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    1 Reply Latest reply on Sep 11, 2008 4:55 PM by Milleisen

    Start-up costs for a boutique

    Blessed_216 Newbie
      I am in the planning stages of a boutique.I am interested on a good number to start my business with.I have read that 25k-100k is a good range to work with.I am interested in finding out how much some other store owners started out with.How much of your own money?How much from loans?Friends and family?Also what are some good tactics for friends and family to take your venture seriously and become potential investors?
        • Re: Start-up costs for a boutique
          Milleisen Scout
          Hi Blessed - I'll save Luckiest a post and suggest that you meet with someone from SCORE or your local small business development center.

          As far as how much you will need, that really varies from business to business, so there is no rule of thumb. What you need to do is sit down and create some projections that show your expected revenues and expenses. The revenue part will be a stab in the dark, but you should be able to get your arms around the expenses a little better. Once you compile an exhaustive list of startup expenses, you should then add 30% because there will always be things that come up that won't occur to you.

          As far as how to finance it, you should definately put some of your own money in. Having sufficient equity upfront means no interest or principal repayment. Depending on how much you need, home equity loans, credit cards, friends & family are all typical funding sources. Most banks won't look at a startup without some liquid collateral.

          Before you sink money into your business, start small and test the concept. You can save a lot of time, energy, and money by testing the market. Try to sell you items at craft shows and flea markets first, and if the response is positive, then start thinking about renting space. The typical approach that many small business owners take is to close your eyes, hold your breath, and jump into the deep end...that's why 80% of them drown. TO give yourself the best chance, dip your toe in first to make sure that it will work.