Boutique Expenses

Expenses to Consider Before Building Your Boutique Budget

Opening an online boutique is easier than ever thanks to the Internet. Purchasing wholesale products, marketing on social media, and allowing the sales to flow in is the dream of new boutique owners, but before you begin, you have to determine your budget. There are a number of factors that go into opening your boutique, so we’ve listed some of the most common expenses that boutique owners encounter. 

Common Boutique Expenses:

• Wholesale products $$$
• Online platform monthly $$
• Website domain $
• Advertising / marketing $-$$$
• Shipping supplies $
• Freebies such as small gifts included with purchase $-$$
• Collaborating with influencers $-$$$
• Promo cards $
• Business cards $
• LLC and annual registration $$
• Accountants / accounting software $$-$$$
• Shipping $-$$
• Graphic designers / online editing tools $-$$$
• Website setup (if needed) $-$$$
• Logo creation $-$$
• Hangers $
• Storage for products $
• Clothing rack $
• Camera for shooting products $$-$$$
• Steamer $
• Professional email service $
• Professional photoshoots $$-$$$
• Lawyers/ professional services $$$

Other factors to consider:

• Pricing of products – how much will you be marking up your wholesale products? Will you offer free shipping and include it in your markup? 
• Paying yourself – How soon will you be paying yourself income as opposed to putting profit back into the business?
• Hiring help – will you eventually hire someone to assist you?
• Sales and markdowns – what happens if products aren’t selling? your original pricing/profit strategy may not work out
• Collecting sales tax – complying with legal requirements is very important and understanding how often you are set up to pay these will save you money in late fees down the line
• Paying income tax – even small businesses have to pay taxes
• International shipping fees – consider going global? shipping outside of the country can get very pricy 
• Getting out of debt – how long will it take you to turn a profit? Did you take out a loan or use your own savings?

Consider all of these expenses before determining your budget. It is easy to think that we can spend X amount of money on wholesale items and quickly turn a profit, but this takes time and there will always be unforeseen circumstances that you may not expect. Think wisely before digging yourself in a deep hole! 

Looking for an easy way to track expenses? Finding the right solution early allows you to be ready for tax season.

Are you ready to get organized and learn how to open your online clothing store? The Let’s Build a Boutique E-course teaches you everything you need to know to open a clothing store online. This step by step course walks you through every detail to set yourself up for success. Learn social media strategy, how to build excitement for your launch, how to legally set your store up, branding ideas, and more!