store at all times. It will be difficult for customers to visit our store and not see the cloth or fashion items that they are looking for. One of our business goals is to make Mary & Mack Clothing Store™ a one stop fashion shop.

Our excellent, highly experienced and qualified management team, customer service culture, online store, various payment options and highly secured facility with enough packing space will also serve as a competitive advantage for us.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups clothing stores in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.


Mary & Mack Clothing Store™ is established with the aim of maximizing profits in the clothing store (boutique) industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of clothes and fashion accessories from a wide range of fashion labels to a wide range of customers.

Mary & Mack Clothing Store™ will generate income by retailing the following items;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.

One thing is common with clothing store business, the larger a clothing store (including varieties of quality clothes and fashion accessories at affordable prices), the larger the numbers of customers that will patronize them. Although we may not be as large as the biggest clothing stores or retailers in the United States.

But we will ensure that within our capacity we make available a wide range of clothes and fashion accessories et al from different brands both local and foreign manufacturers in our store. Below are the sales projections that we were able to come up with for the first three years of operations;

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

Before choosing a location for Mary & Mack Clothing Store™, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Los Angeles – California and in every other cities where our chains of clothing stores will be opened.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the clothing store / retailing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Los Angeles – California.

In other to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Mary & Mack Clothing Store™ will adopt the following sales and marketing approach to win customers over;

11. Publicity and Advertising Strategy

Despite the fact that our clothing store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our clothing store.

Mary & Mack Clothing Store™ has a long term plan of opening chains of clothing stores in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Los Angeles – California before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the public. Here are the platforms we intend leveraging on to promote and advertise Mary & Mack Clothing Store™;

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to clothing stores and retailing business generally, it is normal for consumers to go to places (clothing stores) where they can get good quality clothes and fashion accessories at cheaper price which is why big players in the clothing store / retail industry like attract loads of consumers.

We know we don’t have the capacity to compete with other bigger clothing stores and retailer, but we will ensure that the prices of all the items that are available in our clothing store are competitive with what is obtainable amongst clothing stores (boutiques) within our level and in our location.

At Mary & Mack Clothing Store™, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

We would need an estimate of $250,000 to successfully set up a standard and well stocked clothing store in Los Angeles – California. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding/Startup Capital for Mary & Mack Clothing Store™

Mary & Mack Clothing Store™, is a family business that is solely owned and financed by Mrs. Marry Hennessey – Crowder and family. They do not intend to welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

N.B: We have been able to generate about $100,000 (Personal savings $75,000 and soft loan from family members $25,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Mary & Mack Clothing Store™ is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our clothes and other fashion accessories a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mary & Mack Clothing Store™ will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

More on Boutique (Clothing Store)

business proposal for online clothing store

Retail Clothing Line Business Plan

clothing business plan - free download

Sell the hottest trends and fashions with your own retail clothing store or fashion boutique. Use this free clothing line business plan to get your business started, including setting up an online clothing store.

Download this Clothing Business Plan free for easy editing in Google Docs or Microsoft Word:

Download Now

Table of Contents


1.1 company.

Booming Boutique is a start-up retail establishment that will sell fashionable clothing to women of the Baby Boom generation. We will locate Booming Boutique in downtown Pleasantville, Florida, which is a popular retirement and tourist destination. While our initial goal is to open one boutique, expansion plans include potentially franchising our retail store and/or building a well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the online retail market.


The fashion and retail industry tends to be overly youth focused. However, by closely following generational fashion trends as well as our own customers’ purchasing preferences, we will tailor our inventory to meet the specific needs of our clientele. We will solely focus on the our styles, colors and fits to flatter the lady Baby Boomer/ Meeting the needs of her figure will be our specialty.


The total sales reported in the U.S. retail industry in 2007 (including food service and automotive) exceeded $4 trillion. There are roughly 75 million Baby Boomers, half of which are women. In Pleasantville, the current population is just fewer than 40,000. 54 percent of the total population is women who have a median age of 48. The median income is $48,600. We will initially seek customers locally, but will increase our reach as we build our brand and secure our image.


Booming Boutique recognizes the importance of marketing. And to that end, we plan to promote our retail business with an ambitious, targeted marketing campaign, which will include a grand opening event, local media coverage, print advertising and a direct-mail campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales, and we will partner with local organizations such as the Chamber of Commerce and Downtown Merchants Association as often as possible.


Robin Mathews and Joanna Jensen are co-owners and will co-manage Booming Boutique. Mathews has worked ten years in the retail industry, including four years as the manager of an antique furniture shop. She earned a BA degree in finance from Britannica College in Tampa, Florida.

Jensen’s experience lies in the fashion industry. She’s worked with designers, wholesalers and retailers for roughly 20 years. Jensen holds a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.


Our company will earn revenue from our customers’ purchases of our products. Booming Boutique’s first-year income statement illustrates a profit margin of at least fifty-two percent, with a net income of $44,075 per month – after taxes. Finally, we have determined our break-even point will equal no less than $15,500 in total monthly sales. We project our annual profits to reach $380,000 by year three.

Our company will generate revenue from the retail sale of clothing and other merchandise. First year sales are projected to be $285,000, and we expect sales to surpass $525,000 by the end of year three. We will achieve month-to-month profitability within the first year.


Booming Boutique requires $282,000 to launch successfully. We’ve already raised $62,000 through personal investments and a small community grant.

We are currently seeking additional funding from outside angel investors and business loans. Start-up funds will be used for renovations, inventory and operating expenses such as rent, utilities and payroll.

Further, most of our initial investment will also be used to purchase retail equipment and inventory software – all of which will produce future benefits for the company.

A small portion of our investment will be used to create an online clothing store. There are inexpensive e-commerce tools that provide a very easy way to create an online boutique store where we can sell our fashions all over the world.


2.1 company & industry.

Booming Boutique will be located in downtown Pleasantville, Florida. Our company is a retail establishment selling fashionable women’s clothing to up-and-coming Baby Boomer retirees. Our business operates within the retail industry and is classified under NAICS code 448120 – women’s clothing stores.


Booming Boutique is a multi-member Limited Liability Corporation formally organized in Florida. Robin Mathews and Joanna Jensen are the company’s principle owners. We hold equal shares of ownership in the company.


The Company is a new business aimed at providing women of the Baby Boom generation stylish clothing options to buy and wear. As the company’s founders and as Baby Boomers ourselves, we found that Florida’s current boomer-wear market is missing the mark.

In fact, most clothing shops for the 55+ set are still selling clothes that our grandmothers would have worn. As our local population ages and more Baby Boomers reach retirement-age and migrate to Florida, we recognize the need for a shop that caters to the up-beat, fashion-forward Baby Boomer generation who want to look and feel young.


Presently, Booming Boutique does not have a bricks-and-mortar location. However, we have identified an ideal spot in the downtown district of Pleasantville. The gorgeous area includes numerous restaurants, an art gallery, coffee shop, candy store and a picturesque park in the town square. We have signed a three-year lease for a 1,700 square foot building at $18 per square foot. Comparable properties are renting for $17-24 SF/Year.

