Independent clothing shop

Local shoppers who want to see, touch and try clothes, plus visitors in busy shopping areas.

You buy stock at wholesale and sell at retail price. Profit depends on margins, how well stock sells through and keeping rent and staff costs under control.

• Buying and choosing stock
• Customer service and styling advice
• Visual merchandising
• Managing cash flow and inventory

• Check your municipality's business licence, zoning and signage rules before signing a lease
• Commercial general liability and property insurance are usually needed
• Lease terms can be long, so get advice before committing
• Winter and post-holiday slumps can hurt cash flow
• WCB/WSIB coverage and payroll rules apply once you hire staff, check your province
• Register for GST/HST and check provincial sales tax rules (Quebec has its own rules and French-language requirements for signs and labelling)

Estimates suggest startup costs of typically around $25,000 to $100,000, depending on the size and location of the unit, your stock and the shop fit-out. Lease terms can be long, so get advice before committing.

Estimated monthly revenue is typically around $6,000 to $30,000, depending on your location, range and season. That is revenue before costs such as rent, stock and wages. Winter and post-holiday slumps can hurt cash flow.

Check your municipality's business licence, zoning and signage rules before signing a lease. Also check insurance needs, GST/HST and provincial sales tax rules (Quebec has its own, plus French-language requirements for signs and labelling), and WCB/WSIB coverage once you hire staff.