How To Start Boutique Business in India
A boutique is an establishment that sells items like clothing, accessories, and fabric. In 2020, the Indian textile market was worth $150 billion. Due to an exponential growth rate, it is expected to grow to $220 billion by 2026. The boutique business is quite profitable in India as there has been a rise in demand for quality apparel. For one who wants to start a boutique business in India, it is important to have a foolproof business plan for a boutique.
Starting a boutique business in India is quite a profitable venture since the cloth industry is very diverse, with a wide array of items and changes rapidly. Online retailing has proved to be very helpful for small retailers.
A boutique may be operated by only one person and doesn't need much funding. Starting a boutique business in India typically requires an investment of Rs 200,000 to Rs 500,000. However, getting a loan for the same gets really difficult due to several factors, including the lack of a proper business plan for a boutique.
If you have a solid business plan for a boutique, you can get a loan or seek investment from venture capital funds. Here are a few things you need to start a boutique business in India:
A Boutique Business Plan
Making a business plan is the first step while starting a boutique business. The boutique business plan serves as a blueprint for opening, growing, and expanding the store. A formal business plan for opening your boutique is crucial to show the investors that you are committed and serious about your boutique's growth. It also establishes milestones in the success of your boutique business and analyses your competition, customers, etc. Boutique business plans help create your revenue model and determine your financial requirements.
A Plan Backed By Research, Data, And Realistic Projections
Launching a boutique business may be quite difficult. To operate a boutique, you must comprehend styling, textiles, trends, and presentation. Although your functional expertise will help you conceptualize new designs and trends to effectively cater to customer needs, however, to arrange the seed capital initially, you need to have a well-researched boutique business plan, which will show current market data and use proper calculations to project a realistic outcome from the business.
Before preparing your business plan for a boutique, you should gather data regarding the market size, total business volume, and annual growth rate of the boutique business in the market where you want to start your business. You need to arrange the data properly, provide very lucid and easy-to-understand interpretations, and, based on these, create short-term and long-term projections that would show the investors the approximate return on investment (RoI).
What Makes A Good Business Plan?
Think about how you want to launch your boutique business – how the pieces will work together, where you want to take your boutique, how you want to secure a loan for your boutique, and how you want to build the business effectively. Once you have built this foundation, then you can build the structure of your dream project atop it. The business plan is a roadmap for your store's opening, growth, and expansion.
Every boutique owner must thoroughly understand the processes and business loans needed to establish a profitable company. With goals and timelines defined for each area, a solid plan should handle marketing, competition, finances, and staffing.
Your boutique business plan must include the total amount needed to start the business and maintain it well-funded in the initial months. A reasonable estimation of the amount of money required for the boutique is made after a need analysis. High expectations caused by undercapitalisation are the main reason new businesses fail. Hence, you should ensure adequate capital for capital expenditure as well as working capital.
The following information should be in the business plan:
- Business facts- The most crucial component of starting a business is understanding why you want to enter this industry and what you want to give the market. The fashion industry's success depends heavily on consumer satisfaction; thus, you should be aware of and sensitive to customers' demands. You need to be flexible with offerings to succeed and stay ahead of possible rivals.
- The amount required (loan)- You have to calculate the total amount that you need for capital expenditure like purchasing the store, merchandise, raw materials, etc., along with an estimation of the capital you need to run your business on a day-to-day basis until you reach your breakeven point. You have to clearly mention all these amounts in the business plan to explain your situation to the lenders.
- The loan period- Usually, a business loan is given for five to seven years. However, you can show your lender how soon you will be in a position to repay the debt using realistic income forecasting. FlexiLoan provides enough flexibility in terms of the loan period and interest rates.
- Financial viability (how the business will earn and how much)- Your business plan must show how you plan to earn – which means why should customers leave other stores and step into yours? The answer to this question should be backed by facts and research, showing the lenders that you have a clear vision.
- RoI with profitability- Generally speaking, a yearly RoI of around 7% or more is considered a decent amount for an investment in a boutique business. Ensure you show an attractive RoI using research and data so that you can easily secure the loan.
- Collaterals- Your business plan should inform your lenders what you want to use as collateral against the loan. Generally, boutique business owners use their stores as collateral. However, if you do not own the place, you can also put something else of equal value as collateral.
You can start your boutique business after creating a good boutique business plan to seek funding through a loan. FlexiLoans helps you in getting hassle-free loans for opening your boutique business at easy terms. Check out FlexiLoan offers today to start your boutique business and achieve success. We provide collateral free business loans, msme loans, small business loans, and unsecured business loans. Visit their website today to know about the eligibility for business loan and the interest rate for business loans.