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Starting a business requires planning and a proper source of funds to operate it without any hiccups. Similarly to start a boutique, you will need funds with a proper boutique business plan. These will help you take your business a long way and invest in its popularity which at last will help in expanding it. 

Creating a business plan can be easy, but having the required funds may not be easier. Hence, you can apply for a business loan after comparing the interest rates of various lending financial institutions.

Step-by-step Guide to Starting a Boutique Business

The steps to follow while starting a boutique business are as follows:

  • Step 1: Make a Business Plan

The first and most important thing you should do before setting up a boutique is to make a business plan. Without a boutique business plan, it will be very difficult to start and monitor its gains or losses. 

The business plan for a boutique should have the following: 

  1. Location of business

  2. Daily expenses and labour cost

  3. Number of workers required to manufacture and run business

  4. Source of raw materials

  5. Marketing plans and ways to increase sales

  6. Profit margin

  7. Funding options

  8. Business goals in the next few years

  • Step 2: Source Funds

Setting up a boutique business will require a good source of funding to operate. However, being a small business, it may not require a huge sum of money, but should be sufficient to cover all initial operational costs. 

You can always save a part of your income to generate this fund or borrow from your family or friends to start a boutique. Otherwise, you can apply for a small business loan or SME loan for boutique after comparing offers from various financial institutions on online marketplaces like Bajaj Markets. Additionally, before applying for an SME or MSME loan, make sure to check its eligibility criteria to avoid rejection.

  • Step 3: Study Customer & Competition

You should always remember that having just one set of skills will not help you survive in the market. Therefore, it is important to learn about your competitors and customers through proper market research. 

Knowing your customers' age, preferences, lifestyle, income level, fashion sense, etc. is important to provide them with clothes according to their taste. Besides, the weather of the area, the people in that locality, etc., will also give an idea about the fabric, design, and style to be selected. A market research on competitors will provide an idea about what the market is lacking so that you can fill in the gap. 

  • Step 4: Identify & Source Raw Materials

Now that you have a boutique business plan, funds, and a clear idea about your customers and competitors, it is time to start. For that, the first thing you will need is raw materials to start making the clothes. You will have to find manufacturers who will provide you with the required raw materials at great quality, but also at a reasonable price.

The first thing you can do here is ask for samples and start working with them to get an idea about their quality. After you ensure the quality, negotiate the price and start getting raw materials as per your requirement. However, it is advisable to make sure that only good quality products are used to maintain customer reliability.

  • Step 5: Find Vendors

When you have got the source of raw materials for your boutique, it is time to find a vendor to sell them. You can search for local vendors or those from a different city online. Moreover, by enquiring in local shops and manufacturers who sell a product like yours can help you find vendors. 

  • Step 6: Decide on Clothing & Accessories You Want to Sell

Think about the type of clothes and accessories you want to sell in your boutique through market research. Although half of this step will already be done earlier while getting an idea about your potential customers, it is still a vital step to follow. This is because market trends and customer demands change from time to time. Being a boutique owner, it is your responsibility to keep up with the trend and deliver products to your customers accordingly.

  • Step 7: Figure Out the USP of the Store and Naming

The name of your boutique and its USP should represent the market statement that differentiates it from its competitors. It also gives your boutique store a unique identification of its own and is an important part of the boutique business plan. However, while naming your boutique make sure that you do not use a name that has already been used or trademarked. 

  • Step 8: Select the Location

While choosing the location of your boutique, it is important to see whether it is easily accessible to your target audience. Initially, you might choose a small store, but make sure the location is near the main road to provide it with some publicity. 

Otherwise, you can also start from home or make it your warehouse to store raw materials and finished goods. It will save a lot on investments if you decide to sell online. Moreover, selling online will give you far greater reach than a physical store.

  • Step 9: Store Layout & Design

The layout of your store including its interior is again an important part of your boutique business plan. It should have a signature appearance which goes well with your brand name and USP. Customers should feel the vibe and energy of your designs after visiting your store. Most importantly, your boutique store should have a trial room for the convenience of your customers.

In case you sell online, your website will be your store. Therefore, invest in creating a website to showcase your collection following the principles above.

  • Step 10: Hiring of Staff

To run a store you will need to hire staff, who will take part in all procedures, from manufacturing to selling. This is a part of the small boutique business plan, where you will also need to decide the wages of the staff members. Other than this, decide the number of staff required along with their roles.

  • Step 11: Marketing & Promotional Activities

Social media is always a great platform when it comes to marketing and promotional activities. Uploading pictures and short videos of your store collection on these platforms will help in lead generation. This will then turn into reliable customers. Besides, you can collect contact numbers or e-mail ids of your customers and send them notifications about the newest arrivals and planned discounts.

  • Step 12: Legal Registration & Compliances

It is important to register your business under a proper legal structure. You can register it under a sole proprietorship, partnership, or a private limited company. This is important as it will help in obtaining funds and spreading your business by establishing more branches in addition to maintaining legal compliance.