Working with the property owner and the City of Pleasantville Downtown Redevelopment Committee, we have secured a $2,000 grant to beautify the façade of the building to include painting, signage and a new awning. We will only need minimal internal renovations such as installing dressing rooms and decorative items.

When considering the addition of wall mounts for merchandise, multi-level clothing displays as well as creative floor planning, this facility is large enough to support future growth. Additionally, we will be able to conduct all aspects of our business from this location since it has access to a loading dock and a back office for managers. This includes deliveries and shipments, inventory management and administrative duties such as finance, buying and marketing.


Our key assets are our co-owners, Robin Mathews and Joanna Jensen, who bring tremendous experience and relationships to this business.

Once we launch Booming Boutique, our primary asset will be our brand, which will convey style, quality and a great shopping experience. In the long-term, it is this brand that will separate Booming Boutique from other retailers both locally and nationally.


3.1 description.

Booming Boutique will sell a combination of widely recognized name brands as well as clothing lines from select fashion designers. We will closely follow generational fashion trends as well as our own customers’ purchasing preferences. Moreover, we will tailor our inventory to meet the needs of our “boomer” clientele. Solely focusing on the styles, colors and fits to flatter the female Baby Boomer’s figure will be our specialty. While apparel, such as business clothing, casual wear, jeans and formal wear will be our main staple, we will also offer some accessories such as belts, scarves, and hats.

We will earn profits by selling our merchandise. Our pricing structure will remain flexible, as we will implement suggested retail pricing on common brands as well as the standard practice of keystoning prices. Additionally, we will use a value-based pricing structure, which measures the value of our products to our customers such as easy access, quality, customer service and styles flattering to our target consumer. We will implement end of season sales, holiday and overstock sales, multi-buy savings and promotional coupons at strategic intervals.


One key feature that separates Booming Boutique from all other local boutiques and chain department stores in the area is our commitment to providing women of the Baby Boom generation stylish, quality clothing options. Because our primary concern will be ensuring our consumers are happy with the fit and style of their purchase, we will provide products tailored to all shapes and sizes of women. In addition, we will make every effort to have petite and plus size versions of our merchandise in stock. If they are not in stock, ordering them will be easy, cheap and efficient.

Further, Booming Boutique will not just be a store that sells clothes. Our clientele will benefit from an experienced, knowledgeable sales staff. Out of the gate, our goal is to implement a superior customer service system. Beyond our friendly reception and an inviting atmosphere, Booming Boutique will also offer customers fashion information and advice. Our trained personnel will provide counsel that women simply cannot find at other clothing stores. The service is like a beautician who offers advice on what hair styles best complement his/her client’s face. Our hip and qualified fashion-industry expertise will ensure our customers walk away with the perfect outfit.


In Pleasantville, there are no direct competitors offering our unique services or targeting Baby Boomers specifically. In the Downtown District, the shops most closely competing with Booming Boutique are as follows:

There is one super-store within a 60-mile radius of Pleasantville. The store is similar to Walmart in that it sells lesser quality items at lower price. But there are two chain department stores. They sell men’s, women’s and children’s clothing along with home accents, electronics and appliances. While familiarity is comforting, industry research indicates increasing frustration with the inferior quality, sub par customer service and vastness of super-stores. Not to mention, the inept sales staff and lack of selection often found at department stores.


To date, our primary competitive advantage is the absence of any store like ours in the Pleasantville area. In addition, company co-owner, Joanna Jensen, has worked in the fashion industry for more than 20 years. Her experience includes working with apparel retailers, clothing wholesalers, garment manufacturers, and fashion designers. She understands the fashion industry and knows how to spot the latest trends.

While there is no guarantee a competitor will locate within our area, we have no doubt in our fashion sense, outstanding customer service and quality products. In turn we will quickly establish Booming Boutique as the place for lady Baby Boomers to shop.

Also, we would be the only niche fashion retail-store for hip, older women. While other stores offer some style equivalents, they are not focused solely on the baby boomer generation. We are, and therefore, have a distinct competitive advantage in our niche.

Our supplier relationships and exclusive product offerings will prevent future competitors from entering the market as a competitor. Also, it takes time to build a retail store, and by the time a competitor attempts to compete with us directly, we will have already established a strong customer base.


As our company grows and our boutique earns a positive reputation, several opportunities will open to us. And we are considering some options already. Should we choose to remain a small local boutique, we will develop and grow our company by increasing existing clothing lines and expanding our selection to include additional products such as swim wear, lingerie, or sportswear. Within five years, we will assess the potential for franchising our stores in select locations.

Additionally, as we build our business, we plan to simultaneously develop an online clothing store for Booming Boutique. The power and ease of an online storefront is obvious to us, and we plan to develop one quickly and efficiently. We also see the potential for regional and/or national expansion at some point.

Our online clothing store will help to spread awareness of our product line and brand to a wider community.


4.1 target customer.

Booming Boutique is a business-to-consumer retail company. Female Baby Boomers are our clear target customers. However, we do realize that we will likely attract some younger women with our peripheral products (handbags, scarves, etc.). Moreover, we expect a portion of our products to catch on with the younger generations. It’s important that we do not offer products that are exclusive to the older audience.

Having said that, there are currently about 75 million Baby Boomers living in the United States. A boomer is better described as the generation born between the years 1946 and 1964. About half of this population is women.

While those born in the 1940’s are still slightly more conservative, those born during the 1950’s and 60’s were trailblazers and trendsetters. Specifically, these will be the women we target vigorously with our marketing and offerings. These women range in age from their mid 40’s to late 50’s. They value uniqueness, convenience, service and quality. As they retire, price does become a factor in decision-making. At the same time, they were always a generation of the “buy now and pay later” philosophy.


Pleasantville accommodates a robust retail market. While car dealerships, grocers and home improvement retailers account for a sizable portion of the retail market, the main local shopping district is downtown. With tree-lined streets and quaint shops and restaurants, the downtown retail district is the social and shopping hub of the community. The current population of Pleasantville is just fewer than 40,000. 54 percent are women who have a median age of 48. Their median income is above the national average at $48,600. Moreover, according to National News, Pleasantville is one of the 2008 Top 6 Towns to Retire for Baby Boomers. Many of these retirees are looking to retire on the water in a cozy, yet thriving community.

In addition to local consumers, we will also benefit from tourist traffic. Pleasantville is located a mere 30 miles from the sandy white beaches of St. Petersburg and Clearwater. It’s also within close proximity to many Tampa and Orlando area attractions. Our town boasts a healthy and recession-proof tourism industry. In addition, Pleasantville hosts several annual craft and golf events, which bring several thousand of our target consumers into the area each year.

The retail fashion industry is a solid business with ever-changing styles and ever-present consumer demand. While supercenters and megastores ruled the past two decades, more and more consumers are looking for change. They’re searching for a more serene and customer-friendly shopping experience. This is true especially for those nearing retirement age. In reality, as the Baby Boomers numbers decrease, there will be fewer older Generation X-ers to sell to. However, this market decrease will not occur for at least twenty years. Even then, clothing will always be in high demand. The fashion industry in America has been thriving since the advent of moving pictures.




5.1 philosophy.

