Looking for the complete guide on how to start a fancy store business? Then here you will be able to know all the necessary steps for starting a fancy store business.
Fancy stores are stores where clothing, accessories, and other goods are sold. It always proves to be a profitable business in any place.
As we are in the 21st century, and all the citizens of the country are inspired by one or the other celebrity and they want to look like them. If we calculate profitability, it depends entirely on where you are buying store items. If you are getting good support from suppliers, then it is very helpful for you to focus on another part of the river, and the margin is sometimes 50% or more.
The only thing you need to see is the demand side and how to impress/attract the customer to visit your store. And try to include all available clothing and other items in size, so that they don’t go to other stores.
Prerequisites for Starting A Fancy Store Business
Before opening a fancy store, it is necessary to understand the sector in question as well as its challenges. To do this, you must first start by studying the market. Then, it is necessary to study the viability of the project from the business plan. Finally, it remains to choose its location and its products.
Doing a market study allows you to approve the existence of an opportunity to make commercial profits in a specific area. To do this, several steps must be carried out.
First of all, you have to study the market trends. This will make it possible to determine the type of products with the greatest potential.
Then, it is necessary to know your target customers. To do this, we must study their purchasing behavior and understand their expectations about prices and products.
Then, it is necessary to analyze the level of demand and to study the offers which are already in the zone of the establishment.
Finally, it will be necessary to carry out an analysis of direct or indirect competition: supermarkets, online sales sites, etc.
Once the elements of the market study have been collected, they must be included in the business plan. Indispensable when setting up a business, this document makes it possible to assess the viability of the project. Also, well-argued and cost, it will make it easier for the entrepreneur to obtain financing from credit institutions and investors. The business plan aims to:
- explain the project clearly;
- determine the strategy chosen by the company as well as its financial needs;
- to convince credit institutions;
- to inform the future functioning of the company;
- anticipate the various hypotheses and difficulties that may arise.
The success of a business largely depends on its location. For this, several criteria must be taken into consideration. In particular, the accessibility of the premises, the visibility of the brand, the operating surface, the present competition, the price of the rent as well as the terms of the lease.
This choice will also depend on the products offered for sale. When it comes to a fancy store, a shopping street or mall are ideal locations. On the other hand, when it comes to luxury jewelry, it is better to settle in a shopping street or a residential street in a big city.
Determining the needs necessary to launch a business
After having carried out the market research, established a business plan, and chosen the appropriate location, you must remember to list the needs necessary to open your fancy store. The main needs are personnel and equipment.
1. The need for personnel
Opening a fancy store necessarily involves hiring staff. Stores that offer repair services must also have skilled tradespeople to ensure the quality of their service.
2. A need for equipment
Apart from the products offered for sale, a jewelry store must have a good infrastructure to accommodate its customers: displays, counters, checkouts … You will also have to think about installing a beautiful decoration and neat furniture.
Also, you should know that a jewelry store is subject to significant security constraints. Thus, it will be necessary to think about installing a system of video surveillance and alarms.
Steps for Starting a Fancy Store Business
Like any business creation, opening a fancy store implies compliance with several legal and administrative formalities. Among them, we find the choice of legal form, registration in the Trade and Companies Register, and where applicable, in the Trade Register.
Choice of legal status
A person who wishes to open a fancy store must have legal status. As long as the latter exercises his activity regularly, he cannot do so as a private individual. The legislation in force allows it to choose between several legal structures.
1. The status of the auto-entrepreneur or the sole proprietorship
The entrepreneur who wishes to start his activity quickly can choose the status of auto-entrepreneur or sole proprietorship. In addition to benefiting from a simplified social tax regime, these two regimes also make it possible to create a business at a lower cost. However, by opting for one of these two structures, the entrepreneur will not be able to protect his personal assets. Also, turnover is limited. These criteria can therefore be disabling.
