Clothing Store Start Up Costs

Clothing stores are considered as part of the enormous kind of industry. It is already given and implied that clothing is one of the basic needs of man and it is true that everyone buys it. The only problem in this type of business is that clothing stores are most of the time expensive to open and at the same time complicated to operate.

If you know the cost of starting a clothing store, it would definitely help you be prepared with the decisions you will make for that business.

Cost of Physical Space

You must be able to determine the cost of the physical space. This cost will definitely depend on whether you are going to buy or rent the said space. If you are going to buy the space, make sure that all the necessary documents are legally complied with and the space is physically well maintained. This is essential because once you already bought the space, it is already your responsibility to maintain the space and if ever you intend to change the appearance of the space, it is already at your own cost. If you intend to rent, it is also essential that the space you are going to rent is in good condition and that proper documents should be prepared so that you will not be able to encounter any conflict with the owner of the space your rented. You must calculate the average cost of the area and try to compare it later on.

Insurance Cost

You must also calculate the approximate insurance cost of your business. It will depend on the kind of insurance you are going to avail. It must be born in mind that the entire store inventory should be covered by the insurance and also the equipment you use inside the store. The cash registers, the computers, the clothing racks. Price guns, office equipment, and other things you use inside the store should be covered by your insurance. You must also include in your insurance the liability needs whenever there is a customer accident. If it so happen that you own the building, you also need to include the said building in your insurance. If you successfully do this, you will be able to have a peace of mind if you already start operating your store. Your things and the money you gain are all insured because of the insurance you have.

Cost of Inventory

You must find out the inventory cost. You have to call the distributors of your clothing and the label companies who supply you with the clothes you sell. This way, you will find out the approximate cost of the different types of clothing and from there, you will be able to price them according to the inventory price that the distributors provided you with.


Add also the cost of the payment of the employees you have. You must know how many employees you are going to hire. Remember that each of these employees will have to be paid and it is better that you give them some sort of benefits.


  • A. Kayatri devy said on March 24, 2011
    I am put up at Neyveli, Cuddalore District, Tamil Nadu, India. I wish to start a business in the budget of 10 lakh rupees. Which would be the ideal business for this area? Kindly guide me.
  • Raghunath expert adviser said on March 25, 2011

    @A. Kayatri devy, I have less knowledge about the area but you can see around and figure out. If you think you will be able to start a business like others in 10 lacs or even better than them then you are all set. If you have a store place then it is better else try to go on a monthly lease till you know that the business is going well and you can extend the lease to yearly basis.

    Raghunath Natarajan
    Startup Biz Hub - Advisor (Staff)

  • Kala Nair said on January 13, 2014
    I am based in Pattazhy, Kottarakara in Kerala. It is my dream to start my own store, a departmental store. But I don't have a idea how much investment I will need and what all I should know to get going. Can you help me? Thanks.


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