Our company’s core business strategy is to combine exceptional and knowledgeable customer service with quality stylish merchandise. And n turn, we’ll provide an enjoyable shopping experience for our customers. Booming Boutique’s mission is to offer women of the Baby Boom generation a wide selection of fashionable, figure-flattering clothing. Our aim is to establish our company as a pioneer in this youth-obsessed industry and build a boutique brand name that will be synonymous with the fashion industry revolution.


We are currently working with several apparel wholesalers, garment manufacturers and two freelance fashion designers to assemble our inventory. We are also working with city economic-development officials to secure all required permits and occupational licensees. Once we secure financing, we will move ahead with the façade renovation, which we will pay for via the PDRC. We will also use the financing to purchase inventory, retail displays, and office supplies.

Prior to the grand opening of Booming Boutique, we will schedule an event with the Chamber of Commerce and start our promotions with pre-publicity flyers, advertising and additional marketing activities.


As the Internet has become a staple of American life and retail merchandising, Booming Boutique will build a website on which we will sell our products, too. We have secured the domain name and will begin site development using Shopify or Wix . These platforms allow us to create an online storefront quickly and will manage all aspects of it including creating shipping labels, accepting payment, and monitoring inventory. Customers will also be able to create wish lists for items they want to purchase later.

Having this online presence will allow us to build our email marketing list and send regular promotions to customers with new product announcements, discounts, specials, birthday coupons, and fashion ideas.

Foremost, we intend to showcase our brand, our clothing and provide customers with the ability to purchase items online. As the site progresses, we will include features such as fashion advice, designer interviews, newsletters, and Internet-only specials. Eventually, we hope to establish and nurture an online social community where women can gather and discuss topics of the day, network and share clothing secrets.


We both have strong marketing backgrounds and recognize the significance of effective marketing. We expect our strategy to draw consumers into Booming Boutique from the very beginning. Moreover we will hire a local PR firm to help us develop and implement a strategic marketing plan and guide our publicity efforts in a cost-effective manner. Our marketing message, logo and slogans will revolve around the idea of the Baby Boom generation as revolutionaries and trend setters. Boomer women are in their prime and at their best. Our store will recognize them as a force within the fashion industry.

Our goal is to keep our marketing budget to no more than 5% of our gross annual sales. We will partner with local organizations such as the Chamber of Commerce and Downtown Merchants Association as often as possible. We already have connections in all the necessary places. These strategic partnerships will allow us to piggyback on publicity for local events, as long as they are within our targeted demographic. Booming Boutique’s initial marketing efforts will remain local as we establish a presence in our community. These will rely heavily on local print and broadcast media coverage, traditional advertising, signage, a direct mail marketing campaign and networking. We will initially allocate a significant portion of our advertising budget to print and broadcast media to get the word out.

Of course, we will build anticipation and excitement about the new boutique prior to its grand opening. Working in conjunction with the Chamber of Commerce, we are already talking about a grand opening soiree. This will include hors d’oeuvres donated by the bistro across the street and a silent auction of a local artist’s painting collection. The collection is currently on display in the Downtown Art League Gallery.

We will also hold a drawing for a $100 shopping spree and fashion consultation. Entry collection will start at the grand opening and continue throughout the week. We will use these names and contact information for follow-up marketing initiatives. The Chamber of Commerce and the Downtown Merchants Association will promote the event in local newspapers and radio advertising. Comprehensive advertising and semi-annual direct mail marketing campaigns will follow the grand opening. We will also take advantage of low cost publicity activities such as posting sale flyers on community bulletin boards and online.


Booming Boutique plans to generate sales via strategic marketing efforts. These concentrated efforts will be targeting new and returning customers as well as single-visit tourist consumers. We will also implement a referral program rewarding customers who refer new customers with discount coupons. Following our grand opening, we will conduct a direct-mail campaign to targeted consumers that we have signed up through our in-store mailing program. The direct mailers will consist of 5,000 full-color postcard mailers. Each will include at 10% coupon. We will offer promotional discounts and seasonal and clearance sales throughout the year.

Booming Boutique will accept cash and payment via major credit and debit cards. Cash layaway plans will also be permitted. Returns and exchanges must take place within 30 days of purchase and receipts are mandatory.

Our sales staff will include both co-owners and 2-3 part-times sales associates. Combined, Jensen and Mathews have nearly 30 years experience in the fashion and retail industries. We will provide comprehensive training to each sales associate. This will include how to sell merchandise as well as how to provide fashion advice to customers. Our sales team will earn an hourly rate, plus a generous percentage of commission from each sale.


Booming Boutique plans to join the Pleasantville Chamber of Commerce as well as the Pleasantville Downtown Merchants Association. These organizations are dedicated to promoting local businesses within our community and sponsor several events downtown each year. As a member of these organizations, Booming Boutique will gain exposure, make business contacts, and will benefit from Chamber and Association advertising, Web site promotions and events.


As a retail establishment, Booming Boutique will conduct business seven days a week from 10 a.m. to 6 p.m. Monday through Thursday, from 10 a.m. to 8 p.m. Friday and Saturday, and 12 p.m. to 6 p.m. on Sunday. During the holiday seasons and during special events, we will extend store hours. At this point, the retail store will take require approximately 2/3 of the building’s available space. We will use the remaining space for stock and administrative purposes. In addition to the two full-time co-owners, we will hire three part-time employees to serve customers.

Our company will secure merchandise from local manufacturers with showrooms in Orlando and Miami. We’ll also have access to the Florida Apparel Market, which is the largest wholesale merchandise warehouse in the state. Purchasing from FAM, buyers receive product displays and promotional materials with purchase. Additionally, we will work closely with our regional sales representative. We will also attend relevant pre-season fashion trade shows.

To control costs, track inventory and manage stock levels, we will put an inventory control system in place. This will include the standard bar code with its related equipment and software. Staff will conduct annual inventory audits and hire outside auditors when necessary. We will maintain all accounting and finances using Quickbooks online.

The following is a list of business goals and milestones we intend to accomplish our first year of operations.

Our first major milestones will be securing funds and setting up our business. This is our major focus right now. In five years, we hope to have established our retail business within the community and within our industry. Furthermore, as co-owners, we would like to see the growth of our store with an increase in product lines, further penetration of the national market with online sales and, under the right set of circumstances, the opening of franchise Booming Boutiques in strategic locations.


The co-owners intend to launch and grow Booming Boutique for many years into the future. In the event that our investors require repayment of their initial investments, plus a large return on their investments, we will seek a partner to buyout the investors’ shares. Another alternative is a management buyout, which will be agreed upon in advance.

In the long-term, we will position Booming Boutique as a profitable business that will be an appealing acquisition for any number of retail chains.


6.1 organizational structure.

As a small business, we will have a small staff. Both co-owners will assume leadership roles within the company and will be responsible for daily operations, overseeing marketing efforts, buying merchandise and managing inventory and all other administrative duties. A small sales staff will assist co-owners with securing sales, assisting customers and general maintenance of stock on the floor.


Co-owners, Robin Mathews and Joanna Jensen, created this boutique business plan. Both will co-manage Booming Boutique. However, daily responsibilities will differ.

