Steps to start a clothing store in Las Vegas
Las Vegas may be known as one of the most fashionable cities in Nevada but does that make it easy to start a clothing retail business in Nevada? There are several aspects that you will need to consider including sourcing of your merchandise and selecting brands or fashion style. A clothing retail business structure is different from other types of businesses and hence this step-by-step guide to forming your business in Las Vegas will provide a meaningful insight into starting a business operation.
How to write your business plan
A clothing retail business plan is crucial to starting a new business as it will take into account everything right from store space to brands, financial standing, employees, expenses, marketing, revenue generation, operational plans, and target audience among others. When starting a small business in Las Vegas, your clothing retail business plan should include the following:
- Executive Summary: This part of the plan should highlight key aspects of apparel retail like merchandise sourcing, location, labor, target market, marketing strategy, and revenue generation. It will also list your mission statement.
- Company Description: This part of your clothing retail business plan provides an insight into the competitive edge your business has in the Las Vegas market
- Organization Structure: If you are starting a small business in Las Vegas, the organization structure is crucial. The type of structure will define how the company is formed. For instance, an LLC structure and formation is different from that of a business corporation. This area will also provide information pertaining to the management team with a detailed professional profile. This information will help you with prospective business investors and also create a professional image among your future customers.
- Products: At the center of the fashion industry business plan are the products that you are planning to source and sell. This area will contain information on the types of products you are planning to showcase like sportswear or formal wear etc. You will also have to provide relevant information on product sourcing and strategic tie-ups with firms producing the chosen products.
- Competitive or Market Analysis: If you are planning to start a clothing retail business in Nevada then the growth and sustainability will be determined by a process called the SWOT analysis, which is; strengths, weaknesses, opportunities and threats.
- Marketing Plan: A marketing plan is necessary as it will help you reach out to your target audience and create the visibility necessary. The internet makes it easier to work with a wide variety of advertising options and platforms including social media.
- Financial Summary: This is an important area of any clothing retail business plan as it will entail financial planning. This area will help you create a forecast of all your expenses as well as revenues in the form of a cash flow statement, income statement, and balance sheets.
- Business Expansion: Last but not least; this section should provide information on future business growth and expansion taking into account predicted market dynamics
Select a clothing style or type that you want to sell
Fashion is an ever changing industry and customer preferences keep changing according to the trends. If you are starting a small business in Las Vegas to focus on the apparel industry then it is extremely important to choose the clothing style that you want to promote and sell. There are over hundreds of styles and they vary from Elizabethan styles to modern day haute couture. Since choosing a style is difficult and a personal choice, it is better to focus on the type of clothing you want to sell. The types of clothing can vary from evening wear to formal wear, sporting clothes, summer or winter clothes, casual wear, holiday wear, and everyday wear among others. Since, you will be a part of the fashion industry business; you also need to focus on the brands and the clothing material.
Choose a business name
One of the important aspects to consider prior to starting a small business in Las Vegas is to identify and reserve a business name. Once, you have identified a business name, you need to conduct a name availability search on Nevada SOS. The office of the Nevada Secretary of State has also specified the requirements for a business name including the “Restricted Word List” and the Nevada company name restrictions. One of the important prerequisites is that it should be distinguishable from any other business name existing in the records of the Secretary of State.
Set up your business
There are several aspects you need to consider when you start a clothing retail business in Nevada. Business formation in Nevada is one of the primary aspects and it is a process that involves filing of documents containing information regarding your business. The document will also contain the name of the business and type of business. Since it is a time consuming process, IncParadise can help you to register your business in Nevada quickly and with ease. This is because we are expert incorporation specialists with experience of helping several startups transform their fashion industry business idea into reality in Las Vegas.
IncParadise can help set up your Clothing Store in Las Vegas Nevada!
Register for taxes
Depending on the type of clothing business you want to form in Las Vegas, Nevada, you will be required to pay sales tax or commerce tax. There are different types of taxation applicable for startups in the state and to ensure tax compliance, you will be required to apply for a Taxpayer ID also known as Tax ID or TID. It is a unique 10-digit number that is assigned to a business entity by the Nevada Department of Taxation. You can also determine your taxation requirements with the help of this informative guide to Nevada business taxes.