In addition, as it is a store, you must get the Shop and Establishment Act registration from your respective state. Along with this, it is mandatory to get a Permanent Account Number (PAN) and a GST Number for your boutique store. You should also purchase an insurance policy for your store to protect it from theft, fire, etc. All these must be a part of your boutique business plan.

Read More

Comparison of Business Loan Interest Rates Offered by Top Banks/NBFCs

Our Partners
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Minimum Interest Rate
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Maximum Loan Amount
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Maximum Loan Tenure
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Ambit Finvest

20% p.a.

₹50 Lakhs

36 months

4.4
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AYE Finance

28% p.a.

₹2 Lakhs

36 months

4.2
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Bajaj Finance Limited

9.75% p.a.

₹30 Lakhs

72 months

4.8
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FlexiLoans

12% p.a.

₹50 Lakhs

36 months

3.9
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IIFL Finance

18% p.a.

₹30 Lakhs

60 months

3.9
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InCred

20% p.a.

₹3 Lakhs

48 months

4.1
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Indifi

16% p.a.

₹50 Lakhs

36 months

3.8
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KreditBee

15% p.a.

₹4 Lakhs

9 months

3.9
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Lendingkart Finance Limited

12% p.a.

₹50 Lakhs

36 months

4.3
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Protium Finance Limited

1.25% p.m.

₹50 Lakhs

72 months

4.0
View More

**Disclaimer: The interest rates mentioned in the above table are subject to change. For further information, please contact the lender.

Eligibility Criteria for Getting a Business Loan to Start a Boutique

It is very common to apply for a business loan while making a business proposal for a boutique. Here, the eligibility criteria to get this loan easily without facing any rejections are as follows:

1. Nationality: Indian and Non-NRI

2. Age: 25 to 65 years 

3. Employment:

  • Self-employed individuals

  • Self-employed professionals including doctors, chartered accountants, etc.

  • Self-employed non-professionals including traders, manufacturers

4. Business type: Sole proprietorship, partnerships, limited liability partnerships, or private limited company

Documents Required for a Business Loan to Start a Boutique

After meeting the eligibility criteria, it is time to collect the necessary documents needed to apply for a business loan to start your store. This is again an important part of the online boutique business plan. The documents required to get this loan are as follows:

  • Identity ProofPAN card, Voter’s ID card, passport, or driving licence 

  • Address ProofAadhaar card, passport, lease agreement, or utility bills 

  • Bank statement for the last 6 months

  • ITR form 

  • Balance sheet, and Profit and Loss (P&L) statement for the last 2 years

  • Work strategy

  • Store location map

  • Sewage attachment and water connection facilities

  • Trade authorisation certificate or authorisation for a clothing store

  • Plan certificate for the Boutique or listed architect's safety certificate or completion (soft copy)

  • Partnership agreement's proof (if any)

  • Sole Proprietorship Declaration (if any)

  • Certified copy of Memorandum and Articles of Association (if any)

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How to Apply for a Business Loan to Start a Boutique at Bajaj Markets

Now that you know about the eligibility criteria and all the important documents required, it is time to apply for a loan. The steps to apply for a business loan to Start a Boutique at Bajaj Markets are as follows:

  • Step 1: Go to the ‘Business Loans’ category, in the ‘Loans’ section, and click on the ‘Apply for Business Loans’ option.

  • Step 2: Start filling out the application form which includes details like name, DOB, mobile number, profession, address, etc.

  • Step 3: Click on the ‘Check your offer’ option to go to the next page.

  • Step 4: Here, you will find loan offers from a list of lending financial institutions. Analyse the data and select a lending partner.

  • Step 5: Choose the loan amount and the repayment tenure as per your convenience.

You will receive the loan amount after the application verification.

FAQs for Boutique Business Plan

Can boutiques function via online?

Yes, it is possible for you to make your boutique store function via online. For this, you will have to create a website in which you showcase all your collections, their prices, discounts, etc.

If the fashion platform is online, will it be profitable?

If you are successful in setting up your fashion boutique store online, it will be much more profitable in terms of investments. You will not have to set up a separate store for the boutique and invest in its maintenance. This way you can save a lot on building your boutique store, which you can use for purchasing more raw materials and increasing your stock.

What kind of staff is required in a boutique business?

While employing staff members in your boutique business, it is necessary to look for people who have experience in certain fields. The required fields are tailoring, dress designing, production department, operations, administration, stylist, customer management, etc.

What permission or licence do you need to start a boutique?

The mandatory permission or licence that you should get before starting a boutique store is the ‘doing business as’ licence (DBA) or ‘fictitious name’ licence. This is necessary for your store even if it is registered as a sole proprietorship, a company or a partnership firm.

How can a boutique be successful?

The success of a boutique is possible if you understand its role in the market and make a boutique business plan accordingly. Every market has some gap in terms of customer demand and supply, which will fetch you a lot of reliable customers if you successfully address them. Moreover, being consistent in bringing new products, understanding customers' demands, proper marketing, etc., will also play important roles in its success.

What qualifies as a boutique?

A boutique is a store selling a unique assortment of stylish clothes, accessories, shoes, and more. It is usually set up in a little store or within the speciality section of a big store. You can also set up the store online to serve personalised experiences to customers.

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