Robin Mathews will manage the day-to-day operations including supervising staff, maintaining inventory and bookkeeping. Mathews worked ten years in the retail industry including four years as a manager of an antique furniture shop. Mathews earned a BA degree in finance from Britannica College in Tampa, Florida.

Joanna Jensen will oversee the merchandise buying for the store as well as maintain a keen awareness of trends within the industry. She will also work with our public relations firm to ensure superior marketing plans are in place and implemented. Jensen worked in the fashion industry in various capacities working with designers, wholesalers and retailers for 20 years. She earned a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.


Booming Boutique will employ a sales staff of 3 part-time employees. These positions are yet to be filled. However, we feel the labor pool is such that finding qualified employees will not be an issue. Our sales associates will be paid an hourly wage, plus commission. We will provide bonuses via sales incentives and conduct an annual review to encourage employee retention.


7.1 requirements.

Booming Boutique will need $282,000 to get our business off the ground. We are currently seeking funding from outside investors and business loans.

At this time we have raised $50,000 in equity capital and an additional $12,000 for a specific-use grant. Both co-owners, Robin Mathews and Joanna Jensen, have invested $25,000 each into Booming Boutique. We are seeking investors for an additional $170,000 in equity investment and $50,000 in loans.


We will use the funds we obtain from investment in this boutique business plan to pay for renovations, including the outside façade (to be paid for via PDRC grant), construction of fitting rooms, sales counter, painting, carpeting, lighting, decor and display fixtures. We will also purchase inventory, a cash register, computer equipment and an inventory management system. We will use the remainder of the start-up funds to cover operating expenses, such as rent, utilities, wages and marketing to increase retail sales .


Based on our marketing plans , location, store size and product offerings, we expect to collect annual sales of $285,000 in year one, $375,000 in year two and $525,000 in year three.

Our average cost of goods sold will be 40%, which leaves us with a gross margin of 60%. Our minimum monthly fixed costs are $15,500 per month, so we will need to generate sales of $25,833 per month to break even. We will become profitable on a monthly basis before the end of our first year.

In our third year, we will earn net income of $105,000. The accompanying income statement demonstrates our company’s profitability.


Our business will collect immediate payment from customers, so our cash flow statement will be substantially similar to our income statement. Our cash flow statement clearly demonstrates our ability to cover all bills.


Booming Boutique will launch with $220,000 in equity capital and $50,000 in loans. Credit amounts and supplier terms for inventory will appear in our balance sheet as short-term liabilities. We will not document jewelry consignments from vendors in our balance sheet and will expense these items as we sell them. Details are shown in our enclosed balance sheet.


We base our projections on the assumption that the economy, consumer spending habits and population growth in Pleasantville will continue for the foreseeable future.

We must also assume that our present and future suppliers will continue to sell inventory to us at prices that allow us to maintain our present margins. It is also important that we are able to hire reliable employees at reasonable wages.

Download This Clothing Business Plan

It’s a lot easier to edit than it is to write from scratch. Get the companion download to this article and edit the text to create your own plan in Google Docs, Microsoft Word, or Apple Pages.

I need help with:

Popular topics:.

Affiliate Disclosure : This post may contain affiliate links, meaning we get a commission if you decide to purchase something using one of our links at no extra cost to you.

You Might Also Like...

coffee business tips

Coffee Business Tips: 5 Tips to Increase Sales

affiliate marketing strategies

10 Affiliate Marketing Strategies to Increase Your Business Website Revenue

advantages of using residential proxies for seo

The Advantages Of Using Residential Proxies For SEO And SERP Tracking

changing hiring trends

5 Ways Businesses are Changing Hiring Trends in 2023

companies for cross-platform qt development

Top 10 Companies for Cross-Platform QT Development

surgeon buyer persona example

5 Powerful Buyer Persona Examples for MSP Marketing

future-proof your startup

5 Smart Strategies to Future-Proof Your Startup

ways to stop phishing emails

4 Ways To Spot Phishing Emails for Businesses

business proposal for online clothing store

Grow your business with SEO (Search Engine Optimization)

Attract Qualified Prospects

Marketing tools.

Popular Downloads

Free Guides

Get Your Free Marketing Plan !

It's much easier to edit than to write from scratch.

Download this plan as an editable document!

Almost Done! Check Your Email.

(and spam folder just in case)

We just sent a confirmation link to your email.

Click it to confirm and your download will arrive within 2-minutes!

Get Your Clothing Business Plan

Companion Download!

5+ SAMPLE Clothing Store Business Plan in PDF

clothing store business plan

Clothing Store Business Plan

5+ sample clothing store business plan, what is a clothing store business plan, things to prepare before starting a clothing store, two sides of having a clothing store, how to start a clothing store business plan, how profitable is a clothing business, how to start an online clothing business, what is the difference between a boutique and a clothing store.

Clothing Store Business Plan Template

Clothing Store Business Plan Template

Simple Clothing Store Business Plan

Simple Clothing Store Business Plan

Basic Clothing Store Business Plan

Basic Clothing Store Business Plan

Clothing Store Business Plan Example

Clothing Store Business Plan Example

Standard Clothing Store Business Plan

Standard Clothing Store Business Plan

Clothing Store Business Plan in PDF

Clothing Store Business Plan in PDF

Step 1: executive summary, step 2: business analysis, step 3: marketing strategy, step 4: products and services, step 5: management plan, step 6: financial plan, share this post on your network, you may also like these articles, 12+ sample e-commerce proposal in pdf | ms word | google docs | apple pages.

e commerce proposal

When it comes to choosing an e-commerce specialist, choosing which one to hire is a major decision for your potential clientele. And it's just becoming more vital as more…

20+ SAMPLE Video Production Proposal in PDF

video production proposal image

Lights, camera, but not so fast on the action. You may think you have everything ready for a videographer proposal but there are details that you have to make…

browse by categories


Clothing Retail Business Plans

Did you know each of these plans was created in LivePlan? Learn More

Clothing Retail Business Plan

Mahogany Western Wear is a new clothing store that offers quality, name brand western wear in an assortment of sizes and styles to accommodate all varying body styles and shapes.

Family Clothing Business Plan

ReHabiliments is a clothing and apparel company that sells merchandise to an international market consisting of individuals of all ages, from all walks of life.

Kid's Clothing Store Business Plan

SmokeJumpers, a local retailer, will offer youth-oriented metro-urban fashion clothing and products to young customers.

Lingerie Retail Clothing Store Business Plan

Bra~vo Intimates is a new lingerie and intimate apparel retail store.

Specialty Clothing Retail Business Plan

Chicano Stylez is a dazzling clothing and accessories store aimed at the growing Chicano/Hispanic population in Eugene, Oregon.

Sports Clothing Retail Shop Business Plan

Male Gear Wear is a men's aerobic sports retailer based in Ashland, Oregon.

Some say clothing retail is dying, but that doesn’t have to be the case. Carrying the right products, delivering a personalized and efficient experience, and finding new ways to innovate can easily give you an edge when developing a clothing business. Give your brick and mortar or online clothing retail store the best chance of success with one of these sample business plans.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

business proposal for online clothing store

Plan, fund, and grow.

Easily write a business plan, secure funding, and gain insights.

