Business Idea

Start A Boutique

About

Starting a boutique requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell boutique items, or selling boutique items online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a boutique ➜

Key stats

market size
$18.4B
revenue (monthly)
$33K
starting costs
$42.1K
gross margin
8%
avg product price
$100000
time to build
10 months
growth
Press
business model
E-Commerce
time investment
Side project
work from home?
Yes

About

Starting a boutique requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell boutique items, or selling boutique items online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a boutique ➜

Key stats

market size
$18.4B
revenue (monthly)
$33K
starting costs
$42.1K
gross margin
8%
avg product price
$100000

 

time to build
10 months
growth
Press
business model
E-Commerce
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $4,786
Other Expenses $0 $300
Total Startup Costs $9,204 $74,747

Successful Businesses

Business URL Rank
White Fox Boutique whitefoxboutique.com.au #11,770
Women Clothing peachmode.com #32,465
Pauls Boutique paulsboutique.com #77,500
Beginning Boutique US beginningboutique.com #133,021
Charcoal Clothing charcoalclothing.com.au #204,920
Hazel and Olive Boutique hazelandolive.com #293,081
Clad & Cloth cladandcloth.com #365,604
Stelly stelly.com.au #392,005
y&i clothing boutique shopyandi.com #408,950
Kiran's Boutique kiransboutique.com #498,791
Boutique Keva boutiquekeva.com #504,602

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Meaningful business connections You never know who you will meet as a boutique. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the boutique, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Pick & choose the clients you work with Boutiquees have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A boutique can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your boutique are typically around 8%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the boutique, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
High overhead expenses With starting a boutique, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.