Purses are the fashion accessories that sell like hotcakes! Taking the calorie-count into account, they perform even better. They have been highly popular among females since ever. As the gender norms are softening in the US, more American men are carrying bags without fear of being mocked.
The purses and handbags deserve this popularity as they are highly functional accessories. One can carry cash, cards, cosmetics, documents, and a lot more. In the present scenario, consumers are indulging in frivolous purchases of handbags to jet-set in style. It is definitely a great time to start a handbag business of your own.
Before you begin, weigh all of your chances. It is good to know that only one-third of new businesses survive for longer than 10 years. You have to know what you are up against to beat all the odds.
Let us look at the essential steps to start a handbag business.
1. Create A Detailed Business Plan
Once you have weighed your options and found the perfect business idea, start with a detailed plan. You have to work out a working plan inclusive of all the realities to be a successful entrepreneur. It will help you to map out the specifics of your business at the beginning.
2. Set Your Target Audience
The first and foremost task is to define your audience. Is your target market has a substantial income? Do you wish to attract mid or lower-income classes? What age group would you serve?Find answers to all these questions.Once you are clear with your target market there are fewer chances of you missing those targets.
3. Choose A Location For Retail Store
Storefront is very important for specialty purses. Pick a suitable location for the retail sale of purses and handbags. The prime location must be at an attractive site to give a kick start. If you can’t find a suitable location right away, it is better to wait and hunt instead of opting for a less popular area.
4. Calculate The Initial Costs
The first investment should be calculated. The primary expense is the cost of the shop or the rent. You have to buy merchandise, to begin with. Some of the expenses include utility deposits, store décor, and design, DBA’s vendor’s license, in-store display items, and furniture.
You must not ignore the costs of computers, marketing items, opening events and insurance coverage.
5. Enlist the Ongoing Expenses
Other than the initial costs, enlist the ongoing expenses. You have to go through all the details of a running purse business to understand the ongoing expenses.
The expenses generally include monthly rents, utility bills, merchandise investments, marketing, and travel expenses. Decide about the number of employees and payrolls.
6. Form a Safe Legal Entity
You have to choose e legal structure for your small business. It is safe to establish a legal business entity such as an LLC. Doing so prevents you from being liable if the store gets sued. You can choose from different structures such as LLC, Corporations, and DBAs.
7. Open Business Accounts
If you want your business assets protected, use a dedicated bank account. Business bank accounts and credit accounts prevent the mixing of personal and business assets. It further protects your personal assets such as a home, car, and other valuables from being sued in any legal case against the store.
8. Register For The Taxes
Before you can run a business, you need to register for various state and federal taxes. It is suggested to meet a tax professional so that you don’t break any rules. The basic purpose is to require your EIN from the IRS website.
9. Permits And Licenses
If you want to avoid hefty fines, acquire the necessary permits and licenses from authorities. The failure to do so can even cause your business to shut down.
You may need state-specific permits and licenses. Check the local clerk’s office for the information. You can also request assistance from local organizations.
10. Find A Wholesale Distributor
The next big step is to find a wholesale distributor. You can ask for recommendations or read online reviews about the distributors. You can also choose an offshore distributor. Get wholesale purses for resale at reasonable prices. It is suggested to shop around before making any deals.
11. Create A Handbag Niche
It is more like deciding the target audience. If you begin by specifying certain handbag niches for sale at your store, you will attract more customers. You can gradually expand the available options.
12. Train And Hire Staff
One cannot run all the errands on their own. You are going to need some staff members or employees to run a retail store. Train your staff with work ethics and customer care standards.
13. Promote Your Business
An effective marketing strategy is essential for every business. Small businesses tend to ignore the importance of marketing, promotion, and advertisement. Get business cards printed, make a marketing strategy and use the power of the internet to reach potential customers.
14. Keep The Customers Coming Back
Either you sell the tote bags, handbags, clutches or safari bags, you have to keep the customers coming back. Maintain a clean environment with a well-mannered staff. Offer such deals to the customers which are almost impossible to ignore.
15. Establish A Strong Online Presence
Facebook, Instagram, and other social media handles are your best friends. Use these platforms to promote your business. Once you are successful in finding the best wholesale purses for ladies, post the product details and HD pictures.
Establishing a strong online presence is essential for steady growth. Connect to potential customers. Read all the reviews posted about your shop and use them as constructive criticism for your business.
16. Stay In Line With Accounting
Book-keeping is super important. You will not need the services of accounting firms for small businesses but hiring a competent accountant is crucial for a smooth flow of finances. So, plan well before you turn to a wholesale purse distributor. Best of luck!