Open a business bank account & credit card
If you start a clothing retail business in Nevada then opening a bank account is important. A bank account is required as it helps to maintain the financial status of an entity. In order to open a business bank account, you will need to furnish or submit different documentation including tax ID or EIN details. There are several other benefits of business banking like limited personal liability protection and getting a line of credit for the entity. Similarly, credit cards are also important financial tools as it will provide you with the purchasing power required by a fashion industry business startup. A credit card will also help in establishing a credit history for your startup.
Set up business accounting
An integral part of any clothing retail business plan is accounting and bookkeeping as they help in maintaining sound financial health of a business entity. As a startup in Las Vegas, you will need to set up business accounting but first you need to identify the structure of your business as this will determine how you will be taxed. When starting a small business in Las Vegas, you need to choose from two types of accounting methods as they will be useful for filing business tax returns. The two methods are:
- Cash basis accounting: This is the simplest form of accounting as it tracks income when it is received and also when expenses are made.
- Accrual basis accounting: This form takes into account money when it is earned instead of cash received.
Obtain necessary permits and licenses
When you start a clothing retail business in Nevada, one of the foremost requirements for making your startup operational is a state business license. State business licenses have to be renewed annually in Nevada. You can find more information on the type of license required, local permits required if any, the license or permit fee, the forms, and other related documentation with the office of the Nevada Secretary of State.
Some businesses may require multiple licenses or permits depending on the type of business. You may also require local city or county licenses based on business operation and where it is located. The process of searching for the licenses your fashion industry business requires may be confusing but you can take advantage of our Business License Check service to help you identify.
Find out what business licenses you need for your startup!
In order to start a clothing retail business in Nevada you will have to apply for a Federal tax ID and this is mandatory for all types of businesses except sole proprietorship and non-profit. The Federal tax ID is known as Employer Identification Number or EIN and is issued by the Internal Revenue Service (IRS). It is a unique nine-digit number and you can apply for it by submitting Form SS-4. There are several benefits and features of an EIN that can help your business in many ways. Alternatively, we at IncParadise can also help your fashion industry business startup to obtain an EIN.
Apply for your EIN Number today!
File a trademark
If you are thinking of starting your own clothing label or brand then you need to file a trademark. It is a key aspect of any clothing retail business plan and should be included along with the name and logo that you wish to trademark. There is a specific registration process for trademarks wherein you have to send a mail with the logo and name to the Director of the United States Patent and Trademark Office. You have to apply for a trademark prior to starting a small business in Las Vegas. You can send the mail to P. O. Box 1450, Alexandria VA 22313-1450 or apply online through the USPTO Trademark Electronic Application System (TEAS). You can find more information pertaining to the trademark registration process with the United States Patent and Trademark Office (UPSTO).
Get business insurance
Business insurance is an integral financial aspect of any clothing retail business plan. This type of insurance helps to protect small businesses. The most common types of business insurance include the General liability insurance and Professional liability insurance. You can apply for business insurance prior to or after starting a small business in Las Vegas. Different types of insurance offer different benefits like a professional liability insurance also known as E&O insurance covers claims made by another person while the general liability insurance provides protection to your business from another person or business claiming bodily injury and damage to property.
Sourcing your merchandise
Merchandise sourcing or product sourcing is a key aspect of your clothing retail business plan and will help you in identifying the brands, manufacturers, and independent designers from whom you will buy your apparel. You can research over the internet for local manufacturing suppliers and source your merchandise directly from them. It is important to check their quality prior to stocking inventory. You can also approach wholesale apparel manufacturers in the Nevada state as well as other states.
Create a website and start selling online too
One of the best ways to create higher visibility after you start a clothing retail business in Nevada is by having a company website. There are many benefits of having a website and one of them is that it will enable you sell online too. You can have a store for local customers and an online store for customers in Nevada, the US, and even worldwide. Another aspect is that the clothing retail business structure for an online store is simple and less expensive as compared to a brick and mortar store. You will need to hire a graphic designer or a design agency to create a website and integrate all e-commerce essential tools including a shopping cart and payment gateway.
Market your brand
Marketing your brand correctly will ensure your store has a higher visibility in local and national markets. Marketing can be offline and online. You need to implement your marketing or branding strategy before you start a clothing retail business in Nevada. This way, by the time your business is operational, you have already reached out to the target audience. The importance of marketing of a fashion industry business entity lies in the following:
- It will help increase or boost sales and thus help business to make profit
- It will help promote brand awareness
- It will help in building a strong customer base
- You will be able to attract and retain loyal customers