How to Start a Specialty Suit Store

Start a Specialty Suit Store by following these 10 steps:

1. Plan your Specialty Suit Store
2. Form your Specialty Suit Store into a Legal Entity
3. Register your Specialty Suit Store for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Specialty Suit Store
6. Get the Necessary Permits & Licenses for your Specialty Suit Store
7. Get Specialty Suit Store Insurance
8. Define your Specialty Suit Store Brand
9. Create your Specialty Suit Store Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Specialty Suit Store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Specialty Suit Store?

As mentioned previously, the right location is critical for this kind of business. You need to be relatively close to the customers you wish to attract. You also need enough space for storage and a tailor's workshop.

Start by pricing the rents on boutique-size shops or storefronts. Rent prices can vary considerably, depending on location, but $17-20 per sq ft will get you in the ballpark for pricing. Build-out costs to furnish the space will double or triple this cost.

Next, you’ll need to consider your stock clothing costs. Contact various clothing and fabric manufacturers to secure sales and distribution deals with them. Stocking your store will be a considerable amount of the initial cost. You can also include equipment costs, such as cash registers, sewing machines, and presses. You’ll need to decide how much you will do in-house or as subcontracted work. If you subcontract tailoring and sewing or cleaning work, you’ll cut materials and equipment costs, but you’ll pay it back in service fees to your business partners.

You’ll need to factor in the costs for registering your business with the proper licensing, permits, and insurance. If you have employees, add in their salaries and insurance costs as well.

Advertising and communication services, such as phone and internet, are also an important cost for getting up and running. You’ll need a website built, along with the hosting fees to keep it updated. Additionally, you’ll want to develop an ad blitz to let customers know you are available and show the services you offer. Additionally, you need signage in and around your store, such as window displays, billboards, and a store sign.

Cleaning and janitorial services may be required, depending on the size of your business. You should also have a fund for legal services, as a personal lawyer or legal council is suggested for new entrepreneurs.

Finally, always leave something in the budget for extras and incidentals. It’s always better to have a cushion to fall back on, if possible.

What are the ongoing expenses for a Specialty Suit Store?

Most ongoing expenses will pertain to rent and utilities, insurance, and tailoring/sewing supplies, as well as re-stocks of ready-to-wear clothing and accessories. Once you’ve established your business, overhead costs are minimal for the most part.

Who is the target market?

Business professionals and fashion-conscious shoppers will constitute a bulk of your market. Age ranges can vary from the mid 30s to the late 60s/early 70s.

How does a Specialty Suit Store make money?

Specialty suit stores generate revenue through the sales of suits, dress shirts, and other formal accoutrements. Specialty stores also make money through the tailored alterations done on each client.

How much can you charge customers?

Specialty suits can be pricey. But, since a good suit is designed to see years of wear, customers understand that quality costs money. Tailored suits start around $400 and can quickly reach four figures. Some customers may purchase already constructed suits, which you then tailor to their measurements. This process won’t be as labor intensive and will cost less. Either way, most boutique stores begin with a 50% markup on goods and services.

Measuring, patterning, and tailoring a complete custom suit requires time and precision. This process will cost considerably more and may incorporate some unique requests from the customer. A truly custom suit can cost $5,000 or more.

You may not strive to be the most expensive, but you definitely shouldn’t undercut yourself on profit, either. Your time and efforts should show your attention to detail and commitment to customer service. Equally, your time and efforts should be compensated.

How much profit can a Specialty Suit Store make?

Specialty suit stores, like most boutique businesses, will see some ebb and flow of revenue, often seasonally. Custom suits can command a significant price, and most customers in this market will understand that they must pay more for a custom piece.

How can you make your business more profitable?

If you or a business partner are a gifted tailor or seamstress, consider offering alterations and custom sewing work on items other than suits.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Specialty Suit Store is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Entrepreneurs who are trained or experienced in business management, customer service, and fashion tailoring should consider this career.

What happens during a typical day at a Specialty Suit Store?

A specialty suit store, as the name implies, fits customers in specialty suits. Everything from tuxedos to semi-casual sport coats and blazers are being fitted to each customer’s unique dimensions.

What are some skills and experiences that will help you build a successful Specialty Suit Store?

Owning and running a specialty suit store takes an equal amount of business and fashion sense. Prior retail or business management experience is recommended. Customer service experience is also an important foothold for starting your climb. Understanding how to dress different body types as well as different personalities is also critical to success. Your knack for tailoring and spotting fashion trends will also be on display and should be one of your defining characteristics.

What is the growth potential for a Specialty Suit Store?

Specialty suit businesses can find success in the right sales markets. Well-tailored professional fits are always popular. Research the area in which you’re considering starting your business to assess competition and customer interest. Find a location with less competition and a demand for tailored suits. Then, cultivate your loyal customer base for sustainable growth.