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ON THE INSIDE - TINA BARRY

 

Part I: Opening a Better Children's Wear Store - Before You Hang Out Your Shingle, Ask the Experts for Advice

Many readers e-mail us with questions that range from finding a certain brand of pajamas to choosing the right sales representative for their line. Recently, we have received several e-mails like this one from a reader in Colorado: "I am researching opening a high-end children's store. What resources can you direct me to for information on demographics, start-up costs, how to shop trade shows, etc?"

We thank our reader for turning to us with her questions. Understanding that there is hard work ahead is the first step to success. Asking questions of people who can help is the key.

Where to begin? I turned to proprietors of better children's wear shops who spoke candidly with me about the ins-and-outs of opening a store. The message they want to convey to future store owners is, know your customers, ask questions and read, read, read!

SPECIALTY STORES FOR DUMMIES

Hit the books! I heard this advice from every store owner I spoke with. Lisa Haun, buyer and manager for Just For Tykes in New York City found the "Dummies" series of books helpful. "Managing for Dummies," and "Customer Service for Dummies" answered many of her questions. "Small Business Kit for Dummies" by Richard D. Harroch is another title to consider. Harroch focuses on topics important to small businesses: outlining the different types of partnerships, accounting needs, and dealing with the press, etc.

Ann Marie Romanczyk of City Cricket kids' store in New York City turned to "Specialty Shop Retailing, Innovative Ideas for Retail Success" by Carol L. Schroeder, a "How To" book for specialty store owners, before opening her store last year. Schroeder's book covers everything from working with your spouse to negotiating a lease. "The E Myth" by Michael Gerber (E stands for entrepreneurial) helped Karen Helburn of Just Hatched in Guilford, CT turn the fantasy of owning her own business into reality. Helburn used Gerber's advice to create a plan or "map" for starting her business. "It [opening a store] is like taking a boat out to sea. If you don't have a map to follow, you won't reach your destination. You have to have a map!" says Helburn.

For advice on loans and financing, try "Financing Your Business Made E-Z" by Harold R. Lacy. Mr. Lacy lists loans that are available to future business owners, the type of documents you'll need when you meet with bank management, and writing up a business plan.

Libraries and the Internet are great resources for anyone starting a business (check our site first, of course). Then hit Reference USA (reference.infousa.com) which is available in most libraries--it'll help you source suppliers, manufacturers, and stores. A similar program is offered through Dun's Business Locator developed by Dun & Bradstreet (dunandbradstreet.com). For more information on Dun's Business Locator call 800-872-4349.

If you live in a city, chances are your library has an adequate business section (in Brooklyn, NY we have a library with an entire floor dedicated to business research.) Even smaller libraries have books specifically targeted to specialty retailing, legal issues and helpful manuals and directories.

Merchandising departments in colleges and business schools can provide valuable information. Departmental instructors can guide you to professionals in your area who can answer specific questions and possibly, later on, become mentors. The schools may also offer courses in starting a small business, accounting and other areas you will need to address.

LEARN ON THE JOB

What is the best way for a prospective proprietor to educate herself? "Work retail" advises Helburn of Just Hatched and Romanczyk of City Cricket. Learning on the job is the fastest way to understanding how a better store operates.

Finding a part-time job as a salesperson, in the kind of shop you would like to open, will offer an invaluable education. Your boss will be available to answer your questions (and be impressed with your enthusiasm). You will see which lines she buys, and which lines sell or don't sell to the kind of customer you want to attract. Ask to go along on shopping trips to showrooms or trade shows in your area (pay for your own travel if you have to). By working with the store's buyer you will see how merchandise is chosen; which pieces they place large orders on and the kind of goods they avoid buying. You'll see how much credit vendors will extend and what discounts they will agree to. Working in a store will open your eyes to all the small things you'll need to purchase later on, like wrapping paper, bags, and labels. As an employee you'll know first hand what kind of salaries salespeople are being paid, and get an idea of how much money you'll need to budget each month for wages.

If you're already employed or can't work before you open your store, then use your free time to shop till you drop! Frequent the stores you like; speak with the shop owner. Most people love to talk about their businesses and to share information. If you're not perceived as a competitor you'll probably be rewarded with a lot of useful information.

While you walk through a store notice the way goods are merchandised. Better stores tend to hang all the pieces from one manufacturer together for a stronger presentation. Be aware of why you enjoy spending time in that particular shop. Are you welcomed warmly when you walk through the door? Is the lighting pleasant? What about the store's aroma? Start to develop a checklist of questions to ask yourself. Are the sales help very young or are they hiring older, more experienced people? Which do you prefer? Do they carry European or domestic lines, or a mix? Discreetly write down the names of the lines you love. What sizes are they stocking? Check the sales areas and see which labels are marked down. Ask the sales help why certain items didn't sell. Did the store overstock pink? Was there a sizing problem? Was the item too hip for a conservative clientele or too sweet for a trendy neighborhood?

My experts suggest that future store owners visit a national trade show or regional apparel show in their area. These shows provide space for exhibiting manufacturers to display their collections. Although the shows are targeted to buyers and other industry professionals, a newcomer can get around that by calling ahead and speaking with the show's management. If you explain that you are in the process of opening a store and would like to see what manufacturers are offering, you shouldn't have a problem getting in.

Once inside, you'll be free to wander the aisles and meet the vendors. Sales personnel and designers love to speak with people who admire their collections. For an inexperienced buyer, or in your case, browser, walking a show can be mind-boggling. There are aspects of the business you may not have considered. Some vendors insist on a minimum amount of goods a buyer must order. Some lines may have a minimum set too high for a small store; other lines have no minimums at all. Price points may shock you. You may not have considered delivery schedules. A vendor's delivery schedule may not work for your store. The experience can be overwhelming, but you'll have a better idea of what to expect when you're ready to buy.

The shows provide a "clear focus," according to Romanczyk of City Cricket. Seeing what you like and what doesn't work for you will help you develop a concise picture of what your store will stock. "If you walk through a show and you find it exhausting and unexciting then you may be considering the wrong business. If you leave exhilarated [like she does] then you're on the right track," says Romanczyk.

 

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