Help with business plan - clothes shop

[Pinkcadillac]

I posted this on the Entrepeneurs board but haven't had any replies. I'm hoping that someone with retail experience may be able to help.

I have inherited some money and I am considering opening my own business - a shop selling clothes and accessories that I would -at least initially- source from UK suppliers.

I am working on my business plan and I am having trouble with the trade terms . Will my suppliers want full payment when placing the order? or a % of the order value upfront and the remaining 30 days after delivery?
Can I set my own terms and pay them 30 days after delivery/invoice?

If anyone can help, I'd be very grateful!

I have contacted two trade associations but they haven't replied yet.

I don’t mind answering some questions where abouts is the shop ? Good footfall ? What sort of clothes will you sell ? British made is really expensive most high streets are on their knees and re payment the first three orders tend to be paid for upfront then more flexible terms pm me if you want to ask more

Thank you @Parsley1234 I will pm you if you don't mind. The shop is (will be) in a busy market town in the Home Counties, high disposable income. The shop used to be a floristry school/ flower shop and it is in great condition.

It will cost you a fortune to buy and sell British made clothing.

Given how many clothing shops are struggling at the moment, you need to really be 1000% sure of what you're doing.

It’s tricky to start as you have no trading history, you might find you’ll need to pay up front until you build up trust, there is a useful book on Amazon called ‘Commercial leases & setting up shop, tenant guide, it talks you through the process and timelines, deposits etc.

Also it’s worth going to the Spring and Autumn trade fairs, for trends and supplier contacts.

@Pinkcadillac yes please do if I can help you I will

Have you identified some suppliers? You need to ask them as they'll all be different.

I think this is something that will be really hard to make a living out of even in an affluent area. Think about how many items you'll need to sell just to cover rent, rates, utilities, insurance, stock and everything else, before you actually make an income from the business. Plus there's the complication about sizing and having to keep stock in for customers to choose from that might not necessarily sell quickly. What are you going to be offering that's going to encourage customers to come to you, rather than the big chains at the retail park or ordering online?

Will you be open when these affluent customers are able to shop with you?Assuming clothes/fashion/styling is something you know about, what about offering 'personal shopping' sessions to help customers find what they need. But then you could find you spend a lot of time advising someone and they buy nothing, or just one or two items.

Thank you all for your responses.

I have a list of potential suppliers of knitwear, tops/jackets/dresses, bags/leathergoods, costume jewellery and scarves. The kind of customer I have in mind is someone that likes Isabel Marant, Maje, Sezanne. Prices will be closer to Sezanne than to Isabel Marant though.

@Pinkcadillac just be careful with signing the lease, it’s not the ingoing so much, it’s the exit you need to be prepared for!

Doesn’t matter if it’s in a good condition you might face a huge bill on exit.

Most, if not all your suppliers will expect payment with order, at least for the first couple of years. A few may accept 50% with order and 50% 7 days before delivery.

A new company will not have a trading history or company credit score so your chances of getting 30 days to pay an invoice after delivery are slim to none. Wholesalers and manufacturers have been stung too many times by Ltd companies ordering thousands of pounds worth of stock then ceasing trading still owing money.