How to start a boutique business in Kenya
Have you always dreamt of opening your boutique? We have put together a 12-step guide to help you get started.
Opening your boutique can seem a little daunting at first. You can see the end goal clearly. You, selling your stylish designs in your very own store. But the process of getting there is still a little foggy.
Don’t fret. We’ve put together a complete, 12-step guide to help you start a boutique.
Step 1 – Come up with a brilliant idea!
First things first, you want to establish your niche. Maybe you have a specific style of clothing you want to sell, or you could have a target customer base in mind. This will help you discover your unique selling point (USP), which will differentiate your boutique from others. For example, you may want to only stock sustainable and ethical clothing. Or, maybe you want your boutique to sell stylish work attire.
Step 2 – Create a business plan
Once you have your initial idea, it’s time to start turning your dream into action. To do this, you’ll need a business plan. A business plan is a written document that describes your business. It’s essentially the foundation of your business, and without one, you’ll likely struggle to make a start. It covers objectives, strategies, sales, marketing and financial forecasts. Having a business plan is essential as it will help you to better understand your boutique, find potential problems, set goals and track your progress.
Step 3 – Source and apply for funding
Once your business plan is completed, you should have a better idea of the costs associated with starting your boutique. Your next step is to begin sourcing funding to help you pay for these costs. 79% of business failures are due to starting with too little money, so this funding could make or break your business. Some sources of funding for small businesses include small business loans, small business grants, family and friend loans, and crowdfunding.
Step 4 – Research the latest fashion trends
Fashion is constantly changing, and you want to ensure that the items you sell in your boutique are always on-trend. Staying current means continually researching and updating your inventory. You should have a great idea of all the latest trends in fashion throughout the year and keep an eye out for any seismic changes that could affect your business. You’ll also want to ensure that the styles and designs you use are relevant to your target customers. Magazine, fashion shows, trade shows and an online search should give you some great ideas of items to stock in your boutique.
Step 5 – Source your suppliers and manufacturers
Now that you know what clothing items you want to stock, it’s time to start finding suppliers and manufacturers. You need a source that will supply high-quality items for your boutique.
The first thing you should consider is whether you want to choose a domestic manufacturer or find an overseas company. There are pros and cons to both. Domestic suppliers tend to be a little pricier, but shipping time is usually a lot longer with overseas manufacturers. Look out for manufacturers that specialise in the items you have in mind. Remember to always ask for samples, as the photographs on their site might not be accurate.
Step 6 – Complete legal requirements
It’s now time to complete your legal basics, including choosing a business structure, following any regulations, and getting the correct permits required for your boutique. In Kenyan business, clothing isn’t strictly regulated, so you won’t need a license to sell your items. You are only required to obtain a city council permit to run your business.
Step 7: Price your products
Choosing the right price for your items will have a massive impact on your boutique’s success. A standard markup for retail fashion stores is around 56%. Put simply, take the amount you paid for the item and multiply it by 2.3. So, if you initially paid £34 for the item, you’ll sell it to your customers for £78.20.
Do keep in mind your target customer when pricing. For example, a prestige pricing strategy is expected if you’re selling designer goods to an older customer base. But if your target customers are younger, marking the price too high will likely drive them away.
Step 8: Find your store
If you’re opening a brick-and-mortar boutique, you need to focus on finding the best retail space. It may be tempting to opt for the cheaper location and hope your boutique brings in a steady flow of customers through marketing alone. However, being in a busier part of town is a great way to increase footfall. When choosing a location, think about where your target customers spend their time.
Step 9: Create a marketing plan
Your boutique is almost open. You’ve got a great range of inventory, all of the legal requirements have been met, and you’re preparing for your grand opening. Now it’s time to tell the world. Marketing is an essential part of building a successful boutique. There are many ways you can promote your business, from social media content and ads offering in-store promotions to hosting pop-ups before you move into your boutique.
Your boutique’s layout and displays are also a fantastic way to get passersby inside.
Step 10: Hire some help
Many business owners start on their own. But eventually, you’re going to want to hire some help. Running a boutique can be difficult, and having someone to assist you will make it a lot easier. Make a list of your operational policies, as well as what you’ll need your employees to do. Retail assistants tend to help with sales, cleaning and organising the store and marketing support.
Step 11: Launch your grand opening.
You’ve done it! You’re officially a boutique owner. All that’s left is for you to plan your grand opening. Now, you don’t have to spend a lot of money on the opening, but you do want it to be a big event. Reach out to your local papers and try to get some publicity around your opening. By securing media coverage before the event, you’ll likely have a lot more customers attending, resulting in many more items sold! Remember to offer a promotional deal, nibbles, or even drinks to get people excited about the event.
Step 12: Run your retail business with a winning retail POS system
When building a business, you’ll need strong foundations to support your growth. Point of sale (POS) systems work as the backbone of retail businesses for several reasons. Designed to work as a complete business management system, you can control all vital aspects of your company from one cloud-based system.
Receive detailed analysis on the areas that matter to your business:
- Filter sales reports by individual product, profit margin, trending items, or employee
- Multi-award-winning inventory management that syncs online sales and in-person sales for the most up-to-date stock levels
- Create your website or integrate with a fully loaded e-commerce platform.
- Automatic order purchasing once the stock falls below a certain level
- Customer management systems that save customer contact details and shopping preferences for more targeted marketing
- Integrations with over 100 apps, including marketing, accounting, bookkeeping, and loyalty program apps
- Employee management for more efficient scheduling and payroll
If you’d like to start a boutique business in Kenya, reach out to us at +254707280366 or send us an email at clientservice@afrilinkconsultants.com for expert guidance.
