Formal wear shop: sales, rentals and fittings

Wedding parties, high school and university grads and their families, and people dressing for galas, holiday parties and work events.

Margin on outfits and accessories you sell, plus rental fees for tuxedos and suits. Alterations, shoes, ties and other add-ons bring extra income per customer.

• Sales and styling advice
• Measuring and fitting basics
• Stock buying and inventory control
• Customer service under deadlines

• Business registration in your province and a Business Number for GST/HST. Check whether you also need to collect provincial sales tax
• Commercial general liability and contents insurance, and lease terms before you sign
• Business licence and signage rules from your municipality
• Heavy seasonality (prom, graduation and wedding season), so plan cash flow for slower months
• Money tied up in stock, and styles or sizes that don't sell
• Rental items that come back damaged or late, so set clear deposit and cleaning terms
• Quebec has French-language rules for signs and customer service, so check them if you are there

Estimates for a formal wear shop typically run around $30,000 to $150,000, depending on premises, stock, and whether you sell, rent or do both. Expect money to be tied up in stock and lease costs.

Estimated monthly revenue is typically around $8,000 to $40,000, depending on location, range and season. Prom, graduation and wedding season are heavy, so plan your cash flow for the slower months.

Check business registration in your province and a Business Number for GST/HST, plus whether you must collect provincial sales tax. Also check insurance, lease terms, and municipal business licence and signage rules. In Quebec, check the French-language rules.