39.CLOTHING BUSINESS

Buying any business is a serious undertaking, and must be entered into with caution and a thorough understanding of the business in question. Yet, buying an established business can provide the buyer with a head start not always available to those starting their own business from scratch. In the case of a clothing business, those advantages include a clientele already committed to buying, an inventory already on display or in stock, a property already outfitted for the purposes of selling clothing, and a familiar location which continues to be accessible to those in the area. In addition, a clothing business has the advantage that every person requires clothing, and can expect to spend a significant part of their income on that clothing. Therefore, a clothing shop has a large market at its disposal to begin with.

For those who are considering buying a clothing shop, those advantages must be weighed against several other important questions that must be explored before a final decision is made. First, one must ask why the current proprietors are selling the shop. Are they simply trying to get out from beneath an unprofitable investment? Have the demographics of the area changed since the shop’s original establishment; i.e., have customers declined or crime risen? A buyer must look carefully at this matter, as it is possible that the seller will not volunteer such information. There are, however, good and acceptable reasons, as far as the buyer is concerned, for a current owner to sell a clothes shop. Perhaps they are retiring, or perhaps they need to liquidate their assets in order to pay medical or tax bills. Neither of those reasons reflects upon the shop itself, and can be considered acceptable reasons to divest oneself of an otherwise profitable shop.

Next, the buyer should look carefully at the area and do his or her own demographical research. What is the projected future for this neighborhood or district? Who can be expected to buy the clothing being sold in this shop in the next year, five years, or decade? If the population seems to be aging, can inventory be acquired which will serve that population? If young families are moving into the area, can that very different inventory be easily acquired? The buyer should consider whether the projected demographics are those which he is capable of serving; for example, if the ethnic makeup of the area is projected to change, will the buyer be able to meet the clothing needs of that new cultural presence? The buyer should also determine whether it has been customary for the shop to sell designer clothing or more economical brands and styles, and whether he, as the new owner, will continue in that tradition. That determination will rest in large part on the disposable income of those in the district surrounding the shop.

Owning any business is a significant investment, and the buyer must ask himself if he is willing to put in this kind of work knowing that he risks not turning a profit for a year or more. So he must discern, while he is till making the decision whether to buy a clothing shop, whether he is suited to this business. Is he cut out to be a clothing shop owner.If the buyer determines that the business is a good investment, that he is able to purchase it, and that he would like to do so, a clothes shop can prove to be an excellent business opportunity.