Achieve your business funding goals with a proven plan format.

business proposal for online clothing store

business proposal for online clothing store

Start a Successful Online Clothing Business in 7 Steps [2023]

So you have decided to start your own online clothing store. It’s no surprise why: with online apparel stores being a multi-billion-a-year industry, it’s by far one of the most popular eCommerce niches. With reaching $759 billion in 2021 and predictions it will reach over $1 trillion by 2025, there is a lot of potential online business within the fashion industry to cash in on.

online fashion clothing brand stats

However, starting a successful online clothing store is more than just buying a domain and placing a winning eCommerce ad .

Pro Tip: Don’t forget to check out our Top Apparel Online Stores post, for inside tips on how to build a successful brand once you’ve set up your clothing brand. 

A successful store is dependent on the niche you choose, the branding you create, the quality of not only your clothing products but your site, the customer service you provide, and fulfillment strategies.

Just because a niche is popular doesn’t mean you have instant access to potential customers. In fact, the opposite is true. With increasing popularity comes increasing pressure to differentiate your store from the millions of others already online.

In this guide, we will take you through how to start a clothing business online the right way, highlighting the keep steps you need to take to start a successful online clothing business. Including: 

Let’s get started!

New to eCommerce Marketing?

Get expert google ads hacks for free (used by our +400k customers) straight to your inbox, step 1: choose your online clothing niche.

Before you can choose your products, you need to decide which apparel or clothing niche you want to sell in. Choosing your niche ensures you choose products and create your whole clothing line business plan around the type of potential shoppers you want to appeal to and ultimately ensures you are able to position your store in a unique way.

The trick is to be very specific and really drill down your niche, as this will enable you to identify and market to your potential shoppers more easily. This will also help you develop your product list to appeal to your specific target market, allowing you to limit your competition and increase your chances of customer loyalty long-term.

An awesome example of this is the online apparel store HUMAN . Their niche? Pop culture. How do they cater to it? By using bold humor: a unique expression that appeals to what they call ‘pop culture nerds.’ And what appeals to potential shoppers in this niche? Not fancy chiffon skirts or name-brand shoes, but tees, hoodies, and socks.

good example of online clothing and apparel store

Their site has so much awesome going on, but it’s their slogan that sums up their niche perfectly: “Dress Yourself To Express Yourself.”

So how do you choose your niche? Here are the four most important considerations when choosing your niche:

You can get more detail on the above from our How to Find a Profitable Niche for Your Online Store post.

2023 Trending Clothing Niches

Step 2: Choose Your Online Clothing Store Products

Once you have a clothing niche, it’s time to choose your products. Will you be selling short-sleeve shirts or dresses? The clothing and apparel market is almost infinite, and you can be sure there are a bunch of options within the niche you’re selling in.

However, if you’re tempted to jump in and sell everything, this could be your undoing before you’ve even started. When you’re starting an online store, it’s always advised to start off small and slow and then branch out your lines as you grow.

Bonus Content:  Trending & Best-Selling Products to Sell Online 2023 [Including Apparel]

A great example of this is one of our top merchants, Mrs Bow Tie. Mrs. Bow Tie made a name for themselves selling bow ties that are uniquely ‘Made in Britain’. Their success with just one product line was so big that within three years they have added neckties, pocket squares, cummerbunds, suspenders and cufflinks to their product lists and sold to over 300,000 customers.

leading online clothing store

Say you have decided to open an online clothing store aimed at the yoga fitness niche. Instead of putting a variety of products on your proposed list, isolate the must-have products you can launch with. Each kind of product – whether it’s a hoodie or a pair of socks – has a wide potential of building your new clothing brand.

What should you consider when choosing your products? Here are our top three tips!

1. Start Small

As Mrs Bow Tie did, start small and simple as you get your product list off the ground. Adding too many products upfront will not only add extra admin costs every step of the way – from product photo shoots to web setup – but it can add complications when you first launch. Complications can affect the service you give, and as a new store in a very competitive market, great customer service and the appropriate helpdesk software to deliver it, or the lack thereof, can make or break your clothing line business.

2. Think Ahead

As we know, fashion and clothing fads are ever-changing. Choose stable products at first that can be easily changed to suit the changing styles, such as bow ties or t-shirts as shown above. If you do decide to go more mainstream fashion, plan for the changing styles by creating a store that adapts, such as dropshipping orders, which will ensure you’re not stuck with unsellable stock. Ultimately, in the clothing game, there will always be shifts, so success will depend on your ability to think ahead and be innovative and creative in dealing with the changes.

3. Set Your Focus

Yes, be as specific and narrow as you can at the beginning, but have an eye on the end goal. Think about where you see your online clothing brand extending in the future, and make sure that you’re focusing on the end goal. This will ensure that, as you add products to your range or line and grow your store in your niche, you will be able to implement new or trending products onto your store more seamlessly.

Bonus Tip: The Secrets to How One 6-Figure eCommerce Business Dominates Their Niche

Step 3: Choose Your Online Clothing Store Business Model

Now that you know your niche and have an idea of the types of products you want to sell, it’s time to pick an online clothing business model for your online clothing store business. This is where you decide if you using a clothing manufacturer, white labeling, or opting for dropshipping to build your clothing company.  

There are four types of business models that online clothing and apparel stores fall into:

Each online business model has its own pros and cons and choosing between them should be based on your overall fashion store objective and budget and your skills or potential for hiring a team. 

Let’s look at each of them more closely.

1. Print-on-Demand Clothing Store Business Model

Print-on-demand is the easiest type of online clothing business model as well as the cheapest. In fact, custom t-shirt printing alone is expected to reach $10 billion in sales by 2025.

These are the types of stores where you print your logo and design onto blank apparel, and everything is automated.

There is enough variety in types and colors within this business type and it’s your most cost-effective option when dealing with small numbers of orders.

A good example of a company that offices this is Printful , which has grown into a mega print-on-demand brand, launching a variety of new products and services this year including activewear and warehousing and fulfillment . 

The biggest drawback of this model is that these types of stores generally have lower profit margins and offer few options in the way of branding tags, labels and other finishes.

Bonus Content: How to Find Private-Label Manufacturers for Your Products

2. Custom Cut-and-Sew Clothing Boutique Business Model

Best for those of you who want to launch your very own clothing brand and design to create an online boutique. AKA for those wanting to design and make their own clothes and accessories. 

This type of online clothing boutique business model is best for those of you who want to build a complete clothing line from scratch. Here, you do everything in-house from designing your clothes to manufacturing and fulfilling – yourself. 

The biggest advantage here is that you are selling something very unique and can customize as you see fit. However, custom cut-and-sew businesses come with a lot of management, as you will be responsible for finding and coordinating your own pattern-makers and manufacturers, sourcing your own fabric, etc. This means a lot of upfront budget and time needed to launch your first line.

Pro Tip:  Looking for pattern-makers? Here are three vetted suppliers to get you started:

3. Private Label Clothing Store Business Model

Private label business models are essentially the middle point between print-on-demand and cut-and-sew. They provide more clothing line customization than the former but less ‘work’ and needed budget than the latter. Essentially you will be buying wholesale clothing and accessory products, that you would then sell and market under your fashion brand. 