2. The corporate regime
For a growing activity such as the sale of jewelry, the societal form is perfectly suited. The entrepreneur who wishes to launch his activity alone can choose the status of EURL or SASU. On the other hand, if he creates the jewelry with several partners, the status of SARL and SAS are the most recommended. In an LLC, the partners will only be financially responsible for their contributions. It is the same in the SAS. SAS is also interesting insofar as its operation is governed by the statutes. Managers, therefore, have more freedom in the way they manage their company.
The legal existence of the company goes through its registration. This is subject to the completion of several administrative formalities. Most of them are handled by the Business Formalities Center (CFE).
1. Registration of sole proprietorships
First of all, the entrepreneur must register his company in the Trade and Companies Register 1 one month before the start of his activity, ie within 15 days following it.
Good to know: If the company offers repair services, it will also have to register in the Directory of Trades.
2. Company registration
If the entrepreneur wishes to register a company, in this case, in addition to the above formalities, he must, if he makes a cash contribution, deposit funds within 8 days at the deposit and consignment office, with a credit institution or with a notary. If the partners make contributions in kind, a contribution auditor must be appointed.
It will then be necessary to draft the articles of association by private or notarial deed. The company must publish a notice of its incorporation in the JAL within the jurisdiction of its head office.
Finally, you will need to submit your file to the RCS, attaching a certified copy of your identity card, the certificate of publication to the JAL, the completed m0 form, and the certificate of deposit of funds.
What about specific regulations?
As this is a fancy store, the law does not provide for any specific regulations. However, there are regulations regarding the sale and processing of precious metals. In this case, the company must make a declaration of existence to the Directorate General of Taxes, and more specifically to the guarantee service of the place of its head office.
The store manager must also have a ” police book ” in which he must record the entries and exits of articles. No platinum or gold transaction can be done between two professionals anonymously. This book can be
- an accounting book;
- aside register and initialed at the town hall or by a registry;
- non-modifiable software.
Business creation: how to obtain financial assistance?
Some several financial aids and subsidies can be made available to entrepreneurs such as Assistance to Entrepreneurs and Buyers (ACRE) which allows the entrepreneur to be partially or totally exempt from social charges for 1 year.
There is also Assistance for Business Start-ups (ARCE), New Support for Business Creation or Resumption (NACRE)… Do not hesitate to inquire.
Opening a fancy store: the keys to success
Specific qualities are needed to shine in the profession of a fancy salesperson. Being a very popular activity, you have to know how to adopt the right strategies to stand out from the competition.
Good marketing plan
An essential step when setting up a business, the marketing plan not only helps to acquire but also to retain customers. The actions to be implemented depending on the positioning and concept of the store. For a fancy store, street marketing such as the distribution of flyers is quite an interesting process. The target clientele being the general public, the store will gain more visibility by carrying out close marketing.
On the other hand, in the era of the development of new technologies, having a showcase site, or offering online sales is highly recommended. Finally, a good presence on social networks is also required to communicate directly with customers.
Creativity and perseverance
To stand out from the competition, you have to know how to be creative. For this, the entrepreneur must first find his own style. Then, he must dare to offer original jewelry to his customers. As the trend evolves, it will have to renew its ranges without losing its personal style. This will allow the entrepreneur to gain notoriety.
Also, it should be known that the clientele does not constitute in a few days. To retain buyers, you have to be patient and persevering. You have to find the right suppliers, adopt a good communication strategy, advise your customers, and above all offer quality products.
Open a fancy store, franchise, or independent, what to choose?
After having defined the positioning of his store, the entrepreneur has the choice between opening a franchised or independent fancy store. The 2 concepts each have their advantages and disadvantages.
1. The franchise, to take advantage of the brand
Opening a franchise fancy store is interesting because it helps ensure the brand’s notoriety. This is especially valid if the store is located in a catchment area where several jewelry stores are already located. Also, the store will not have to search for suppliers or to canvass with them. Finally, the franchisee will benefit from support to create his jewelry store.
2. Persevere as an independent
For jewelry designers, it is recommended to open an independent jewelry store. Indeed, the franchise contract does not allow the franchisee to sell the jewelry of his creation. The situation is therefore disabling for these craftsmen.