how to start a formal wear rental business

Hhow to start a formal wear rental

Paying hundreds of dollars for a prom dress that's only worn once can break a high school girl's budget. Weddings dresses take prices to the extreme of thousands of dollars. Take advantage of those smart shoppers who have other priorities. It's been acceptable for men to rent tuxedos for years. Offer formal wear to women as well. You'll need a sense for fashion and a nose for business.

Build your inventory. You could buy formalwear from wholesalers to stock the store, but you'll be paying full wholesale price. Another less costly option is to buy the formal wear second hand. Put offers on classified advertising sites. Scan those ads by city as well. If you see dresses for sale make an offer that's substantially below the asking price. Scout second hand shops, consignment shops and outlets. Inspect the formal wear for wear and tear. Make any repairs necessary. Clean the garments. Press and put on hangers. Organize by size and then by color.

Lease a retail location. A first and last month's rent plus security deposit is usually required. Keep in mind that when you sign the lease you are obligating yourself to pay the rent for the entire life of the lease. In most cases your personal credit report will be reviewed by the lessor. Consider locating your formal rental shop with other formal wear stores.

Renovate the space with dressing rooms, rounds and racks. Consider offering some items for sale, such as jewelry, shoes and evening bags. When offering bridal wear have a three way mirror available and a movable mirror so the bride is able to view the back of the dress as well as the front.

Obtain the required licensing, such as a corporation name registration, business license, sales tax or privilege license. The business development office in your state will tell you specifically which licenses and registrations are necessary. An Employer Identification Number is necessary to report withholding to the IRS as well as FICA and any state taxes. Get the EIN from the Internal Revenue Service office or website.

Hire employees to staff the store when you're not available. Most shopping malls require the stores to be open when the mall is open. That may be from 9:00 AM to 9:00 PM, Monday through Saturday and from 11:00 AM to 5:00 PM on Sundays.

Develop a marketing plan. Your potential customers include high school girls going to their prom or other formal dances, brides, bridesmaids, and those attending formal events such as weddings, charity dinners or formal celebrations. Design a website. Even though you have a bricks-and-mortar store a website is still necessary. Many customers use the Internet to search for products. ZDNet states that nearly 80 percent of Internet users rely on the Internet for product research. In many households search engines have replaced the yellow pages. Exhibit at wedding and women's trade shows. Place advertisements in the fashion section of the newspaper.

Offer cookies, cake, punch and sparkling cider in champagne glasses at your grand offering. Appetizers are a nice touch as well.

Retire gowns and other formalwear that have seen better days to a charity rather than trying to get one more wearing out of them.