How does wholesale clothing private labeling work?

You buy blank or label-less clothing items wholesale, and then add your custom design, label or tag before selling them in your store. This can prove to be a lot more cost-effective than print-on-demand, as you can negotiate better rates for bulk buying. 

Unfortunately, there are some drawbacks, such as having to deal with fulfillment and inventory management yourself. However, there are platforms that will help you streamline the process, such as Threadbird, where you can buy and custom-finish your apparel and clothing. They also offer fulfillment services for those of you who prefer to hold your own stock.

4. Dropshipping Clothing Fashion Brand Online Business Model

Similar to print-on-demand, dropshipping clothing stores allow you to sell clothing that is fulfilled from wholesalers. This is a cost-effective route, as you don’t have to deal with buying stock up front, storing, packing or shipping. The disadvantage is that your products won’t be as unique and there could be a variety of stores selling the same products as you.

However, it can be pretty easy to set up. With apps such as Oberlo , you can find and coordinate a lot of suppliers and integrate them into your online store.

Step 4: Outline Your Online Clothing Store Business Plan

You have your niche, products, and business model; it’s time to outline your business plan. You should be outlining your:

Pro Tip: To quickly grow in such a saturated market, investing in building a strong brand identity is super important. Brand identity is more than just a logo and a name – it’s how your brand is perceived. It’s human side if you will. This is where creating a look, feel and voice for your fashion brand comes into play. For a detailed strategy on how to build a strong clothing store brand identity, visit our Build a Strong Brand Identity Using These 9 eCommerce Branding Strategies post.

When it comes to eCommerce strategy, you want to make sure you’re answering questions such as where your traffic (potential shoppers) will be coming from and what will make your products appealing to that traffic.

Additionally, and very importantly, part of your business plan should also include your pricing. Budget the price per product with these important clothing line cost considerations:

Once you know the costs, you are then able to work out your margins, where you’re looking for a margin of around 30-50% if using cut-and-sew models. However, at this stage you should also be looking at your biggest competition for pricing, ensuring you are not pricing yourself right out of the market.

Bonus Content:  Want to Know How to Spy on Competitors? 12 Tools & Hacks

ppc automation tool

Step 5: Creating Your Online Clothing Store

Now comes the fun part: creating your online store.

The first thing you will need is your domain. We suggest buying this separately upfront as soon as you have your main idea. You want to make sure that the domain is still available after you have designed your range and built your site. For this, we would recommend Namecheap.

business proposal for online clothing store

Alternatively, you can buy your domain directly through eCommerce platforms such as Shopify or WordPress.

Next, you will want to choose your platform and then your theme (or vice versa). This is one of the most important decisions you will make when creating your store.

Because your website, its design, and user-friendliness are as important as the product you are selling and shouldn’t be rushed. The most popular eCommerce website and store builder options are: 

If you don’t have the budget to hire designers or the time to teach yourself WordPress, then we suggest online store or  website builders  such as Squarespace, Wix or Sh opify. If you need more help choosing  an eCommerce platform or online store builder to launch your clothing company then these guides are a good place to start. 

Pro Tip:  Another important part of setting up your store that deserves special mention is your product pages. Online shoppers only have product photos and pages by which to judge the quality and details of your products, so make sure that product photos and pages are of good quality – even when you’re dropshipping. Visit our How to Create Perfect Product Pages for Conversions post for more tips on product pages and CTA copy examples !

Step 6: Launching Your Online Clothing Store

Once your products are in place, online business plan is set up, fulfillment is organized and site is done, it’s time to launch your online clothing store. Here are some launch tips to help you get started.

1. Define Your Launch Strategy

Are you going to run an eCommerce sales promotion ? Do a Facebook Live video? Use an existing email database to push teaser mailers? Whatever strategy you decide on, have it in place to roll out step by step as you launch. This should include tasks such as proofreading and testing your whole store’s functionality before launching.

2. Prepare Your Social Accounts

Before you launch your site, make sure your social media account pages are set and ready. In fact, have these active – with content – before your big launch. This will enable you to run your social media ads with the launch and market your new store to an already-growing following. And don’t forget your content marketing plan to encourage engagement and brand loyalty from your fashion audiences. 

3. Have Your Email Marketing Strategy and Automation in Place

Make sure all your automation emails are set up and tested and that you have an email marketing strategy planned out for your first three months.  

Pro Tip:  Install a well-designed popup so you’re ready to collect email addresses, using discounts and coupons as incentives.

4. Make Sure Your Google Analytics and Google Ads Accounts are Set Up

Next, you will want to ensure that you have set up your Google Ads and Google Analytics accounts before launching. This will enable you to track traffic to your store during your launch in real-time and drive traffic through SERP ads.

5. Build Your Clothing Store Marketing Strategy

You will want your marketing strategy in place before, during, and after the launch of your online clothing business. A good eCommerce marketing strategy should include a variety of channels and approaches. This includes your:

Bonus Content: [Case Study] 9+ Winning TikTok Ad Examples and Why They Work

Step 7: Bringing Traffic to Your Online Clothing Store

The last step? Bringing traffic to your newly-launched online clothing store. The biggest traffic drivers are email marketing, PPC, content marketing, social media, guest posts on popular blogs, and influencers.

Bonus Content:   Everything You Need to Know to Win with Google Shopping in 2020 [Full Guide]

For a new store without a fashion brand name, established SEO , or email database list, you will want to concentrate on Google Ads for eCommerce and social media ads – particularly Facebook and Instagram posts and ads – to get potential shoppers to your new store. but not any potential shoppers, your key target market audience.  Don’t forget your influencer marketing paid partnerships; including Instagram sponsored posts ! 

You will also want to look to leading fashion examples for inspiration such as:

Pro Tip: You can see marketing and growth case studies on these and other leading online fashion brands here . And don’t forget your holiday PPC campaigns , for peak clothing shopping seasons.

Although traffic campaigns are the most important factor in the success for any online business, it doesn’t need to be as daunting as it sounds.

With apps such as Traffic Booster,  offering the best alternative to WordStream for online retailers – you can hand over the hard work, so to speak. This will enable you to focus on fulfilling your new orders and generating eCommerce traffic with real-time ad optimization.

Here are Traffic Booster integrated PPC channels and campaigns.

Final Thoughts

There you have it: how to start a successful online clothing business in 7 steps. The key to any successful eCommerce business is being able to tap into buying intent. It is not only about figuring out who your fashion audience is and what they would be willing to buy and for how much. You need to penetrate a saturated niche (messaging and targeting) and separate yourself from your closest competitors (brand identity) and then follow it up with awesome quality clothes, unique designs and good service. 

To recap the steps to follow on how to start a clothing business online the right way.

How to Start a Clothing Business Online

If you’ve just launched a clothing store or have questions before launching, post them in the comments below!

For more marketing inspiration to grow your clothing business online and boost sales, then these posts are for you: 

ppc automation tool

Nicole is a content writer at StoreYa with over sixteen years experience and flair for storytelling. She runs on a healthy dose of caffeine and enthusiasm. When she's not researching the next content trend or creating informative small business content, she's an avid beachgoer, coffee shop junkie and hangs out on LinkedIn .

