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Skip to main content. Small Business Types of Businesses to Start Craft Businesses How to Start Your Own Purse Bags Company by Michael Flanagan You need a wholesale supplier for your purse and bags company.
Learn how to start your own accessories business with purses and bags online or in a traditional retail setting.
The fashion business is notoriously difficult, but if you start your own business with accessories such as purses and bags, you may be able to get your foot in the fashion door. Good planning goes a long way when you open a purse and bag business startup. Give a lot of thought to each aspect of your business plan before you launch to avoid missteps.
Startup Business PlanA business plan helps you take a vague idea and turn it into a concrete plan. Include a section on your company’s organization and management structure. Also, include market research, taking into consideration the current purse and handbag market size and customer demographics. The business plan should include a financial summary and an estimate of the costs of running the business including the expected revenue stream. Include a section on business strategy and marketing plans. The purse market has many big name brands. Look for a niche you can fill.
Licenses and PermitsIf you are opening a store with a name different from your personal name, you need to register it with your nearest county clerk’s office and apply for a Federal Business Tax ID for taxation purposes. If you buy purses and bags wholesale, look into getting a reseller permit that allows you to buy the wholesale product tax free and add the sales tax when you resell it. If you open a physical location, check with your local city government to get the proper business licenses and permits.
Selling Wholesale or RetailDecide whether to sell your product wholesale or retail. By selling wholesale, you sell your purses and bags directly to retailers, which means you receive larger chunks of money at a time but a smaller profit per item. You also work directly with the manufacturers. By selling retail, you make a larger profit per item sold, but you hold on to your inventory for longer periods of time and you only sell a few items per customer.
Store LocationIf you plan to open a physical storefront, choosing the right location gives you the best chance for success. Make sure to properly research multiple potential locations before picking one. The best locations are usually in retail oriented areas with a lot of foot traffic such as a mall. However, malls are declining in popularity, so don’t overlook smaller storefront possibilities.
Online StoreYou can set up a website or use online sales portals to create an online only store or to complement your physical retail location. If you don’t know how to make your own website, look into using e commerce platforms such as Shopify or Quick2Host. You can also create accounts with websites like Amazon, eBay and Etsy and become a third party seller. These websites provide you with a well established global customer base, ease of use and a supportive seller community.
Hire and Train StaffWhether you run an online only store or have a physical location, you will want to hire staff at some point. Look for people who represent the clientele of your handbag and purse brand, as they are the first people your customers have contact with either in a retail location or in an online customer service contact. Train them to be knowledgeable about the types of bags and purses you have so they can help customers with questions about their purchases.
Store PresentationDecorate both your digital and physical storefronts in an attractive and organized manner that properly represents your brand. The more comfortable your customers feel while shopping at your store, the longer they will stay, which means that they are more likely to buy a bag or purse.
Store Your InventoryProperly store your bag and purse inventory as these products are your source of revenue. This means storing them in a cool, dry and smoke free environment. Consider getting warehouse or inventory insurance to protect your investment.
Market YourselfUse online marketing strategies to advertise your business. Pay per click ads can be effective as you only have to pay for the advertisement when someone clicks on the ad. Also, social media platforms such as Facebook and Instagram provide easy, free ways to advertise your business. Provide interesting and informative content with lots of images of the bags you sell. For example, you can show pictures of a businesswoman holding a purse while walking to work, children carrying their backpacks on their way to school, or a family carrying a bag while walking on the beach. Social media platforms allow you to talk directly with your customers and listen to their comments and suggestions.
Things Needed Wholesale supplier Products Merchant account Website Digital camera Business cards Catalogs Sales letters Brochures Price lists Order forms Shipping labels Shipping boxes
Tip Maintain a database of all retail, wholesale or consumer customers, depending on your target market. Send sales letters and brochures to customers every month or two for more potential orders. Offer discounts or special deals on new products. Louis. His articles have appeared mostly online. He has blogged for the small business section of Chron writes about various business and entrepreneurial topics.