Recommended articles

business proposal for online clothing store

Powered by Facebook Comments

One Response to Start a Successful Online Clothing Business in 7 Steps [2023]

' src=

Really enlightened

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Looking to scale your business?

Get google ads hacks for free (used by our 400k customers), get content that converts to sales, join +100,000 of your peers.

business proposal for online clothing store

Get the latest content First Join +50,000 of your peers

MyOwnBusiness Institute

Free Online Business Courses

For everyone, forever..

Alert icon Fortune Magazine features MOBI! Visit  "Learn to launch your own business in this free online course from a top business school," by Sydney Lake, posted January 12, 2023.

2023 Courses are NOW OPEN for Enrollment with Exciting NEW Curriculum!

Illustration of rocket taking off

MOBI’s popular free online business courses have been updated for the new year and are open for enrollment. Our Starting a Business course features THREE updated sessions with NEW content: The Business Plan , Business Risk and Insurance , and Cash Flow and Accounting . We are also excited to introduce the newest version of our FREE MOBI Business Plan Template , to make it easier than ever to put your ideas on paper and take the first steps to starting your own business!

MOBI’s courses include: Starting a Business , Business Expansion , Quick Start Entrepreneur , and the Sales & Marketing Badge Short Course . No fees, no prerequisites, go at your own pace! 

Learn how to start your own business!

Two ways to learn:, enroll:  choose among four entrepreneur courses and earn a certificate of completion in just 20 hours from santa clara university.  , browse: 36 topics to find answers to your most immediate business questions. ,   , mobi is your free starting a business resource.

MOBI's content and curriculum are free, for everyone, forever, thanks to the generosity of our founders Phil & Peggy Holland. The mission at the My Own Business Institute (MOBI) is to start businesses that create jobs and build communities by providing education to aspiring entrepreneurs around the world. Read more about the Holland's lifelong commitment to helping others in Our Story .

Here are the steps you can take to learn with MOBI:

In addition to the course curriculum, MOBI provides more content on our Resources & Tools page including MOBI blog posts, MOBI alumni Success Stories, and more.

You do not have to enroll to view the MOBI content! The curriculum is also available on our website to make it easy for you to find the information you need. However, in order to earn a Certificate, you do need to be enrolled in a course. 

Have questions? Visit our  Frequently Asked Questions page or send us an email to [email protected] .

Photo of bike mechanic


Certificate courses login.



Fashion Design summer camp for Kids and Teens

Have you ever watched a toddler sashay down the runway in their mom’s high heels or dad’s coolest tie? DesignX taps in to children’s natural desire to express themselves through clothing in fun and stimulating environment that encourages creative visioning, self-expression and embodies true "design thinking."

Students will learn how to ideate, sketch, sew and embellish his or her own stylish wearable product, while laying a foundation of practical skills that will last a lifetime. 

Kids have fun choosing materials that define their collection, read and customize patterns, learn pinning, cutting, hand and machine sewing and embellishing and finally showing off their creations at a fun fashion show at the end of camp. The Fashion Design curriculum is offered at three different levels based on grade level ( we recommend atleast two years in each level) , offering opportunity for growth and skill building as students rise up the levels.

DesignX I Summer Camp

Fashion Design I

In this week long program, developed for the youngest fashionistas, students learn how to take a simple garment, usually a bottom (skirt or shorts), from concept to completion, with an emphasis on design, individual expression and fun. Paired with Fashion-upcycling , students will learn to create the entire look and vision with coordinated separates and accessories that are often re-purposed from materials otherwise destined for the landfill.

what do students learn in fashion design i?

Students learn to develop their unique creative voice while reflecting on their interests, needs and wants.

Learn fashion history, the life cycle of a garment and basic art concepts as they relate to apparel design.

Develop an appreciation for clothing styles seen around the world, the influence of weather, culture, traditions and norms.

Learn basic skills in construction as they explore age-appropriate techniques in sketching, measuring, hand and machine sewing and embellishing.

Build confidence as they use their natural 'cat-walk' to share and show-off their creation in a fun fashion show.

Fashion Design II

A perfect step up for our slightly older budding designers. In this full-day session campers learn how to take a slightly more complex garment (a top) from concept to completion in a creative, fun-filled setting. Students may work on more advanced sewing techniques like curves and darts and receive additional design challenges to stimulate their creative energies … Project Runway style …building confidence and independence on the machines. Prior sewing experience not necessary. Instruction and supervision will be adjusted to the skill level of each of the students.

DesignX I Summer Camp

what do students learn in fashion Design II?

Students will learn to fine tune their unique creative voice, that began in FDI, as they further explore their changing interests, needs and wants.

Focus on details in fashion history, that were inspired by major events, understand some of the art concepts as they relate to apparel design.

Study the work of famous designers and have fun examining clothing and costumes from around the world, the influence of weather, culture, traditions and norms.

Develop, confidence and independence on the machines as they re-enforce their learnings from prior years.

Continue to build confidence as they start to experiment with their 'cat-walk', sharing and showing-off their creation in a fun fashion show.

DesignX I Summer Camp

Fashion Design III

Designed for older students, our middle schoolers, this session is ideal for the more confident fashionistas who are ready to spread their creative wings and want to hone their technical and practical skills. They are challenged to design a full garment - a dress or a romper, maybe a jumpsuit for the more ambitious types. Students will have the opportunity to work more independently and have a greater role in the success of their creations. Prior sewing experience not necessary. Instruction and supervision will be adjusted to the skill level of each of the students.

what do students learn in fashion design iii?

Fine tune their unique creative voice, that began in FDI, as they further explore their changing interests, needs and wants.


We love how the camp teachers and counselors are so nurturing and knowledgeable. When the kids make mistakes, the teachers would show them how to redo the stitches and let them redo the stitches. My kids said that was hard for them in the beginning but the extra practice gives them confidence in executing what they have learned.

My husband and I are both professional designers. The design process taught at DesignX is great. The kids work through an iterative process that relates to what designers do in the real world.

-Jennifer D., Mountain View

This is a great summer camp for creative kids. My daughters have returned over the years for various modules, loved all of them and used/worn what they have made with pride long after camp ended. The instructors are knowledgeable and great with kids. It's a wonderful camp to foster creativity and a "maker" mentality. Love it!

-Mona E., Los Altos

Copy of Fashion Design

Instructor Feature


Julia Lichtenstien

a resident designer for Gap, Inc. has this to say:

“Creativity to me is being able to express ideas you have within yourself. I first fell in love with design when I started attending a sewing camp in 2nd grade and have been sewing and designing ever since.”

Note: DesignX instructors are often working professionals that are thoughtfully selected to lead our classes. As such, instructors for any given class may change based on their availability.

Frequently Asked Questions

+ how can kids become fashion designers.

To become a professional Fashion Designer we recommend students attend a college that offer programs in Fashion and/or related fields. The depth of knowledge you gain from college courses is highly valuable to carve out a successful career in the Fashion space. DesignX Company is one of the first organizations to offer a structured program in Fashion Design for kids and teens (K12). Our age appropriate curricula have been developed by a former Fashion Designer and honed from over a decade of teaching kids in Bay Area, CA. If you have a child that is begining to explore Fashion either for the art element like fashion drawing, enjoys tinkering, making or sewing, loves the beauty, glamor and cat- walking you are in the right place. Your students will have plenty of opportunities to explore a passion and develop some serious skills in designing and making by attending our programs over their school years, even if just over summers. Many of our students got hooked through our summer programs and have gone on to pursue creative fields in college. Enjoy reading about two of our talented and budding fashion designers Amanda and Eva .


  1. Business Partnership Proposal Templates for Word

    business proposal for online clothing store

  2. A Sample Baby Clothing Retail Store Business Plan Template

    business proposal for online clothing store

  3. Clothing Store Business Plan Template]

    business proposal for online clothing store

  4. Free 7+ Sample Retail Business Plan Templates In Google Docs inside Clothing Store Busi

    business proposal for online clothing store

  5. Online Clothing Brand Business Plan Template [Free PDF]

    business proposal for online clothing store

  6. Proposal Bisnis Plan Fashion

    business proposal for online clothing store


  1. Guidelines on Business Appropriate Attire

  2. Business Proposal

  3. The reality of being a business owner 😅 #shorts #handmade #outfit #fyp #style #fashion #bridesmaids

  4. Big Lots is Celebrating Presidents’ Day with a Salute to Savings!

  5. Business Proposal



  1. How To Start An Online Clothing Store

    Choose a Name and Register Your Business Step 3. Source Your Products Step 4. Create Your Website Step 5. Market Your Online Clothing Store Frequently Asked Questions Show more Starting...

  2. How to Start a Clothing Business with No Upfront Inventory Costs

    1 How to Start a Clothing Line or Brand in 2021: 10 Steps 1. Identify a Need in the Market 2. Identify Your Target Audience 3. Write Your Clothing Line Business Plan 4. Start Designing Your Own Clothing Line 5. Find a Clothing Manufacturer 6. Build Your Clothing Brand 2 7. Choose a Price Point for Your Items 3 8. Begin the Marketing Process 4 9.

  3. Clothing Boutique Business Plan Template [Updated for 2022]

    The cost of opening a clothing store varies depending on the size and location of your store. Leasing a retail space costs more in certain geographic areas than others. The average initial cost of opening a store can be anywhere from $48,000 USD to $150,000 USD, and this figure doesn't include an upfront payment of first month's rent or utilities.

  4. Clothing Store Business Plan Template & Guide [Updated 2023]

    A business plan provides a snapshot of your clothing store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans. Why You Need a Business Plan

  5. The Best Sample of Business Plans for Online Clothing Stores

    To support your Online Clothing Store business plan, you will be provided with the following financial tables in the form of graphs for two and five years: revenue breakdown, cash balance, operating cash flow, EBITDA, and EBIT. Amortization Schedule for a Loan

  6. Clothing Store Business Plan Template

    Below are links to each section of your business plan: 1. Executive Summary - This section provides a high-level overview of your business plan. It should include your company's mission statement, as well as information on the products or services you offer, your target market, and your company's goals and objectives. 2.

  7. Online Store Business Plans Sample 2023

    In your online retailer business plan you should evaluate the technical, financial, and human resources you have at your disposal. And then construct a way to utilize and manage these resources in the best way possible. Here, you will find guidance on how to make a business plan for an online store.

  8. Clothing Retail Business Plan [2023 Edition]

    The clothing store business plans will procure and resell stitched and unstitched fabric from American, Hispanic, Latin American, and Mexican brands and fashion designers. In the initial phase, the company will purchase the clothes from the following manufacturers: Richemont, Armani, Chanel, Hermes, and Gucci.

  9. Clothing Store/Boutique Business Plan [Sample Template 2021]

    A Sample Clothing Store Business Plan Template 1. Industry Overview One of the reasons why clothing store (boutique) business will continue to thrive is the fact that people can't do without putting on clothes.

  10. Clothing Line Business Plan

    5.7 OPERATIONS. As a retail establishment, Booming Boutique will conduct business seven days a week from 10 a.m. to 6 p.m. Monday through Thursday, from 10 a.m. to 8 p.m. Friday and Saturday, and 12 p.m. to 6 p.m. on Sunday. During the holiday seasons and during special events, we will extend store hours.

  11. 5+ SAMPLE Clothing Store Business Plan in PDF

    The business description for a clothing store is a business that sells ready-to-wear clothing. A business plan is a written document that details how a company, usually a startup, defines and aims to attain its goals. A business plan lays out a written course for the organization from a marketing, financial, and operational standpoint.

  12. Clothing & Accessories Retail Business Plans

    Give your fashion-forward retail dreams the best chance at success with our clothing and accessories sample business plan. This downloadable plan will give you the tools necessary to start a successful store for online or in-person shopping. If you're looking to develop a more modern business plan, we recommend you try LivePlan.

  13. Clothing Retail Business Plans

    Specialty Clothing Retail Business Plan Chicano Stylez is a dazzling clothing and accessories store aimed at the growing Chicano/Hispanic population in Eugene, Oregon. Sports Clothing Retail Shop Business Plan Male Gear Wear is a men's aerobic sports retailer based in Ashland, Oregon.

  14. Online Fashion Store Business Plan

    Business Plan for setting up an online fashion store in lebanon What is required; - Detailed Business Plan with steps and timelines on how to set up a professional online fashion store in Lebanon - Market gaps - any niche apparel that you identify? - Name recommendations for the store - Average apparel product pricing in online stores in Lebanon I.e. tops, shirts, skirts, dresses - How to ...

  15. Start a Successful Online Clothing Business in 7 Steps [2023]

    With reaching $759 billion in 2021 and predictions it will reach over $1 trillion by 2025, there is a lot of potential online business within the fashion industry to cash in on. However, starting a successful online clothing store is more than just buying a domain and placing a winning eCommerce ad.

  16. Online Clothing Store California Clothing

    35678 Online Clothing Store California 94541. DeRobertscGuxyz luckdasZoun. Starting my own Alameda County. Click Here to Get Your Seller's Permit Online. Online Clothing Store California small new business. Where to get Hayward Retail Trade Clothing seller's permit.

  17. Free Online Education to Start Your Own Business

    We are also excited to introduce the newest version of our FREE MOBI Business Plan Template, to make it easier than ever to put your ideas on paper and take the first steps to starting your own business! MOBI's courses include: Starting a Business, Business Expansion, Quick Start Entrepreneur, and the Sales & Marketing Badge Short Course.

  18. Informal Request for Proposal

    Informal Request for Proposals available - September 16, 2020 . Informal Proposals Submittal Deadline -October 14, 2020, 4:00 p.m. Review of Informal Proposals - Week of October 19, 2020 . Notification of Selection - Week of November 2, 2020 . Commencement of Program - November 9, 2020, or sooner

  19. DesignX

    Fashion Design II Grades 4-5. A perfect step up for our slightly older budding designers. In this full-day session campers learn how to take a slightly more complex garment (a top) from concept to completion in a creative, fun-filled setting.Students may work on more advanced sewing techniques like curves and darts and receive additional design challenges to stimulate their creative energies …